Germany’s SPD unveils ‘Made in Germany’ premium to boost investment amid election buzz
Germany’s Social Democratic Party (SPD) intends to introduce an ambitious “Made in Germany” premium aimed at revitalising investment in the country’s economy, according to the party’s newly released election manifesto showed on Sunday. The announcement comes as the nation gears up for a likely early election following the collapse of Chancellor Olaf Scholz’s coalition government.
The plan proposes a 10 per cent direct tax refund on equipment investments made by businesses, a measure designed to stimulate economic growth in Europe’s largest economy. The SPD also seeks to promote the adoption of German-made electric vehicles by introducing a temporary tax deduction for buyers, further reinforcing its commitment to domestic manufacturing.
A centerpiece of the manifesto is the proposed creation of a Germany Fund, initially capitalised with €100 billion. The fund would target critical infrastructure projects, including electricity and heating networks, hydrogen systems, e-charging stations, and affordable housing.
Operating under Germany’s debt brake rules, the fund would provide financial support through investments in start-ups, loan offerings, or equity stakes in companies, ensuring fiscal responsibility while fostering innovation and sustainability.
The SPD, currently governing in a minority coalition with the Greens, faces mounting political challenges. Chancellor Scholz requested a parliamentary vote of confidence scheduled for Monday, signaling the end of the current government and paving the way for a federal election next year.
According to an INSA poll published Saturday, the SPD is polling at 17 per cent, trailing the conservative CDU at 31 per cent and the far-right AfD at 20 per cent.
With its bold economic agenda, the SPD hopes to sway voters by emphasising domestic growth and sustainability, positioning itself as a champion of German industry and innovation in the lead-up to the anticipated election.
Attribution: Reuters
