Growth initiative for the economy

The German government wants to boost the economy with improved depreciation options and other measures.

On July 5, 2024, the governing coalition concluded its negotiations on the federal budget for the coming year. The negotiations also included a package of measures with which the government hopes to provide new economic impetus. The details of this growth initiative are to be approved by the cabinet together with the 2025 budget on July 17.

It is already known that a significant part of this growth initiative consists of the expansion of depreciation options, i.e. the very measures whose scope was initially significantly reduced with much effort and controversy in the Growth Opportunities Act. In this respect, the growth initiative is old wine in new bottles. The government's package of measures also includes the regularly necessary increase in child benefit and the tax-free minimum subsistence level, as well as compensation for cold progression. However, there are also to be improvements to the research allowance, the promotion of electric mobility and overtime by employees.