The Federal Council is set to address important economic measures, including a planned pension increase and an 'investment booster' for businesses. Starting July 1, pensions are expected to rise by 3.74%, benefiting approximately 21 million retirees in Germany.
This increase, exceeding the current inflation rate, has been welcomed as a significant enhancement for pensioners. Additionally, the Council will review proposed tax reliefs aimed at stimulating corporate investments, particularly focusing on accelerated depreciation.
Financial Minister Klingbeil faces challenges in balancing discussions with federal states and managing budget negotiations for 2025 and 2026. The urgency of these discussions intensifies as states call for compensation for anticipated tax losses exceeding 30 billion euros over the next five years.
They express concerns about the funding of essential services at the state and municipal levels, urging a resolution with the federal government before the summer recess. The government's strategy includes initiatives such as quicker depreciation, reductions in corporate tax, and incentives for research, all designed to invigorate the economy and enhance Germany's attractiveness as a business location.
As these pivotal decisions approach, the outcomes will significantly impact both retirees and the corporate landscape.
