Federal Council discusses economic package: MV calls for financial relief!

Federal Council discusses economic package: MV calls for financial relief!

Today, June 13, 2025, the members of the Federal Council are meeting to discuss a far-reaching economic package launched by the federal government. According to Wismar.fm The aim of this program is to provide tax relief for companies in order to promote investment and stimulate the currently weak economy.

At this meeting, Mecklenburg-Western Pomerania, represented by Prime Minister Manuela Schwesig (SPD), has already signaled its fundamental support for the measures. These include, among other things, improved depreciation options and a gradual reduction in corporate tax. However, from Schwesig's point of view, the approval is not unconditional: It warns of considerable revenue losses of around 140 million euros that the country can expect if the tax relief is implemented.

Demands for a fair distribution of burdens

The Prime Minister emphasizes that Mecklenburg-Western Pomerania is demanding financial compensation from the federal government in order to cushion the impending loss of income. “Whoever orders should also pay” – this cross-party consensus among the country leaders could be crucial for the negotiations. The approval of the federal states is essential so that the package does not fail at the first hurdle.

The current debate shows how important it is for Mecklenburg-Western Pomerania to distribute the burden fairly in order to provide economic stimulus without putting undue strain on its own budget situation. Schwesig sees opportunities for a balance, because without the support of the federal states, the economic package could fall by the wayside, as NDR also reports.

Details of the economic package

The draft law presented by Finance Minister Lars Klingbeil (SPD) provides for various measures to help the economy out of the recession. This includes, among other things, expanded depreciation options for electric vehicles and machines, which should apply from June 30, 2025. Newly purchased electric vehicles used for business can receive massive tax benefits of up to 75% of the acquisition costs in the first few years, which can be a real “investment booster” for many companies, as stated in daily news is called.

In the long term, corporate income tax is expected to fall from the current 15% to 10% by 2032, accompanied by a reduction in the retention tax rate for undistributed profits. The shortfall in tax revenue will be considerable: around 2.5 billion euros in relief for companies is forecast for 2025, although the losses for the state could increase significantly from year to year.

The next few weeks promise to be an exciting debate about the balance between economic stimulus and financial stability. The countries are required to clearly formulate their interests and at the same time lay the foundation for an economically strong future.

Overall, it remains to be seen how the negotiations will develop and whether Mecklenburg-Western Pomerania can achieve financial balance while at the same time setting the course for investments and a growing economic climate.