The recently agreed coalition between the Union and the SPD aims to bolster Germany's economy through a series of strategic measures. Key aspects include tax relief for companies, such as a phased reduction of corporate taxes and accelerated depreciation. To further enhance industrial competitiveness, the coalition plans to lower the industrial electricity price and reduce the value-added tax in the gastronomy sector.
The coalition agreement also emphasizes support for the automotive industry, particularly in promoting e-mobility. Measures include incentives for purchasing electric vehicles, tax advantages for electric company cars, and a continued exemption from vehicle taxes for electric cars until 2035. The coalition intends to make electric vehicles more accessible across all income levels by enhancing the charging infrastructure.
Additionally, the agreement underscores the importance of technology in energy transition, with investments planned in cloud and AI infrastructure. The government aims to foster a green economy by setting ambitious climate goals and expanding renewable energy sources. However, the coalition has faced criticism for lacking clarity and ambition in some areas, particularly regarding the international positioning of its policies.
In the realm of public finance, the coalition plans to alleviate municipalities with high old debts and rationalize positions in the federal administration, except in security agencies. Moreover, a special commission will review the handling of the COVID-19 measures.
Overall, the coalition's initiatives are expected to provide a strong foundation for economic growth, with a focus on competitiveness, sustainability, and innovation.
