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Under the title "Growth Initiative – New Economic Dynamism for Germany," an action package has been agreed upon to immediately provide the German economy with new impetus for a secure, competitive, and future-proof Germany and to foster more economic dynamism.
Growth Initiative: 49 Measures in Five Areas
The following five areas form the focus of the Growth Initiative:
- Strengthening Competitiveness: Encourage investments, improve framework conditions.
- Enhancing Entrepreneurial Dynamism: Reduce unnecessary bureaucracy.
- Dynamization through Better Work Incentives and More Skilled Workers.
- A High-Performance Financial Center for a Strong Economy.
- A High-Performance Energy Market for the Economy of Tomorrow.
Some Key Measures from the Growth Initiative
- Permanent Electricity Price Package
The electricity price package will now be permanent and expanded. Initially limited until 2025, it relieves the economy of electricity costs. A major component of the package is a massive reduction in electricity tax for all manufacturing companies.
- Reduction of Data Protection Requirements
As part of an extended bureaucracy reduction program, data protection requirements will be reduced and standardized at the European level. For example, the threshold for appointing a data protection officer will be increased from the current 20 to 50 employees.
- Amendment of the Supply Chain Due Diligence Act
The European Supply Chain Directive (CSDDD) is to be implemented "as unbureaucratically as possible" through an amendment of the Supply Chain Due Diligence Act (LkSG). All obligations from the CSDDD, including regulations on civil liability, will only become binding at the latest date prescribed by European law.
- Adoption of a Federal Fair Wages Act
As part of a comprehensive revision of procurement law, a Federal Fair Wages Act will be created to make compliance with collective agreements a condition for tenders.
- Tax and Contribution Exemption for Overtime
Surcharges for overtime beyond the collectively agreed full-time work shall be tax and contribution-free. Full-time work is defined as a weekly working time of at least 34 hours for collectively agreed regulations, and 40 hours for non-collectively agreed working times. Employer contributions for extended working hours will also be tax-advantaged in the future.
- Deviations from the Legally Prescribed Maximum Daily Working Time by Collective Agreement
Companies should be able to deviate from the current regulations of the Working Hours Act regarding the maximum daily working time if this is stipulated in collective agreements or company agreements. This regulation will be temporary. At the same time, trust-based working hours should remain possible in the future during the further development of labor law.
- Review of Current Special Regulations for Telephone Sick Notes
The current special regulations for telephone sick notes by medical practices will be reviewed and, if necessary, adjusted as unbureaucratically as possible.
- Permission for Temporary Employment for Migrant Workers
The immigration of foreign workers into temporary employment will be allowed, provided that the "equal pay" principle is observed from the first day of employment and a minimum employment period of 12 months is agreed upon.
- Revision of Rules for Company Pensions for Low-Income Employees
Company pensions (BAV) will be revised so that more companies offer BAV, and particularly low-income employees can be supported.
Note
The Growth Initiative still needs to pass the Federal Council, so changes or adjustments may still occur.
