Published by Global Banking & Finance Review®
Posted on May 20, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleGermany's finance minister announces an investment booster to stimulate growth, including tax reforms and infrastructure funding.
By Maria Martinez
BERLIN (Reuters) -German Finance Minister Lars Klingbeil promised swift measures to boost investment on Tuesday amid global trade uncertainty.
"It is right that we will launch an investment booster before the summer break, which can be the right and fastest-acting response to the reluctance to invest," he said at the Eastern German Economic Forum in Berlin.
Germany was the only member of the G7 advanced economies that failed to grow for the last two years, and tariffs announced by U.S. President Donald Trump will deal a major blow to its export-oriented economy.
As part of government measures to revive growth, Klingbeil mentioned tax reforms, depreciation allowances of 30% over the next three years, and a 500 million euro ($562.2 million) infrastructure fund that he called "the largest modernisation effort in decades".
The government has also pledged to reduce the bureaucratic burden, aiming to cut administrative costs by 25% and compliance expenses by 10 billion euros through a "one in, two out" rule for new regulations.
"Probably you're all thinking right now, this is not the first politician to express such a goal of reducing bureaucracy costs, and you're right, we will be measured by this."
He said the new coalition had a "historical responsibility" to return the German economy to growth.
"If we don't manage to make life simpler again for companies and people in this country, then those who might question the rule of law might come," Klingbeil said, in reference to the rise in polls of the extreme right party Alternative for Germany (AfD).
($1 = 0.8894 euros)
(Reporting by Maria Martinez, editing by Rachel More, Kirsten Donovan)
The main topic is Germany's planned investment booster to stimulate economic growth.
The measures include tax reforms, depreciation allowances, and a significant infrastructure fund.
Germany's economy has not grown in the last two years, and global trade uncertainty is impacting its export-oriented economy.
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