ZDH makes 52 suggestions for reducing bureaucracy

The skilled trades industry's patience is running out. In light of the ever-increasing bureaucratic burden on businesses, the ZDH has put forward 52 proposals for effective bureaucracy reduction and submitted them to State Minister Hendrik Hoppenstedt.

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

Craft businesses have reached the limits of their capacity . Not because they are overwhelmed by their actual work, but because there are ever more regulations, rules, and documentation requirements to fulfill, which distract them from their craft activities.

The issue of bureaucracy and overregulation is a major source of frustration for many tradespeople. In some cases, it's so intense that representatives from various trades are joining forces under the motto "Tradespeople Mobilize" to loudly protest against the "bureaucratic madness." This has already happened in the South Westphalia Chamber of Skilled Crafts district. And not only there, but throughout Germany, the voices of tradespeople and their organizations are growing ever louder.

ZDH does not spare criticism

Whenever political declarations of intent regarding the reduction of bureaucracy are discussed, the Central Association of German Crafts (ZDH) feels compelled to intervene critically: "The Federal Government is making no progress on reducing bureaucracy ," said ZDH Secretary General Holger Schwannecke at the end of 2018 regarding the work program on reducing bureaucracy adopted by the Cabinet.

"The federal government gives itself a good report card in its annual report. However, craft businesses hardly notice the reported successes in reducing bureaucracy," he said a good six months later regarding the recently published annual report of the federal government on the state of bureaucracy reduction.

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Anger and resignation

In September 2019, the government passed the third Bureaucracy Relief Act . Schwannecke commented as follows: "With the presented draft law, the federal government loses some credibility regarding bureaucracy reduction. The proposals are disappointingly piecemeal and will foreseeably not bring about the necessary relief for craft businesses."

Politicians must finally recognize that legislation is increasingly ignoring the realities and capabilities of businesses . This is the statement from Hans Peter Wollseifer, President of the German Confederation of Skilled Crafts . "Many tradespeople are torn between anger and resignation in the face of the bureaucratic burden."

Hardly any relief in everyday business life

. 52 demands of the ZDH
Here you can find the position paper "Rethink bureaucracy. Create freedom"According to the ZDH, the federal government’s efforts are regularly into the void. Relief in everyday business life barely noticeable. Therefore, the association has 52 demands for "Unbundling the jungle of paragraphs" and presented them to Hendrik Hoppenstedt (CDU). He is Minister of State to the Federal Chancellor.

"Legislators and administrators need to rethink their approach," demands Wollseifer. "Day-to-day business operations are overregulated. The thicket of regulations must be systematically cleared." There is a way out of this impasse , and the proposals from the skilled trades show the way forward. Now it is up to those responsible in the federal government, parliament, and administration to actually follow this path.

Focus on reducing bureaucracy

"The proposals from the skilled trades are based on numerous discussions, interviews, and surveys with skilled tradespeople," states the list of demands. The German Confederation of Skilled Crafts (ZDH) had placed a greater emphasis on reducing bureaucracy in 2019 through various events. In doing so, the association identified the biggest problems affecting business practices.

The range of proposed measures extends from requiring VAT identification numbers (to avoid repeated inquiries) to data protection certifications (to relieve the burden on small and medium-sized enterprises). The demands of the skilled trades are primarily directed at the federal government (also with a view to its influence on European policy) and at authorities at the state and local levels.

Seven stress factors

The list of measures is part of a broader initiative by the Central Association of German Skilled Crafts (ZDH) called "Rethinking Bureaucracy. Creating Space." In the accompanying position paper, the ZDH identifies seven key burdens and, from its perspective, necessitates improvements . These include practical relevance, slowing down processes, building trust, and ensuring consistent enforcement.

• The political concept of bureaucracy must correspond to the practical understanding of burden.
• Craft businesses need time to spare so that they do not have to react ad hoc to legal changes.
• Laws must not be written for lawyers or tax advisors, but must be formulated and designed to suit the intended audience.
• There is a need for a fundamental change in the mentality of legislation and administrative enforcement towards greater trust in the legal compliance of companies.
• Legislators must take greater account of practical knowledge and experience in order to be able to assess the realistic effects of their regulations.
• Relief also means consistently abolishing regulations without replacement.
• Administration must be digital, service-oriented and uniform.

For the skilled trades, bureaucracy has become a brake on growth . Let's hope that politicians find ways to accelerate the reduction of red tape quickly enough.