German Mittelstand Voices Concerns Over Industry Focus
Politics

German Mittelstand Voices Concerns Over Industry Focus

Leading voices within Germany’s vital small and medium-sized enterprise (SME) sector are expressing significant concerns regarding the current level of government support. Günter Althaus, President of the SME Alliance, told the Handelsblatt that recent political discussions have heavily prioritized industrial policy, while the concerns of SMEs have been inadequately addressed.

Peter Adrian, President of the German Chamber of Industry and Commerce (DIHK), echoed this sentiment, highlighting a perceived lack of consistent economic policy and the accumulation of new burdens that have eroded trust within the business community.

Specifically, representatives criticized Chancellor Friedrich Merz’s recent summit meetings focused on the automotive and steel industries, alleging that they primarily benefited large industrial corporations while neglecting the needs of SMEs. Althaus warned that prioritizing industry without simultaneously supporting SMEs ultimately undermines a nation’s economic foundations. Adrian cautioned that SMEs are increasingly being forced to close, describing a quiet decline within the sector.

The Federal Government’s SME Commissioner, Gitta Connemann (CDU), acknowledged the overall frustration felt by businesses facing ongoing recessionary pressures. She attributed concerns, particularly around issues like electricity taxes, to a sense of exhaustion and disappointment. Connemann affirmed commitment to further reforms addressing social security contributions, energy prices and bureaucratic processes. However, she also tempered the intensity of the criticism, stating that a government cannot solve all issues within a short timeframe and that previous efforts aimed at supporting SMEs may have been overshadowed by recent economic challenges.