The German Minister for Economic Affairs and Energy, Peter Altmaier on Tuesday, presented the ministry’s strategy to boost Small and Medium-sized Enterprises (SMEs) in the country.
Altmaier said the ministry is seeking a corporate tax reform that would include a maximum corporate tax burden of 25 per cent for retained earnings and a comprehensive reduction of bureaucracy.
“We now need a growth policy for a strong SMEs.
“It is the art of state to avoid a recession and now to ensure growth with clever economic policy,” the minister stressed.
Altmaier also pointed out that it would be in the “interests of employees and employers” to stabilise contributions to the German social security system at less than 40 per cent.
He said the SME strategy also focuses on a flexible labor market policy, the complete abolition of the so-called solidarity surcharge, which has been transferring capital from western to eastern Germany since the reunification, as well as the reduction of unnecessary bureaucracy.
The Federation of German Industries (BDI) supported the ministry’s strategy.
“For successful implementation, the strategy must become a strategy for the entire federal government,” said BDI deputy managing director Holger Loesch,.
According to the German economy ministry, SMEs are an “essential pillar” for the economic development and prosperity of Germany.
More than 99 per cent of companies in Germany were SMEs and provided over 80 per cent of vocational training and around 60 per cent of all jobs.
“Like hardly any other economy, we are characterized by strong and value-oriented SMEs.
“The strategies should “secure the strong position in the future as well,” Altmaier stressed.
In order to achieve the tasks, the ministry said it would set up a committee, which would examine the sustainability of projects across all German ministries.