German family businesses warn of economic decline under coalition failures
The Foundation for Family Businesses has sharply criticised the federal government on the first anniversary of the black-red coalition. Representing over 600 medium and large family-owned firms, the group warned that Germany’s economic future is at risk. Board member Rainer Kirchdörfer described the situation as dire, with no room left for failure. Kirchdörfer accused the coalition of falling short on its promises. Family businesses, he noted, had high expectations—but these have not been met. Instead of improving conditions at home, many firms now focus on generating profits abroad due to limited opportunities in Germany.
The board member highlighted deeper structural problems. Europe’s bureaucratic hurdles remain unresolved, he said, while the U.S. is weakening predictability in global trade. Kirchdörfer also stressed the need for stable framework conditions to secure both the economy and the next generation. Yet so far, he sees no progress. There are no signs of reduced bureaucracy or spending cuts, he warned. Without change, Germany’s export-driven model could collapse—a slow but steady decline he called a 'quiet bleeding out' of the economy.
The criticism comes as family enterprises push for urgent reforms. Their ability to invest in Germany depends on better policies, Kirchdörfer made clear. Without action, the country’s economic foundations could weaken further, affecting both businesses and future generations.
