German cabinet agrees draft law to improve startups' finance conditions

By Maria Martinez and Christian Kraemer

BERLIN, Sept 10 (Reuters) - Germany's cabinet on Wednesday agreed a draft law to strengthen Germany as a business location by improving finance conditions for small businesses and startups, said a government spokesperson.

In addition, more capital is to be directed into infrastructure projects and renewable energies, the draft law seen by Reuters showed.

The new law is part of the government's efforts to revive the economy following two years of contraction.

The draft law states that access to financing is crucial for innovation and private investment, and therefore to boost economic growth.

The tax framework for venture capital will be improved, to support startups, and for initial public offerings (IPOs), the draft law also includes the option of using English-language prospectuses when issuing securities to facilitate EU-wide distribution.

The minimum nominal value of shares is also to be reduced to one cent, from the current one euro, to align with international standards so that Germany is not less flexible as a venue for IPOs.

Certain audit, reporting and notification requirements will also be abolished to reduce the bureaucratic burden.