Leading representatives of Germany’s Mittelstand, the nation’s vital small and medium-sized businesses, are voicing strong criticism regarding the current German government’s perceived lack of focus on their interests. Günter Althaus, President of the Mittelstandsverbund, told the Handelsblatt that the current political discourse heavily emphasizes industrial policy while the Mittelstand is frequently overlooked.
Peter Adrian, President of the German Chamber of Industry and Commerce (DIHK), echoed this sentiment, stating that a fluctuating economic policy and recurrent burdens have eroded trust within the Mittelstand. He warned of businesses quietly failing, highlighting the fragility of the sector.
The criticism centers on Chancellor Friedrich Merz’s recent summits focused on the automotive and steel industries. Representatives argue these events prioritize large industrial conglomerates, neglecting the foundational role of the Mittelstand. Althaus emphasized the danger of strengthening only industry without a parallel focus on Mittelstand policy, warning it creates an unsustainable economic structure.
Responding to the concerns, the Federal Government’s Commissioner for the Mittelstand, Gitta Connemann, acknowledged the frustrations stemming from three years of recession and ongoing economic pressures. She addressed specific issues like electricity taxes, which have been sources of disappointment. Connemann indicated ongoing efforts to reform labor costs, energy prices and bureaucratic processes. However, she cautioned that transformative change within a government takes time, noting the difficulties in realizing all goals within a short timeframe and observing that previously implemented initiatives can be overshadowed by ongoing economic challenges.