Germany's cabinet approves tax reforms worth more than $50 billion

Germany's cabinet, led by Chancellor Friedrich Merz, has approved a package of tax breaks for national companies worth €46 billion (roughly $52 billion). These measures are part of the new German government's strategy to revive the country's economy, which Bloomberg reports may stagnate again this year.

Based on the latest statement from the German Ministry of Finance, companies purchasing movable assets between June 2025 and January 2028 will get tax breaks of up to 30%. The package of government-approved fiscal measures also includes additional benefits for local firms electrifying their vehicle fleets, the news agency adds.

Authorities of the leading European economy are seeking to support the manufacturing sector, which is particularly vulnerable to tariff shocks and dependent on exports to the United States and China. Bloomberg analysts note that supporting the industry is critical for maintaining labor market stability.