"Businesses continue to be burdened by unnecessary bureaucracy, ever-increasing legal obligations, and inefficient administrative enforcement," says Holger Schwannecke. (Photo: © Sergey Triapitsyn/123RF.com)
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22 October 2020
The National Regulatory Control Council (NKR) has presented its annual report, calling for greater efforts to reduce bureaucracy and modernize the administration. The skilled trades sector is demanding swift action from the federal government.
Providing relief to businesses is more important now than ever . This is one of the key messages of the annual report of the National Regulatory Control Council (NKR). It is entitled "Crisis as a Wake-Up Call: Modernizing Administration, Utilizing the Digitalization Boost, Making Laws Practical." The federal government has launched aid measures to manage the coronavirus crisis at record speed and enabled " effective flexibilization " regarding public participation, mandatory attendance, and annual general meetings. "These should now become the norm," the Control Council recommends.
" Further reductions in bureaucracy are necessary and possible – also so that investments to stimulate the economy take effect promptly and not only after the crisis ." The National Regulatory Control Council (NKR) acknowledges that the Federal Government has made progress in improving legislation, particularly regarding the evaluation of key laws and regulations. It welcomes the government's efforts to limit the one-off compliance burden of laws and to create transparency regarding both the costs and benefits of legislative consequences.
While the government has passed coronavirus-related measures that will result in billions of euros in additional spending and reduced revenue , the National Regulatory Control Council (NKR) has proposed a " zero-cost economic stimulus package " in its paper "Proposals for Less Bureaucracy, More Liquidity, and Faster Planning and Approval Processes." This paper includes ten proposals in the areas of increased liquidity for businesses , reduced bureaucracy , and streamlined planning and approval processes . "More liquidity and less bureaucracy can be achieved without the federal government, the states, or taxpayers having to foot the bill," the NKR asserts.
Economic stimulus package at no cost More liquidity for companies
1. Improve depreciation of low-value assets
2. Expand the option for actual taxation
reducing bureaucracy
3. Moratorium on additional burdens on companies
4. Raising the tax threshold for corporate and trade tax liability for small associations to a uniform 50.000 euros
5. Reduction of commercial and tax retention periods from ten years to five years
6. Raising the turnover threshold under commercial and tax law for the obligation to keep accounts
7. Raising the threshold for submitting VAT returns
Planning and approval procedures
8. Extension of the Planning Security Act
9. Digitization of administrative documents in approval procedures
10. Accelerate court proceedings on infrastructure projects – set an early first date
Operations management
Operations management
Craft policy
The coronavirus pandemic has exposed the dramatic backlog in the digitalization of administrative processes at all levels of government , which has hampered crisis management. Only the consistent digitalization of public administration will enable efficient crisis management. Public administration must not allow itself to be repeatedly caught off guard by crises. The National Regulatory Control Council (NKR) also points to the refugee crisis in this context. A systematic review of the efficiency of public authorities is necessary . "An independent council of experts can be a creative source of ideas and a driving force in this process, supporting policymakers at the federal and state levels."
LinksHere you can find the annual report "Crisis as a wake-up call: Modernize administration, use digitalization, make laws practical" of the NKR.
Here you can find the paper "Proposals for less bureaucracy, more liquidity and faster planning and approval procedures".A demand of the NKR: New draft laws must be Digital TÜV to accelerate the digitalisation of the administration. A corresponding announcement by the Federal Government has so far come to nothing. Currently, too many laws are still being past the practice"With impact and enforcement models, digital TÜV and, above all, the involvement of those affected in legislative laboratories, draft laws can be systematically tested for practical suitability." According to the NKR, initial pilot procedures show "tangible advantages." The motto "First the content, then the paragraphs" can and must Mission the legislation.
The National Regulatory Control Council (NKR) report ruthlessly exposes the shortcomings in reducing bureaucracy, says Holger Schwannecke . The Secretary General of the German Confederation of Skilled Crafts cites the still excessive burden placed on businesses by bureaucratic regulations, the lack of digitalization in public administration, and the limited practicality of laws as examples. "This list of deficiencies compiled by the NKR aligns with the experiences of skilled tradespeople . Instead of creating the necessary freedom for economic and innovative development in craft businesses, these companies continue to be burdened by unnecessary bureaucracy, ever-increasing legal obligations, and inefficient administrative enforcement."
The economic relief law proposed by the coalition committee is a possible approach to implementing important measures and "finally providing tangible relief ." Time is running out; many businesses are facing closure . "The economic uncertainties of the ongoing pandemic are exacerbating the already critical situation for businesses." Schwannecke is urging the federal government to act quickly . "The NKR's annual report outlines the requirements. The skilled trades sector has submitted numerous proposals for viable solutions and implementation strategies. Now it's the federal government's turn."
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