Economic Stimulus Package

Last updated: 8 April 2022

In response to the Covid-19 pandemic and economic crisis, Germany unveiled a set of measures to insure a fast and sustainable economic recovery. 


The country invested €130 billion for 2020 and 2021. The goals of this economic stimulus package are to strengthen the economy, preserve, help to face economic and social hardships, strengthening Länder and municipalities and providing support to youth and families. 


Measures include:

  • A value added tax (VAT) reduction in the 1 July to 31 December 2020 period
  • €300 per-child allowance for families- Support for local authorities: support to public transport system, compensation for company tax drop and support to finance accommodation for people in need
  • Reduction in electricity costs: the Renewable Energies Act levy on electricity will be reduced as of 2021
  • Package for the future (Zukunftspaket): €50 billion euros allocated to finance support and tax breaks for research and development of quantum computing, artificial intelligence, hydrogen technologies and electric vehicles.

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