German SMEs lose faith in government as trust plummets to record lows

From energy costs to regulation, small businesses feel abandoned by policymakers. Can Germany’s government win back their confidence before it’s too late?

, and Administrator

2025 December 15 . 7:27 PM

1 min read

In this picture I can see there are some buildings and there is a tunnel and train is passing from... — In this picture I can see there are some buildings and there is a tunnel and train is passing from the tunnel.

Mittelstand Loses Trust in Merz Government - German SMEs lose faith in government as trust plummets to record lows

Trust in the German government among small and medium-sized enterprises (SMEs) has fallen sharply in recent months. A new survey by DZ Bank reveals that fewer than half now believe officials can address key business challenges—down from a strong majority just six months ago.

The latest figures show only 43% of SMEs trust the government to deliver on infrastructure upgrades, a steep drop from 58% in spring. Even fewer—just 27%—think ministers can provide greater planning certainty, compared to 45% earlier this year. Overall confidence in the administration’s ability to tackle Germany’s economic problems has plunged from 62% to 39%.

The survey results point to a widening gap between SMEs and policymakers. With confidence in government support at its lowest in years, many businesses now face greater uncertainty about future planning. The decline in trust reflects ongoing concerns over energy costs, regulation, and a perceived lack of focus on the needs of smaller firms.