Leading representatives of Germany’s Mittelstand – the country’s renowned small and medium-sized enterprises – are voicing significant concerns regarding current economic policies and expressing a sense of abandonment by the federal government.
In a joint commentary published in the Handelsblatt, Helena Melnikov, Chief Executive Officer of the DIHK (Association of Chambers of Industry and Commerce), Holger Schwannecke, General Secretary of the ZDH (Central Association of German Crafts) and Peter Klotzki, Chief Executive Officer of the BFB (Federation of German Small and Medium-Sized Businesses) detail a growing disconnect. They emphasize that a successful recovery for Germany necessitates the inclusion and support of the Mittelstand.
The commentary highlights a series of perceived disappointments, including unfulfilled promises regarding electricity tax, perceived superficial adjustments to the Supply Chain Due Diligence Act, the introduction of a loyalty to collective bargaining act, substantial increases in the minimum wage and record-level social security contributions – all contributing to a rise in labor costs. The assessment is blunt: “Positive impulses for the Mittelstand? None in sight.
Acknowledging the pivotal role of the Mittelstand as the “heart of the German economy” the representatives underscore the potential of the 3.4 million small and medium-sized businesses – representing over 99% of all German establishments – to drive innovation and lead the ongoing transformation of the sector. They argue that policymakers must actively facilitate this potential, rather than simply recognizing its importance. “Only by supporting the Mittelstand can you also secure the future” they state.
The signatories express rising frustration stemming from a perceived lack of clear direction. This ambiguity, they warn, is squandering a vital economic resource. “With each day without a strategy, the risk increases, the frustration among businesses grows and more people lose joy in the independence of self-employment” they caution. They express fears that a lack of decisive action risks undermining the long-term viability of German businesses and its global competitive edge.