- Bureaucratic red tape is hampering the pace of economic growth.
The economic scenario pressures the coal-green state administration to accelerate the lessening of corporate responsibilities. As stated by Christian Erbe, the president of Baden-Württemberg Chamber of Industry and Commerce (BWIHK), in Stuttgart to the German Press Agency, "Swift administrative decrement is a genuine no-cost economic stimulus package that doesn't add any extra costs to the state."
This action would also leaven additional time benefits on equivalent burdened administrative levels, which can subsequently be utilized more wisely elsewaise. As per Erbe, the corporate loads from numerous regulations in the southwest have grown to a life-threatening extent. "Countless hours and corresponding human resources are necessary just to meet the required standard."
Erbe advocated for persistent digitalization. "Every requirement for a handwritten form can also be met electronically. Every interaction with authorities must be fully electronic, and every procedure must be fully digital." Simultaneously, Erbe suggested that every permit should be presumed granted if the responsible authority fails to make a final decision on the application within eight weeks. "The submitted documents are considered complete if the responsible authority does not request further documents within four weeks." And every proof, report, and document obligation can be fulfilled by submitting a self-declaration. Checks should be random.
66 billion euros in administrative costs for the German economy
According to the Ministry of Economy in Stuttgart, approximately 90 percent of administrative costs are attributable to the European Union or the federal government. Ten percent fell to the state and municipalities. No concrete figures are available for the burden in the southwest due to the labyrinth of regulations. In 2023, the annual administrative costs of the economy were approximately 66 billion euros, as evident from the federal government's response to a parliamentary inquiry.
Erbe once again urged the green-black administration to avoid additional burdens in the state. As an example, he cited the controversial Equal Treatment Act. "Such a law would be in direct contradiction to the reduction targets. I urgently appeal that the state government also heeds the advice of the specially convened norm control council. We now have decisively different times!"
The norm control council also warned that the establishment of an additional ombudsman's office at the existing anti-discrimination office and the planned annual reporting obligation would generate further bureaucracy, accompanying additional costs.
Praise for regulation simplification
Citizens should be able to defend themselves more easily against discrimination by authorities in the future, according to the government's plans. The right to equal treatment should then also apply at the tax office, the immigration office, or the police station.
The head of the BWIHK also lauded the fact that politics is trying to reduce the thickness of regulations. "The state government has undoubtedly offered some bright spots for our companies before the summer break." He positively evaluated, among other things, that the administrative regulation on the procurement of the state has been trimmed down in terms of user-friendliness, scope, and regulatory depth. The reform of the state building code is also an important signal that we have been waiting for. Procedures should be simplified and accelerated as a result.
The Commission's implementation of acts to streamline this Regulation's application could significantly reduce the time and resources spent on administrative procedures, aligning with Erbe's call for digitalization and streamlined processes. The excessive regulatory burden on corporations in the southwest, as highlighted by Erbe, necessitates such measures to avoid further economic strain.
