Germany – strong fiscal boost in 2026
Next year, fiscal policy will give the German economy a noticeable boost.
Commerzbank Economic Research
06/12/2025
Government launches “investment booster,” ...
Last week, the German government presented its first major piece of legislation. It aims to boost investment in Germany through improved depreciation conditions for the years 2025 to 2027 and, starting in 2028, a gradual reduction in the corporate tax rate. Regardless of whether companies actually increase their investments as a result of improved depreciation conditions, this measure will at least provide temporary relief for companies. In its draft bill for the coming year, the federal government is expecting that these rules will lower incoming taxes by a good €4 billion (after €0.5 billion for this year).
... and further relief to follow
Further relief for companies and private households is to follow. The federal government's “emergency program” published two weeks ago announces the following measures in particular (Table 1):
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