The escalating trade tensions with the United States, triggered by President Trump’s threat of tariffs following a dispute over Greenland, have spurred a call for urgent economic reforms within Germany. The Mittelstands- und Wirtschaftsunion (MIT), a prominent lobby group affiliated with the ruling CDU and CSU parties, is demanding immediate action to bolster the nation’s economic competitiveness, framing it as a matter of national urgency.
Speaking to the “Rheinische Post”, MIT chairwoman Gitta Connemann articulated a stark message: the German business landscape now requires “economic first” prioritization. The potential impact of new US tariffs on Germany’s heavily export-dependent economy is considered a significant threat, particularly for the “Mittelstand” – the backbone of German industry comprising small and medium-sized enterprises.
Connemann’s demands are targeted at key structural obstacles hindering German businesses. The Solidarity surcharge (Soli), a levy introduced to finance the reunification of Germany, is identified as a primary burden requiring immediate abolition. Furthermore, she insists the long-delayed corporate tax reform needs to be implemented this year. The immediate reduction of electricity taxes for both businesses and consumers is also a non-negotiable demand, framed not as an optional measure but as an essential obligation.
The shift in tone, advocating for a decidedly pro-business agenda, signals a potential strategic recalibration within the governing parties. While traditionally emphasizing social considerations, the looming threat of US tariffs appears to be forcing a reassessment, highlighting the vulnerability of the German economy to external political pressures. Critics are likely to scrutinize this sudden prioritization, questioning whether the focus on immediate economic measures risks undermining broader social welfare goals and potentially escalating trade wars. The speed and extent to which the government responds will be a key indicator of its commitment to safeguarding the Mittelstand and navigating the increasingly fraught international trade landscape.