Companies complain about more bureaucracy

According to a study by the Institute of the German Economy (IW), which is close to the economy, efforts to reduce bureaucracy have not yet reached companies. According to the study, 80 percent of the German companies surveyed complained that the effort required to fulfill legal reporting and documentation obligations had increased in the past three years. More than half even saw a significant increase. Only 1.5 percent reported a decreasing burden, and around a fifth noticed no change.

According to the survey, companies also see problems in the authorities. Around 70 percent consider administrative procedures to be too slow, and 60 percent say that existing discretionary powers are not being sufficiently used. Every second company also complains about a lack of capacity in processing applications or even doubts the technical expertise in the administrations. According to the IW, more than 1000 companies were surveyed in the autumn of 2025; the survey is representative.

For more than 90 percent of companies, the most important factor in reducing bureaucracy is less extensive EU regulations. Around three-quarters also see potential for relief in a centrally organized, digital administration. "With a digital administration and close federal cooperation, the authorities can end the jurisdictional confusion," emphasizes IW researcher Klaus-Heiner Röhl.

Bureaucracy costs slightly decreased

Figures from the Federal Statistical Office, which the Sahra Wagenknecht Alliance (BSW) requested in January, paint a slightly different picture than the companies' perspective. According to the authority's calculations, bureaucracy costs for companies amount to 62.5 billion euros per year. A year ago, the official statistics showed costs of 66.6 billion euros. The number of information obligations decreased from 12,390 in January 2025 to 12,364. This means the burden is decreasing, albeit very slowly.

However, the black-red coalition has set itself the goal of significantly reducing bureaucracy costs and relieving companies of reporting obligations. In December, the federal and state governments also adopted a modernization agenda aimed at reducing bureaucracy costs by 25 percent. However, at the beginning of January, Chancellor Friedrich Merz admitted that bureaucracy costs were still too high.

(axk)