Overview

• Chancellor Friedrich Merz’s Cabinet approved the growth booster program on June 4, but it still requires parliamentary passage before taking effect.
• The centerpiece is a three-year tax write-off for corporate investments in machinery and equipment.
• The plan schedules a gradual reduction of the corporate tax rate from 15 percent to 10 percent between 2028 and 2032.
• Companies that purchase electric vehicles will receive tax breaks for the next two and a half years alongside incentives for research spending.
• The new package complements a separate 500 billion-euro infrastructure fund slated for formal legislation in late June.