14.07.2026 - "The Relief Cabinet could be the starting point for the long-awaited turnaround in bureaucracy, provided that actions now follow the announcements. In the past, too little was implemented despite extensive promises in dismantling bureaucracy. This is a sector where quick and effective relief is possible. Removing unnecessary regulations usually costs the state nothing. On the contrary: less regulation also reduces government spending.

Top priority should be a radical reduction in reporting and documentation requirements. The key is the planned burden of proof reversal. In the future, it is no longer the economy that must justify why a regulation or obligation can be waived, but the ministerial administration must explain why it is necessary. For this paradigm shift to have an impact, it must be anchored legally in a dedicated Reporting Relief or Burden of Proof Reversal Act. It is crucial to incorporate the companies' perspective and the expertise of the National Regulatory Control Council. If successful, a noticeable dismantling of bureaucratic burdens for companies is within reach.

The administrative rationalizations should follow transparent standards set as examples by federal states: In North Rhine-Westphalia, by the end of the year, all reporting obligations for companies will be discontinued unless their necessity is justified and established by ordinance. Saxony plans the same step by May 1, 2027; Baden-Württemberg is working on a comparable model.

Similarly important is the considerably accelerated approval procedures that have been announced. These should not come into effect only by the end of 2027; the economy needs rapid implementation immediately. Only if companies can finally act and invest faster again will growth be generated.

The urgency for action is immense: In the current DIHK economic survey, 45 percent of companies cite bureaucracy as their biggest challenge. According to a study by ifo and IHK Munich, Germany annually loses 146 billion euros in economic output, equivalent to almost three percent of gross domestic product. Every regulation binds resources in companies that are lacking for innovation, investment, and growth. We can no longer afford this growth brake. It's both correct and overdue that the Federal Government is now prioritising this issue.

Nonetheless, the density of rules has recently increased further because European requirements have not been implemented 1:1 in Germany but overfulfilled with national additional regulations. This weakens German companies in European competition. In the environmental sector, the package for strengthening modern, digital, and effective environmental protection brings significant progress. At the same time, other initiatives create burdens without apparent added value. Companies face growing bureaucracy instead of a reduction – for example, through the Natural Infrastructure Strengthening Act, the EU Packaging Regulation, or the EU Deforestation Regulation.

The measures to reduce bureaucracy must now finally reach the broader economy. At the same time, the Federal Government should advocate strongly in Brussels to ensure the omnibus bills effectively curb the flood of new burdens."

The German Chamber of Commerce and Industry has outlined the additional bureaucratic requirements that companies face due to ongoing environmental and sustainability legislation. You can find the overview here: Environmental bureaucracy for companies continues to grow (only available in German).