The Foundation for Family Businesses and Policy has sharply criticized the federal government after the coalition formed by the Black-Red parties has been in power for one year. At a press conference, foundation chairman Rainer Kirchdörfer issued a warning, stating that the German economy is experiencing a slow and almost silent drain. He warned that this leakage already poses a threat to Germany’s entire business model as one of the world’s leading export nations.
Kirchdörfer noted that the foundation represents over 600 medium and large family businesses, all of whom had placed high hopes on the current coalition-hopes he stated have so far been unmet. Beyond criticizing the domestic political climate, he pointed to broader international issues, warning that the United States is destroying the predictability needed for rule-based global trade. Furthermore, he criticized the European leadership for failing to manage its own escalating bureaucratic framework.
According to Kirchdörfer, the national government’s current policies are not being perceived as helpful. He described the domestic situation as “double tragic”: While family companies wish to invest and stand by the German location, they are increasingly generating profits abroad because little appears to be functioning well within Germany itself. Making this shift means they risk being criticized for redirecting their investments overseas.
The chairman stressed that failure is no longer an option for the current administration, and he expressed diminished hope regarding efforts to reduce bureaucracy. He also criticized the government’s spending philosophy, arguing that officials focus too much on generating new tax revenue rather than cutting down the state’s expenditures. Kirchdörfer concluded by making a plea to the government, stating that the foundation’s two most critical assets-its family businesses and the young talent tasked with shaping the future-require proper basic and stable operating conditions.