The German economy is currently facing major challenges: high energy prices, supply chain problems, and increasing shortages of skilled workers are putting a significant strain on companies. Additionally, bureaucracy and lengthy administrative procedures are becoming growing obstacles. With the Fourth Bureaucracy Reduction Act (BEG IV), the federal government aims to reduce bureaucracy and streamline administration. The German Chamber of Commerce and Industry (DIHK) comments on the draft law, assesses its benefits for companies, and highlights possible improvements.
Key Points at a Glance
- The BEG IV is an initial step towards reducing unnecessary bureaucracy in Germany.
- Bureaucratic burdens continue to pose a key challenge for businesses in Germany.
- Out of the 442 suggestions gathered during the association survey, only some are fully or partially implemented.
- Digitisation and more efficient administrative processes will be crucial to achieve noticeable relief.
- EU directives such as the Supply Chain Act may lead to additional administrative workload.
Background
The government draft of BEG IV is part of efforts to reduce the annual bureaucratic burdens of approximately 65 billion euros. Accompanying reports from the Federal Ministry of Justice reveal which proposals from the association survey have already been implemented. Among the 442 identified measures, 28 are fully implemented, 37 are partially implemented, and 159 suggestions are not further pursued. The objective of the act is to create tangible relief for companies and administrations, and to reduce "bureaucracy burnout." EU directives such as the Supply Chain Act are to be considered, and greater use should be made of digitisation within administration.
Importance for Companies
- BEG IV can reduce everyday bureaucracy; specific effects depend on implementation.
- Companies should review which procedures and reporting obligations may become simplified.
- Digitisation solutions for administration provide opportunities to make work processes more efficient.
DIHK's Demands
- The proposals identified during the association survey, which have not yet been or are only partially implemented, should be carefully reviewed and, wherever possible, included in BEG IV to increase the effectiveness of the act.
- Administration should consistently utilise digitalisation opportunities to accelerate processes, simplify workflows, and noticeably reduce bureaucracy.
- Legislation overall should be improved and effective bureaucracy brakes should be installed to reduce burdens on companies in the long term.
- EU guidelines identified as obstacles to bureaucracy reduction should be addressed through initiatives at the European level, such as the Franco-German Initiative for Bureaucracy Relief.
- Planning and approval processes at federal and state levels should be significantly accelerated to achieve effective organisational relief for companies.
FAQ
Frequently Asked Questions
What specific changes does BEG IV bring for companies?
The law simplifies certain reporting and notification duties and reduces redundant administrative procedures, varying in scope depending on the industry.
How do companies benefit from digitisation in administration?
Digital processes can shorten processing times, reduce paper usage, and make procedures more transparent.
Were all proposals from the associations survey implemented?
No, only part of the total 442 proposals are fully or partially implemented. Further measures are to be examined.
Are there risks from EU directives?
Yes, EU regulations such as the Supply Chain Act can create implementation hurdles and cause additional administrative burden.
How can companies monitor the legislative process?
Companies can follow the process through associations, German Chambers of Commerce and Industry (IHKs), or the Federal Ministry of Justice to prepare for changes early on.
Download PDF (only available in German)
Download
DIHK Statement on BEG IV (only available in German)
- Relevant in topic:
- Wirtschafts- und Finanzpolitik
- Key areas:
-
- Bürokratie
Released 14.06.2024
Modified 11.05.2026
Ansprechpartner
Kevin Heidenreich
Director Economic Policy