Economics Minister Ebling: "What matters is what arrives at the workshop."

Craft policy is a core element of economic policy, says the new Rhineland-Palatinate Minister of Economic Affairs, Michael Ebling. An interview about reporting obligations, energy prices, commercial real estate, and the challenge of business succession.

Michael Ebling has been Minister of Economic Affairs in Rhineland-Palatinate since May. Previously, he served as Minister of the Interior (2022 to 2026) and Mayor of the state capital, Mainz (2012 to 2022). Since taking office as Minister of Economic Affairs , the SPD politician (born in Mainz in 1967) has been in regular contact with the regional chambers of skilled crafts and trades throughout the state. We wanted to know how he will address the issues that the skilled crafts and trades sector raised in its position paper for the state elections.

DHB: Mr. Minister Ebling, who Coalition agreement The government highlights skilled trades, medium-sized businesses, and SMEs as key pillars of the economy in Rhineland-Palatinate. What specific economic policy priorities would you like to set in the new legislative period to further improve the framework conditions for skilled trades?
Michael Ebling: Many of the framework conditions that shape the daily operations of craft businesses in Germany are set in Berlin. Therefore, I very much welcome the fact that the federal government is now addressing these conditions and creating concrete improvements for our small and medium-sized enterprises (SMEs). This can only be a first step, which must be followed by others. A truly significant and courageous step in this direction is the reversal of the burden of proof regarding government reporting obligations. This means that all reporting obligations to government agencies are being abolished across the board. Only those reporting obligations that are well-justified by the respective ministries and authorities will remain in place. This is a very pragmatic approach to making progress in reducing bureaucracy.

It is particularly important to me that craft businesses in our country can once again concentrate on their core work: meeting customer needs and training young people. That's what ultimately matters to me. To strengthen purchasing power, it's also right, for example, to increase the basic tax allowance, the tax allowance per child, and child benefits. This strengthens broad segments of society, which can ultimately benefit the skilled trades as well.

Ultimately, I'm also glad that – despite all the necessary cost-cutting measures – the tax credit for skilled trades services will only be slightly reduced, but will remain in place. This is also a key lever against undeclared work.

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DHB: Will you involve the craft organizations more as advisors from the field, for example in legislative procedures, and if so, in what form or on which topics?
Ebling: Rhineland-Palatinate has a decisive locational advantage: We are a state of short distances. We work very closely and on equal terms with the Chambers of Skilled Crafts – from the political level as well as at the operational and professional levels. Skilled crafts policy is a core element of our economic policy.

Minister of Economic Affairs Michael Ebling during his inaugural visit to the Koblenz Chamber of Skilled Crafts. At the Crafts Campus, he learned about vocational training and continuing education in the skilled trades. Photo: © Koblenz Chamber of Skilled Crafts

Against this backdrop, it is surely no coincidence that in Rhineland-Palatinate, even in times of limited tax revenue, we manage to adequately finance inter-company apprenticeship training – including the new construction-related inter-company training – while other states are struggling. We are a reliable partner of the Rhineland-Palatinate trades – and vice versa.

This also applies to the state's financial support of inter-company vocational training centers. For example, we are very proud that with the Campus Handwerk in Trier, we have one of the very few vocational training centers in all of Germany built to passive house standards. To put it in concrete terms: Every year, we support the skilled trades sector with around 14 million euros in state funding. This is money well spent when it comes to the future of Rhineland-Palatinate as a business location.

DHB: Regarding the reduction of bureaucracy, the coalition agreement mentions, among other things, administrative modernization and digital processes. How do you intend to ensure that these reductions actually benefit day-to-day businesses? The skilled trades sector, for example, is calling for a regulatory review board at the state level, a practical assessment of new regulations for the skilled trades, and a one-in-one-out rule.
Ebling: Administrative modernization and digital processes are crucial for a successful future for Germany and Rhineland-Palatinate. We absolutely must accelerate progress in this area; it's also enshrined in the coalition agreement. With the "State Modernization" division located within the Ministry of Finance, we as the state government have given this issue particular priority.

When it comes to implementation, I'm a pragmatist: what matters is what actually benefits the individual tradesperson and business owner in their workshop and whether they can make a decent living from their profession. I'm skeptical whether more political bodies are really necessary. We already have several dealing with these issues.

I find the approach at the federal level – the reversal of the burden of proof regarding reporting obligations – an interesting and unbureaucratic way forward. We will examine this very closely and closely monitor the further process in Berlin. The "deemed approval" is another such tool that we should consider more carefully when reducing bureaucracy. 

DHB: In times of crisis, undeclared work increases. Do you plan to improve the structure of trade supervision to combat undeclared work? And – with regard to "unfair competition" – will the state law on compliance with collective bargaining agreements be further developed? 
Ebling: Undeclared work is an issue – and not just during times of crisis. Of course, it cannot be tolerated in any way, because all those who abuse the system burden their competitors and ultimately the entire industry. Customs works very meticulously and effectively in this area. This must continue. At the same time, it is also our responsibility not to unduly restrict entrepreneurial freedom and to reduce the bureaucratic burden on businesses. Then it will be easier for everyone to comply with the rules.

