Bureaucracy: Regulatory Control Council recognizes trend reversal

In its assessment of the status of bureaucracy reduction for 2024, the National Regulatory Control Council notes a flattening of the burden trend. The skilled trades sector is calling for net bureaucracy reduction targets and practice reviews from all ministries.

This article is part of the special feature on bureaucratic madness in the skilled trades.

The National Regulatory Control Council (NKR) has published its 2024 annual report . In it, the council assesses the progress of reducing bureaucracy and the federal government's efforts to improve legislation and digitize public administration. The report is titled " Good Laws. Digital Administration. Less Bureaucracy. Seizing Momentum, Increasing Impact ." The NKR analyzes the period from July 2023 to June of this year. According to the report, the growth in the time and costs associated with new legislation is slowing.

Compared to the billions in increases of previous years, this year's increase is only €400 million , according to the NKR (National Regulatory Control Council). "While the administration has to shoulder an increase of €821 million, the economy will be relieved for the first time since 2019 – by €433 million. The bureaucratic costs caused by reporting obligations – as a subset of the compliance burden for companies – will even decrease by €655 million." Further efforts are needed to permanently reverse this upward trend, and all policy areas must participate.

Annual Bureaucracy Reduction Act

Annual Report : Here you can download the detailed report of the National Regulatory Control Council (NKR) . An annual law to reduce bureaucracy is "the right message at the right time " and has been a demand of the NKR for years. The Council also calls for a concrete, measurable reduction target and consideration of the burdens arising from EU directives . It recommends that practical assessments be made mandatory in all policy areas – and this should begin during the legislative process "to involve those affected in finding solutions and weighing alternatives at an early stage."

The National Regulatory Control Council (NKR) has compiled a collection of concrete examples for reducing bureaucracy in its 60-point paper , incorporating various proposals from the skilled trades sector . It sees the consolidation of administrative services and the standardization of processes as effective measures for offering better services. The federal division of responsibilities therefore needs to be reviewed. Furthermore, the digitalization of public administration must go deeper – the right measures have been initiated, but speed, decisiveness, and commitment are lacking.

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Restrained praise for the federal government

"Given the billions of euros in increases in recent years, the NKR views the flattening of the burden trend positively ," explains Lutz Goebel , Chairman of the NKR. "The federal government 's efforts to reduce bureaucracy are beginning to pay off. This deserves cautious praise. Cautious praise because we have reached a very high plateau in overall costs. We urgently need to reduce this. Policymakers must continue their efforts: not only to prevent further increases, but also to simplify existing regulations."

He calls for a binding target of 25 percent less compliance costs in four years. The practical check, combined with the goal of simplifying laws so that unnecessary hurdles to implementation are removed, must be applied not only by the Ministry of Economic Affairs, but also by all other ministries. Together with the digital check, the citizen check, a completely new philosophy of legislation could emerge. "With intensive participation from those affected and enforcement experts, the law will be made practical and simple," Goebel hopes.

Make bureaucracy reduction the norm

"To achieve this state of affairs, the federal government still has a lot to do. Otherwise, all the announcements will fall on deaf ears and we will never achieve the desired cultural shift . The federal government, and above all the Ministry of Justice , must pass the necessary resolutions and allocate the necessary resources. Avoiding and reducing unnecessary regulations and simplifying enforcement are no longer fringe issues . Politicians must not let this momentum pass them by. They must demonstrate the sustained will to make the reduction of bureaucracy the systematic norm, rather than an isolated case ."

It is a good sign that the increase in new bureaucracy for craft businesses and the economy as a whole slowed last year, commented Holger Schwannecke . "However, this cannot be a reason for complacency , but rather must be motivation for further necessary relief measures. Craft businesses need a lasting net reduction in costs . Otherwise, competitive conditions for the location-bound craft sector cannot be achieved," said the Secretary General of the German Confederation of Skilled Crafts.

Use the practical expertise of the trade

The recently passed law to reduce bureaucracy is an important step, but it is insufficient to achieve noticeable effects. "In its annual report, the National Regulatory Control Council (NKR) addresses various proposals and demands from the skilled trades sector, thus pointing the federal government in the right direction : In addition to the consistent implementation of the announced annual laws to reduce bureaucracy, net bureaucracy reduction targets must be set and mandatory practical reviews must be carried out by all ministries. The skilled trades sector supports policymakers in this endeavor with its proposals and practical expertise ."

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