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 topic Bureaucratic madness in the craft industry

The National Standards Control Council (NKR) has its Annual report on bureaucracy reduction, better regulation and the digitalisation of administration to Minister of Justice Marco Buschmann (FDP). It is titled: "Less, simpler, more digital. Reduce bureaucracy. Make Germany fit for the future.". The ongoing compliance costs, i.e. the time and costs that new laws cause, were never as high as today, states the NKR.

Annual reportHere you will find the detailed report of the NKR.Compared to previous years, the burden on companies, authorities and citizens has been 9,3 billion euros per year and one-off increase of 23,7 billion euros "From the NKR's point of view, this trend must stopped become," was his demand. The Federal government promised a Germany pact and a new Germany pace. "The announcements must be implemented by 2024 measurable actions follow to get a noticeable trend reversal to reduce bureaucracy."

Load limit exceeded

The rising figures demonstrate the growing political demand to change social and economic processes through regulation, explains the NKR chairman Lutz Goebel. "At the same time, they illustrate what many companies, but also the authorities themselves, experience every day: More and more regulations must always shorter time observed and implemented. The potential benefits are less important. What matters from the perspective of those affected is the immediate effort. Many see a Load limit 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.

The NKR proposes the introduction of a "One in two out" rule to create a "continuing relief trendThe government's aim must be to reduce the bureaucracy cost index by at least 25 percent The greatest lever for reducing bureaucratic costs is the Digitization of application, notification and approval proceduresHowever, in comparison to other European countries, much too slow There is a lack of vision, ambition, and political will to move forward quickly and with less consideration for federal and departmental egoistic sensitivities.

Automation revolution required

The Skills shortage the ability of the state and administration to act. Debureaucratization, digitalization and automation are also the key keywordsGermany needs a Automation revolutionto be able to fulfil its obligations. This must be taken into account in the legislation so that better quality laws can be produced. All departments would therefore have to Practice and digital check apply consistently and delve more deeply into the law. Finally, the development of laws requires more time for careful preparation.

The craft sector confirms the results of the NKR report: "The NKR annual report confirms what craft businesses feel every day: the bureaucratic burden is at a Record high", emphasizes Jörg Dittrich. The President of the Central Association of German Crafts calls on politicians to finally actThe NKR's proposals pointed the way forward. "In digitalization, we finally need a Masterplan and one real political will between the federal and state governments, instead of federal wrangling over competence and allocation of responsibility."

Fewer laws, but more practical

Less and above all more practical Laws are the standard. Dittrich: "The Federal Ministry of Economics' practical checks are setting the right tone. However, too little. entire federal government is encouraged to get involved and committed to noticeable relief The skilled trades are ready to provide suggestions, expertise, and support. It's up to the federal government to make something of this."

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