„Turbo depreciation has never been implemented to this extent before“
Ms. Connemann, as chair of the Mittelstands- und Wirtschaftsunion, you’re in close contact with businesses. How has the coalition agreement been received, and how will it impact your work in your future role as the federal government's SME commissioner?
The vast majority are relieved. The coalition agreement provides a solid foundation for the urgently needed economic turnaround. The most pressing problems facing our businesses right now are excessive energy costs, a jungle of bureaucracy, uncompetitive tax and levy levels, and a shortage of skilled workers. This creates a stranglehold that we are now beginning to loosen – with the reduction of electricity taxes and grid fees, and the abolition of the so-called „citizen’s income“. In its place, there will be a new basic security system, one that restores the principle of „support and challenge“. Effort must – and will – once again pay off.
The tax policy outlined in the agreement offers much less than the CDU’s election platform. The solidarity surcharge remains, and the corporate tax cut won’t begin until a year before the 2029 federal election. Are the new depreciation allowances enough to boost the economy?
The scope of the accelerated depreciation allowance – 30% annually on capital investments from 2025 through 2027 – is without precedent. It’s an efficient and fast-acting tool that will trigger investment surges. And by the way: all businesses can benefit from corporate tax reform. Many sole proprietorships pay income tax. The agreed expansion of the option to choose between income and corporate tax is a real breakthrough.
A minimum wage of 15 euros appears to be agreed upon, but it's already sparking controversy between the CDU and SPD. Where do you see the limit of what SMEs can bear?
This will be determined by the Minimum Wage Commission, which will make its recommendation while considering the overall burden – without any political preconditions.
High energy costs in Germany are a major burden on companies. Has the government now set the right course?
In the EU, natural gas was still five times more expensive than in the US last year. According to the US Energy Information Administration (EIA), industrial electricity prices there have hovered around 8 cents per kilowatt-hour for years. Here in Germany, it’s roughly double that. Even in France, companies pay significantly less for electricity than we do. By lowering electricity taxes and grid fees, we’re finally making energy affordable again for businesses – restoring our competitiveness.
Two special funds – for defence and infrastructure – are giving the coalition many billions in financial leeway. You initially had concerns but still voted in favour. Why?
Europe’s security is at risk. Putin’s regime threatens not only Ukraine – it’s already waging a hybrid war against us. We’ve largely relied on the US for our defence. But recent weeks have shown we can no longer count on that. We must quickly restore Germany’s defence capability and readiness. The infrastructure fund will need to be accompanied by a sweeping reform of public administration. Everything hinges on accelerating planning and approval procedures – and the coalition agreement makes a good start in that regard.
The business community complains about excessive bureaucracy. Where can they expect relief?
Here I expect a real impact. Businesses and citizens can save at least 26 billion euros thanks to measures in the coalition agreement. Just the reduction in reporting and notification obligations for businesses will account for around 16 billion euros annually. Indirectly, these measures could increase economic output by more than 100 billion euros.
