Do not further burden the trades

Ahead of the coalition committee meeting, Jörg Dittrich, president of the German Confederation of Skilled Crafts, appealed to politicians not to forget the needs of small and medium-sized craft businesses. Germany does not need reforms that harm skilled trades and small and medium-sized enterprises.

The next meeting of the coalition committee will focus on important reform projects. Federal governmentThe discussions concern tax, pension, health and long-term care reforms, and the amendment to the Working Time Act. The skilled trades sector is demanding that the needs of its predominantly medium-sized craft businesses not be overlooked during the deliberations. Additional burdens could have existential consequences for them.

The decisions of the coalition committee are also decisions that will set a course for one million craft businesses and approximately six million employees and trainees, explains Jörg Dittrich, President of the Central Association of German Crafts"Those who place additional burdens on small and medium-sized enterprises weaken the foundation of our economy and risk trust in the ability of politicians to act."

Always consider crafts and small and medium-sized enterprises (SMEs)

Jörg Dittrich Photo: © ZDH/Henning Schacht

Therefore, it is essential to always consider and specifically strengthen the skilled trades and small and medium-sized enterprises (SMEs) as "the central drivers of these reforms." Whether these businesses can fulfill their "indispensable role" in supply, transformation, and prosperity in Germany depends on this.

"For three out of four craft businesses, income tax is the business tax. Anyone who wants to relieve the burden on businesses must therefore explicitly include sole proprietorships. It would be unacceptable to relieve the burden on corporations and leave the craft sector and small and medium-sized enterprises behind, or to force them into the consulting-intensive and therefore costly template of a corporation by means of a reformed options model."

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Setting up the welfare state in a way that is fair to all generations

Instead of an options model, Dittrich calls for "equivalent tax relief" for partnerships. "Those who demand performance, risk, and responsibility must also create reliable tax frameworks in return." At the same time, the welfare state must be restructured to place it on a secure foundation and ensure it is fair to future generations.

Dittrich: "This requires fundamental reforms and a fair contribution from everyone. However, the labor-intensive skilled trades are reaching their limit in terms of additional wage costs. Unlike internationally operating corporations, skilled trades businesses and their employees cannot avoid these costs. Therefore, the specific circumstances of small and medium-sized enterprises must be taken into account in all reforms."

Creating leeway for businesses

Germany doesn't need reforms against skilled trades and small and medium-sized enterprises (SMEs), but rather reforms with them. "Anyone who wants to secure growth, investment, and employment must give businesses more leeway for investment, training, and employment. Only then is there a chance that the economic engine will start up again."

Source: ZDH

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