The German Association for Small and Medium-sized Businesses (BVMW) called on Prime Minister Friedrich Merz to demonstrate stronger and more decisive leadership within the coalition. BVMW Managing Director Christoph Ahlhaus argued that Merz has not presented a sufficiently clear “leadership profile.” Ahlhaus also criticized the government's communication policy.

The constant reopening of important issues for debate, such as the 63-year retirement age rule and reforms in the healthcare sector, has eroded public and business confidence in the government. Ahlhaus stated that if Prime Minister Merz does not adopt a clear and decisive management approach, the coalition could face the risk of collapse in the medium term. He argued that the government needs to be more consistent, especially in the messages it conveys to the public.

Ahlhaus also criticized the continuous public disclosure of proposals on which coalition partners have not yet reached an agreement, stating that this situation has created significant uncertainty, particularly in the discussions surrounding the planned pension reform.

BVMW Managing Director Christoph Ahlhaus called on Prime Minister Merz to end the discussions regarding a potential increase in Value Added Tax. It was announced that the BVMW sent a letter to Finance Minister Lars Klingbeil and Economy Minister Katherina Reiche. The association requested the lifting of the decision to halt support applications for research and development projects.

The halt in applications for the Central Innovation Program for Small and Medium-sized Enterprises (ZIM), which supports innovative projects of SMEs in Germany, has put companies in a difficult position. The BVMW announced that many companies that had reached the application stage were forced to postpone or completely cancel their projects. It was argued that hindering such investments at a time when Germany needs more investment, research, and growth is detrimental to the economy.

The ZIM program, which supports innovative projects of medium-sized businesses across Germany without distinction by technology or sector, is expected to be relaunched shortly after the cabinet meeting.

The BVMW also demanded a clear message from the government regarding the creation of a permanent financing model that would prevent new incentive cuts in the 2027 federal budget.