In view of the upturn in the property market, the government is extending all the temporary tax incentives available to the sector until 1 July, “so as not to break the momentum.” This is good news for individuals looking to complete their property purchase before the end of the year, who had factored this assistance into their calculations and who feared that it would not be extended as originally planned. “We have succeeded in restoring momentum to the market, both for new and existing properties. Our measures are working, and we want to give everyone a chance to take advantage of them,” said a delighted (CSV), referring to the feedback he had received from craftsmen, bankers and notaries.
These include the “boosted” Bëllegen Akt, the Bëllegen Akt for rental investors, accelerated depreciation at 6% and reduced taxation on capital gains. A bill will be tabled at the beginning of January and once passed, the law will apply retroactively. However, the prime minister has insisted that this extension will not be renewed after 1 July.
On the economic front, again in view of the results of the measures introduced over the past year to support economic activity, Frieden hopes that the country will return to 2% growth. While acknowledging that this also depended on the conduct of political affairs in neighbouring countries. “Countries that currently have no coherent policy. Or no policy at all.”
Support for farmers
As European Commission president Ursula von der Leyen announced today that she had signed a political agreement with the four Mercosur countries in Montevideo on 6 December, bringing to an end 20 years of negotiations on the free trade agreement between the EU and Mercosur, Frieden sought to reassure farmers. Saying that he “understands the concerns of farmers in general,” he indicated that before ratifying the treaty, the government would ensure that all farmers on both sides of the Atlantic would be subject to the same procedures and the same constraints. “It would make no sense to push for a reduction in livestock numbers here and allow development in Mercosur. My priority is that the agreement should not be to the detriment of farmers.”
He went on to say that he and agriculture commissioner (CSV/EPP) wanted to put an end to the “over-regulation affecting the sector.”
Given that free trade agreements are global and affect different areas of the economy, Frieden also intends to talk to manufacturers. A meeting with the business federation Fedil is scheduled before the end of the year. Before deciding whether to ratify the agreement, the government will call a meeting with manufacturers and farmers to hear their views. “Our position will be clear by Easter.”
Not directly linked to the Mercosur agreement, the government has announced its support for greenhouse cultivation “wherever possible.” This will involve subsidies of up to 40%, with a ceiling of €20m.
This article was originally published in .