Federal Cabinet approves bureaucracy reduction package

The Federal Cabinet has approved a 22-point package to ease bureaucracy. The skilled trades sector expects this to provide significant relief for businesses.

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

The German government aims to accelerate the reduction of bureaucracy and is introducing another relief package with 22 measures. The Bundestag last passed the Third Bureaucracy Relief Act in September 2019, disappointing the skilled trades sector. The German Confederation of Skilled Crafts (ZDH) is more optimistic about the new law. Holger Schwannecke, Secretary General of the ZDH, expects a noticeable reduction in unnecessary bureaucracy this time. The measures adopted send a positive signal, Schwannecke said.

Holger Schwannecke Photo: © ZDH/Schuerring

Moreover, most of the measures incorporate proposals made by the skilled trades sector and are thus intended to "finally utilize potential relief measures." In November 2020, the German Confederation of Skilled Crafts (ZDH) presented over 50 proposals for " untangling the regulatory jungle ." The majority of the proposed measures aim to relieve the burden on small and medium-sized enterprises ( SMEs). These include, for example, electronic data exchange between tax authorities and businesses, faster and simpler status determination procedures for the self-employed, simplified procurement processes for young companies, and improvements to the regulatory framework for business transfers.

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Implementation not before the federal election

22 Measures. Here you will find the Federal Government's catalog of measures . The government is specifically addressing proposals from the skilled trades sector in its plans for binding rulings on tax matters within three months, for timely company audits that are to be carried out quickly and with minimal effort for all parties involved, and for the standardization of contribution rates for health and maternity protection levies. Also included in the skilled trades sector's catalog of measures are measures to simplify inquiries regarding domestic VAT identification numbers and the reduction of duplicate testing for exhaust gas analyzers.

The German Confederation of Skilled Crafts (ZDH) views the adopted proposals from the skilled trades as a success for lobbying efforts with policymakers. However, Schwannecke explains that the government's decision comes too late to actually implement these measures before the federal elections. This is because the package is only a political objective , not a draft law. Therefore, implementation is no longer possible during this legislative period.

Companies need a lean legal framework

"Given the ongoing crisis, lack of prospects, and continuing restrictions, craft businesses need a streamlined and modern legal framework more than ever ." With its decision, the Federal Cabinet is binding the future Federal Government. "This is important. The measures must be implemented quickly after the federal elections and form the basis for a decisive and bold relief program ."