#Germany in panic as economy slows over #Brexit uncertainty #angelamerkel

German exporters are struggling with weaker demand from abroad, trade tensions triggered by US President Donald Trump's "America First" policies and business uncertainty caused by Britain's planned departure from the European Union, with one downbeat assessment suggesting “the best times are over”. 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 1.27billion euros ($1.43billion) annually from 2020, a draft law seen by Reuters showed on Wednesday.

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The Government must not lose any more time

Joachim Lang

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.

Cabinet is expected to pass the measures in mid-May.

Germany's BDI industry association urged the government to offer more incentives for climate-friendly corporate investment and to slash taxes for companies.

BDI Managing Director Joachim Lang said: “The best times for the economy are over. The Government must not lose any more time."

Angela MerkelAngela Merkel's Germany is facing an economic slowdown (Image: GETTY)

Presenting the government's Spring forecast, Mr Altmaier said on Wednesday that Berlin now expects

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