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The Finance Ministry’s responsibilities are more diverse and interesting than most people might think and cover everything from budgets to customs to fighting financial crime. Keep reading to find out more about the wide variety of issues we work on and the people behind the policies.
Source:
photothek; Tuomas A. Lehtinen/Getty Images
The politics of creating opportunity
The Finance Ministry is in charge of budgetary and fiscal policy. Our policies aim to create opportunity – for individuals and businesses, for today’s generation and for generations to come. By making the right investments and harnessing the potential of digital technology, we are helping to shape the transition towards a climate-neutral economy. Here is an overview of our responsibilities and objectives.
We take sound and decisive action to safeguard prosperity and to optimise opportunities for individuals and businesses. We believe: if you manage your money prudently and make smart investments during times of economic calm, you can handle emergencies if they occur. This is the principle behind our priority to regain compliance with the constitutional debt brake. It also helps to ensure fairness towards future generations: rather than saddling coming generations with more government debt, we want them to benefit from forward-looking investments. Low levels of government debt also reduce inflation risks.
More information on fiscal stabilisation policies is available here.
We have already implemented a number of measures to ease the burden on taxpayers. In addition, we want to prevent “bracket creep” and ensure that pay rises actually end up in people’s pockets. To do this, we intend to enact additional tax relief measures. The government needs fiscal resources to provide such relief. This means that the tax system has to be fair in order to ensure that enough resources are on hand. To this end, we are taking action to fight financial crime and advocating the introduction of a global minimum tax. This will ensure that multinational corporations pay their fair share of taxes just like local businesses do.
Shaping the transition to a climate-neutral economy is a challenge that confronts all of us. Making the necessary transformations will require a decade of targeted investment. Our fiscal policy aims to unleash the potential for growth. In the area of tax policy, we are creating incentives to accelerate climate action and digitalisation. This will ensure that Germany remains an attractive place to do business and will boost our long-term competitiveness.
If we want Germany to be fit for the future, our country must be a hub of innovation. To strengthen our culture of innovation, we need bold entrepreneurs who are backed up by the right policy framework. Our approach involves not only government investment but also the creation of a climate in Germany where private investors want to be active because they see promising opportunities. We are cutting red tape, modernising the financial sector, and placing innovation promotion – in the area of digitalisation, for example – at the heart of our financial market policy.
We create opportunity and ensure intergenerational equity.
Stable public finances ensure that the government has the ability to take effective action in every situation. Prudent budget management and smart investments during times of economic calm enable governments to handle fiscal emergencies if they occur. Sound government policy creates the fiscal space that in turn helps individuals and businesses to flourish. This is the only way to safeguard and enhance our prosperity.
We want Germany to regain compliance with the constitutional debt brake in order to safeguard our long-term fiscal stability. This is also what fairness towards future generations demands: they should be able to benefit from forward-looking investments and not be saddled with more government debt and ever-higher interest payments. At the same time, stable public finances form the basis for sustainable economic growth. Low levels of government debt reduce inflation risks. The state must make do with the money available to it.
These policy priorities also send a signal beyond our borders. Making the EU Stability and Growth Pact’s rules more binding will ensure responsible budget management throughout Europe. In this way, European countries can work together to maintain economic stability in Europe and to keep the single market strong – both now and in the future.
Germany is in the midst of a major economic transition. Digital technology is fundamentally changing how we live and work. Making the successful shift to climate-neutral economies is a task that confronts all of humanity. However, it is a challenge that also presents enormous opportunities for growth, development and renewal. The necessary transformations will require a decade of targeted investment.
Our fiscal policy aims to unleash the potential for growth.
Germany has yet to take advantage of many opportunities that are available to make our country more digital, modern and sustainable. For this reason, we are creating important tax incentives to accelerate climate action and digitalisation. This will ensure that Germany remains an attractive place to do business and will boost our long-term competitiveness.
We work to provide tax relief and ensure fairness.
We place a high priority on regaining compliance with the debt brake. This does not rule out tax relief, however. We have already implemented several measures to ease the burden on taxpayers. These include eliminating the renewable energy surcharge on electricity, increasing the commuter tax allowance and raising various standard allowances.
Wage increases need to end up in people’s pockets, not in state coffers as the unintended result of “bracket creep”.
This is why we are enacting targeted tax relief measures. Our aim is to preserve and even improve purchasing power, despite inflation.
In a fair tax system, everyone must follow the rules, and taxes must be charged and collected in a fair and transparent manner. At the international level, the introduction of a global minimum tax will make the global tax system more equitable by ensuring that multinational corporations pay their fair share of taxes just like local businesses do.
