The Initiative Zukunft Wirtschaft Deutschland (IZW), a non-partisan foundation championing the interests of small and medium-sized enterprises (SMEs) and family-owned businesses in Germany, has emerged as a vocal advocate for a significant overhaul of the nation’s economic policies. Led by Andrea Thoma-Böck, managing partner of a metal finishing company and a firsthand witness to the struggles faced by SMEs, the IZW argues that the current economic downturn, marked by high energy prices, raw material shortages, a skills gap, and excessive bureaucracy, is stifling entrepreneurial activity and jeopardizing Germany’s industrial base. The foundation’s core message is a call for a return to pragmatic, fact-based policymaking, prioritizing economic realities over ideological convictions.
Thoma-Böck’s critique centers on what she perceives as a disconnect between political leadership and the practical realities of running a business in Germany. She points to the lack of real-world business experience among policymakers as a major contributing factor to the current economic woes. The IZW argues that the German government, often prioritizing political expediency over practical solutions, has failed to address the underlying structural issues plaguing the economy. This disconnect, according to Thoma-Böck, manifests in policies that burden businesses with unnecessary regulations and fail to address the root causes of the economic downturn. She emphasizes the critical role of SMEs in driving innovation, productivity, and job creation, highlighting the urgency of addressing their concerns to prevent further economic decline.
The IZW’s concerns extend beyond national policies to encompass the influence of the European Union. Thoma-Böck points to the EU’s Green Deal as an example of ideology-driven policymaking that fails to adequately consider real-world consequences. While acknowledging the importance of environmental sustainability, she argues that the current approach, driven by ambitious targets without sufficient consideration for practical implementation and economic realities, is counterproductive. This dual burden of national and EU regulations, according to the IZW, further complicates the operating environment for German businesses, particularly SMEs, and necessitates a more pragmatic and balanced approach to policy development.
Compounding the challenges posed by policy decisions, the looming threat of deindustrialization further underscores the urgency of the IZW’s call for action. Major German industries, including steel and automotive manufacturing, are facing significant job cuts and restructuring, signaling a worrying trend of decline. The IZW argues that the current economic policies, characterized by high energy costs and bureaucratic hurdles, are accelerating this deindustrialization process, jeopardizing Germany’s long-term economic prospects. Thoma-Böck stresses that the government must act decisively to reverse this trend, creating a more favorable environment for businesses to thrive and compete globally.
To address these multifaceted challenges, Thoma-Böck proposes a series of practical solutions. Foremost among these is the prioritization of professional competence in political appointments, emphasizing the need for policymakers with a deep understanding of economic realities. The IZW advocates for a return to a more limited role for the state, focusing on creating a stable and predictable framework for businesses to operate, rather than excessive intervention and micromanagement. Fiscal responsibility, including a careful review of government spending and a reduction in unnecessary expenditures, is another key priority. Finally, the IZW calls for a significant reduction in bureaucratic burdens, streamlining regulations to facilitate entrepreneurial activity and innovation.
The IZW’s message is a plea for a course correction, urging German policymakers to prioritize pragmatic solutions and engage in a more meaningful dialogue with the business community, especially SMEs. Thoma-Böck emphasizes that the economy is not an end in itself, but rather the foundation upon which a functioning society is built. She calls for an end to the “madness” of repeating failed policies and hoping for different outcomes. The IZW believes that by prioritizing competence, reducing bureaucratic burdens, and fostering a more business-friendly environment, Germany can revitalize its economy and secure its future prosperity. The foundation’s advocacy underscores the vital role of SMEs in driving economic growth and innovation, and the urgent need for a policy environment that supports their success. The IZW’s call to action resonates with the concerns of many businesses struggling to navigate the current economic landscape and serves as a reminder of the importance of pragmatic, fact-based policymaking in ensuring long-term economic stability and prosperity.
