BDI Fact Check | Mittelstand & Family Businesses The German Mittelstand
Bureaucracy
Bureaucracy Do bureaucracy costs harm Germany as a business location?
.
Due to limited personnel and financial capacities, SMEs in particular are dependent on an efficient and unbureaucratic legal framework. By reducing bureaucracy, politics strengthens Germany as a business location and the competitiveness of local companies.
.
Regulatory sandboxes (Reallabore) can provide support at an early stage in examining the practicability of complex regulations. They help to realistically estimate the follow-up costs for SMEs. This includes costs for reporting and verification obligations as well as for control and administrative tasks.
.
€2.6 billion had to be spent on non-recurring compliance costs in 2019/2020. Thus, companies have been affected by regulations to a much greater extent than the administration and citizens.
One-time compliance costs of new regulation for companies, the administration and citizens by year Source: Nationaler Normenkontrollrat (2020) Figures rounded to million euros
147 Companies
Administration
Citizens
1275 240
1908
2583
519
2018 / 19
2019 / 20
21
