Bankinter | The German government has approved a tax relief package worth €46 billion (11% of GDP), which will need to be ratified by parliament. The stimulus includes a corporate tax cut of 1% a year from 2028 (to 25% from the current 30%) and deductions for the purchase of new machinery and other equipment. The Houses could pass it by the end of the summer.
Bankinter analysis team’s view: Good news. These measures seek to improve competitiveness, attract foreign investment and stimulate the economy after the weak performance of GDP in recent quarters.
