Germany to approve €600 million package to cut red tape

The coalition government has pledged a 25 percent cut in business bureaucracy costs

Hapag-Lloyd containers at a loading terminal at the harbour in Hamburg, Germany, Apr 7, 2025. REUTERS/Fabian Bimmer/File Photo

Germany's government will approve a new package of measures to cut red tape on Wednesday, aiming to save businesses and citizens €600 million ($700 million) a year as Europe's largest economy tries to regain competitiveness.

Digital Minister Karsten Wildberger said on Tuesday that the package of more than 10 measures would bring the total annual relief delivered since November 2025 to €10.4 billion.

The coalition government of conservatives and Social Democrats has made the reduction of bureaucracy a key pillar of its economic agenda after years of weak growth, pledging to cut business bureaucracy costs by 25 percent, or by about €16 billion.

Planned measures include replacing some in-person appointments at employment agencies with video calls, digitalising healthcare processes and exempting electric vehicles from displaying environmental stickers.

Germany's Chamber of Commerce and Industry (DIHK) said the need for action was urgent, with 45 percent of companies in a recent survey citing bureaucracy as their biggest challenge.

DIHK Chief Executive Helena Melnikov has called for a radical reduction in reporting and documentation requirements, arguing that ministries should have to justify why regulations are needed, rather than businesses having to prove why they should be abolished.

Wildberger said the government was also preparing broader reforms, including stricter deadlines for public authorities, with some applications automatically approved if no decision is taken within four months.