Better financing, reforms in employee participation, better access to public contracts - with a comprehensive start-up strategy, Federal Minister of Economics Habeck (Greens) wants to eliminate deficits in Germany as a start-up location and young companies as drivers of economic, ecological and social dynamics and renewal support.

A central component of the draft, which still has to be coordinated within the traffic light, is improved financing options for start-ups.

Germany has some catching up to do here compared to the United States and Asian countries, among others.

Katja Gelinsky

Business correspondent in Berlin

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Habeck wants to strengthen the German venture capital market together with private investors using public capital.

Above all, the start-up scene in key areas such as climate protection, artificial intelligence, medicine and the circular economy should benefit.

It is also announced that suitable financing instruments will be developed for start-ups geared towards the common good.

At EU level, at least 20 percent of fund resources are to be invested in green, sustainable and social projects by 2025.

The ministry also announces tax measures.

The aim is a “far-reaching and European-legally secure design of the VAT exemption for venture capital funds”.

There should also be movement when it comes to capital market orientation of old-age provision.

Habeck intends to set a minimum investment quota in venture capital funds for the intended build-up of a capital stock in statutory and private old-age provision.

In addition, the requirements for IPOs are to be “reviewed”.

A working group should deal with this first.

The aim is to implement the measures in the strategy paper by the end of the legislative period.

In addition to difficulties with financing, start-ups in this country are particularly concerned about personnel problems.

Habeck is therefore aiming for further simplifications for skilled workers from abroad.

In addition, there will be tax changes in employee participation.

The plans met with a lot of approval in the young entrepreneur scene.

"The design is round and overall extremely important for the industry," said Christian Hülsewig, CEO and founder of the logistics company Schüttflix.

He was particularly pleased that young companies should be given more consideration in public contracts.

Praise also came from the “Startup Association”.

"The right priorities are being set," said CEO Christian Miele.

Concrete implementation is now crucial.

Above all, the issue of employee participation is pressing.