What role does the economy play in politics?

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A prosperous economy needs dynamic entrepreneurship. In order to create incentives for entrepreneurial action and the corresponding freedom, the Federal Ministry of Economics will review the framework conditions for companies and initiate corresponding discussions at the European level. Small and medium-sized enterprises are the drivers of innovation, provide a large number of jobs and training positions and, especially in rural areas, play not only a significant economic role, but also an important social, societal and cultural role. The Federal Ministry of Economics is committed to supporting small and medium-sized companies in their current challenges and is intensifying the dialogue with business in this sense.

The use of targeted relief options for official requirements, taxes, levies and also for electricity prices is of central importance. The tax relief measures from 2019 to 2021 will reach a volume of well over 25 billion euros in full annual effect. With the law to reduce the solidarity surcharge in 1995, the burden on lower and middle incomes in particular will be relieved in a first step from 2021. The federal government is also relieving companies of more than 1.1 billion euros with the third bureaucracy relief act. Corporate tax law is continuously checked for any need to adapt to changed framework conditions, particularly with a view to small and medium-sized companies.

It should be easier and less bureaucratic to set up companies in the future. In order to strengthen young companies in the growth phase, the Federal Government has set up the Tech Growth Fund, an instrument with which venture debt financing can be made available to innovative companies as a supplement to equity financing. In addition, the Federal Ministry of Economics is working, for example, to ensure that KfWCapital can become more involved in the area of ​​growth financing.

Attracting skilled workers remains a challenge, even in the face of demographic change. The Good Day Care Act, the legal right to all-day care and the Participation Opportunities Act promote higher domestic labor force participation. The Skilled Workers Immigration Act improves the legal framework for attracting skilled workers from abroad. In order to make local skilled workers fit for structural change, the Federal Government is providing impetus, among other things, with the Qualification Opportunities Act.

Public procurement law protects free and fair competition between economic operators for public contracts and ensures efficient use of tax revenues.