German Government to Introduce Standortfördergesetz to Boost Business Financing and Investment

The German government plans to introduce a new legislative proposal called the Standortfördergesetz aimed at improving financing conditions for businesses, particularly young and dynamic companies, to enhance investment and competitiveness. The first reading of the bill is scheduled for November 7, 2025, during which a one-hour debate will be held before the bill moves to the Finance Committee for further examination. (109309)

This legislation seeks to tackle structural challenges facing the German economy such as decarbonization, geo-economic fragmentation, and productivity losses stemming from slow digitalization. To address these issues, the bill aims to promote private investments and reduce bureaucratic costs that inhibit growth. Enhancing the competitiveness of Germany as a financial hub is a key goal, alongside facilitating increased investment funds directed towards renewable energies and infrastructure projects.

By improving the general business climate and removing investment barriers, the Standortfördergesetz is expected to unleash potential growth and ensure financial resources reach those companies that need them most. The focus on financing conditions for dynamic startups signals a strategic effort to strengthen Germany’s innovation landscape and economic resilience.

According to the Bundestag, the bill is designed to directly respond to existing obstacles that have slowed down productivity and green transitions, positioning German businesses better within the evolving economic environment. This legislative move reflects the government’s acknowledgment of pressing economic transformations and its intent to create a more conducive environment for sustained investment and competitiveness. (109309)