Family businesses are losing trust in the traffic light coalition

Family businesses are losing trust in the traffic light coalition

The mood among family businesses in Germany regarding the current traffic light coalition is characterized by skepticism and frustration. From the perspective of association representatives such as Rainer Kirchdörfer, board member of the Family Business Foundation, urgently needed economic reforms and investments in areas such as education and infrastructure are missing. The declining willingness of large family businesses to invest in Germany in the next few years reflects dwindling trust in political decision-makers.

Kirchdörfer calls for an “economic turnaround” that creates incentives for investments and improves depreciation conditions for companies. In particular, he emphasizes the burden of bureaucratic regulations such as the German Supply Chain Act, which is perceived by many entrepreneurs as the main problem. A reduction in corporate tax is also called for, as, according to a study by the Family Business Foundation, this could lead to increased investments and an increased national product.

Kirchdörfer, however, expresses criticism of state subsidies, which he sees as unequal competitive conditions for family businesses. The current payment of a record sum of 48 billion euros in subsidies by the federal government is seen as burdensome for the companies affected. Despite pressure from associations such as family businesses, overall satisfaction with the government remains low, which could have a negative impact on the competitiveness of Germany as a business location.