A significant portion of family businesses, which form the backbone of the German economy, are on the verge of collapse due to limited state financing and rising energy prices. This was reported by Bloomberg.
An estimated three million family-owned businesses are facing serious concerns after Germany’s Constitutional Court ordered the ruling coalition to halt “excessive” off-budget financing, according to the agency. In addition, excessive bureaucracy, high credit and borrowing costs and increasing electricity prices pose obstacles to family businesses. The coronavirus outbreak has also caused serious damage.
In this context, family business owners increasingly believe that it is no longer possible to invest in new technologies that are extremely important for the development of companies. Many have begun to sell their companies, which was previously done only when absolutely necessary.
Before this, German Economy Minister Robert Habeck used harsh language during his visit to the USA. criticized United States climate policy.
Previously in the USA criticized Economic policy of Germany.