Citizens and companies complain about too much bureaucracy in Germany. The federal government wants to curb the thicket of regulations by law. The economy sees this as just a first step.
Federal Justice Minister Marco Buschmann has expressed understanding for critical voices from business for whom the new planned law to reduce bureaucracy does not go far enough.
Despite the planned relief, “the people in business are right, because we have of course achieved a world championship in terms of bureaucracy in Germany,” said the FDP politician in the ARD morning magazine. “It’s a bit like eating a belly of belly fat for years. You can’t get rid of it overnight with the push of a button. But we have to start. And the first step we’ve taken now is quite remarkable.”
Cabinet approves draft law
The planned bureaucracy relief law is one of three components of a package that should bring a total relief effect of over three billion euros per year. “This is the largest bureaucratic relief package ever in the history of this country,” said Buschmann. But we not only have to reduce bureaucracy, we also shouldn’t build new ones. That is also the task of the European Union. “At a time when we have a shortage of skilled workers, we can’t keep people busy with paper work, but rather they have to be able to concentrate on their productive activities.”
The cabinet passed the planned Bureaucracy Relief Act IV in Berlin on Wednesday, as the Federal Ministry of Justice announced. The planned changes affect different areas, such as the Commercial Code, the Sales Tax Act, the Federal Registration Act and the Maintenance Advances Act. For example, German citizens will soon no longer have to fill out registration forms in hotels. The law still has to be discussed and passed by the Bundesrat and Bundestag.
“Secure everything – and suffocate from it”
For the chairwoman of the startup association, Verena Pausder, the planned law is a good step, but more must follow. “I hope that there will be many more laws to reduce bureaucracy,” she said on Deutschlandfunk. “I think we need to do a collective clean-out, so to speak.” She explained: “We simply find it incredibly difficult to abolish things in Germany that we once introduced, even if they no longer make sense.” Why shouldn’t you sign an employment contract digitally? She also mentioned the Skilled Immigration Act. “If the visa process takes so long, then it doesn’t do much for us because people will still wait forever until they get a job,” she said.
In Germany it takes an incredibly long time to set up a company and work your way through the bureaucracy. “In other countries you can start a company in a day,” said Pausder. In Germany, attempts are always made to protect against the possible case of misuse. “We are simply the ones who prefer to exclude the risk at all costs instead of taking part in the opportunity. And you can see that with bureaucracy too. We secure everything in all directions and in the end we suffocate because of it.”
DIHK wants improvements
The German Chamber of Commerce and Industry (DIHK) called for significant improvements to the planned law when it is discussed in the Bundestag. DIHK President Peter Adrian told the “Augsburger Allgemeine”: “The federal government’s current draft law should definitely be improved in the upcoming parliamentary process.” Excessive bureaucracy is a key stumbling block for companies. There are many correct measures in the government draft of the law. “In view of the high burden of unnecessary bureaucracy and the still cumbersome administration in Germany, this is just another important step,” said Adrian.
The German Hotel Association IHA particularly welcomed the planned elimination of the registration certificate for domestic overnight guests. IHA general manager Markus Luthe demanded in the “Augsburger Allgemeine” that the registration certificate should also be no longer required for foreign hotel guests. In addition, the reporting requirements for spas and health resorts due to tourist taxes would also have to be canceled.
Source: Stern
