State bureaucracy in Saxony-Anhalt: Action must now follow!
On July 5, 2025, leading politicians will discuss state modernization and reducing bureaucracy to relieve the burden on administration.

State bureaucracy in Saxony-Anhalt: Action must now follow!
In the last few weeks, the discussion about leaner administration in Germany has gained momentum. Examples such as Argentine President Javier Milei, who used a chainsaw as a symbol of his radical cuts in government spending, show how far some countries go to save costs. However, growth in the public sector, such as an increase in the number of employees in 2024, shows that opposite tendencies are also at work in Germany, as [mz.de reports](https://www.mz.de/mitteldeutschland/sachsen-anhalt/der-staat-muss-schlanker- Werden-4078032).
Although the 2021 coalition agreement between the CDU, SPD and FDP often talks about reducing bureaucracy, the promises are not actually being implemented. The word “bureaucracy” is mentioned 29 times, but the reality is different. Finance Minister Michael Richter has tried to counteract this by imposing a hiring freeze for the state service, but this only affects positions that happen to become vacant. A systematic review of all government tasks is viewed as urgently necessary.
Relief from bureaucracy in the Bundestag
A further step towards reducing bureaucracy was taken in the Bundestag on September 26, 2024, where the Bureaucracy Relief Act IV (BEG IV) was adopted. This draft is intended to relieve the economy of around 944 million euros annually by, for example, reducing formal requirements in civil law and abolishing the hotel registration requirement for German citizens, as the Bundestag website reports. FDP politician Johannes Vogel described the law as a first step towards better framework conditions, while other factions, such as the AfD and the Left, criticized the draft as inadequate.
The discussion extends not only to the federal government, but also to the federal states. The Federal Council still sees a need for action in the existing laws and calls for the implementation of decisions that have already been made. Many voices emphasize the importance of reducing bureaucracy as a prerequisite for economic recovery and competitiveness.
modernization of the state
Looking to the future, the coalition is pursuing a comprehensive modernization agenda that aims to: increase confidence in government performance and facilitate investment by 2025. Digital administration should be the focus in order to make processes more efficient and user-friendly. The plan is to have a central digital platform for all administrative services and the introduction of mandatory citizen accounts and digital identities, as kpmg-law.de explains.
Particularly noteworthy is the vision of making it possible to start a business within 24 hours in the future. Simplifying social benefits and increasing efficiency in the federal administration are also central aspects of these reform plans. The central concerns are clear: reduce bureaucratic costs by a quarter and speed up processes, especially in the areas of infrastructure and justice.
The coming months will be crucial in determining whether these ambitious plans can be put into action – and whether the current stagnating trend in public services will truly be reversed. One thing is clear: the pressure for reform is great and is being demanded from many sides.