Bureaucratic burden at record high

The ongoing compliance costs have never been as high as they are today. The National Regulatory Control Council notes this in its annual report on reducing bureaucracy and calls for a reversal. Politicians must finally act, say the skilled trades.

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

The National Regulatory Control Council (NKR) has presented its annual report on reducing bureaucracy, improving legislation, and digitizing public administration to Justice Minister Marco Buschmann (FDP). The report is titled: " Less, simpler, more digital. Reducing bureaucracy. Making Germany fit for the future ." The NKR notes that the ongoing compliance burden—that is, the time and costs associated with new laws—has never been as high as it is today .

Annual Report: Here you can find the detailed report of the National Regulatory Control Council (NKR ). Compared to previous years, the burden on companies, authorities, and citizens has increased by €9,3 billion per year and by a one-off increase of €23,7 billion . "From the NKR's perspective, this trend must be stopped ," it demands. The federal government has promised a Germany Pact and a new pace for Germany. " Measurable action must follow these announcements in 2024 to initiate a noticeable turnaround in reducing bureaucracy."

Load limit exceeded

The rising figures demonstrate the growing political ambition to change social and economic processes through regulation, explains NKR Chairman Lutz Goebel . "At the same time, they illustrate what many companies, but also the authorities themselves, experience daily: More and more regulations have to be observed and implemented in ever shorter timeframes . The potential benefits are of secondary importance. What matters to those affected is the immediate burden. Many feel that a limit has been exceeded ."

Key messages of the annual report1. Compliance costs at the halfway point of the government's term are higher than ever: Initiate a trend reversal now!
2. Focus on bureaucratic costs and introduce the "one in, two out" rule.
3. No bureaucracy reduction without digitalization. After the failure of the OZG, only one thing counts: Go big, go big!
4. The staffing shortage is jeopardizing the ability of government and administration to act. There's only one answer: simplify, digitize, and automate!
5. Simple and digital administration can only be achieved with practical and digitally compatible laws.
6. Good laws take time. Adequate deadlines are necessary. Politicians have a duty.

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The National Regulatory Control Council (NKR) proposes the introduction of a "one in, two out" rule to initiate a sustained trend toward reducing bureaucracy. The government's goal must be to lower the bureaucracy cost index by at least 25 percent . The most significant lever for reducing bureaucracy costs is the digitalization of application, reporting, and approval processes . However, compared to other European countries, progress in this area is far too slow in Germany . There is a lack of vision, ambition, and the political will to move forward swiftly and with less regard for federal and departmental self-interest.

Automation revolution required

The shortage of skilled workers jeopardizes the ability of the state and public administration to act. Debureaucratization, digitalization, and automation are key concepts here as well . Germany needs an automation revolution to fulfill its responsibilities. This must be considered from the outset of legislation to ensure higher-quality laws . All departments must therefore consistently apply practical and digital impact assessments , conducting more in-depth analyses. Finally, the legislative process requires more time for careful drafting.

The skilled trades sector confirms the findings of the NKR report: "The NKR's annual report confirms what craft businesses experience daily: the burden of bureaucracy is at a record high ," emphasizes Jörg Dittrich . The president of the German Confederation of Skilled Crafts calls on politicians to finally take action . The NKR's proposals point in the right direction. "When it comes to digitalization, we finally need a master plan and genuine political will from the federal and state governments, instead of federal squabbles over jurisdiction and the allocation of responsibilities."

Fewer laws, but more practical

Fewer laws, and above all more practical ones , are the goal. Dittrich: "The practical checks conducted by the Federal Ministry for Economic Affairs and Energy are setting the right priorities. However, this is not enough . The entire Federal Government is called upon to get involved and actively advocate for tangible relief . The skilled trades are ready with proposals, expertise, and offers of support. It is up to the Federal Government to act on this."

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