Carsten Maschmeyer, the prominent investor and judge on "H4hle der L4wen", has boldly addressed the recent election of Friedrich Merz as chancellor candidate, presenting a detailed reform agenda aimed at revitalizing Germany's startup ecosystem. In a comprehensive interview with Grnderszene, Maschmeyer outlined a series of changes required to enhance Germany's position as a competitive hub for innovation.
Critically, Maschmeyer pinpointed bureaucracy as a major hindrance for entrepreneurs, highlighting the overwhelming 12,000 reporting obligations that businesses face. He lamented, "This is madness. Companies with four locations in Europe will choose to operate where regulations and taxes are less daunting. We are crippling ourselves with excessive regulation." To combat this, he proposed a "founder protection zone" where startups can operate without cumbersome bureaucratic requirements in their formative stages.
In addition, Maschmeyer urged the establishment of a "bureaucracy brake" policy based on the principle of "one in, two out," meaning two regulations should be eliminated for every new one introduced. He indicated the urgent need for a digital transformation within government bodies, advocating for a Digital Ministry led by practitioners rather than civil servants who fear making mistakes. He suggested Verena Pausder, the chair of the Startup Association, as a potential ministerial candidate.
Using France's successful startup strategy under President Macron as a model, Maschmeyer emphasized the necessity of directing public contracts to innovative young businesses. Citing the delays fintech companies face with the German financial regulatory authority BaFin, he noted, "Fintechs wait up to eight months for responses. They often obtain licenses in Ireland instead, costing us our competitive edge." He criticized the insufficient investment in artificial intelligence (AI) in Germany compared to the USA, where $130 billion has been invested while Germany has only allocated €3.5 billion.
Maschmeyer's vision included a substantial reduction in corporate tax from 29% to 25% to maintain international appeal and urged reform of employee share programs, which in the U.S. allow reinvested profits to be tax-free. He called for improvements in digital literacy programs for politicians, suggesting that many in the Bundestag believe tools like ChatGPT are irrelevant. He stated, "It’s crucial that schools encourage creativity over rote memorization. Students aiming to become doctors need to know how to work with AI tools now, not just memorize historical dates."
On international positioning, Maschmeyer viewed the political turbulence in the United States as an opportunity, saying, "If Trump drives skilled workers away, we should attract them to Europe. Provide them with digital identities, streamlined visa processes, and tax incentives." However, he cautioned against individualistic approaches, asserting, "Only a united Europe can stand against the US and China. The era of national self-interest must end!" He urged Merz to emulate Macron's pragmatic approach to achieving reforms that nurture Germany's startup culture. Failure to do so, he warned, could result in significant talent leaving the country.
As a guest on Sandra Maischberger's show, Maschmeyer also remarked on significant shifts in the US political atmosphere since Donald Trump assumed office again on January 20, 2025. While discussing various topics, he expressed concern over the impact that figures like Elon Musk, described as a "super-oligarch" and a "state enemy," could have on international relations and domestic sentiments. Musk's desire to disrupt governmental oversight raises alarms for Maschmeyer, who stressed the need for addressing these new threats to political stability.
The show also featured NRW's Prime Minister Hendrik Wüst, who called for more stringent measures on migration and clarified his opposition to border closures but emphasized the need for effective border controls. He indicated that the SPD must consider their grassroots support while negotiating with the Union, adding that, "It can’t continue like this." On Merz’s recent shift regarding fiscal policies, Wüst openly criticized the change, noting that the "accusation of breaking promises is in the room. This has been recognized by Merz himself."
Furthermore, Boris Bondarew, a former Russian diplomat, condemned the Kremlin’s stance in ongoing peace discussions, declaring, "Russia is not interested in peace. Putin must be stopped and pushed back," giving insights into the ongoing situation in Ukraine—a recurring topic of discussion which highlights the geopolitical tension that remains prevalent.
Hellemann, a leading voice from the media, characterized Merz’s earlier remarks as "pure chauvinism," underlining the gender disparity within German politics. As discussions around leadership and diversity in government continued, Wüst acknowledged the legitimacy of pushing for female representation in government roles.
With heightened scrutiny over migration policies and international relations reflecting on domestic stability, the stakes for the new administration are notably high. Observers will undoubtedly keep a keen eye on how Maschmeyer’s proposals and the concerns raised by various political figures will shape the future landscape of Germany.
