German parliament approved corporate tax cut package

At a meeting on Thursday, German lawmakers passed a multibillion-euro package of tax breaks to support companies and bolster investment as part of their plan to restore growth in Germany's economy after two years of recession.

The package, described by authorities as aimed at boosting investment, includes nearly 46 billion euros ($53.7 billion) worth of corporate tax incentives. They are set to cover the period from 2025 to 2029. It is also expected to reduce the corporate tax rate by one percent each year for five years starting in 2028 and bring it to 10% by 2032.

Reuters reports that the measures have drawn criticism from Germany's regional governments because of an expected drop in state revenue.

The bill was passed by the Bundestag, supported by the conservatives and Social Democrats in the coalition government, and is due to be passed by the Bundesrat on July 11. To win the support of the federal state authorities, a key player in the upper house, the government has pledged to cover a significant portion of the resulting budget losses.