I'm John Bachelor with my colleague and friend Judy Dempsey of the Carnegie Endowment for International Peace.

She is the editor-in-chief of Strategic Europe. She's in

Berlin, which is now the center of a protest against the alternative for

Deutschland. That represents a far-right party. There is birthing a far left party.

In other words, German politics are in turmoil.

At the same time, there's a German economy

that is not being served well and it turns on the word

middlestand. Judy, what is middlestand? What does it refer to in your economy?

Middishtans, these are the thousands and thousands of small and medium sized enterprises.

Generally, family-owned.

They are the backbone of the German economy. They are export-driven. They have world market

share for gadgets, for little things, for engines, for turbo engines, you name it, they are worldwide leaders in all sorts of industry

products and environmental products as well.

And the middle stand now says enough is enough.

If you want the economy to continue to grow,

cut the bureaucracy, introduce digitalization. And I have to point out to your listeners that of the

middle stand maybe 20% maximum 20% maximum have their invoices digitalised the rest are done on paperwork of faxes.

I mean this is the state of a modern 21st century economy in the heart of Europe and it just hasn't got the whole idea of

the modernization of how to do an economy together.

And the middle standard wants change of this.

Otherwise they're threatening to leave the country and they have enough problems trying to get their sons and daughters to take over these companies because they're tired of the bureaucracy and the labour shortage and the inability of the government to make investing attractive.

Why I nod as you speak is that we call it small business here and it's the backbone of the American

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