"Sick" economy, Germany launches huge stimulus package, businesses "lightened burden"

On August 29, the German government agreed on a massive tax cut program worth up to 32 billion euros ($34.63 billion) for businesses over four years, aiming to revive the ailing economy .

The German economy is stagnant. (Source: Shutterstock/esfera)

The federal government 's statement said the expected tax cuts of more than 30 billion euros would ease the burden on small and medium-sized businesses.

Specifically, in the first year, this stimulus package will reduce tax revenue for the federal government by 2.6 billion euros. This figure for the states is 2.5 billion euros and for the autonomous regions is 1.8 billion euros.

German Chancellor Olaf Scholz said the country needs to deal with its "sick" economy to stimulate growth.

According to the head of government, the tax cuts are part of a 10-point program to boost growth and make it easier for companies to decide to invest in Germany.

The new stimulus program will encourage companies to undertake new environmentally friendly investment projects, provide tax incentives for research activities and introduce regulations that are more beneficial to businesses' bottom lines.

The stimulus package comes as the German economy stagnates. The country recorded “zero” growth in the second quarter of 2023, after falling into a technical recession earlier this year. The main cause was the heavy impact of the Russia-Ukraine conflict, which caused energy prices to skyrocket after Berlin stopped importing gas from Moscow.

Source: https://baoquocte.vn/kinh-te-om-yeu-duc-tung-goi-kich-thich-khung-doanh-nghiep-nhe-ganh-240252.html