German Mittelstand Asks Government To Act

Joining the industry—big enterprises as well as industrial associations—in its letter of profound disagreement with the Government, the German mittelstand has sent a similar letter (non-public) too. Media report that the protest is addressing the fact that the crucial support program for innovations (ZIM) has been inactive since July, having the consequence that many entrepreneurs have frozen or even buried projects for innovations, at a moment when launching such projects could be important for a company’s future. The disregard of the Government, particularly the ministries for finance and economics, is indicative of the chaotic conduct of the governing coalition, the letter states, calling on Chancellor Friedrich Merz to intervene now. If such an intervention does not take place, the economic problems would overwhelm the coalition at some point and lead to the collapse of the government, the letter warns, according to media reports.