Germany's Bold Plan: Tax Cuts to Rescue Stagnant Economy

Germany Unveils Urgent Fiscal Plan to Revive Economy BERLIN, Germany — The German government launched an ambitious fiscal plan on June 5, 2025, designed to jumpstart its slowing economy. The plan, dubbed the "Growth Booster," centers on substantial tax cuts to encourage business investment in machinery and equipment. The initiative aims to bolster Germany's competitiveness on the global stage. "This package of reductions and eventual tax cuts is aimed at boosting business investment at a critical moment," explained a government spokesperson, referring to the current economic stagnation. A key component of the Growth Booster is a phased reduction of the corporate tax rate. Currently standing at 15%, this rate is projected to decrease to 10% by 2032. This significant tax cut is intended to provide a long-term boost to the German economy and attract foreign investment. The government hopes that this plan will not only maintain but also invigorate Germany's economic strength in the years to come, positioning it for continued success in the global market. The long-term vision is for sustained economic growth and enhanced global competitiveness.