Bankinter | The German Senate (Bundesrat) has definitively approved the €46 billion tax exemption package (approximately 1.1% of GDP). The stimulus measures include a reduction in corporate tax of 1% per year from 2028 (from the current 15% to 10%, not including the extra local tax, which varies between 14% and 17%) and deductions for the purchase of new machinery and other equipment.
Bankinter analysis team’s view: Good news. These measures seek to improve competitiveness, attract foreign investment and stimulate the economy after weak GDP performance in recent quarters. They come on top of the agreement reached a few months ago to increase investment in infrastructure and defence.
