“Need a political signal”
Schwesig wants a quick agreement on economic aid
February 21, 2024, 8:54 a.m
In the evening, the Bundestag and Bundesrat are looking for a compromise on the so-called Growth Opportunities Act. The Union only wants to agree to the law under one condition. Federal Council President Schwesig hopes that an agreement will still be reached.
Mecklenburg-Western Pomerania’s Prime Minister Manuela Schwesig has called for a quick agreement on the Growth Opportunities Act in the mediation committee between the Federal Council and the Bundestag. “In these times, we generally need the political signal that we can come to an agreement across all party lines,” said the SPD politician on Deutschlandfunk.
“The economic situation is difficult and the economy in particular is waiting for a signal,” warned Schwesig. “I would be very much in favor of us reaching a conclusion today,” she said. Schwesig is also chairwoman of the Mediation Committee and President of the Federal Council. This evening, the Mediation Committee of the Bundestag and Bundesrat will discuss the Growth Opportunities Act, which, among other things, provides tax relief for companies.
The Union only wants to agree to the law if the SPD, Greens and FDP forego the planned abolition of the tax break for agricultural diesel for farmers. There is currently a compromise proposal “which we in Mecklenburg-Western Pomerania think is very good,” said the Prime Minister. This can be financed and will particularly help the construction industry and small and medium-sized companies. She appealed to the other federal states to agree to this and not to mix it with other issues. Schwesig emphasized that she could understand the Union’s request on the matter, but agricultural diesel was not part of the Growth Opportunities Act.
Therefore, the two topics should not be linked. The law originally provided for tax relief for companies until 2028 and an acceleration of approval processes. The key point was a bonus for investments in climate protection, which was already overturned in the preliminary negotiations. The law also includes tax incentives to stimulate struggling housing construction. To promote investments, a declining balance of depreciation should be introduced, through which certain costs can be written off for tax purposes. Special depreciation is to be substantially improved for small and medium-sized companies.