Hidden champions

Speech by Christine Lagarde, President of the ECB, at the “Jahresimpuls Mittelstand 2021” of Bundesverband Mittelständische Wirtschaft

• At the ECB we care deeply about connecting with small and medium-sized enterprises (SMEs), since they are the foundation of the European economy.
• SMEs make up 99.8% of all non-financial companies in the EU, provide 66.6% of jobs and generate 56.4% of added value.
• [1] It is decisions by companies like yours to invest, hire and innovate that put the European economy on a path to growth.
• But in Germany, being part of the Mittelstand hasa special quality that is about much more than the firms size.
• As Ludwig Erhard said, what defines the Mittelstand is eine Gesinnung und eine Haltung[2], how one acts and behaves in society.
• Of the 2,700 hidden champions worldwide SMEs that are leaders in niche markets almost half are part of the German Mittelstand.
• The Mittelstand was central to the countrys Wirtschaftswunder after the Second World War.
• And, when we rebound from the shock of the pandemic, the Mittelstand will have to be one of the drivers once again.
• Its effects have hit activity extremely hard, with GDP falling by 6.8% in the euro area last year and 5% in Germany.
• For now, however, the pandemic is still weighing heavily on our economies, and especially on firms in the services sector.
• In this setting, it is crucial that the bridge for SMEs remains in place for as long as needed.
• And this, in turn, is the best contribution we can make to delivering on our mandate of price stability.