Executive Summary The government presents its 2027 fiscal package as a redistribution from capital and higher incomes towards basic consumption and middle-income salaries. Its principal measures—higher dividend and standard VAT rates, a lower rate on essential foods and wider VAT registration—have prompted coordinated objections from domestic business organisations and foreign-investor associations. A 5 November statement by the German Association of Industry and Trade (DIHA) adds to earlier objections by AmCham and FIAA, with all three warning that abrupt changes and inadequate consultation may undermine investment decisions. The package offers potential household relief and greater formalisation, but its cumulative effects on…
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