Bureaucracy costs in Germany decrease - but remain high - Traffic Light Government Adds €8B in Bureaucracy Costs, but €1B Saved for Economy
The 'traffic light' government, in power for three and a half years, has added €8 billion in additional bureaucracy costs, according to recent figures. Despite this, there's been a €500 million decrease in bureaucracy-related costs for citizens and nearly €1 billion relief for the economy. However, experts warn of upcoming projects that could impose significant burdens.
Since 2011, cumulative additional implementation costs due to bureaucracy have reached €167 billion. Lutz Goebel, chairman of the Normenkontrollrat, has cautioned about impending projects like the NIS2 and CSR directives, which could impose billions in costs on companies, particularly medium-sized enterprises. The government aims to reduce these costs by 25%, or around €16 billion, through a modernization agenda.
The cabinet is currently debating EU laws such as the NIS2 Directive on cybersecurity and the CSR Directive on sustainability reporting. These could add an estimated €3.7 billion in burdens. Additionally, the Bundestariftreuegesetz (Federal Tariff Loyalty Act) is under discussion, raising concerns about bureaucratic complexity and market restrictions for logistics companies. Despite these challenges, bureaucracy relief for public administration has totaled €1.7 billion.
Bureaucracy costs in Germany amount to €64 billion per year. Sabine Kuhlmann, deputy chairwoman of the Normenkontrollrat, has called on the federal government to intervene at EU level to reduce these costs. The government's modernization agenda aims to alleviate these burdens, but the upcoming directives and acts pose significant challenges.
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