A woman polishes a vase at the KPM porcelain manufacturer in Berlin
A woman polishes a vase at the KPM porcelain manufacturer in Berlin June 28, 2013. A recent study by consulting firm Ernst & Young showed three of every four German Mittelstand firms are struggling to find suitable employees due to an acute shortage of skilled labour. And that's not the only problem worrying the sector ahead of a federal election in September in which Chancellor Angela Merkel is seen likely to win a third term, in part due to the relative strength of the German economy. Joerg Woltmann, owner of KPM, a 250-year-old porcelain manufacturer in Berlin once owned by the German monarchy, said a rise in taxes would make firms like his, a 180-employee business with sales of 10 million euros last year, more vulnerable to crises by plundering company reserves. Picture taken June 28, 2013. REUTERS/Thomas Peter (GERMANY - Tags: BUSINESS POLITICS)