There will also be tax breaks over the next 2½ years for companies that buy electric cars and measures to encourage investment in research.
Finance Minister Lars Klingbeil, who is also the vice chancellor, said that “we are making Germany as a location more competitive internationally.” Germany has Europe's biggest economy.
Several industry associations have already called for more help, for example, in bringing down electricity prices.
The package launched Wednesday is separate from a 500 billion-euro ($570 billion) fund that Merz's coalition pushed through parliament before it even took office last month to pour money into Germany's creaking infrastructure over the next 12 years.
Klingbeil said that the government plans to launch legislation formally setting up that fund in late June.