The state will continue to provide public assistance on a massive scale. In this context the Federal Government adopted a “Medium-Term Assistance Strategy” in May 1997 which provides for a concentration of tax incentives in the manufacturing sector. The relatively long period for which the incentives may be granted (six years) affords investors a sound basis for long-term planning. Special emphasis continues to be placed on incentives for the founding of new businesses, promotion of innovation and provision of venture capital.

In addition, improvements in the area of infrastructure (above all the German Unity transport projects) will proceed at a brisk pace. Through an active labor market policy - job creation measures in the fields of residential construction and environmental protection, creation of additional training places and reintegration assistance for the long-term unemployed, for instance- employment opportunities are to be improved for those unemployed persons who are more difficult to reintegrate into the work force.