Konjunktur: „Wer im Stau steht, gibt kein Gas“: Investitionsbooster der Regierung wirkt bislang kaum

The "Investment Booster" that Germany hoped would invigorate the economy and make it "fit for the future" since Chancellor Friedrich Merz's announcement in summer 2025 has failed to deliver any economic impetus. Despite the new "Super-Abscheibungen" (asset disposal rules) intended to bring liquidity, weak company investments have continued.

The uncertainty in the economy is so great that companies are not investing despite high potential write-offs that could bring liquidity, says Oliver Holtemöller, Vice President of the Institute for Economic Research Halle (IWH). Tobias Hentze, a tax expert at the German Institute of Economic Research (IW), adds, "A big boost is not to be seen at all."

The plan was to have German companies invest more and boost the economy, even in a difficult economic environment. The idea was that if a company buys machinery, equipment, or vehicles, it would depreciate these assets linearly over their years of use, with 30% deductible in the first and second years. Since depreciation offsets profits and reduces tax burden, investments would become more appealing.

However, investment figures have remained unchanged, and Merz finds himself in a difficult position. He had promised tax cuts for businesses during the campaign, but due to the budget situation, corporate income tax will only be gradually reduced from 2028. On the income tax front, Schwarz-Rot has only agreed to a minor reduction, which may be partially funded by a higher "top income tax," potentially leading to increased burden for some medium-sized enterprises.

The "booster" has had no effect on companies investing in equipment, machinery, or vehicles. While investment in these areas grew by 3.3% in the first quarter of the current year compared to 2025, the boost can be attributed more to a strengthening export business and foreign orders than the investment booster itself. The private equipment investment level remains the same as in 2013, indicating weak signs of a revival in this sector.

The positive effect of the investment booster is significantly reduced by the high level of uncertainty, exacerbated by a trade conflict with the US and the Iran war, which has grown even higher than during the Trump-era trade tensions or the COVID-19 and energy crises, according to Ifo economist Lea Best.