Family businesses criticize the traffic light government: ‘Incorrect economic policy’ is damaging the location”

Family businesses criticize the traffic light government: ‘Incorrect economic policy’ is damaging the location”

Family business owners are concerned about the political direction of the traffic light coalition. They have lost trust in Germany as a business location. This lack of trust is caused by what is perceived as a misguided economic policy being pursued by the government, according to Rainer Kirchdörfer, chairman of the Family Business Foundation. Kirchdörfer emphasizes that the current government is not implementing adequate economic reforms. There is not enough focus on investments in education and infrastructure, while the social budget is increasingly expanding.

Over the next five years, three quarters of large, internationally operating family businesses plan to reduce their investments in Germany. Despite this announcement, the government seems to be turning a blind eye to it so far. Kirchdörfer argues for an urgently needed economic turnaround that should create incentives for investments. He calls for improved depreciation options for investments and the temporary suspension of bureaucratic regulations.

Furthermore, the Family Business Foundation is pushing for a reduction in corporate tax. According to Kirchdörfer, a gradual reduction in this tax would lead to more private investment and a higher national product, as an internal study by the foundation has shown. However, this demand has also met with criticism that the foundation only acts as a lobby organization.

Another point of criticism concerns subsidies, which Kirchdörfer's foundation sees as problematic. He warns that new subsidies could lead to an unlevel playing field. The federal government is currently spending enormous amounts of money on subsidies, which is causing resentment among family businesses. Dissatisfaction with the government is widespread, a survey by the Association of Family Businesses shows. 69 percent of those surveyed are of the opinion that Germany's competitiveness has suffered under the traffic light government in the last two and a half years.