Whether it is reporting obligations, documentation requirements, or additional proofs – many businesses associate bureaucracy with Brussels. However, not all burdens linked to European regulation actually originate from the EU. Germany and other member states also contribute to this.

This refers to the practice of implementing European requirements into national law with additional national demands, a concept known as gold-plating. While this might sound like higher standards at first glance, in reality, it often means extra effort and competitive disadvantages for businesses within and beyond the European single market.

Current status at the European level

The European Commission has also acknowledged this problem and addressed it in its Better Regulation Communication in April. The focus here is on consistently enforcing EU law with timely and proper implementation. The Commission aims for more frequent infringement proceedings for member states that delay their obligations.

Over the summer, DG GROW (Internal Market, Industry, Entrepreneurship, and SMEs) sought examples of gold-plating from all member states. The German Chamber of Commerce and Industry (IHK organisation) contributed here, too. Additionally, in her State of the Union address in September, the Commission President announced a pact against gold-plating. This initiative was elaborated further in a letter to EU leaders in early October.

Key role of national implementation

The success of such a proposal depends heavily on the commitment of member states. Some EU countries have already taken initial steps. For example, the German government mentioned in its coalition agreement its intention to refrain from gold-plating, at least concerning financial market regulation. Meanwhile, a Europe-wide alliance for cutting bureaucracy was initiated in mid-September by the Austrian Ministry for Europe.

It is essential that member states review the proposals and adapt legislation accordingly. Moving forward, they must consistently avoid gold-plating when implementing EU legal acts. Businesses operating across borders should be able to rely on uniformity in European regulations. Additional national requirements can distort competition and negate the benefits of shared regulations. Tackling this and reducing national special regulations would be a relatively easy lever to enhance European competitiveness.

Practical examples from business operations

Examples from various areas of business practice illustrate how gold-plating affects companies:

Energy audits and management: In Germany, companies usually need to conduct an energy audit, systematically examining their energy consumption and identifying savings opportunities, if their annual energy consumption exceeds 2.5 GWh. By contrast, the EU threshold is at 2.77 GWh. The disparity is even more significant for energy or environmental management systems: In Germany, the obligation comes into play at 7.5 GWh consumption, whereas the EU sets the bar at 23.6 GWh (Directive (EU) 2023/1791 Energy Efficiency Directive).

Dynamic electricity tariffs: From 2025, small electricity suppliers in Germany must also offer dynamic electricity tariffs, even though the EU specifies this obligation only for providers with 200,000 or more customers. This additional national requirement leads to extra IT, purchasing, and billing costs for smaller providers (Directive (EU) 2019/944 on common rules for the internal market for electricity).

Package travel: German package travel law also applies to day trips costing over EUR 500. Consequently, providers must fulfil information and insolvency protection obligations, although the underlying EU directive excludes day trips (Directive (EU) 2015/2302 Package Travel Directive).

The importance of alleviating these burdens

For businesses, it is not about the political level where bureaucracy originates but rather the actual effort required in daily operations. Those aiming to effectively reduce bureaucracy need to focus on European rules, as well as their national implementation.