In the federal cabinet today, Germany’s Finance Minister Olaf Scholz presented a joint key-issues paper for an international climate club. The goal is to give the implementation of the Paris Agreement additional impetus at the international level. At the heart of this initiative is the cooperation between countries that want to press ahead with the social and economic transformation needed to …

Germany’s federal cabinet today adopted a draft text proposed by the Finance Ministry and the Interior Ministry for the establishment of a special flood relief fund and amending other laws (2021 Reconstruction Aid Act (Aufbauhilfegesetz 2021)). In this way, the federal government is continuing its committed assistance aimed at supporting the German regions particularly affected by flooding and …

Das Bundeskabinett hat heute den Bericht der Bundesregierung über die Entwicklung der Finanzhilfen des Bundes und der Steuervergünstigungen für die Jahre 2019 bis 2022 beschlossen. Der 28. Subventionsbericht macht deutlich: Die Subventionspolitik ist zentraler Bestandteil der zukunftsorientierten Finanzpolitik der Bundesregierung. Durch eine klare inhaltliche Schwerpunktsetzung geben die …

German Finance Minister Olaf Scholz commented: “Yesterday evening we decided at the International Monetary Fund, the IMF, to increase what are known as special drawing rights by US$650bn. This is historically unprecedented. It is the right, appropriate response to the Covid-19 pandemic. The new SDRs allow the international community to create additional liquidity and thereby foster the stability …

The time series for the indicators used to set the CCyB have been updated. The time series are now available for Q1 2021.

Germany’s federal cabinet today approved financial support measures to provide immediate and unbureaucratic assistance to regions affected by recent floods. The federal government will provide an initial €200m to cover half of the costs of immediate assistance measures launched by the Länder. In addition, it will contribute financially to a comprehensive recovery programme.

The federal cabinet today adopted the government draft for the 2022 federal budget and the fiscal plan to 2025. The German government is continuing to pursue a decisive fiscal policy that includes large-scale assistance measures and record investment levels. In addition, the numbers show that the federal government is in good fiscal shape. Germany’s debt ratio is far lower than projected and …

At the Federal Ministry of Finance’s behest, the Federal Central Tax Office (Bundeszentralamt für Steuern) has purchased data for the purpose of detecting international tax crimes. This is the first time that the Federal Central Tax Office has independently purchased data that will have a material impact on the taxation process.

The European Systemic Risk Board (ESRB) has published a second report on macroprudential policy issues arising from the low interest rate environment in the financial system of the European Union (EU). Looking beyond recent cyclical developments, the coronavirus (COVID-19) shock may have increased the likelihood and persistence of a “low for long” scenario.

Today the federal cabinet adopted the first German Sustainable Finance Strategy. The goal of the strategy is to mobilise investments that are urgently needed for climate action and sustainability while also addressing the climate risks that are increasingly relevant to the financial system. Germany’s Sustainable Finance Strategy is setting a new course in the financial system based on the core …