After months of struggle between the federal and state governments, the Federal Council approved the Growth Opportunities Act with a clear majority. The law is intended to provide tax relief for companies and reduce bureaucracy.
The Federal Council has approved the Federal Government’s Growth Opportunities Act. In the state chamber’s vote on Friday, there was a clear majority in favor of the law, which was initially rejected by the Union in protest against the removal of subsidies for agricultural diesel. Shortly before the Federal Council meeting, the federal government announced a series of measures to relieve the burden on agriculture in a statement in the minutes.
The aim of the law is to strengthen the competitiveness of Germany as a business location with tax incentives for investment. It should lead to relief of 3.2 billion euros. The climate protection investment bonus originally planned by the coalition is no longer part of the Growth Opportunities Act. STERN C federal budget
Growth Opportunities Act linked to withdrawal of subsidies
The Federal Council had already put the brakes on the project in November and referred it to the mediation committee. An agreement was reached there in February on a slimmed-down version with less of a relief effect, although the Union continued to make its approval of the project dependent on the withdrawal of the abolition of subsidies on agricultural diesel for farmers.
The federal government wants to stick to the abolition of diesel subsidies for agriculture. However, before the Federal Council meeting, she announced the “swift implementation” of new relief for farmers in a written statement available to the AFP news agency. Why Germany’s economy is so slow 20:54
Bavaria’s state minister speaks of a “deceptive package”
These include the suspension of the mandatory set-aside for 2024, “numerous reliefs” in tax law, reductions in bureaucracy for agricultural businesses and the examination of tax relief for alternative fuels as soon as the EU legal requirements for this are met.
The CSU-led state government of Bavaria nevertheless voted against the law. State Minister Florian Herrmann (CSU) described the protocol declaration in the Federal Council as a “strange deal” and a “deceit”. The statement was “an outrage,” said Herrmann. “Agriculture must betray itself to this federal government and be sold out.”
Source: Stern
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