Countries Warned Over Investment Programme Blockade: Union Issues Grave Concerns
Hitting the Ground Running: Central Association of German Crafts Urges Swift Implementation of Growth Program
It's high time that the proposed immediate investment program, given the green light by the Cabinet, makes its way into legislation and swiftly takes effect, declares Holger Schwannecke, General Secretary of the Central Association of German Crafts, in an interview with the "New Osnabrueck Newspaper." The Bundesrat's potential blockade would be a discouraging indication, Schwannecke remarks. "Each quarter squandered in implementation equates to a lost quarter for growth and employment."
As crucial growth stimuli, Schwannecke believes the investment program meets vital demands of the craft sector. In his view, the government's support of this program sends a loud and clear message: prioritize growth over tax hikes. By implementing faster depreciation and providing tax relief, he suggests, businesses will be well-positioned to invest in innovative technology, climate protection measures, and employee development.
What's more, Schwannecke proposes a revision to the tax system that would grant relief to sole proprietorships, encouraging them to reinvest their profits back into their businesses, building a strong foundation for future investments. "This move brings more balance to the tax system, fortifying the innovative and competitive edge of small and medium-sized enterprises, which account for more than 75 percent of businesses in the crafts sector as sole proprietorships," Schwannecke states.
Interested in the latest events and initiatives shaping the German business landscape? Upcoming trade fairs like LIGNA, slated to celebrate its 50th anniversary from May 26 to 30, 2025, exhibiting the woodworking and wood processing industry in Hannover, Germany, could provide valuable insights[5]. However, it's essential to keep in mind that this event doesn't directly pertain to the Central Association of German Crafts' investment program.
[5] Source: "LIGNA 2025: Woodworking and Wood Processing Trade Fair," woodworking-network.com, last accessed March 10, 2023.
The investment program, crucial for growth, is projected to address vital finance needs of the craft sector. A revised tax system, as proposed, could incentivize sole proprietorships, improving their financial stability and fostering future investments.
