Germany's Social Democrats Unveil 'Made in Germany' Premium Plan

Germany's Social Democrats propose a 'Made in Germany' premium to boost investment through a 10% tax refund on equipment. The plan supports German-made electric cars and proposes a Germany Fund to finance infrastructure. The proposal follows Chancellor Scholz's confidence vote request ahead of an early election.

In a bold move aimed at revitalizing Europe's largest economy, Germany's Social Democrats have announced plans to introduce a 'Made in Germany' premium. The initiative, detailed in the party's election manifesto unveiled on Sunday, is designed to stimulate investment through measures such as a 10% direct tax refund on business equipment investments.

Amid turbulent political times, German Chancellor Olaf Scholz, aligned with the SPD, has sought a vote of confidence in parliament. This request could pave the way for an early federal election next year, following the collapse of his governing coalition. Currently, polls suggest the SPD trails behind the CDU and AfD, indicating challenging times ahead for the party.

The SPD's manifesto also suggests significant economic advances, such as boosting German-made electric vehicles with a temporary tax deduction. Additionally, the proposed Germany Fund, initially set with 100 billion euros, aims to support essential sectors like electricity and hydrogen infrastructure. Under debt brake regulations, it will encourage collaboration between the government and businesses through investments and loans.

(With inputs from agencies.)