Prime Minister Michael Kretschmer (CDU) has made financial compensation a condition for the approval of the federal states to the planned tax relief for the economy. At the Bundesrat meeting in Berlin, Kretschmer described the package as the "right instrument". All state premiers had committed to supporting it together.
"However, it is also clear that this package will only find a majority here if there is financial compensation," said Kretschmer. The German government is planning better tax write-offs for companies that purchase machinery, equipment and electric cars. Corporation tax is also set to fall from 2028.
