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A graphic with the word “bureaucracy” crossed out. A graphic with the word “bureaucracy” crossed out. Source: BMJ

Boosting efficiency. Cutting red tape.

Germany is suffering from bureaucracy burnout. We are cutting through the maze of red tape. On 1 January 2025, key provisions of the Fourth Bureaucracy Reduction Act (BEG IV) will come into force, reducing the bureaucratic burden on both business and citizens. BEG IV is part of a package of measures that was agreed by the Federal Government in 2023 and is set to save our businesses a good 3.5 billion euros each year. This is the most comprehensive bureaucracy reduction programme in our country’s history. Nonetheless, further progress is clearly essential. That is why we remain committed to ongoing and systematic bureaucracy reduction. In future, there is to be a new Bureaucracy Reduction Act each year.

However, action at a national level is not enough on its own: more than half of the current bureaucratic burden comes from the EU. That is why, together with France, we have launched a European bureaucracy reduction initiative. We are seeking to implement a European bureaucracy cost check to ensure transparency and achieve improvements, and to reduce new reporting obligations to a minimum.

Changes include:

Hotel registration

We are abolishing hotel registration requirements for all guests who are German nationals, saving:
• around €62 million every year
• nearly 3 million hours of form-filling annually

Retention periods

We are shortening retention periods under commercial and tax law for documents such as copies of invoices, account statements and payroll records from 10 to 8 years.
• Potential savings: around €625 million every year

Signature rules

Rules requiring paper documents with manual signatures are to be completely abolished whenever possible, and otherwise replaced with a requirement for “text form” (for example e-mail).

Database of authorisations

In future, employers will no longer have to issue their tax advisers with individual authorisations for each social security provider. Instead, a general agent authorisation can be registered electronically in a central database.
• Annual savings of around €200 million for business and
around €40 million for public administration

Thresholds

The financial thresholds used to categorise companies for accounting purposes are to be raised by around 25%.
• Potential savings: around €650 million

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