PRESS STATEMENT The economic stimulus package will have an impact primarily in the medium term

Jörg Hofmann: “It remains to be seen whether the economic stimulus package will provide a major boost to demand and employment. This applies in particular to the reduction in the value-added tax. It remains to be seen whether this will benefit consumers or simply line the coffers of Amazon and others. The automotive industry also has reason to celebrate. With the VAT cut, it gains a tax-funded incentive to boost sales—without any connection to climate protection efforts and without any mandatory contribution from the industry itself.

The expanded measures to stabilize municipal budgets and businesses experiencing massive declines in revenue are a positive development.

Initial steps to reduce the EEG surcharge also provide relief for consumers and businesses.

The package also contains many sound measures: promoting e-mobility, including hybrid vehicles; incentives for fleet renewal for trucks and buses; and stabilizing public transit and rail transport.

Private investment is encouraged through improved opportunities for loss carrybacks and depreciation, which is important.

In addition, key innovation areas such as hydrogen, AI, 5G networks, and other topics are addressed. However, these will have an impact on the economy only in the medium term, if at all.

The question remains: Are the short-term demand stimuli sufficient to quickly get the economy back on track? This will determine whether the recession can be halted and massive job cuts and unemployment prevented.”

Further information and press photos of Jörg Hofmann