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02/17/2025 14:14

Economic policy after the election: less state control, a simplified tax system and improving the education system

Dr. Jutta Gröschl Presse- und Öffentlichkeitsarbeit
Institut für Mittelstandsforschung (IfM) Bonn

    The managing directors of the Mittelstand companies in Germany wish more reliable framework conditions and fewer controlling directives. This is one of the results of the current survey conducted by the IfM Bonn in the SME sector. At the same time, the SME sector hopes for a simplification of the tax system and a qualitative improvement of the education system in Germany.

    The clear majority of managing directors in the Mittelstand companies hope that the new federal government will provide good and reliable framework conditions – and fewer controlling directives. This applies in particular to the ecological transformation, whose necessity is not, however, disputed in principle. This is the result of a recent short survey by the IfM Bonn.

    How to tackle the shortage of skilled workers
    In the opinion of the survey participants, the shortage of skilled workers should be counteracted primarily by improving the education system (96%). Targeted recruitment of foreign skilled workers (66%) was ranked second, although this measure was mentioned significantly more often by larger companies than by smaller ones. The managing directors consider less relevant an extension or flexibilisation of working life (40%) or the general promotion of immigration (30%).

    Reduce tax burdens
    A clear majority of the interviewees (92 %) demand a simplification of the tax system, in particular by reducing the coexistence of various types of taxes (income tax, solidarity surcharge, corporate tax, etc.). Moreover, the tax burden should be reduced both overall and specifically for companies. 78 % of the managing directors are also in favour of tax incentives for investments and innovations, for example.

    Maintain the debt brake
    A majority (92%) of managing directors reject a general abolition of the debt brake. Around half of them are in favour of relaxing it with regard to investments in infrastructure and the education system. Just over one in five companies that support the debt brake would like to see it temporarily suspended due to the current economic situation.


    More information:

    https://www.ifm-bonn.org/fileadmin/data/redaktion/ueber_uns/ifm-kurzbefragungen/...


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    Economics / business administration
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    English


     

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