Games Funding Tax Model Included in First Draft of Coalition Agreement

Various German newspapers, including the Berliner Zeitung, have published the first draft of a coalition agreement between the CDU/CSU and SPD. Games are mentioned several times in the draft, which includes plans for tax-based funding.

However, nothing is certain yet. Although various newspapers have published the same draft text, making it likely that this is indeed a genuine interim result of the ongoing coalition negotiations between the CDU and SPD, this does not necessarily mean that the text will be adopted in the end.

From the point of view of the games industry, however, the draft is encouraging, as the medium of games is mentioned several times. The section on the cultural and creative industries, which focuses on a timely reform of film funding and initiatives to promote the music industry and pop culture, is particularly exciting for the games industry. It states: "Games sind ein Kulturgut und Innovationstreiber, daher werden wir den Gamestandort durch steuerliche Anreize und verlässliche Programme fördern." ("Games are a cultural asset and a driver of innovation, which is why we will promote Germany as a games location through tax incentives and reliable programmes."

Interestingly, the games industry is also mentioned in the section prepared by the working group for economy, industry and tourism. It states: "Die Gaming-Branche hat großes kulturelles, wirtschatliches und technologisches Potenzial. Mit SpillOver Effekten sorgt sie für Fortschritt und Innovation. Deshalb wollen wir die internationale Wettbewerbsfähigkeit unseres Games-Standortes durch mehr Planbarkeit und Passgenauigkeit des Fördersystems stärken." ("The gaming industry has great cultural, economic and technological potential. With spillover effects, it ensures progress and innovation. Therefore, we want to strengthen the international competitiveness of our games industry by making the funding system more plannable and more tailored to our needs.) A clear commitment to the games industry.

However, the following lines also state that the federal government's funding policy is undergoing consolidation and that programmes are being monitored by a funding control system. Although this does not specifically refer to games funding, it applies in general and therefore ultimately also affects games funding.

The draft also once again mentions e-sports. The aim is to recognise its charitable status. However, the two previous governments had also taken up this cause, but failed due to implementation.