The SPD wants to boost investment in Germany, which has recently fallen sharply, with a variety of tax incentives. In the economic section of the draft election program available to the Reuters news agency, it relies on both a “Made in Germany” bonus and a Germany fund for public and private investments – the debt brake should also be relaxed for federal and state governments for investments.
In addition, sales of products produced in Germany should be increased Electric cars be driven. “Germany needs a decade of sustainable innovations and investments,” it says. “With clear framework conditions and a real investment boost, we are creating a growth environment for our companies.”
There had recently been increasingly loud criticism in the SPD that more investments were not possible with the FDP in the old traffic light government. The Social Democrats want to adopt and present the election program on Tuesday. Chancellor Olaf Scholz (66) was elected to the top of the SPD Brandenburg state list on Saturday. Union Chancellor candidate Friedrich Merz (69) has also been number one on the CDU state list for North Rhine-Westphalia since yesterday. On Monday, Scholz wants to ask the Bundestag for a vote of confidence, thus clearing the way for the early election on February 23rd.
SPD: 10 percent funding for investments
In its election program, the SPD rejects general tax cuts for companies, such as those called for by the Union and FDP in view of the sluggish economy. Instead, companies should be helped in a more targeted manner. “Every business or company investment in machinery and equipment (from the so-called equipment investments) should be supported with ten percent of the purchase price directly and easily via a tax refund,” says the SPD paper on the “Made in Germany” investment bonus.
“We want ‘Made in Germany’ to remain world class when it comes to 21st century technologies,” it emphasizes. Private companies should also be given relief when it comes to investments. In addition, an independent legal form, a “company with tied assets”, is to be introduced, which will make it easier for successors in medium-sized businesses to succeed in a fiduciary capacity.
Germany Fund is intended to activate money from insurers
A German fund, which Scholz had already announced, is intended to mobilize public and private capital on a large scale in order to stimulate investments in, for example, electricity and heating networks, the hydrogen network, e-charging stations and housing construction. The Germany Fund will initially be endowed with 100 billion euros – and will function within the rules of the debt brake. This is to be done through so-called financial transactions, in which the federal government invests in companies with start-up capital or provides loans.
The Germany Fund should be able to raise private money at the same time. “Large institutional investors such as insurance companies or pension funds can also invest in these companies and institutions,” says the paper. “This puts future investments on a broad basis and activates private capital.” The SPD rejects the privatization of state services.
If re-elected, the SPD also wants to reform the debt brake in order to create more opportunities for investments: “In addition to introducing exceptions for important future investments, we are committed to making the deficit rule itself more flexible. The states should be given the opportunity to borrow money,” the draft says. The Union has so far rejected reform and only emphasizes in its election program that it wants to stick to the debt brake anchored in the Basic Law.
The SPD also wants to reduce energy costs. The fees for the transmission network in Germany should be capped at 3 cents per kilowatt hour “as quickly as possible”. This should, on average, halve the current burden on households and companies at this point. “A larger group” of particularly electricity-intensive companies should also be able to benefit from reduced network fees. The EU Commission should enable glass processing and other parts of chemistry and battery cell production to benefit from the relief of so-called electricity price compensation.
Increased support for the purchase of electric cars
In addition, the SPD would like to purchase German ones in the future Electric cars push harder, which is also seen as a clear signal to the Germans Auto industry can understand. There should also be a temporary tax deduction for the purchase of an electric car produced in Germany. “This is simple and easy to implement: buy it, declare it on your taxes, receive the subsidy directly into your account,” says the election manifesto. The EU Commission should present a corresponding initiative for the entire European Union in the short term or approve such a German solution.
The SPD also wants better depreciation conditions and changes to company car taxation for electric cars. The vehicle tax exemption for electric cars is to be extended until 2035.