Germany's Draft Law on Red Tape Sparks Business Resistance

13 Mar, 2024

Germany's Draft Law on Red Tape Sparks Business Resistance

While the German government actively pushes for reduced bureaucratic hurdles at the EU level, challenges persist domestically, highlighted as it readies to pass a "bureaucracy relief" measure. Particularly, officials, notably from the FDP party, criticize EU supply chain rules for potentially burdening businesses with excessive reporting. However, within Germany, efforts to alleviate national regulatory burdens face setbacks, with business voices feeling sidelined.

The proposed Fourth Bureaucracy Relief Act, set for adoption, incorporates only a fraction of the suggestions from over 50 business associations, according to industry representatives. Despite efforts, just 11 proposals made it into the draft law, disappointing many. The debate extends beyond mere paperwork, with concerns raised about the impact on social goals. Dierk Hirschel, Ver.di's chief economist, warns against conflating necessary obligations with unnecessary bureaucracy, highlighting attempts to dismantle workers' rights under the guise of simplification.

Bernd Krösser, a state secretary, underscores the complexity of societal regulation, stressing the necessity of rules to balance diverse interests. As Germany grapples with bureaucracy, the tension between streamlining processes and safeguarding societal interests remains a pivotal issue.