Overview
- Economy Minister Katherina Reiche calls for moving up a planned corporate tax reduction currently scheduled to begin in 2028.
- She says the government is negotiating with the SPD on bringing forward income tax relief, with no agreement announced.
- Reiche argues Germany’s hourly productivity is high but total annual hours are low, so raising overall work volume is essential for growth.
- Her labor proposals include flexible weekly hours, incentives to work beyond the retirement age, and preventing overtime pay from being taxed away.
- She highlights scaling the defence and defence‑startup sector as a growth driver, citing €1.9 billion invested in European defence startups last year with over €1 billion going to German firms and a potential 1–1.5% GDP boost.