In a bid to stimulate the German economy, Robert Habeck, the appointed Green Party candidate for chancellor, announced on Wednesday in Berlin a plan that includes allowing businesses to reclaim 10% of their investments as a premium from the government. This scheme aims to bolster investment by creating a special fund called the "Germany Fund," which would be distributed over five years. The investment premium would be offset against taxes or distributed to enable investments during losses.

Additionally, Habeck emphasized the need for investment in structural factors such as railways, bridges, and digital transformation. Although the exact scale of digital investment support wasn't specified, Habeck referenced an estimation by the Federation of German Industries, which predicts a requirement of €60 billion for digital infrastructure expansion.

Habeck also proposed extending governmental fallback guarantees to intra-European investment projects, which traditionally apply to overseas investments. This measure would reduce financial risk for investors, a pertinent consideration in light of the Intel setback and looming Wolfspeed challenges.

Modernizing the Economic Landscape

Habeck, positioning himself as "an advocate for business," calls for tech-friendly regulations. His proposal includes establishing a European Innovation Agency akin to DARPA, an organization renowned for funding U.S. military research, drawing from positive experiences with Germany's SPRIND.

Simplified Data Protection

In a move to overhaul data protection, Habeck suggests that oversight responsibilities should be thematic rather than regional, a view he hinted at during the recent Digital Summit. By designating specific states to lead on certain themes, startups could navigate the use of (pseudonymized) health data more efficiently, according to Habeck.

Furthermore, he advocates for a "Germany App" to streamline social benefits applications, improving interactions between citizens and authorities through "one-stop-shop" solutions. Discussions on these proposals are planned with government partners and the CDU and CSU due to their involvement at the state level.

These ideas reflect Habeck's commitment to updating Germany's economic framework to adapt to a dramatically altered global context.

Originally reported by Heise Online.