Chancellor Olaf Scholz has raised the stakes in Germany’s snap election campaign by proposing the creation of an investment fund of at least 100 billion euros to help pay for the country’s modernisation.
Speaking at a German Social Democratic Party event in Berlin on Saturday, Scholz said the fund, which could later be replenished, should include both public and private money and could be used to invest in areas such as energy or housing.
He also promised that if he wins the election and is re-elected for a second term, he will introduce tax breaks for companies equal to 10 per cent of the value of investments, calling it a “Made in Germany” bonus. Reiterating a pledge to relax strict borrowing rules known as the “debt brake,” Scholz said:
“Germany’s future must not be destroyed by excessive austerity. On the contrary, new growth is only secured through increased investment.”
He also criticised the opposition blocs Christian Democratic Union and Christian Social Union (CDU/CSU), which have a big lead in the polls, accusing them of lacking ideas on how to pay for what he called “German renewal.”
Germany’s ruling three-party coalition led by Chancellor Olaf Scholz broke up immediately after Donald Trump’s victory in the US presidential election.
This came just after Olaf Scholz sacked Finance Minister Christian Lindner because the parties failed to agree on a federal budget. The German chancellor said:
“I feel obliged to take this step to prevent damage to our country. We need an effective government with the power to make the necessary decisions.”
