Germany’s new government will seek to pass a €46bn package of corporate tax breaks over the summer in an effort to jolt the Eurozone’s largest economy out of stagnation.

Finance minister Lars Klingbeil, a Social Democrat, will outline the measures during a cabinet meeting on Wednesday. The tax incentives, which include deductions for new equipment and new electric vehicles, will cost about €46bn in total by 2029, when the coalition’s term expires, according to government estimates seen by the Financial Times.

“Following a period of economic stagnation, it is important to raise the potential of the German economy significantly,” reads the draft bill. The measures are meant to “send a strong signal for the short-term and long-term competitiveness of Germany as a business location.”