Germany must implement structural economic reforms to create a more favorable environment for investment in its mid-sized business sector, according to the head of a major German banking association. The call emphasizes the need to strengthen the country’s backbone of small and medium enterprises, commonly known as the Mittelstand, which plays a crucial role in driving innovation and employment. n nThe banking leader highlighted that current regulatory and fiscal conditions are not sufficiently supportive of long-term capital allocation into these firms. Adjustments in tax policy, reduced bureaucratic hurdles, and improved access to financing are among the recommended measures to stimulate growth and attract both domestic and foreign investors. n nWithout meaningful changes, there is concern that Germany could fall behind other European economies in competitiveness and technological advancement. The statement underscores growing pressure on policymakers to modernize the economic framework to meet evolving global market demands. n— news from Reuters
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Economic reforms needed to foster Mittelstand investment, German banks group head says Reuters