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German family businesses slam coalition's failed economic policies on anniversary

Frustration boils over as Germany's economic backbone accuses the government of stifling growth. Will bureaucracy drive more firms abroad?

The image shows an open book with handwriting on it, which is a genealogical chart of the family...
The image shows an open book with handwriting on it, which is a genealogical chart of the family tree of the German family. The book is filled with text, providing detailed information about the family members and their lineage.

German family businesses slam coalition's failed economic policies on anniversary

The Foundation for Family Businesses has sharply criticised the federal government on the first anniversary of the black-red coalition. Rainer Kirchdörfer, a board member, claimed current policies are failing family-run firms. He warned that Germany’s export-driven economy is gradually weakening under the strain of bureaucracy and poor leadership. The foundation, representing over 600 medium and large family-owned companies, had initially hoped the coalition would ease burdens on businesses. Yet Kirchdörfer now sees little progress in cutting red tape or reducing state spending. He described the government’s approach as unhelpful, leaving firms frustrated.

Kirchdörfer stressed that family enterprises remain Germany’s economic backbone, alongside young talent driving future growth. But instead of investing at home, many are now forced to seek profits abroad due to domestic obstacles. He also cautioned that the U.S. is destabilising global trade, while Europe’s leaders remain bogged down in bureaucracy. Without better conditions, he warned, Germany’s export-focused model could continue to erode quietly. The foundation insists that sensible policies are needed to support both established firms and the next generation.

The criticism comes as family businesses face growing challenges in Germany. Kirchdörfer’s remarks highlight concerns over bureaucracy, weak leadership, and shifting global trade dynamics. Without reform, he suggests, the country’s economic foundations could face further decline.

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