GECHEM on the ZDF: How bureaucratic growth undermines the innovative strength of German SMEs

Whether it is the supply chain legislation or laws on cyber security: During the “Markus Lanz” show that was broadcast on 7 February 2024 and, once again, on the “heute journal” news programme on 15 May 2024, Martina Nighswonger, the managing director of GECHEM, explained how bureaucratic growth was affecting the German “Mittelstand” i.e. the small and medium-sized enterprises in Germany (SMEs).

The “Mittelstand” is considered the backbone and engine of the German economy: millions of companies provide secure jobs and play an essential role within national and international supply chains. At the same time, the “Mittelstand” does not have the same level of same human resources as an international corporation.

Disproportionate burden on small and medium-sized enterprises

Nevertheless, nowadays, small and medium-sized enterprises are obliged, due to new laws, to produce numerous new documents and reports. Unlike big corporations, however, a medium-sized company cannot afford to run or set up a separate department dealing with these matters.

 

GECHEM on ZDF heute journal

“You do not actually have the time to do your normal day’s work as you are laden down with work dealing with bureaucracy“, says Martina Nighswonger, Managing Director of GECHEM and member of the German Association of Chemical Industry (Verband der Chemischen Industrie e.V./VCI) in an interview with Isabell de la Vega during the ZDF heute journal news programme explaining the basic situation. A good example is the NIS 2, the new law on cyber security, which requires a vast amount of documentation and reports on the security of the company’s own IT system and interfaces although GECHEM, for example, only produces simple products for day-to-day use such as dishwasher tablets.

 

To the interview with ZDF heute journal

 

Martina Nighswonger during the “Markus Lanz“ show

During the “Markus Lanz“ show that was broadcast on 7 February 2024, Martina Nighswonger took, once again, the side of small and medium-sized companies:: “We are customers and suppliers and […] therefore part of the supply chain”, says Martina Nighswonger, explaining the basic role of GECHEM. Legislation such as the European supply chain law, the NIS 2 law on cyber security or the increase of assessment rates undermine the innovative strength of the German “Mittelstand” according to Nighswonger. “I just wished things would be made easier” says Martina Nighswonger and gets to the heart of the perspective of German SMEs.

 

Link to the entire discussion at the Markus Lanz show

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