Economy & Politics

Exclusive “The economic cut challenges us young”

Sarna Röser has been the federal chair of “Die Junge Unternehmer” since 2018, designated successor in a family business in Baden-Württemberg and founder of two start-upsThe Young Entrepreneurs / Anne Grossmann Photography

In view of the planned new debt in Germany and the planned debt at EU level, the business association “Die Junge Unternehmer” warns of the consequences for its own economic situation. “Tax defaults, mountains of debt and uncertain future opportunities darken the prospects for the young generation for years to come,” says Sarna Röser, federal chairwoman of the association. “The deep economic cut challenges us young people to pick up the corona shards again.” Together with the parent association “Die Familienunternehmen”, “Die Junge Unternehmer” make up around 6000 family businesses across Germany.

The federal government’s aid programs to date have totaled 1.2 trillion euros. A new stimulus package is to follow at the beginning of June. Economists assume that Germany’s debt ratio will rise to 80 percent of economic output. That is a good 20 percentage points more than before the Corona crisis. The cycle of economic stimulus measures will mainly pay the future generations.

The association, which is made up of young family entrepreneurs and founders up to the age of 40, has therefore developed measures so that the next generation of German business can overcome the consequences of the crisis. “The Young Entrepreneurs” have summarized their demands, which are available exclusively to, in a “Re-Start Program”. The so-called “generation corona” demands: “Courage for a more market economy”.

Quick return to the debt brake

In order to contain the costs for the next generations, the association suggests a quick return to the debt brake. At the end of March, the Bundestag approved a suspension of the debt brake in order to allow a government new debt of € 156 billion for the Corona aid. In view of the new aid package, there is now increasing concern about rising public debt. CSU boss Markus Söder has therefore already demanded an upper limit for new debt.

A concrete timetable for a return to the debt brake should therefore already be in place with the adoption of the federal budget in 2021, according to “Die Junge Unternehmen”. In order to speed up the process, the association is temporarily freezing personnel costs for state employees – including pensions. In order for the exchange with state authorities to be quick and efficient, the administrative processes should also be more flexible and leaner.

The money for debt repayment should not come from higher social contributions or wealth tax, to give companies the scope for investment and job security. Instead, the young entrepreneurs want to cap the social contributions to 40 percent. In order to make it even easier for founders to start, newly founded companies should not pay social contributions in the initial phase.

In order to boost the entire economy again in the long term, the association is relying on digitization and a new climate policy. In addition to expanding the digital infrastructure in administration, digital school education should also be promoted. Extending emissions trading to other sectors such as transport, housing and agriculture could also provide long-term investment and growth impulses.

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