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For the foreseeable future, Germany will remain preoccupied with itself in the aftermath of the federal elections. Nevertheless, the global situation requires a European approach to defence and trade policy. But it is precisely in economic and fiscal policy that we have to return Europe to its liberal founding principles and transform it into a prime location – especially for family businesses.

According to Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, regulatory policy must be prioritised again

Inheritance and gift tax is particularly relevant to family businesses. The resulting burden has an impact on the financial situation of family businesses and influences the decisions of potential heirs in favour of or against continuing the business. In this debate, we must also consider the competitiveness of Germany as a business location as a whole.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, regarding inheritance taxes for family businesses

According to Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses: “Family businesses in Germany are operating in an increasingly dense network of rules governing their activities. This inhibits growth and investment and generates anger. The societal consensus that we actually need to tackle the challenges of the future is thus disappearing. Politicians should encourage companies with clear market signals and not frustrate them with bureaucracy.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, about Germany's desire for more evidence-based economic policy.

I find the fears revealed in the study alarming. These are the future representatives of the type of company that supports the German economy more than any other. They should be proud and be able to look to the future with confidence. It’s high time to rid the image of entrepreneurs of its strange clichés and ease the oppressive tax burdens.”

Prof Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, about the burdens family businesses face due to inheritance tax.

The data shows that bureaucracy is driving family businesses to relocate abroad. They are losing confidence in Germany as a location for business. In this context, politicians have always been able to rely on their loyalty. Now they are mainly looking at relocating to the United States.

Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, on Germany's acute risk of losing its appeal as a business location

The study’s recommendations also emphasise the importance of establishing structures close to senior management in order to achieve a high level of acceptance among employees. Clear communication to the public and politicians regarding the support required also plays an important role. The researchers and I both call on politicians to create clear and stable frameworks to enable safe and sustainable investments in renewable energies and infrastructure.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, on the need of political clear and stable guidelines on renewable energies and infrastructure.

Lessons learned from the coronavirus pandemic and the Ukraine crisis have led politicians and businesses to re-evaluate supply chains and interdependencies. That’s a sensible decision. But as the study shows, the benefits of engaging in global trade are mostly unbeatable. However, it also shows how adaptable the players are in a social market economy governed by prices and not a supposedly omniscient state.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses about the disadvantages large family businesses would face due to decoupling

This study once again clearly shows that Germany remains an expensive location, particularly in terms of taxation. If tax competition shifts to income taxes paid by employees, we will have an even tougher time attracting highly qualified employees in the future.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, on Germany's tax burdens for local businesses.

The Central and Eastern Europe region is hugely important to the German economy. This is immediately clear from the ranking of Germany’s foreign trading partners: we import more from Poland than from either France or Italy. And we export more to the Czech Republic than to Spain or Sweden. However, Central and Eastern Europe has a shortage of skilled workers. German family businesses are already working hard on this issue, but there is an urgent need to boost vocational education and training in the region. This would be a big win for Europe’s labour markets

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, on the importance of Central and Eastern Europe for Germany's economy.

The quality of Germany as an industrial location has fallen dramatically. The high energy prices, an area that we can hardly change at the moment, should serve as an incentive to improve investment conditions. Ranked at the bottom of an international comparison – this is not where we belong.”

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, about Germany's dramatic weakness as a leading economy.

Particularly in view of the current price and commodity crises and the risks to the economy, the German public should be aware of this: Family businesses are Germany’s anchor of stability and contribute significantly to our prosperity. The study shows that family businesses have proven to be better able to survive crises and maintain their workforce, even in difficult times – especially in Germany. That is why it is so essential not to penalise this type of company in the current challenging situation.”

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, explains why family businesses contribute significantly to Germany's properity.

“These results have to serve as a wake-up call”, says Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses. “In view of the energy costs, family businesses fear for their existence and Germany fears for its competitiveness. Meanwhile, new bureaucratic monsters are constantly being created in Brussels and Berlin. In an era of one crisis after another, we can no longer afford such a regulatory environment.”

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, about the economic's suffocation under regulations.

Family companies focus on a long-term, solid approach when doing business. They think in generations, not quarters. This makes them a counter-model to large corporations with widely spread shareholdings, which are frequently concerned most of all with meeting investors’ short-term expectations.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, on why listed family businesses are more successful.

It is in line with the spirit of family businesses for politics to promote future-oriented company management. But this must be undertaken with democratic legitimacy and in a legally watertight manner. We cannot have a constant stream of new paper tigers. If the EU’s plans prevail, sustainability reporting will degenerate into occupational therapy for consultants. Instead, the aim should be to drive climate action forward with technological innovation and powerful engineering.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, on sustainability reporting for local family businesses.

Since the outbreak of war in Ukraine, some researchers have tried to assess the consequences of an embargo or if Russia stopped supplying energy. Our study now shows how vulnerable Germany was even before the war began. Overseas competitors are not facing any problems. And competitors in Europe can restructure more quickly due to lower consumption volumes. Politicians should face up to the consequences for the competitiveness of German family businesses and take action.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, on Germany's vulnerability when it comes to energy.

The reformed exit tax is not just some tax problem for specialists. It ensures that shareholders of all ages have to change their life plans. It is forcing companies to restructure their operational organisation at enormous expense. I know owners who have to tell their children: you’re simply not allowed to leave.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses explains how owners of local family businesses are trapped in Germany due to high exit taxes.

The companies’ own resource efficiency measures, from the procurement of climate-friendly products to a higher proportion of recycling, are astonishingly advanced: the combined responses for “implemented” and “planned” range from 60 to 80 per cent of respondents. Family businesses also appear to be somewhat more ambitious in their targets for carbon neutrality. Companies are often further than politics thinks they are. If you want them to invest their capital in new climate-friendly technologies, you should encourage them, not strangle them.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses about how family owned businesses heavily pursue carbon neutrality.

If such a tax were to be levied, it would incentivise an outflow of capital abroad. This would particularly affect the solidity of family businesses, which often have a high equity ratio.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses on how wealth taxes slow down Germany's economy.

Family businesses bear a large part of the tax burden in Germany. At the same time, in practice they are at a considerable tax disadvantage compared to corporations with anonymous free float. It is therefore time that, after years of increasing tax burdens, we now begin moving in the opposite direction and provide relief as we come out of the coronavirus crisis instead of talking about tax increases.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses on how family businesses bear a large part of the tax burden in Germany.

Job cuts, losses of market share and low investment levels: The reports we are receiving from family businesses are just as bad as the disastrous rankings on our country index. Some members of the country’s political leadership realise that this bad news cannot be addressed by running up government debt and providing more subsidies. They can no longer ignore the clear recommendations offered by the analysts.

Prof. Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, on the latest country index for family businesses

Job cuts, losses of market share and low investment levels: The reports we are receiving from family businesses are just as bad as the disastrous rankings on our country index. Some members of the country’s political leadership realise that this bad news cannot be addressed by running up government debt and providing more subsidies. They can no longer ignore the clear recommendations offered by the analysts.

Professor Rainer Kirchdörfer, Chairman of the Foundation for Family Businesses, about the latest Country Index for family businesses