BERLIN (Reuters) – The German government on Wednesday approved a four-year, 32 billion euro corporate tax cut package, a move aimed at reviving growth in the eurozone’s biggest economy. .
The system also includes a subsidy covering 15% of the cost of investments in favor of the environment by companies.
These measures, which still have to be adopted by the German parliament and approved by the federal states, are a very reduced version of the initial plan of the coalition government, which provided for write-offs also covering the cost of investments in digital infrastructure.
The tax cuts, which amount to around €7 billion a year, are modest in the context of a €4 trillion economy, and economists and business associations have criticized them for not didn’t go far enough.
Other advantages for companies include more generous depreciation possibilities.
The package, backed by Liberal Finance Minister Christian Lindner, was originally due to pass two weeks ago but was blocked by Green Family Minister Lisa Paus, who wanted billions for a new comprehensive program of fight against child poverty.
This measure was adopted on Monday in a reduced form.
The German economy stagnated in the second quarter, cementing its position as one of the world’s weakest major economies.
(Report Christian Kraemer, written by Thomas Escritt, Diana Mandiá, edited by Kate Entringer)
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