BERLIN (Reuters) – The German cabinet on Wednesday approved a package of measures to promote startups and improve access to capital markets, government sources told Reuters, though it is unclear whether it will also be green-lit by parliament before February elections.
The so-called Second Financing for the Future Act is intended in particular to improve the tax framework for investments in venture capital, while obstacles to investment in infrastructure and renewable energies are to be removed and bureaucracy reduced.
The draft, seen by Reuters, states it would offer tax relief for companies of 45 million euros ($47.37 million) per year.
However, it is questionable whether the current minority government will find a majority for the law to be approved in the two houses of parliament before the new election on Feb. 23.
The act was largely drawn up by former finance minister and leader of the Free Democrats Christian Lindner, which is why his party might be inclined to support the plan in parliament even after Chancellor Olaf Scholz fired him, paving the way for the snap elections.
The project is one of the 49 measures from the government’s growth initiative that is meant to strengthen Germany as a business location and boost anaemic economic growth.
($1 = 0.9500 euros)
(Reporting by Christian Kraemer, writing by Maria Martinez, editing by Miranda Murray)
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