Craft sector hopes for orders from federal special funds - Mecklenburg-West Pomerania bets €1.9B to revive its struggling craft sector
Mecklenburg-Western Pomerania’s craft sector faced stagnation in 2023, despite a slight upturn in automotive trade. The region now looks to major investments and policy changes to revive growth. Both the state and federal government have announced funding measures to support struggling small business ideas.
The state government revealed a €1.9 billion special fund in 2023, aiming to boost local trades over the next decade. This funding will target craft education centres and inter-company apprentice training. A new stipend for trainees in craft businesses has also been rolled out statewide.
Backlogs in construction and finishing trades have dropped sharply, easing pressure on firms. Master craftsmen now have the right to apply for building permits for single-family homes, a move intended to streamline small-scale development. Meanwhile, the Bundeswehr plans to inject an extra €3-5 billion into the region, though details on allocation remain unclear. Criticism has mounted over federal energy policy, which has kept the electricity tax unchanged and excluded self-employed tradespeople from the active pension scheme. Weak industrial demand has further strained suppliers, adding to the sector’s challenges.
The region’s craft sector now relies on fresh funding and policy adjustments to counter economic stagnation. With €1.9 billion earmarked for the next ten years, businesses may see gradual improvements. However, ongoing issues like high energy costs and pension exclusions could still hinder recovery efforts.
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