German Finance Minister Lars Klingbeil on Tuesday promised tax incentives to encourage private investments in the country’s struggling economy.

Speaking at the Eastern German Economic Forum in Bad Saarow, south-east of Berlin, Mr Klingbeil said that the new government was planning to introduce a package to boost investment before the summer break, echoing comments by Economy Minister Katherina Reiche on Monday.

As outlined in the coalition agreement between his Social Democrats (SPD) and Chancellor Friedrich Merz’s conservative bloc, Mr Klingbeil said companies would be allowed to write off 30 per cent of their investments from tax over the next three years.

The finance minister said corporate taxes would also be reduced.

The measures for the private sector are to be accompanied by a massive package of government spending on infrastructure, based on a €500 billion ($560 billion) fund passed in parliament earlier this year.

“We will invest a great deal in research, development and infrastructure over the next few years,” said Mr Klingbeil.

The SPD co-leader cited funding for roads, railways, day care centres, fast internet, additional living space and cheap and climate-friendly energy.

He noted that Mr Klingbeil would present his draft budget for 2025 to the new cabinet on June 25.

(dpa/NAN)