We also place a high priority on fighting financial crime. Money laundering, terrorism financing and tax evasion harm society at large. That is why we are stepping up our efforts to take even more targeted action against these offences. The German government’s “task force to combat tax schemes” – which was established in 2020 for the purpose of detecting and preventing tax evasion schemes – is being given additional powers. We also plan to speed up the system for reporting deliberate tax avoidance practices. This will help us close tax loopholes more quickly.
Our strategy:
Provide relief for the broad majority of taxpayers
Initiative and inventiveness are indispensable for Germany’s future. They are the keys to innovation, which is essential for economic development and growth. To strengthen our culture of innovation, we need bold entrepreneurs and the right policy framework. Government investment has an important role to play here, but above all we want to create a climate in Germany that makes private investors want to get involved because they see promising opportunities. This is the best way to mobilise capital for innovative ideas and businesses.
Young companies and start-ups are the leading drivers of innovation. They create growth and the jobs of tomorrow.
In order to help businesses like these take the lead in the global marketplace, we need to strengthen the role of venture and growth capital in Germany. To this end, the German government has launched a “Future Fund” to mobilise private funding for young businesses. We want to establish globally competitive capital market conditions throughout the entire EU. That’s why we advocate the creation of large European venture capital funds.
At the same time, we want to foster initiative and creativity. We are doing this by reducing bureaucratic red tape and speeding up administrative processes. In addition, we are taking steps to modernise Germany’s financial sector. Our financial market policy places a central focus on the promotion of innovation, particularly in the area of digital technology. If we want Germany to be fit for the future, our country must be a hub of innovation.
We create opportunity and ensure intergenerational equity.
Stable public finances ensure that the government has the ability to take effective action in every situation. Prudent budget management and smart investments during times of economic calm enable governments to handle fiscal emergencies if they occur. Sound government policy creates the fiscal space that in turn helps individuals and businesses to flourish. This is the only way to safeguard and enhance our prosperity.
We want Germany to regain compliance with the constitutional debt brake in order to safeguard our long-term fiscal stability. This is also what fairness towards future generations demands: they should be able to benefit from forward-looking investments and not be saddled with more government debt and ever-higher interest payments. At the same time, stable public finances form the basis for sustainable economic growth. Low levels of government debt reduce inflation risks. The state must make do with the money available to it.
These policy priorities also send a signal beyond our borders. Making the EU Stability and Growth Pact’s rules more binding will ensure responsible budget management throughout Europe. In this way, European countries can work together to maintain economic stability in Europe and to keep the single market strong – both now and in the future.
Germany is in the midst of a major economic transition. Digital technology is fundamentally changing how we live and work. Making the successful shift to climate-neutral economies is a task that confronts all of humanity. However, it is a challenge that also presents enormous opportunities for growth, development and renewal. The necessary transformations will require a decade of targeted investment.
Our fiscal policy aims to unleash the potential for growth.
Germany has yet to take advantage of many opportunities that are available to make our country more digital, modern and sustainable. For this reason, we are creating important tax incentives to accelerate climate action and digitalisation. This will ensure that Germany remains an attractive place to do business and will boost our long-term competitiveness.
We work to provide tax relief and ensure fairness.
We place a high priority on regaining compliance with the debt brake. This does not rule out tax relief, however. We have already implemented several measures to ease the burden on taxpayers. These include eliminating the renewable energy surcharge on electricity, increasing the commuter tax allowance and raising various standard allowances.
Wage increases need to end up in people’s pockets, not in state coffers as the unintended result of “bracket creep”.
This is why we are enacting targeted tax relief measures. Our aim is to preserve and even improve purchasing power, despite inflation.
In a fair tax system, everyone must follow the rules, and taxes must be charged and collected in a fair and transparent manner. At the international level, the introduction of a global minimum tax will make the global tax system more equitable by ensuring that multinational corporations pay their fair share of taxes just like local businesses do.
We also place a high priority on fighting financial crime. Money laundering, terrorism financing and tax evasion harm society at large. That is why we are stepping up our efforts to take even more targeted action against these offences. The German government’s “task force to combat tax schemes” – which was established in 2020 for the purpose of detecting and preventing tax evasion schemes – is being given additional powers. We also plan to speed up the system for reporting deliberate tax avoidance practices. This will help us close tax loopholes more quickly.
Our strategy:
Provide relief for the broad majority of taxpayers
Initiative and inventiveness are indispensable for Germany’s future. They are the keys to innovation, which is essential for economic development and growth. To strengthen our culture of innovation, we need bold entrepreneurs and the right policy framework. Government investment has an important role to play here, but above all we want to create a climate in Germany that makes private investors want to get involved because they see promising opportunities. This is the best way to mobilise capital for innovative ideas and businesses.
Young companies and start-ups are the leading drivers of innovation. They create growth and the jobs of tomorrow.
