1 minute read
Do bureaucracy costs harm Germany as a business location?
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
Companies Administration Citizens
