(de-news.net) – According to Oliver Falck, head of the Ifo Center for Industrial Economics and New Technologies in Munich, Germany incurs an annual economic loss of 146 billion Euros due to the absence of necessary bureaucratic reforms. Falck contends that while regulations per se are not inherently problematic, the escalating time required for compliance leads to substantial financial losses. He attributes this issue to politicians’ proclivity for addressing problems by introducing new regulations. Falck advocates for a comprehensive bureaucratic reform grounded in a trust-based system, proposing that documentation requirements could be relaxed while ensuring compliance through random checks.

In late September, the Bundestag enacted several measures aimed at reducing bureaucracy. The fourth Bureaucracy Relief Act was passed with the support of coalition factions and the CDU-CSU, while the Left and the BSW opposed it, and the AfD abstained. The government asserts that the law will save the economy 944 million Euros annually by lowering formal requirements in civil law, shortening retention periods for booking records in commercial and tax law, and abolishing the hotel registration requirement for German citizens. Additionally, tax authorities will be permitted to provide tax assessments and other administrative acts digitally, eliminating the need for recipient consent and implementing an opt-out solution instead.

Also in September, CDU Presidium member and Union Vice Chairman Jens Spahn proposed a radical bureaucracy reduction law modeled after Austria’s approach, in response to Germany’s recession. He emphasized the necessity of a clear signal to reduce bureaucracy. The Austrian law aims to eliminate national regulations that exceed EU minimum requirements. Spahn criticized the recently passed fourth Bureaucracy Relief Act by the coalition government as insufficient. He argued that rolling back regulations beyond EU requirements could generate new momentum and hope. Spahn highlighted that Germany often adds additional layers to EU-framed bureaucracy, citing the supply chain law and rigid working hours regulations. He suggested that an “EU-minimal” approach would alleviate burdens on citizens, businesses, and administration.