Eurozone News
LAST UPDATE: June 26, 2025
German Lawmakers Back Merz’s €46 Billion Package of Tax Breaks
The Bundestag approved Chancellor Merz’s €46 bn tax-cut package to stimulate businesses and investment. Measures include enhanced deductions, EV incentives, and a planned cut in the corporate tax rate from 2028 through 2032 .
Insight
Germany is reinvigorating demand through supply-side measures amid stagnation. The phased corporate tax relief represents a long-term fiscal gamble, betting growth will offset initial revenue losses.
Austria’s economy to stagnate in 2025, institutes forecast
Austrian economic institutes EXPLAIN that after two years of recession, the economy is expected to stagnate in 2025 due to muted demand and global trade headwinds. Some expect minimal growth, with modest rebound forecast for 2026 .
Insight
Austria’s stagnation reflects the euro area’s broader stagnation and the lagged impact of mounting global trade tensions. Without renewed investment or policy stimulus, growth may remain flat through the near term.
