Industry warns: Germany is at risk of collapse due to bureaucracy!

Industry warns: Germany is at risk of collapse due to bureaucracy!

The industry in Germany is seriously concerned and is urgently appealing to the federal government to finally implement the announced relief and the reduction in bureaucracy quickly. Tanja Gönner, the general manager of the Federation of German Industries, emphasizes that this is essential for an urgently needed “economic turnaround”. In her opinion, all ministries must take responsibility and make relevant contributions to the modernization of the state. This is not just about fundamental structural reforms, but also about smaller, specific measures that can improve the framework conditions for companies. From n-tv it can be seen that the industry has made concrete suggestions from practice, which, however, have not yet been sufficiently taken into account.

A look at the situation shows that a survey by the Spiegel authorities in combination with the Federal Association of Small and Medium-Sized Businesses (BVMW) produces alarming results: 88 percent of the medium-sized companies surveyed take little to no notice of the announced reduction in bureaucracy. Furthermore, 38 percent rate the relevant policy as “rather bad”, while 50 percent even rate it as “very bad”. Such figures are alarming and point to an urgent need for action.

Bureaucracy and competitiveness

The fourth economic report from the German Association of Chambers of Industry and Commerce (DIHK) continues the discussion about Germany's competitiveness. DIHK President Peter Adrian makes it clear that the location is only partially competitive. In the last four years, economic policy reliability has deteriorated for almost 90% of companies, and two thirds of companies report a noticeable deterioration. Entrepreneurs not only want faster approval processes, but also a reliable future perspective and more freedom in their decisions. What is also alarming here is that 95% of companies see reducing bureaucracy as one of the most urgent tasks of the coming government, as dihk.de reports.

The entrepreneurs are not only dissatisfied with bureaucracy and approvals, but also express clear criticism of the current energy policy. Over half of companies are demanding relief from electricity prices, particularly in industry. With regard to the upcoming trade agreements, 81% are also calling for more commitment from the federal government in Brussels. Adrian considers a recovery law that stops existing burdens and reduces new obligations to be necessary.

Reducing bureaucracy as a key issue

The Bundesbank has also focused on reducing bureaucracy. At a symposium, economic policy stability and the connections between regulation and economic growth will be discussed. The low GDP growth rates in Germany are partly attributed to excessive bureaucracy and regulation, according to bundesbank.de. Studies show that the bureaucratic burden causes high costs, especially for smaller companies, and inhibits innovation.

The demand for a constructive dialogue about reducing bureaucracy and simplifying it is becoming louder and louder. This could significantly improve the general conditions for companies and stimulate economic growth. There is agreement that higher quality administration and greater digitalization of processes are necessary to ensure the competitiveness of German companies in an international comparison.