Olaf Scholz: Pledging Relief for Germany’s Economy and Proposing Measures to Encourage Business Investment

In his address at the Day of German Industry 2024, organized by the Federation of German Industries (BDI), German Chancellor Olaf Scholz pledged relief for the country’s economy and proposed measures to encourage business investment. He acknowledged that volatile energy prices and efforts to increase renewable electricity sources pose challenges in comparison to lower energy costs in other parts of the world.

During his speech, Scholz outlined plans for a “dynamization package” to stimulate growth, including reforms to incentivize longer working hours and make it easier for parents of young children to work through tax incentives. He also mentioned the possibility of enhancing depreciation and research funding beyond what was achieved through the Growth Opportunities Act, but noted that such improvements would require support from the leaders of Germany’s 16 states, who had previously called for reductions in tax breaks and other measures.

The government is engaged in discussions on making energy cost relief measures permanent and providing companies with greater clarity on future costs and policies. As the conference focuses on promoting cohesion in a polarized world, Scholz’s remarks highlight the government’s commitment to supporting the economy and fostering business growth in Germany.