The Foundation for Family Businesses and Politics has sharply criticized the federal government on the first anniversary of the current black-red coalition. Speaking to the “Focus” Foundation Chairman Rainer Kirchdörfer warned that the German economy is bleeding slowly and silently, a situation that currently jeopardizes Germany’s entire business model as a leading global exporter.
Representing over 600 medium- and large-sized family-owned businesses, Kirchdörfer stated that the foundation had placed immense hopes on the coalition, hopes that have not yet been fulfilled. He also pointed out that the United States is eroding the predictability of rules-based global trade, while European leadership has failed to control its own bureaucratic mess. He concluded that the policies of the national government have not been perceived as helpful.
He described the current situation in Germany as a “double tragedy”. Family businesses wish to invest domestically and support the local economy; yet, they are increasingly generating their profits abroad because little seems to be left within Germany itself. Kirchhoff stressed that the businesses should not be accused of diverting their investments overseas.
For the current government, failure appears to be no longer an option. Kirchdörfer expressed skepticism regarding efforts to reduce bureaucracy, and sees no positive signs in the government’s attempts to cut spending. Instead, he observed a focus solely on generating new revenue through taxation.
According to the foundation chairman, Germany’s two most vital resources are the established family businesses and the young talent slated to shape its future. These groups require “reasonable framework conditions”-nothing more.
