Bureaucracy reduction: Cabinet introduces several measures

The federal government is planning further measures to relieve the burden on businesses and public administration. The skilled trades sector says this is an important first step, but further measures must follow.

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

For the first time, the Federal Cabinet dedicated its meeting to a specific focus. The government members primarily addressed the simplification or abolition of bureaucratic regulations. Federal government He therefore referred to the meeting of the relief cabinet in the run-up to the consultations.

The cabinet approved several measures. These include a simplified trade regulation and the elimination of the heating label, which are expected to save businesses almost €50 million and the administration €10 million. Furthermore, purchasing real estate will be made easier with digitized purchase contracts. Driver's license verification will also be possible via smartphone using digital vehicle documents.

Long-term reduction of bureaucracy planned

"Each of these individual measures contributes to the common goal of making the state and society more effective, efficient, and citizen-oriented. Today's cabinet meeting is an important interim step: modernizing the state and reducing bureaucracy remain priorities for the federal government. The cabinet has presented a concrete plan for long-term bureaucracy reduction, the likes of which have not been seen in Germany for many years," the government stated.

She plans to implement 50 further relief measures in the coming months. For example, the requirement to appoint a safety officer for companies with fewer than 50 employees will be eliminated. The use of artificial intelligence in visa procedures and migration administration is intended to help improve processes. A central contact point for foreign skilled workers will streamline, simplify, and expedite application procedures.

The cabinet has now decided this:

Draft law on reducing bureaucracy in the Trade Regulation Act and the Energy Consumption Labeling Act, as well as other legal provisions for the abolition of reporting obligations
The draft law aims to eliminate, in particular, the mandatory continuing education requirements for residential property managers and real estate agents under the Trade Regulation Act, as well as various reporting obligations. Furthermore, the heating label will be abolished. This will save businesses €47,7 million and reduce administrative costs by €10 million.

Draft law on the digitalization of the execution of real estate contracts
The draft legislation will reduce annual compliance costs for citizens by approximately €5 million, for businesses by approximately €1,5 million, and for federal states by approximately €10,7 million. Furthermore, it will significantly reduce other costs because faster processing of land transactions will lead to a reduction in commitment fees for real estate financing. This will result in annual savings of approximately €26 million for citizens and approximately €9 million for businesses.

Draft law for reducing bureaucracy within the Federal Ministry of the Interior
Measures such as simplifying registration laws, streamlining procedures, and abolishing De-Mail will save citizens approximately 85.000 hours of time. This will reduce costs for businesses by around €2,1 million per year and for public administration by around €9 million per year.

Draft law on the further digitalization of enforcement proceedings
The reduction in bureaucracy is expected to reduce the burden on businesses by approximately one million euros annually, resulting from the elimination of postal delivery of enforcement orders and other documents. State and local government administrations will see annual savings of around 3,5 million euros due to streamlined procedures. Social security institutions will benefit from annual savings of approximately 2,3 million euros from the option of foregoing the use of enforcement forms when enforcing administrative acts, in accordance with the Code of Civil Procedure.

Draft bill for a 5th amendment to the Road Traffic Act
The draft legislation contains several proposed regulations. Taken individually, the federal states (including municipalities) can save approximately €13 million annually after initial investment by using digital parking enforcement and the associated increase in efficiency. The authorization to access data from the Central Vehicle Register will result in annual savings of around €40.000 for the Federal Environment Agency in the context of application reviews.

Regulation to increase the efficiency of the federal higher authorities responsible under the Medicines Act
The establishment of a coordination center at the Federal Institute for Drugs and Medical Devices (BfArM) addresses the ongoing development of innovative drugs and combination therapies, as well as industry demands to improve administrative and technical cooperation between the federal regulatory authorities, the Paul Ehrlich Institute (PEI) and the BfArM, without compromising their independence. The overall goal is to accelerate procedures, foster closer collaboration between the regulatory authorities, and, in the long term, eliminate redundancies. Furthermore, the establishment of the coordination center aims to increase the efficiency of both federal regulatory authorities and reduce bureaucracy in the medium term.

Regulation on administrative relief in passport and identity card matters
Improvements in administrative procedures and streamlined passport and ID card processes will reduce the annual time expenditure for citizens by 250,000 hours. For state administrations, this will reduce annual compliance costs by approximately €5,6 million.

Draft of a Seventh Regulation Amending Tax Regulations
The draft regulation includes tax adjustments that will relieve the economy of 8,9 million euros and the administration of 1,7 million euros.

Important beginning

The Central Association of German Crafts The German Confederation of Skilled Crafts (ZDH) welcomes the federal government's plans and hopes that the measures adopted will not be the end of the story. "With these measures, the federal government is now taking the decisive step from announcement to implementation in reducing bureaucracy," explains ZDH President Jörg Dittrich. He added that this is a long overdue and encouraging start for businesses.

The burden on craft businesses arises from the accumulation of countless individual regulations. Therefore, every reduction in regulations counts and will be supported. "And yet, given the sheer volume of existing bureaucracy, it is also clear that this relief cabinet can only be the beginning: an important beginning, but one that must by no means mark the end of our efforts."

Resolutely continue the process

It is crucial that the process already underway is resolutely continued. Only in this way can the momentum be maintained. Dittrich: "There is enormous potential for relief, particularly regarding documentation and information obligations. Here, courage is needed to persevere. Digitization can also bring real progress, but only if digital processes actually become simpler, faster, and more practical."

When both public authorities and businesses benefit from reduced paperwork and shorter processing times, genuine added value is created for everyone. The skilled trades are location-dependent, drive growth, training, and employment, and need reliable, competitive framework conditions. "Now it's crucial to take this first step toward a sustainable breakthrough."

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