German Cabinet approves measures to promote startups

The German Cabinet approved the Second Financing for the Future Act on Wednesday, aiming to promote startups and ease access to capital markets.

The act seeks to enhance the tax framework for venture capital investments, streamline infrastructure and renewable energy investment processes, and reduce bureaucracy. It promises annual tax relief of €45 million ($47.37 million) for companies.

However, the act faces uncertainty in parliament due to the government’s minority status and upcoming elections in February. The proposal, part of a 49-measure growth initiative to bolster Germany’s economy, was largely crafted by former finance minister Christian Lindner, whose party may back it despite political tensions.

Attribution: Reuters

Subediting: Y.Yasser