Marburg's economy is in alarm: companies fear drastic cuts!

Marburg's economy is in alarm: companies fear drastic cuts!

Business representatives in Marburg express concerned criticism of the city's financial and economic policy course. Andreas W. Ditze, board member of the IHK Kassel-Marburg, warns against a “total misjudgment” of the situation in the private sector. After temporarily reducing the trade tax, the city is now planning an increase, which, according to Ditze, could lead to declining profits for companies and, accordingly, lower trade tax revenue.

In view of the current problems in the private sector, including an aging workforce, the poaching of workers by government agencies, rising minimum wages and high energy and material prices, Ditze calls for a rethink. The IHK criticizes the city's personnel policy and calls for an end to the "personnel inflation" of the administration. In addition, the need for process simplifications and faster approvals for companies is emphasized, especially since long approval times for photovoltaic systems and construction projects lead to a decline in interest in new construction or expansion projects.

Impact on companies

The IHK also reports a lack of commercial space for non-pharmaceutical companies in Marburg and refers to the results of a survey by the German Economic Institute (IW), which shows that 38% of the companies surveyed want to cut jobs in 2025. While 40% of companies expect worse business prospects in the coming year, only 23% of companies plan to increase investments, while 40% expect a decline.

The IHK Kassel-Marburg also sees no ambition on the part of the city to actively help businesses and criticizes the prioritization of cultural funding over basic economic needs. A concrete example of the effects of a lack of support is the relocation of the software company “weclapp” to Giessen, which is interpreted as a warning for Marburg.

The discussion about the planned trade tax reduction in Marburg, however, shows that entrepreneurs in the IHK regional assembly support the reduction in order to set an example for business-friendliness and strengthening the local economy. This reduction affects almost a thousand companies and the additional income is intended to be a sign of solidarity towards all companies that pay trade tax. According to Peter Lather, chairman of the IHK Marburg regional assembly, the importance of the additional income for the city and the companies affected is enormous, as these funds are to be used for investments in infrastructure, education, digitalization and climate protection.

While the trade tax reduction is seen as an important signal during the Corona pandemic, Marburg companies are making a significant contribution to the city budget. In 2020, they financed around 43% of the budget through trade tax, which is an important source of income for the city.