In order to help businesses like these take the lead in the global marketplace, we need to strengthen the role of venture and growth capital in Germany. To this end, the German government has launched a “Future Fund” to mobilise private funding for young businesses. We want to establish globally competitive capital market conditions throughout the entire EU. That’s why we advocate the creation of large European venture capital funds.
At the same time, we want to foster initiative and creativity. We are doing this by reducing bureaucratic red tape and speeding up administrative processes. In addition, we are taking steps to modernise Germany’s financial sector. Our financial market policy places a central focus on the promotion of innovation, particularly in the area of digital technology. If we want Germany to be fit for the future, our country must be a hub of innovation.
We create opportunity and ensure intergenerational equity.
Stable public finances ensure that the government has the ability to take effective action in every situation. Prudent budget management and smart investments during times of economic calm enable governments to handle fiscal emergencies if they occur. Sound government policy creates the fiscal space that in turn helps individuals and businesses to flourish. This is the only way to safeguard and enhance our prosperity.
We want Germany to regain compliance with the constitutional debt brake in order to safeguard our long-term fiscal stability. This is also what fairness towards future generations demands: they should be able to benefit from forward-looking investments and not be saddled with more government debt and ever-higher interest payments. At the same time, stable public finances form the basis for sustainable economic growth. Low levels of government debt reduce inflation risks. The state must make do with the money available to it.
These policy priorities also send a signal beyond our borders. Making the EU Stability and Growth Pact’s rules more binding will ensure responsible budget management throughout Europe. In this way, European countries can work together to maintain economic stability in Europe and to keep the single market strong – both now and in the future.
Germany is in the midst of a major economic transition. Digital technology is fundamentally changing how we live and work. Making the successful shift to climate-neutral economies is a task that confronts all of humanity. However, it is a challenge that also presents enormous opportunities for growth, development and renewal. The necessary transformations will require a decade of targeted investment.
Our fiscal policy aims to unleash the potential for growth.
Germany has yet to take advantage of many opportunities that are available to make our country more digital, modern and sustainable. For this reason, we are creating important tax incentives to accelerate climate action and digitalisation. This will ensure that Germany remains an attractive place to do business and will boost our long-term competitiveness.
We work to provide tax relief and ensure fairness.
We place a high priority on regaining compliance with the debt brake. This does not rule out tax relief, however. We have already implemented several measures to ease the burden on taxpayers. These include eliminating the renewable energy surcharge on electricity, increasing the commuter tax allowance and raising various standard allowances.
Wage increases need to end up in people’s pockets, not in state coffers as the unintended result of “bracket creep”.
This is why we are enacting targeted tax relief measures. Our aim is to preserve and even improve purchasing power, despite inflation.
In a fair tax system, everyone must follow the rules, and taxes must be charged and collected in a fair and transparent manner. At the international level, the introduction of a global minimum tax will make the global tax system more equitable by ensuring that multinational corporations pay their fair share of taxes just like local businesses do.
We also place a high priority on fighting financial crime. Money laundering, terrorism financing and tax evasion harm society at large. That is why we are stepping up our efforts to take even more targeted action against these offences. The German government’s “task force to combat tax schemes” – which was established in 2020 for the purpose of detecting and preventing tax evasion schemes – is being given additional powers. We also plan to speed up the system for reporting deliberate tax avoidance practices. This will help us close tax loopholes more quickly.
Our strategy:
Provide relief for the broad majority of taxpayers
Initiative and inventiveness are indispensable for Germany’s future. They are the keys to innovation, which is essential for economic development and growth. To strengthen our culture of innovation, we need bold entrepreneurs and the right policy framework. Government investment has an important role to play here, but above all we want to create a climate in Germany that makes private investors want to get involved because they see promising opportunities. This is the best way to mobilise capital for innovative ideas and businesses.
Young companies and start-ups are the leading drivers of innovation. They create growth and the jobs of tomorrow.
In order to help businesses like these take the lead in the global marketplace, we need to strengthen the role of venture and growth capital in Germany. To this end, the German government has launched a “Future Fund” to mobilise private funding for young businesses. We want to establish globally competitive capital market conditions throughout the entire EU. That’s why we advocate the creation of large European venture capital funds.
At the same time, we want to foster initiative and creativity. We are doing this by reducing bureaucratic red tape and speeding up administrative processes. In addition, we are taking steps to modernise Germany’s financial sector. Our financial market policy places a central focus on the promotion of innovation, particularly in the area of digital technology. If we want Germany to be fit for the future, our country must be a hub of innovation.
We create opportunity and ensure intergenerational equity.
Stable public finances ensure that the government has the ability to take effective action in every situation. Prudent budget management and smart investments during times of economic calm enable governments to handle fiscal emergencies if they occur. Sound government policy creates the fiscal space that in turn helps individuals and businesses to flourish. This is the only way to safeguard and enhance our prosperity.
