Medium-sized businesses threaten the Merz government: We need actions, not words!”

Medium-sized businesses threaten the Merz government: We need actions, not words!”

In the current debate about the German economy, medium-sized businesses are becoming increasingly dissatisfied with the policies of the federal government under Chancellor Merz. The Merz government has set itself the goal of stimulating the economy, but expectations are not being met. This was expressed during a medium-sized business dialogue in Berlin, at which trade president Jörg Dittrich sharply criticized Economics Minister Katherina Reiche (CDU). Dittrich emphasized that politicians' promises often do not lead to tangible improvements for companies, which leads to growing disappointment among medium-sized businesses fr.de reported.

The challenges are numerous: The high tax burden, rising energy prices and bureaucracy place a considerable burden on companies. Ralf Stoffels, Vice President of the German Chamber of Commerce and Industry, also warned of the shrinking of Germany's international competitiveness. According to Stoffels, the economic upswing in medium-sized businesses is not visible. The decision not to reduce electricity tax for all companies is also causing dissatisfaction. Dittrich called for the fulfillment of promises to reduce electricity taxes and more freedom for companies.

The middle class as an economic engine

Medium-sized businesses represent the backbone of the German economy. Economics Minister Reiche, who emphasized the importance of medium-sized businesses, pointed out in this context that 99% of all companies in Germany are small and medium-sized businesses. Over 50% of employees work in medium-sized businesses and around 70% of skilled workers are trained there. She described the companies as the “heart, backbone and power center” of the German economy. However, clear changes are also necessary to create better location conditions, which the minister promised bundeswirtschaftsministerium.de reported.

Katherina Reiche admitted that the state needs to do more for medium-sized businesses and that demands to reduce bureaucracy, such as abolishing the receipt requirement, are on the priority list. The establishment of the dialogue format “Competitiveness for medium-sized businesses” is intended to provide a platform for regular exchanges with representatives of medium-sized business associations. Gitta Connemann, who leads the dialogue, also emphasized the importance of medium-sized businesses not to attach importance to empty promises and instead to concentrate on concrete actions.

The demands of the middle class

Small and medium-sized businesses are quickly demanding noticeable relief in order to ease the economic pressure. Dittrich also criticized new testing orders and commissions, which are perceived as additional bureaucratic hurdles. Small and medium-sized businesses are calling for an end to the neglect and are waiting for the federal government to comply with the agreements in the coalition agreement, especially with regard to electricity tax. It remains to be seen whether the federal government will take these demands seriously and what specific measures will ultimately be implemented.

Overall, the situation of medium-sized businesses is a central issue for the future policy of the Merz government. The coming decisions will have a decisive influence on how the German economy can develop. Expectations from political actors are high, with the middle class making it clear that it is time to turn the rhetoric into real results.