Growth Opportunities Act: SMEs demand adoption as quickly as possible

In a fire letter to the Prime Minister, 18 business associations are calling for the Growth Opportunities Act to be passed as quickly as possible. Your accusation: The Federal Council is blocking the rescue of German medium-sized businesses.

The letter is clear: “There is nothing less at stake than the rescue of the German middle class.” 18 business associations have written to the German Prime Minister. They demand that the blockade of the Growth Opportunities Act be lifted immediately.

Christoph Ahlhaus is outraged. You can tell because his voice is shaking slightly and he’s gesticulating even more than usual. “It’s urgent, it’s really a minute to twelve,” says the managing director of the Federal Association of Medium-Sized Businesses (BVMW). “And in this situation we are experiencing political games, the Union is blocking the Growth Opportunities Act!”

Relief is being blocked in the Federal Council

That makes him really angry, says Ahlhaus. On the one hand, opposition leader Friedrich Merz is talking about relieving the burden on the economy. On the other hand, the Prime Minister of the Union would block exactly this relief in the Federal Council, namely the Growth Opportunities Act. That doesn’t fit together.

This is also why the medium-sized business association BVMW, together with 17 other associations, wrote a harsh letter to the state leaders. The writing is that ARD capital studio exclusively.

It says that the planned law could provide “an initial sign of confidence” “for the beginning of a relief and investment offensive.” And because it relieves the burden on medium-sized businesses, they want it to be passed “as quickly as possible”.

“No responsible Politics”

The draft law, for example, includes bonuses for climate-friendly investments and better depreciation options. The tax system should also be simplified at central points through higher flat rates and less bureaucracy. The law was actually intended to relieve the economy by seven billion euros per year, but according to the current status of negotiations it will be more like three billion.

The Bundestag has already approved the law. However, the states fear high tax losses and have therefore contacted the mediation committee. But it’s not just about tax losses, party tactics also play a role: The Union only wants to agree if the federal government reverses the controversial ban on agricultural diesel.

For Ahlhaus, this is absurd: “The medium-sized entrepreneurs are annoyed that politicians – both the government and the opposition – have not understood what is at stake now. This is not responsible politics.”

Bill goes into effect Mediation Committee

In addition to the BVMW, 17 other associations have signed the letter, including the Federal Association of Small and Medium-sized IT Companies, the Home Owners Association and the Federal Taxi Association. The letter is addressed to all prime ministers.

However, the connection between the agricultural diesel phase-out and the Growth Opportunities Act becomes a specific topic. This ignores the “dimension of the structural economic challenges,” the letter says: “This political stance does not do justice to the current structural problems in our location. Neither party tactics nor arguments within the traffic light federal government can now delay this very important signal.”

The letter was sent via email. The prime ministers should have it on their desks in good time before the mediation committee meets next Wednesday. The bill will be discussed again there.