Government Defends SME Support Efforts Amid Criticism

Gitta Connemann, the federal government's SME commissioner, has addressed the concerns of German small and medium-sized enterprises (SMEs). She acknowledged the frustration of businesses, while also defending the government's support efforts. Meanwhile, top representatives of SMEs have criticized the government for not doing enough to support their interests.

Connemann announced further reform efforts in social security contributions, energy prices, and bureaucracy. She rejected harsh criticism, stating that the government cannot deliver everything in just under five months. However, she understood the frustration of businesses, many of which are struggling to stay afloat due to various challenges.

Günter Althaus, president of the SME association, argued that industry policy without SME policy is like a house without supporting walls. He criticized the government's focus on large industries, ignoring the needs of SMEs. Peter Adrian, president of the German Industry and Trade Chamber (DIHK), echoed these sentiments, calling for political tailwind for SMEs.

Concrete measures proposed by government members to strengthen the interests of SMEs include a stricter SME and competitiveness check for all new legislation, reducing administrative burdens by at least 35% for SMEs, introducing a new 'Small Mid-Caps' category, speeding up planning and approval procedures, reducing bureaucracy and taxation burdens, and abolishing regulations such as the cash receipt obligation (Bonpflicht) and Sunday baking restrictions for bakers.

Despite the government's support efforts, many SMEs continue to face challenges and closures. Top representatives of German SMEs have called for more support and a political tailwind. The government has promised further reform efforts, but it remains to be seen whether these will be enough to address the concerns of SMEs.