1000 Euros tax-free – that’s the government’s promise. Many entrepreneurs are upset that they are expected to foot the bill. Only one person, however, finds the crisis bonus a good idea.
“It’s outrageous to launch such an idea at this time!” Christoph Ahlhaus exclaims to the audience. The head of the SME association BVMW stands on stage at half-past nine on Wednesday morning in a former postal goods station in Berlin-Kreuzberg, which has been converted into a chic event location.
When Ahlhaus opens this year’s Mittelstandstag with his indignation, it’s been around 48 hours since the federal government announced the relief bonus. Ahlhaus’s anger is also the calculated anger of an association leader. Nevertheless, Ahlhaus strikes a chord with many entrepreneurs.
What was intended as relief for employees is met with clear criticism from employers. The accusation everywhere: a lack of understanding for the acute situation of companies. Marie-Christine Ostermann from the Association of Family Businesses criticizes it as “a contract to the detriment of third parties, namely companies.” Steffen Kampeter, CEO of the employers’ association BDA, is also annoyed: “The federal government comes along and says they want to launch a relief offensive. The first thing they propose is a burden on companies. I think they’ve confused plus and minus,” Kampeter told “Bild.” “You can’t order a party and have other people pay for it.”
Manfred Schnabel, President of the IHK Rhein-Neckar, shares the same opinion: the 1000-Euro relief bonus is in reality an “additional burden.” “The federal government is making it easy for itself by shifting responsibility onto companies, many of which are themselves under massive pressure.”
Crisis Bonus Threatens to Become a Debacle
This means the crisis bonus – which employers can pay their employees tax and duty-free until the end of 2026 – threatens to become a political debacle for the federal government. Because if the hoped-for broad adoption by companies fails to materialize, the desired effect will fizzle out, households will not be noticeably relieved, and purchasing power will not be stabilized, which would be important in the current economic crisis. Even worse: the measure contributes to the alienation of rulers and entrepreneurs. And in the end, it could even exacerbate social disparities.
Inadequate communication is also a reason for this. The government has obviously caught companies off guard with this measure. Although a similar instrument existed in 2022, it had been agreed upon with employers and trade unions beforehand. Furthermore, the bonus could be paid over a period of three years and thus integrated into wage negotiations. This time, it’s not possible due to the short deadline, and the most important wage negotiations have already taken place. For this reason alone, usage this time is likely to be far from the estimated 26 million employees at the time.
The statement by investor Carsten Maschmeyer illustrates the extent of the lack of understanding in the business community. Although he wants to pay the bonus himself, he finds it “simply cheeky that the Ministry of Finance writes ‘we are providing relief’ and then leaves this relief to the employers.” Unfortunately, many companies are currently not in a position to do so. Insolvency figures have recently risen to a record high, thousands of jobs are being cut in many companies, and there is often no money for new hires. In view of the energy crisis and the weak economy, many companies are fighting for their existence or are at least under pressure.
Anger Over the Chancellor
Janine Kordes, owner of Kieler Seifen, a family company that produces cleaning agents for gastronomy and commercial kitchens, belongs to this group. In a video message on TikTok, which is currently going viral, she vents her anger at “the very dear Friedrich Merz” and “the very dear federal government.”
“Do you know how this comes across out here?” Kordes asks the Chancellor. “Not as a ‘can’ or an option, but as ‘Dear Employers: Now pay this to your employees’.” And they now have the impression that companies are getting the money back from the state because it’s tax-deductible. But that’s exactly the problem: “You’re giving away gifts, but others are supposed to pay. Namely, us.” She would gladly give her employees more money at any time if it were economically viable. But it is not currently the case.
Carsten Franzke, CEO of SKW Piesteritz in Wittenberg, Germany’s largest fertilizer manufacturer, which is severely affected by rising gas prices, feels similarly. “We continue to fight for survival,” says Franzke. “We are already seeing the first signs of at least a short-term recovery here.” However, the situation remains very volatile and fragile. The company is currently walking on very thin ice. Therefore, a bonus is not possible at the moment.
Concerns About Division Among Employees
Matthias Lapp, CEO of the Stuttgart-based cable manufacturer of the same name, is also annoyed by the false promises and the inconsideration of the Merz government: “Politics announces grand plans to relieve the economy – and then passes the bill on to them,” he said in response to a Capital inquiry. However, German companies are already under enormous cost pressure. “Anyone who cannot afford the bonus in this situation appears to be a bad employer – even though the cause is political. This creates division among employees and unfair pressure on small and medium-sized companies.”
Economic researchers also fear a social imbalance. Companies particularly affected by the crisis lack the necessary financial cushion to pay such bonuses – and precisely these companies therefore do not benefit, criticizes Oliver Holtemöller, Vice President of the Halle Institute for Economic Research (IWH). DIW President Marcel Fratzscher’s assessment is similar. The 1000-Euro bonus primarily benefits employees in large, financially strong companies – while the unemployed, pensioners, students, and employees in small businesses miss out.
Jann Swyter, CEO of the automotive supplier Veigel from Öhringen, sees things more positively. He is reached by phone on Thursday morning. He has just come from a works council meeting where the relief bonus was also discussed. He saw the angry association leader Ahlhaus on television the previous evening.
“I understand that the bonus causes a lot of pressure for companies that cannot pay it and puts them under duress,” he says. At the same time, however, he welcomes the initiative. Swyter plans to pay out the bonus as part of the annual bonus payments to his employees, not as an additional amount. Because it is tax-free, significantly more reaches the employees. “As an entrepreneur, that makes me happy, of course.” There will never be a solution that works for everyone, Swyter says. “For companies where it is possible, the bonus is a great thing.” And should one not do it at all just because it doesn’t work for a certain number of people? The entrepreneur says he doesn’t want to judge that.
