Posted By Global Banking and Finance Review
Posted on December 15, 2024
BERLIN (Reuters) - Germany's Social Democrats plan to introduce a "Made in Germany" premium in the next government to boost investment in Europe's largest economy, the party's election manifesto showed on Sunday ahead of a likely early election next year.
The plan includes a direct tax refund of 10% on equipment investments by businesses, according to the document seen by Reuters.
German Chancellor Olaf Scholz, an SPD member, sent a request to parliament last week to hold a vote of confidence on Monday, setting a path to an early federal election next year after the collapse of his coalition.
The SPD currently polls at 17%, an INSA poll showed on Saturday, trailing the conservative CDU and far-right AfD at 31% and 20% respectively.
The SPD, which governs Germany in a minority government with the Greens, said in its manifesto it plans to incentivise purchases of German-made electric cars with a temporary tax deduction offered to buyers.
It also proposed establishing a so-called Germany Fund, initially endowed with 100 billion euros, to support key areas such as electricity, heating networks, hydrogen infrastructure, e-charging stations, and housing.
The fund would operate under debt brake regulations, through financial transactions where the federal government will invest in companies with start-up capital or loan offers.
(Reporting by Andreas Rinke; Writing by Riham Alkousaa; Editing by Bernadette Baum)