Digital economic miracle: Germany’s chance for growth and sovereignty

Germany can do more: digital masters of the niche as a growth engine. Germany needs a new business model that is much more strongly supported by digital innovations than before if we want to maintain our prosperity in a digital future and shape that future in a self-determined way. The solution is obvious: a digital economic miracle, driven by the innovative strength of IT SMEs. Germany’s digital economy is almost exclusively made up of medium-sized companies and has the potential to produce new world market leaders with specialised niche solutions – just like the mechanical engineering and automotive industries back in the day. However, the niche masters of tomorrow will come from the tech industry. AI and digital B2B technologies based on domain knowledge in specialised industries can ensure Germany’s long-term competitiveness.

The German IT-Mittelstand e.V. (BITMi) association is therefore calling for a fundamental realignment of economic and digital policy. Instead of ever more regulation and excessive bureaucracy, what is needed is a policy that specifically promotes medium-sized IT companies, enables investment in digital sovereignty and thus sets the course for a new economic miracle.

Four key demands for a digital economic miracle

1. Digital sovereignty as a guiding principle: Germany’s digital future must not depend on non-European tech companies. Strategic support for the domestic digital economy is essential to enable innovation ‘Made in Germany’, reduce one-sided dependencies and boost digital value creation in Germany, instead of just buying in solutions.

2. Reducing bureaucracy and creating innovation-friendly regulation: Our digital economy consists primarily of SMEs and suffers from excessive regulations and stifling bureaucracy that inhibit its growth. Therefore, a two-year moratorium on new digital regulations is needed, along with a revision of existing laws such as the AI Act and CRA, in order to create a practical framework for IT SMEs.

3. Tax relief for companies: In order to drive the digital transformation forward and to encourage corresponding investments despite the current economic weakness in Germany, the BITMi is calling for tax relief and is proposing a super-depreciation on digital investments in order to strengthen the competitiveness of German IT companies.

4. Access to growth capital: German IT SMEs need access to capital to remain globally competitive. The BITMi calls for innovative financing models for economically successful tech SMEs and the mobilisation of institutional capital to boost investment in digital innovations.

New legislature – new opportunities: The 2025 federal election must pave the way for a digitally-driven economic policy. BITMi is committed to ensuring that digital policy finally becomes a top priority. A digital economic miracle is possible – and necessary. Germany can do more. Germany can do digital.