LVU President: 'Businesses are in very bad shape' - Rhineland-Palatinate’s small businesses plead for urgent reforms amid crisis
Small businesses in Rhineland-Palatinate are facing growing challenges as succession problems and rising insolvencies deepen the economic crisis. Johannes Heger, president of the state’s business association, has warned that delays in promised reforms are worsening the situation. He is now calling for urgent action to revive the struggling economy.
The economic downturn in Rhineland-Palatinate has dragged on for years, affecting every industrial sector. Businesses have cut back on investments, while insolvencies continue to climb. According to Heger, the prolonged crisis has left many family-owned companies unsure about their future, with succession planning becoming a major hurdle.
The federal government, led by Chancellor Friedrich Merz since the February 2025 election, had promised sweeping reforms to ease burdens on businesses. A €115 billion budget for infrastructure and climate projects was approved, but Heger argues that progress has been too slow. Instead of reducing red tape, new regulations have added further strain. Heger, who heads the Landesvereinigung Unternehmerverbände Rheinland-Pfalz (LVU), insists that bureaucracy must be cut to allow the economy to recover. He believes businesses could still regain momentum if policymakers act decisively. His call for an 'autumn of reform' reflects frustration over unfulfilled pledges to simplify laws and support growth.
With insolvencies rising and investments stalled, Rhineland-Palatinate’s business leaders are waiting for concrete changes. The government’s economic plans remain in place, but delays in implementation have left companies struggling. Heger’s push for faster reforms highlights the urgency of addressing bureaucracy and succession challenges.
