German coalition agreement recognises PE importance

The parties aim to strengthen entrepreneurship in Germany as well as support the German Mittelstand and start-ups. Investments from institutional, public and private investors are welcomed in order to grow Germany's economy.

Matthias Kues, chairman of the German Private Equity and Venture Capital Association (BVK), said in a statement: "There are a number of good initial approaches towards private equity, and especially for stimulation of the venture capital scene. We hope the government is going to realise those promises in the next years."

Both parties want to increase the attractiveness of private equity investments through improving tax regulatory frameworks, especially in the venture capital market, making it an internationally competitive sector, the agreement states. It is hoped that this will improve Germany as a fund location.

Overall, private equity is seen as a valuable tool for growth and innovation. BVK's CEO Ulrike Hinrichs said: "It is important that tax increases are not included in the agreement. A rise would have had a very negative effect on the entire investment and economic sector, while greatly worsening the regulatory framework for private equity."

The coalition agreement also mentions both parties will seek to realise a financial transaction tax in co-operation with the European Union, but nothing specific has been finalised.

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• Topics
• DACH
• GPs
• Fundraising
• Regulation
• Germany
• High-Tech Gründerfonds
• Venture
• BVK