Bureaucracy: NKR calls for relief for the economy

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.

This article is part of the special topic Bureaucratic madness in the craft industry

The relief of the economy is now more important than everThis is one of the key messages of the annual report of the National Standards Control Council (NKR). It is entitled "Crisis as a wake-up call: modernize administration, use the digitalisation push, make laws practical." Federal government have in record time Help to cope with the Corona crisis launched and "effective flexibilization" in public participation, attendance requirements, and general meetings. "They should now become the rule," recommends the Control Council.

"Further bureaucratic relief are necessary and possible – also so that investments to stimulate the economy promptly and not after the crisis become effective." The NKR attests to the Federal Government, Progress in better regulation, particularly with regard to the evaluation of important laws and regulations. He welcomes the government’s efforts to one-off fulfillment costs of laws and to create transparency regarding both the costs and benefits of legislative consequences.

Economic stimulus package at no cost

While it has adopted corona-related measures that will result in increased expenditure and reduced revenues in billions are connected, the NKR has in its paper "Proposals for less bureaucracy, more liquidity and faster planning and approval procedures" a "Economic stimulus package at no cost". This includes: Ten proposals in the areas of more liquidity for companies, reducing bureaucracy and Planning and approval procedures"More liquidity and less bureaucracy can be achieved without the federal government, the states, or taxpayers having to pay for it," is the conviction of the NKR.

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

The Corona pandemic has "dramatic lag" in the digitalization of administrative processes at all levels of government revealed that slowed down the crisis management. Only the consistent digitalization The administration will enable efficient handling of the crisis. The administration must not allow itself to be repeatedly caught off guard by crises. The NKR also points to the refugee crisis in this regard. A systematic review of the performance of the authorities"An independent council of experts can be a source of creative ideas and a driving force, supporting federal and state policymakers."

Too little practical relevance

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.

Holger Schwannecke Photo: © ZDH / Schuering

The NKR shows in its report ruthlessly where the problem lies in reducing bureaucracy, says Holger SchwanneckeThe Secretary General of the Central Association of German Crafts cites the still excessive burden on the economy due to bureaucratic regulations, the lack of digitalisation of administration or the insufficient practical suitability of laws as examples. "This list of deficiencies of the NKR corresponds to the experience from the craft practiceInstead of using the necessary free space for economic and innovative development, companies continue to be burdened by unnecessary bureaucracy, ever-new legal obligations, and inefficient administrative enforcement."

Hope for economic relief law

The Economic Relief Act, which the coalition committee had proposed, was a possible approach to initiate important measures and "finally noticeable relief to create". Time is running out, many companies are facing closure. "The economic uncertainties of the ongoing pandemic consequences toughen the already critical burden on companies." Schwannecke calls on the federal government to act quickly"The annual report of the NKR sets out the specifications. The craft industry has numerous suggestions for viable solutions and implementation paths. Now it's the federal government's turn."