Shake it off! Why Germany must now reduce bureaucracy
Lower costs, more effective administrative structures – Esther Steverding, public sector expert at Bitkom, explains how bureaucracy can be reduced in a sustainable manner.
Esther Steverding is Head of Public Sector at Bitkom. Source: Bitkom e. V.
Bureaucracy is the backbone of our constitutional state – it creates transparency, security and reliability. But when rules get out of hand, order becomes a burden. In Germany, the annual cost of bureaucracy to the economy amounts to around 65 billion euros – with indirect follow-up costs reaching as high as 146 billion euros. The current federal government has therefore set ambitious targets: bureaucratic costs for the economy are to be reduced by 25 per cent, and the total compliance burden by 10 billion euros.
But how can this be achieved?
1. Reduce existing bureaucracy
Radical cuts will not help – what is needed are well-thought-out measures. One example: public procurement is organised on too small a scale. Modernisation could enable direct contracts to be awarded to innovative companies, strengthen centralised IT procurement and simplify the processing of contracts via online marketplaces.
Reporting requirements also need to be reviewed. Today, identical data often has to be reported multiple times to different authorities – which costs time and nerves. The solution: harmonisation and data reuse.
In addition, there is a pressing need for a one-stop shop, e.g. for start-ups – digital, fast and efficient.
2. Prevent bureaucracy from arising in the first place
Prevention is better than cure. New laws must be designed with digitalisation in mind from the outset. A mandatory digital check ensures that new regulations can also be implemented digitally. In addition, deemed approvals should be introduced and processing times regulated by law.
A digital legislative portal could also enable early participation, allowing avoidable bureaucracy to be identified during the drafting process.
3. Make administration service-oriented
Modern administration is data-driven, digital and citizen-centric. This requires a digital business platform that bundles services and allows companies to authenticate themselves with their business accounts.
Digital-only must become a reality – supplemented by analogue support in one-stop shops. And: register modernisation and the once-only principle must finally be implemented across the board.
From sprint to marathon
Reducing bureaucracy is not a quick fix, but a long-term modernisation process. It requires political will, digital competence and the courage to question traditional structures. The good news is that the solutions are on the table. Now they need to be implemented. At #SCCON25, leading representatives from politics, business and administration will show how this can be achieved.
Would you like to learn more about this topic? The special edition of Behörden Spiegel STADT | LAND | DIGITAL on the Smart Country Convention features the full article by Esther Steverding as well as contributions from Digital Minister Dr. Karsten Wildberger, Munich's CDO Dr. Laura Dornheim and many other specialist articles by Bitkom experts.
You can register for the #SCCON25 pre-magazine free of charge here: Smart Country Convention (SCCON) 2025 – Behörden Spiegel