'Bureaucratic burden is insanely high': Will Germany ease its red tape culture?

Whether receiving cryptic letters in the post or trying to renew a visa, foreign residents struggle everyday with Germany's bureaucratic hurdles. 

Now an expert panel is calling for more to be done to tackle the problems. 

The National Regulatory Control Council (NKR) said it acknowledged that the German government had achieved at least partial success in the reduction of bureaucracy. However, significantly more effort is needed to achieve lasting results, the expert panel concluded in its annual report for 2024.

"The bureaucratic burden is insanely high,” said council chairman Lutz Goebel. "Germany is and remains a complicated country that has walled itself in with a multitude of rules and procedures.”

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Goebel said these rules were well-intentioned and not set with malicious intent. "But all in all, they lead to a situation that costs us competitiveness, slows down our innovative strength and restricts the public sector's ability to act," he said. 

The NKR, which is an independent body advising authorities on how to reduce bureaucracy and improve legislation, said these issues are resulting in both private firms and German residents losing patience. 

"The level of frustration 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," he said. 

'Cautious praise'

In the Council's annual report, the authors stated that the key issue of bureaucracy reduction has become the focus of political debate, which is welcome.

After record burdens, the government has succeeded in slowing down the trend towards an increase in bureaucracy, the report said. 

"I would even offer some cautious praise for the government," said Goebel.

The chairman of the committee also gave praise to approaches within the law to reduce bureaucracy and the growth initiative put together by the coalition government as part of budget plans.

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Germany has been embracing digital infrastructure. For instance, the Online Access Amendment Act, which came into force on July 24th this year - means more administrative services must be available digitally.

However, the level of red tape remains very high and a “real turnaround” in the reduction of bureaucracy must be initiated, said Goebel.

The experts highlighted that in the current period of economic stagnation, reducing bureaucracy could act like a zero-cost stimulus package.

What's the reaction?

Businesses in Germany are desperate for change, with the Association of Skilled Crafts recently calling for a permanent reduction in red tape.

"The recovery of the German economy will only succeed if we finally leave the bureaucratic burden behind us," a spokesperson said.

Tanja Gönner, Managing Director of the Federation of German Industries (BDI), added: "Political determination and a solidarity from all federal levels are urgently needed for less bureaucracy and more government efficiency." 

Meanwhile, Justice Minister Marco Buschmann, of the Free Democrats (FDP), said Germany was on the right track when it came to reducing its paperwork culture.

"This federal government has done a lot to achieve this," he said, adding that more will be achieved next year through bureaucracy reduction laws. 

Buschmann said the report by the council shows that the EU has work to do as well. 

"The EU must deliver," he said. "After all, Brussels' bureaucracy has recently been on the upward path."