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For justice and freedom
Reducing bureaucracy
Germany needs to pick up the pace. Boosting economic development, promoting the energy transition and rapidly improving infrastructure all depend on faster planning and approval procedures. To this end, we have reformed the Code of Administrative Court Procedure (Verwaltungsgerichtsordnung, VwGO) to expedite processing times. For example, under the new rules administrative courts will prioritise key infrastructure projects to enable faster decision-making. Objections will have to be presented sooner in the process so as to provide planning certainty at an early stage. Less bureaucracy means more speed. Because bureaucracy is not just a burden on citizens; it stifles the state and the economy too. In times of economic hardship more than ever, companies need room for manoeuvre, enabling them to react to problems flexibly. They need more time to adapt their business models and core processes. Bureaucracy diverts valuable resources from these goals. This is why so many companies are complaining of bureaucracy burnout. Reducing bureaucracy is a zero-cost stimulus package with the power to make our businesses more competitive. The time has come for decisive action.
Bureaucracy Reduction Act
The latest Bureaucracy Reduction Act (BEG IV) implements key elements of the package of measures agreed at the closed cabinet meeting at Schloss Meseberg in 2023. Those measures are set to save our companies a good 3.5 billion euros every year. The resolutions adopted in Meseberg represent the most far-reaching bureaucracy reduction programme that Germany has ever seen. BEG IV largely abolishes hotel guest registration requirements; allows employment contracts to be concluded electronically; and cuts retention periods for a whole range of accounting records. This will save not just paper, but also time, money and trouble. On 1 January 2025, key provisions of BEG IV will come into force, reducing the bureaucratic burden on both business and citizens.
Bureaucracy reduction is an ongoing task that cannot be concluded with a single piece of legislation. At the same time, we must also bear in mind that genuine bureaucracy reduction can only succeed if action is taken at the European level too. Almost 60 percent of the bureaucratic burden in Germany is a result of the transposition of EU law. This is why Germany and France have launched a joint bureaucracy reduction initiative.
Future Financing Act
The Future Financing Act (Zukunftsfinanzierungsgesetz, ZuFinG) is another measure aimed at boosting the competitiveness of the German economy. Thanks to simplified rules for capital increases in stock corporations and the introduction of Special Purpose Acquisition Companies, we are opening up new avenues for companies to increase their capital. By creating a less bureaucratic, more digital and more modern legal framework, we are promoting growth – from which start-ups, high-growth companies and SMEs alike stand to gain.