- Union advocates for financing assistance initiatives
The Baden-Württemberg Commerce Association sounds the alarm over potential funding reductions in the impending budget of the Green-Red coalition. Vice President Michael Endress spoke in Stuttgart, expressing the retail sector's requirement for state aid to finance investments. The success of past funding initiatives warrant their continuation, according to Endress. Failure to invest now may result in further deterioration of city centers. The association reports that approximately 80% of merchants have depleted their equity reserves.
The Greens and CDU state administration is presently putting together a budget proposal for the years 2025 and 2026, anticipated to receive parliamentary approval by year's end. Budget negotiations this year have proven difficult due to the reduced financial resources for new projects compared to prior years. Moreover, being the final budget for the current legislative cycle, it becomes less likely that unincluded political projects will be realized before the next regular state election in the spring of 2026.
Retail establishments in the southwest have been navigating tough times as of late. Customers have grown more conservative with their expenditures, as suggested by CEO Sabine Hagmann. "In Baden-Württemberg, people naturally save a little more." Retail has struggled to recover throughout 2024, with no indications of long-term recovery in private consumption and the overall economy. Accoring to association data, there are over 40,000 retail businesses in the southwest.
The Commission, in response to the budget negotiations and potential funding reductions, might consider adopting implementing acts to provide support for retail businesses. The implementing acts, if adopted, could lay down the rules for the application of this Regulation to aid retail sectors in Baden-Württemberg.
