Germany Unveils Aggressive Economic Stimulus Plan

Germany's ruling coalition announced a sweeping action program including tax reliefs and infrastructure investments to boost the sluggish economy. Chancellor Friedrich Merz highlighted the potential for large-scale business depreciation. The initiative aims to reverse a forecasted economic contraction, marking one of Germany's longest post-war downturns.

In a decisive move to revitalize its economy, Germany's ruling coalition has announced an immediate action program that includes significant tax relief measures and plans for reducing electricity taxes in the upcoming months. Chancellor Friedrich Merz of the Christian Democratic Union expressed optimism, emphasizing that this marks a swift departure from past inertia.

The coalition committee, an informal body comprising the parties' leaders, acts as a linchpin between various governmental branches, ensuring unified decision-making and arbitration of disputes. Chancellor Merz pointed to anticipated large-scale depreciation opportunities as a way to stimulate business investment further.

Other significant economic initiatives include setting up a multi-billion euro infrastructure fund, revoking the national supply chain law, and accelerating approvals for energy projects. In conjunction with social reforms, these measures are designed to ensure planning security and unlock national potential, as Vice Chancellor and Finance Minister Lars Klingbeil stated.

(With inputs from agencies.)