Frustration and disillusionment in craft businesses

Ahead of the International Crafts Fair, Holger Schwannecke, Secretary General of the German Confederation of Skilled Crafts (ZDH), is calling for further reforms from the federal government. He argues that the measures already implemented are not providing any noticeable relief to businesses.

One week before the start of the International Crafts Fair and Future Crafts The skilled trades sector invited the press to a meeting in Munich. Holger Schwannecke reiterated that craft businesses are still waiting for additional relief from policymakers. He stated that frustration and disillusionment prevail in the sector, given the barely noticeable effects of the reforms already implemented. While measures such as improved depreciation allowances for investments, the relief cabinet, and the modernization agenda are positive, they have had little impact on day-to-day operations.

The Secretary General of the German Confederation of Skilled Crafts and Trades gave the governing coalition of the Christian Democrats and Social Democrats a mixed review after nearly 300 days in office. "Businesses continue to face enormous pressure from bureaucracy, taxes, social security contributions, and energy prices, and this is having a massive negative impact on morale," said Schwannecke. This is also due to the fact that many decisions have not yet been implemented and fundamental structural reforms, for example to the social security systems and taxes, are still pending.

serious structural weaknesses

"The structural weaknesses in Germany are far too serious for the government's decisions to date to have triggered sustainable growth." The growth forecast for the current year is primarily based on debt and is anything but self-sustaining. The economic situation in the skilled trades sector in the fourth quarter of 2025 reflects this. Schwannecke: "Sales are stagnating, investments are being postponed, and employment is declining slightly."

Sectors such as building technology, energy efficiency, and climate adaptation developed steadily. Other, particularly energy-intensive industries, such as the construction sector and food processing, are under pressure due to high costs and lengthy approval processes. "This makes it all the more important that the coalition now sets the right course and doesn't get bogged down in internal coalition debates about issues like the right to part-time work or inheritance tax," demanded Schwannecke.

Craftsmanship with great potential

Discussions about tax increases are also counterproductive in the current situation. What's crucial now is relief, speed, and clear prioritization: reducing bureaucracy, noticeable relief from taxes and social security contributions, reliable energy prices, and reforms to the social security systems. "Only on this basis can the necessary scope for investment, entrepreneurial initiative, and secure jobs be created. Because there is still a great deal of potential in our country and in the skilled trades."

If the government now decisively tackles the necessary reforms and the business environment improves, new economic momentum can emerge. "But for this to happen, politicians need courage, clear priorities, and a shared will to implement them. And that is precisely what the skilled trades expect from those in political office."

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