The German Mittelstand- und Wirtschaftsunion (MIT) is calling for increased flexibility regarding the 1,000 Euro relief premium planned by the governing coalition, and has warned that the current structure could fail. Gitta Connemann, the head of the MIT and a CDU member, told the “Rheinische Post” (Monday edition) that the subsidy “must not turn into a burden premium for small and medium-sized enterprises or skilled crafts”.
She stated that many businesses are operating at their maximum capacity, and making extra payments is often unaffordable. “Therefore, the premium needs more flexibility-in terms of timing and content”. Specifically, the payment period should be extended until 2027. Furthermore, Connemann argued that the exemption from taxes and levies needs to be broadened to cover overtime, extra work, and one-time payments. This would allow companies to reward employee performance without incurring additional financial burdens.
Since employees feel the direct impact in their pockets, no new costs should be placed on businesses. Otherwise, the MIT leader warned, there is a risk that the relief premium will fail.