The Federal Council has recently addressed two significant topics in its latest session: a planned pension increase and an investment incentive for businesses. Effective July 1, pensions are set to rise by 3.74%, translating to an average increase of approximately 66 euros per month for standard pensions. This decision follows a cabinet directive issued in May, although final approval from the Federal Council was still pending.
In addition to the pension discussions, the council reviewed the government's proposed 'investment booster.' This initiative aims to facilitate quicker tax deductions for business investments, a move welcomed by regional states. However, concerns were raised regarding potential tax revenue losses, prompting calls for financial compensation.
The council also approved a legislative proposal to enhance flexibility in fulfilling legal childcare obligations, ensuring better support for working parents. Furthermore, they passed a resolution urging the government to improve recycling initiatives for mattresses, highlighting a commitment to environmental sustainability.
Mecklenburg-Vorpommern's Minister-President, Manuela Schwesig, expressed support for the pension increase while emphasizing the necessity for stability in the pension system. She cautioned against uncertainties caused by ongoing proposals for pension reform, advocating for a broader contributor base to strengthen the system. The adjustments and initiatives reflect a proactive approach to social welfare and economic growth in the region.