We want Germany to regain compliance with the constitutional debt brake in order to safeguard our long-term fiscal stability. This is also what fairness towards future generations demands: they should be able to benefit from forward-looking investments and not be saddled with more government debt and ever-higher interest payments. At the same time, stable public finances form the basis for sustainable economic growth. Low levels of government debt reduce inflation risks. The state must make do with the money available to it.
These policy priorities also send a signal beyond our borders. Making the EU Stability and Growth Pact’s rules more binding will ensure responsible budget management throughout Europe. In this way, European countries can work together to maintain economic stability in Europe and to keep the single market strong – both now and in the future.
Germany is in the midst of a major economic transition. Digital technology is fundamentally changing how we live and work. Making the successful shift to climate-neutral economies is a task that confronts all of humanity. However, it is a challenge that also presents enormous opportunities for growth, development and renewal. The necessary transformations will require a decade of targeted investment.
Our fiscal policy aims to unleash the potential for growth.
Germany has yet to take advantage of many opportunities that are available to make our country more digital, modern and sustainable. For this reason, we are creating important tax incentives to accelerate climate action and digitalisation. This will ensure that Germany remains an attractive place to do business and will boost our long-term competitiveness.
We work to provide tax relief and ensure fairness.
We place a high priority on regaining compliance with the debt brake. This does not rule out tax relief, however. We have already implemented several measures to ease the burden on taxpayers. These include eliminating the renewable energy surcharge on electricity, increasing the commuter tax allowance and raising various standard allowances.
Wage increases need to end up in people’s pockets, not in state coffers as the unintended result of “bracket creep”.
This is why we are enacting targeted tax relief measures. Our aim is to preserve and even improve purchasing power, despite inflation.
In a fair tax system, everyone must follow the rules, and taxes must be charged and collected in a fair and transparent manner. At the international level, the introduction of a global minimum tax will make the global tax system more equitable by ensuring that multinational corporations pay their fair share of taxes just like local businesses do.
We also place a high priority on fighting financial crime. Money laundering, terrorism financing and tax evasion harm society at large. That is why we are stepping up our efforts to take even more targeted action against these offences. The German government’s “task force to combat tax schemes” – which was established in 2020 for the purpose of detecting and preventing tax evasion schemes – is being given additional powers. We also plan to speed up the system for reporting deliberate tax avoidance practices. This will help us close tax loopholes more quickly.
Our strategy:
Provide relief for the broad majority of taxpayers
Initiative and inventiveness are indispensable for Germany’s future. They are the keys to innovation, which is essential for economic development and growth. To strengthen our culture of innovation, we need bold entrepreneurs and the right policy framework. Government investment has an important role to play here, but above all we want to create a climate in Germany that makes private investors want to get involved because they see promising opportunities. This is the best way to mobilise capital for innovative ideas and businesses.
Young companies and start-ups are the leading drivers of innovation. They create growth and the jobs of tomorrow.
In order to help businesses like these take the lead in the global marketplace, we need to strengthen the role of venture and growth capital in Germany. To this end, the German government has launched a “Future Fund” to mobilise private funding for young businesses. We want to establish globally competitive capital market conditions throughout the entire EU. That’s why we advocate the creation of large European venture capital funds.
At the same time, we want to foster initiative and creativity. We are doing this by reducing bureaucratic red tape and speeding up administrative processes. In addition, we are taking steps to modernise Germany’s financial sector. Our financial market policy places a central focus on the promotion of innovation, particularly in the area of digital technology. If we want Germany to be fit for the future, our country must be a hub of innovation.
Our strategy:
Strengthen Germany’s culture of innovation
Foster entrepreneurship and initiative
Cut red tape
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Ministry
What does the Finance Ministry do?
This infographic provides a unique insight into the Finance Ministry’s work.
We are working to expand diversity and opportunity at the Federal Ministry of Finance. We’ve already made important progress: for example, the proportion of women in management positions is rising steadily and exceeds 40% in several directorates-general.
In 2021, the Finance Ministry signed Germany’s Diversity Charter. In addition, we have established an in-house network called “Diversify@BMF” that aims to make the Finance Ministry more inclusive and international. We are certain: diversity is an asset that enhances our performance and makes us more innovative.
In addition to diversity and equal opportunity, digitalisation is a third key quality that a modern public authority needs. By simplifying our procedures and placing more of our services online, we are making the public administration more user-friendly. Internally, we are building an increasingly agile, digital and interdisciplinary working environment. And by cooperating closely with leading private sector experts, we are speeding up the implementation of joint projects.
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The Federal Minister of Finance is responsible for Germany’s fiscal, budget and tax policy. The State Secretaries help him carry out this crucial work.
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The Detlev Rohwedder Building reflects the stages of Germany’s turbulent history more clearly than perhaps any other building in Berlin. Take a virtual tour here.
