The draft promotes private investment in infrastructure and renewable energies as well as in smaller enterprises and start-ups (venture capital).
The German Federal Cabinet approved a draft law on 10 September 2025 to encourage private investments and strengthen Germany as a financial centre.
The main focus of the draft law is on measures to improve corporate financing conditions and to create a more competitive financial centre. In particular, these include:
- Improving financing opportunities for small enterprises and start-ups
- Promoting investments by funds in renewable energies and infrastructure
- Measures to reduce bureaucracy in the financial market sector without lowering consumer protection standards, in particular streamlining supervisory processes at the Federal Financial Supervisory Authority (BaFin)
- Business-friendly implementation of capital market-related EU legal acts (in particular the Listing Act, ESAP, MiFIR Review)
- Raising the tax-free reinvestment limit on capital gains from selling corporate shareholdings held as business assets—from EUR 500,000 to EUR 2 million. This is intended to channel more money into corporate equity, particularly benefiting venture capital firms and institutional investors.
Earlier, Germany unveiled a tax reform package with super deductions and lower corporate tax to boost investment and competitiveness.
