When it comes to reducing bureaucracy, the Federal Government's Regulatory Control Council expresses cautious praise. Nevertheless, the expert committee still sees Germany as “walled in” by rules and procedures.
The National Regulatory Control Council confirms that the federal government has at least partial success in the planned reduction of bureaucracy. However, significantly more effort is needed to provide lasting relief, the expert panel concludes in its annual report for 2024, which has now been presented.
“The bureaucratic burden is incredibly high,” said Lutz Goebel, chairman of the Regulatory Control Council. “Germany is and remains a complicated country that has walled itself in a multitude of rules and procedures.” These were all well-intentioned and not thought up with malicious intent. “All in all, they lead to a situation that costs us competitiveness, that slows down our innovative strength and that limits the public sector's ability to act.”
This creates a feeling of frustration, said Goebel. “The frustration level is rising to the point where companies are going out of business and the population is losing confidence that this country can solve its challenges pragmatically.”
Restrained praise for them Federal Government
The Regulatory Control Council is an independent expert committee that advises the federal government. Its annual report states that the key issue of reducing bureaucracy has reached the center of political debates. After record levels of workload, the federal government has managed to slow down the trend of increasing bureaucracy. Compared to the billion-dollar increases of previous years, the growth in current compliance costs is slowing down.
“I would even speak of cautious praise for the government,” said Goebel. The chairman of the committee also referred to approaches with the law to reduce bureaucracy and the traffic light alliance's growth initiative adopted in the summer. However, the level of stress remains very high. A “real trend reversal” in reducing bureaucracy must be initiated. Especially in the current time of economic stagnation, cutting bureaucracy could act like a free economic stimulus program.
Buschmann criticizes the increase in bureaucracy at the EU level
Federal Justice Minister Marco Buschmann (FDP) stated that we are on the right track in reducing bureaucracy. “This federal government has done a lot for this.” He announced “a strong annual bureaucracy relief law for 2025.” The report of the Regulatory Control Council also shows: “The EU has to deliver. Because the Brussels bureaucracy recently knew the way up,” said Buschmann.
In view of the report, the State Secretary in the Federal Ministry of Economics, Sven Giegold, admitted that there was still a lot to be done. The Green politician called the level of bureaucratization “unbearable”.
Craft Association demands permanent relief
Employer President Rainer Dulger also approved the demands of the Regulatory Control Council. “The revival of the German economy will only succeed if we finally leave the burden of bureaucracy behind us,” he commented. “The first hurdle has been overcome, the next ones must now be overcome quickly.”
Tanja Gönner, General Manager of the Federation of German Industries (BDI), explained: “Political determination and solidarity at all federal levels are urgently needed for less bureaucracy and more government efficiency.” The EU Commission must now “quickly implement” its plans to reduce bureaucracy.
Holger Schwannecke, general secretary of the Central Association of German Crafts, said it was a good signal that the increase in new bureaucracy for craft businesses and the economy as a whole had been slowed last year. “However, this cannot be a reason for relaxation, but rather must be a motivation for further necessary relief measures. Craft businesses need permanent net relief.”