Regarding the state law on adherence to collective bargaining agreements, for which the Ministry of Labor is primarily responsible in Rhineland-Palatinate, the same standards apply to us: fair competition, yes; additional bureaucracy, no. However, it's also clear that good work, which in Germany is based on high-quality training, comes at a price. We enjoy a high reputation worldwide for our dual vocational training system, which is unique and is now being copied in many other countries. Quality has its price, and that also applies to skilled trades. And good work should be well paid.

DHB: According to the coalition agreement, commercial and industrial areas, as well as so-called "commercial turbo zones," are to be further developed. How can it be ensured that tradespeople also find suitable and affordable space?
Ebling: The availability of commercial space that meets demand and is affordable is a crucial prerequisite for the development and competitiveness of the skilled trades. Like any other business seeking new locations or expansion, the skilled trades also benefit from readily available space. The state government therefore supports the responsible municipalities in creating suitable framework conditions for securing, developing, and providing commercial space.

Supply-oriented land-use policy means that the needs of businesses – including craft businesses – will be given even greater consideration in the future design and planning of industrial parks. Through appropriate funding, advisory, and support programs, and through collaboration with municipalities, chambers of commerce, and other stakeholders, the state government is strengthening the business environment for craft businesses as well.

Furthermore, local tradespeople can also benefit as contractors. Developing new industrial parks—including road construction, infrastructure (from power lines to bus stops), and the construction of new company buildings or factories—requires a wide range of skilled trades. Therefore, these "turbo zones" can also boost the value creation for local tradespeople.

DHB: Energy prices and security of supply remain key location factors for many businesses. What measures is the state government planning to support businesses in the transformation to affordable, reliable, and climate-friendly energy? 
Ebling: The availability of renewable energies is becoming an increasingly important location factor for companies. Therefore, we want to further expand this sector in Rhineland-Palatinate. A key aspect of expanding renewable energies is suitable land. By the end of 2027, a total of 1,4 percent of the state's land area should be designated for wind energy, and by the end of 2030, at least 2,2 percent.

Implementation in the regions is carried out by the regional planning authorities. The state development program provides the framework for this within spatial planning and ensures orderly management of the expansion. Draft plans for designating priority areas for wind energy already exist in all regions. And the state government intends to further accelerate the approval processes for wind turbines.

Planning for ground-mounted photovoltaic systems is proceeding in parallel. Furthermore, with the state solar law, we are pursuing the additional goal of systematically developing the solar potential of sealed surfaces. As part of the revision of the State Development Program 5 (LEP5), the integration of renewable energies into the existing energy system will also be considered. Regulations are being developed to enable consistent grid expansion and modern storage systems.

DHB: Digitalization, AI, and the expansion of fiber optic and mobile networks are important location factors. What role does the skilled trades play in your digital strategy? And can the skilled trades expect a new version of the Digiboost program?
Ebling: The Digiboost came from the Corona special fund, which was exactly what was needed at that time. But I think craft businesses are much further ahead today than they were a few years ago. The hardware for digitalization is already in place in most craft businesses. It's now considered basic.

Now the focus is more on bringing AI into the skilled trades. And here, together with the Rhineland-Palatinate Innovation Agency and the Chambers of Skilled Crafts, we regularly offer events. Craft business owners can bring their own laptops and learn practical skills for integrating AI into their daily business operations – for construction site planning, answering emails, using AI on the phone, and so on. These are the topics that are currently relevant in the skilled trades.

DHB: Many businesses and entrepreneurs complain about overly complicated funding programs. The coalition agreement promises simplification, consolidation, and digitalization – especially for self-employment and business succession. What will this look like in practice?
Ebling: Approximately one-third of all craft businesses will need a successor within the next ten years. These are the stark figures, and this is the major challenge – for the businesses themselves, which must be ready for succession, and for us in politics. Naturally, we want to provide support, unlock potential, create opportunities, and also alleviate anxieties and concerns surrounding business succession. Good advisory programs already exist for this purpose. But we must remain closely engaged with this important issue. That's why business succession, particularly in the skilled trades, is a top priority for me. We need to consider new instruments, such as attractive loan programs. I will be working closely with our chambers of skilled crafts across the state to jointly develop tailored solutions for our businesses. 

The questions were asked by Kirsten Freund

Experiences, tips and support services related to succession planning The Ministry of Economic Affairs, Tourism, Energy and Climate has a Brochure on business succession Published by: This brings together experiences, tips and support services related to succession – from initial planning to handover.

The brochure contains 20 company profiles from different industries, numerous practical tips, and contact persons throughout the country. 

DHB now also available digitally! Simply click here and register for the digital German Crafts Journal (DHB)!