Germany plans to introduce corporate tax cuts to stimulate investment.

German Finance Minister Lars Klingbeil is planning to provide tax breaks for businesses in order to stimulate investment and drive the economy out of stagnation. These measures include allowing businesses to deduct 75% of the cost of purchasing electric vehicles from their taxes in the year of purchase, as well as plans to promote commercial investment through more generous depreciation deductions. German Chancellor Friedrich Merz has promised to take swift action to stimulate economic growth, as economic output has been declining steadily for the past two years. Economists predict that Germany will experience another year of stagnation before infrastructure and defense investments kickstart economic activity, until related investments drive economic activity until 2026.