German Economics Ministry Mulls New Start-Up Strategy

June 2022

Germany’s Ministry for Economic Affairs and Climate Action, led by Minister Robert Habeck, wants to do more to support start-ups in the country. According to reports in a variety of leading German newspapers, the ministry has submitted a 28-page proposal for reforms to the other parts of the German government.

“The national government will further strengthen the venture capital market and create additional opportunities for large-scale financing by domestic investors,” the proposal was cited as saying.

According to business newspaper Handelsblatt, reforms would include:

  • a minimum quota of start-up investments for pension funds, aimed at closing the gap between early financing rounds and IPOs
  • tax reductions for venture-capital funds
  • better tax conditions for employee incentive compensation
  • easing of immigration rules to help companies attract expert labor from abroad
  • simplification of procedures for spinning off companies from universities and research institutes
  • more government contracts for start-ups.

Start-up organizations, in the main, have praised the proposals. The ministry hopes that its proposals will yield an official government start-up strategy by the end of the summer.

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