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Germany’s ‘Relief Cabinet’ Slashes Bureaucracy with Digital Wallet Plan by 2027

Fed up with paperwork? Germany’s bold plan includes a digital wallet for IDs, licenses, and more—plus €5B in savings. Here’s how it’ll work.

In this image I see a room in which there are cabinets, a keyboard and few toys and the wall.
In this image I see a room in which there are cabinets, a keyboard and few toys and the wall.

Germany’s ‘Relief Cabinet’ Slashes Bureaucracy with Digital Wallet Plan by 2027

The Federal Cabinet recently held a special 'relief cabinet' session, focusing on reducing bureaucracy and driving digital transformation. The meeting, led by Bundesminister Karsten Wildberger, resulted in the approval of eight concrete measures to cut red tape and digitize public administration, aiming to save citizens and businesses up to five billion euros.

Wildberger's ministry has planned a digital wallet, set to be market-ready by the end of 2026 or early 2027. This digital tool will house digital versions of important documents like the personal ID, driving license, vehicle registration, and insurance cards. The implementation of these measures will be gradual, following a fixed timeline and measurable goals.

Dr. Ralf Wintergerst, President of Bitkom, welcomed the initiatives, stating that 'relief means less bureaucracy and more digitization'. He stressed the importance of all parties, including federal ministries, agencies, state governments, and local authorities, working together to modernize Germany swiftly and comprehensively.

The 'relief cabinet' session has set Germany on a path towards less bureaucracy and more digitalization. With clear measures, a digital wallet in the pipeline, and a commitment to swift implementation, the government aims to save billions of euros for citizens and businesses. All stakeholders are urged to play their part in this modernization effort.

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