Reducing bureaucracy: "Germany still has a long way to go"

The National Regulatory Control Council (NRC) says politicians have had little success in reducing bureaucracy. The skilled trades sector is demanding that the federal government finally implement its bureaucracy-reducing plans from the coalition agreement.

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

Especially during the current crisis, when the economy is under particular pressure due to the consequences of climate change, pandemics, and war , businesses must be freed from unnecessary bureaucracy . This is the demand of the National Regulatory Control Council (NKR) in its 2022 annual report. It reports a massive increase in the compliance burden on companies. They, citizens, and the administration had to spend an additional €6,7 billion , and a total of €17,4 billion , compared to the previous year, to fulfill legal obligations. "Even though this increase largely stems from the rise in the statutory minimum wage, the trend is heading in the wrong direction ," the Council writes in its report, asking: "When, if not now, is the time to make regulations and enforcement processes in Germany simpler, more user-friendly, and more effective?"

The newly appointed Regulatory Control Council is optimistic that its proposals can "provide new impetus and renewed effectiveness in reducing bureaucracy and improving legislation." The goal is a noticeable reduction in bureaucracy . Despite all efforts, too little is being done . "Therefore, the effectiveness of the existing system for avoiding and reducing unnecessary expenditures must be improved, and additional measures to reduce bureaucracy must be initiated." This includes a new law to reduce bureaucracy . The entire federal government is called upon to act. Drafting and implementing effective, efficient, and practical laws requires time and the expertise of those affected . "Only in this way can costly mistakes be avoided and enforcement made as simple as possible. The federal government often fails to achieve this."

Quality requires time and expertise

Annual Report: Here you can find the NKR's annual report . The NKR criticizes the increasingly short deadlines for voting and participation processes. As a result, hearings with affected parties are far too often merely a formality . "The NKR, too, is increasingly subject to such short deadlines that a serious and responsible review of draft legislation is hardly possible anymore . While we understand the constraints of increasingly hectic, media-driven politics, anyone who wants to produce better regulatory outcomes must allow more time for this ." A "key lever" for reducing bureaucracy is digitalization , especially in the area of ​​public administration. Here , simple and user-friendly online procedures are crucial . Even with the Online Access Act (OZG) passed in 2017, Germany has not been able to catch up with other countries in this regard.

Two months before the implementation deadline, only 33 out of 575 administrative services are available online nationwide at the federal, state, and local levels. The reasons: complicated coordination structures, a lack of standardization, and insufficient binding regulations . A successor law to the Online Access Act (OZG) and an honest analysis of the errors are needed . With regard to digitalization, the National Regulatory Control Council (NKR) Act stipulates that draft legislation must be digitally compatible from 2023 onward. The NKR has a mandate to ensure that implementation and digitalization issues are considered from the outset in legislation. This could, for example, eliminate signatures and in-person visits to government offices, replace paper documents with register queries, or enable more automated administrative procedures.

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Finally implement bureaucracy reduction

"The National Regulatory Control Council's annual report makes it clear that Germany still has a long way to go in reducing bureaucracy," explains Holger Schwannecke . "The burden on craft businesses from bureaucratic requirements, reporting and documentation obligations remains high ; it is increasing and taking away time that businesses urgently need for management – ​​all the more so in light of the current crises," says the Secretary General of the German Confederation of Skilled Crafts . Whether it's about further digitizing public administration or reducing bureaucracy: "The measures taken so far are not reaching craft businesses. The federal government must therefore finally implement its plans for reducing bureaucracy as outlined in the coalition agreement ."

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