
German Economy Minister Peter Altmaier
The German government is eyeing incentives to boost corporate research and development after cutting its forecast for 2019 economic growth for the second time in three months, reflecting a
worsening slowdown driven by a recession in manufacturing.German exporters are struggling with
weaker demand from abroad, trade tensions triggered by U.S. President Donald Trump's "America First" policies and business uncertainty caused by Britain's planned departure from the European Union.
The difficult trade environment means that Germany's vibrant domestic demand, helped by record-high employment, inflation-busting pay increases and low borrowing costs, is expected to be the sole driver of growth this year and next.
To counter the slowdown, Finance Minister Olaf Scholz plans to support corporate research and development with incentives worth 1.27 billion euros ($1.43 billion) annually from 2020, a draft law seen by Reuters showed on Wednesday.
Companies doing basic research or industrial development can apply for a bonus of up to 500,000 euros per year, with the incentives not limited to small- and medium-sized firms as originally planned, according to the draft law.
Comment: