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German Mittelstand Doubts Merz Government’s Reforms as New Dialogue Begins

A BVMW survey finds most SMEs expect no tangible relief from the government’s announced measures.

Overview

  • More than 81% of 1,125 firms surveyed by the BVMW said they do not expect the touted reform drive to bring noticeable improvements, with only 9% optimistic.
  • Over half of respondents, 56%, reported low expectations for a Mittelstand-focused meeting to deliver meaningful results.
  • Economics Minister Katherina Reiche launched a recurring Mittelstandsdialog in Berlin with roughly 50 association representatives, moderated by Gitta Connemann.
  • Business leaders denounced mounting red tape, as Reiche cited IAB findings that about 325,000 jobs since 2022 were created solely to handle administrative requirements.
  • High energy costs remain a top concern, with criticism of the plan to cut electricity tax only for the producing sector from January 1, which many firms say will not help them.