In a bid to ensure Germany’s future competitiveness, the federal government has introduced the “Draft Law on Financing Future-Proof Investments.” The Future Financing Act aims to make it easier for startups and growth companies to mobilize private capital for investments in climate protection and digitalization, while also enhancing Germany’s financial market attractiveness.
The cabinet’s approval of the legislation signifies a crucial step towards fostering innovation and growth. The law introduces various measures to facilitate investment, particularly for startups and growth businesses. It paves the way for easier access to private capital, simplifies communication with regulatory authorities, and introduces the “E-Share” to facilitate stock market entry.
Additionally, the legislation permits open real estate funds and infrastructure funds to acquire and operate properties exclusively dedicated to renewable energy installations, thus aligning with sustainable practices.
Transparency is another cornerstone of the initiative, with the establishment of a comparison website for account fees under the supervision of the Federal Financial Supervisory Authority (BaFin), aligning with the European Payment Account Directive. Moreover, financial supervision and tax authorities will enhance collaboration, aligning regulatory efforts.
To promote employee capital participation, the law raises the tax-free ceiling to €5,000 annually and amends tax regulations to make this form of ownership more appealing. This is expected to bolster German startups’ competitiveness in the global talent market.
The law is set to take effect later this year, pending approval from the Bundestag and Bundesrat. This initiative marks a significant stride towards positioning Germany for sustained growth and innovation in a rapidly evolving global economy.
https://www.bundesregierung.de/breg-de/aktuelles/zukunftsfinanzierungsgesetz-2213554