Federal Council approves proposal to reduce bureaucracy

The Federal Council has passed a resolution on reducing bureaucracy. At the same time, the ZDH is presenting a new catalogue of measures.

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

After the state of North Rhine-Westphalia submitted a motion for a resolution entitled "Reducing bureaucracy and accelerating planning and approval procedures" in the Federal Council The resolution, which had been submitted to the Bundestag, was approved during the last session. It contains various measures to reduce bureaucracy in almost all policy areas. With this resolution, the country emphasizes that unnecessary bureaucratic obligations for companies should be continuously reduced and simplified. 

"The Bundesrat notes that simple and rapid planning and approval procedures, as well as the reduction of excessive bureaucracy, are essential for the competitiveness of the German economy and the success of the energy transition and the industrial transformation toward climate neutrality," the resolution states. It continues: "To implement these goals, consistent and joint efforts by the federal and state governments are still required to strengthen Germany as a business location."

ZDH proposes measures

In addition to the required SME-friendly design of public procurement, the Federal Council is placing additional emphasis on simplifying data protection. These measures, which are to be addressed by the European legislator, are effective, according to Central Association of German Crafts (ZDH) has raised many demands from the skilled trades. These include, for example, restricting abusive information procedures, reducing information and documentation requirements for small businesses, and strengthening anonymization as a data protection tool.

In parallel with the Federal Council's initiative, the ZDH is presenting a new catalogue of measures and further proposals for more practical legislation. The catalogue is titled "Proposals from the Skilled Crafts Industry to Unravel the Jungle of Legal Rules" and contains 50 measures recommended by the Skilled Crafts Association. The proposals range from abolishing the mandatory receipt system to the nationwide introduction of digital tax assessments and reducing the electricity tax to the European minimum rate to streamlining consultation documentation in the healthcare sector.

Ways out of relief lethargy

The ZDH has compiled additional proposals under the motto "Ways out of the relief lethargy." The skilled trades know exactly what it needs to remain competitive. "We sincerely, resolutely, and consistently advocate for fewer laws and more operational freedom, for less formalism and more entrepreneurial responsibility, for less bureaucratic red tape and more trust in the people in the skilled trades who repair, keep, and move Germany forward every day," the ZDH explains in its introduction to the proposals.

He calls for an end to the excessive demands placed on small businesses. He argues that the burden on them is disproportionate and unfair. The legal situation is often so complex that hardly any company can fully understand it and comply with it. "Laws can only be effective if those affected can comply with them." Therefore, fewer laws are needed that are easier to implement in practice. The ZDH calls for a "fundamental change in mentality" in the administration. A constant proliferation of new regulations and requirements increases neither the quality nor the safety of economic activity.

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