Germany: Reframed Industrial Strategy 2030 will Focus on SMEs
  • 2019-12-09
  • Entrepreneurship Research Center on G20 Economies
  • Edit
  • German Minister for Economic Affairs and Energy Peter Altmaier had developed “ZIM”(Zentrales Innovationsprogramm Mittelstand), a strategy for the “Mittelstand” or small and medium-sized enterprises. “In the eyes of foreigners, SMEs are Germany's secret weapon and, unlike the Dax 30 companies, SMEs are proving to be extremely robust,” wrote by Altmaier in a 13-point paper seen by Handelsblatt. The minister also sought to reframe his controversial Industrial Strategy 2030 to ensure that it would focus expressly on the importance of SMEs. The minister said that he want to strengthen Germany as a business location in the face of international tax competition. This could be achieved through measures including tax incentives for research, especially for SMEs, and better tax conditions for digital innovation goods. Back in February, Altmaier presented the industrial strategy 2030 which seeks to make Germany's industry more competitive internationally.

    The Federation of German Industries (BDI) and the Association of German Chambers of Commerce and Industry had criticized that family businesses and SMEs were not properly accounted for in the strategy. Industries had been calling for better conditions for SMEs in Germany for a long time. In June, the BDI and the Confederation of German Employers' Associations called for a national governmental strategy to support SMEs, including limiting energy costs for SMEs. The two associations also called on the government to reduce taxes for SMEs, noting it was "high time" to reform corporate tax law in order to reduce the financial burdens on SMEs to a maximum of 25 percent.





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