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EFES NEWSLETTER - NOVEMBER 2019
Germany:
The Coalition decides that tax incentives will be doubled |
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Germany
is finally moving. In the course of the negotiations
on the basic pension, the Coalition has agreed to increase
the tax-free allowance for employee participation in
working capital from 360 euros to 720 euros. The Coalition
Resolution of 10 November 2019 states: "Employee
share ownership contributes to the accumulation of wealth
of employees. In order to increase their attractiveness,
the maximum tax-exempt amount will be increased from
the current 360 euros to 720 euros." Thus, the
coalition takes up a long-standing demand of the German
Association for Employee Participation (AGP) to improve
the tax environment for employee capital participation.
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With
the increase in the allowance, AGP expects a significant
effect on the accumulation of assets of employees who
can already make use of the corresponding investment offers
of their company. "To what extent more companies
will offer participation programs for their employees
in the future, remains to be seen, however, since the
allowance in comparison to other European countries remains
low. The European experience here shows a clear correlation
between the level of support and the degree of penetration
of employee capital participation" says AGP Managing
Director, Heinrich Beyer.
The association therefore pleads for a further gradual
expansion of the tax subsidy. A further increase could
also strengthen the German start-up companies in the international
location competition for qualified specialists.
For their part, the opposition parties (FDP and Grünen)
want an exemption up to 7,500 euros comparable to other
major European countries. |
Press
review
We have a selection of 30 remarkable articles in 8 countries
in November 2019: Denmark, France, Germany, Croatia, Italy,
Poland, United Kingdom, USA.
Denmark: The new social democratic government could
open the way for the introduction of the ESOP model in Europe.
France: New employee share plans for Alstom, for CagGemini,
for Veolia, for Soitec. Employee share ownership in SMEs:
Artelia, Telelogos, StellaGroup. Workers cooperatives for
business transmission.
Italy: Employee share plan for Luxottica.
Poland: In his investiture speech, Prime Minister Morawiecki
confirms employee share ownership as a priority, with the
goal of building the Polish welfare state and making Poland
"the best place to live in Europe".
UK: Some new firms moving to the Employee Ownership
Trust scheme. The "Equity for All Report" recommends
a new range of tax incentives.
USA: Menke & Associates is the Nation's Premier
ESOP Advisor. Comments about the iconic employee-owned New
Belgium Brewery which could be sold to a larger company. Employee
are often the losers when the ownership of their employers
changes hands. They almost never benefit from a transaction...
unless the company has broad-based ownership by its employees.
The existence of an ESOP means that the sale price is divided
among many people, rather than a single person taking the
entire profit from the sale.
The full press review is available
on:
http://www.efesonline.org/PRESS
REVIEW/2019/November.htm
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A
political roadmap for employee ownership in Europe
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