Germany to Cut Red Tape in €600m Reform Push

Germany's government will approve a new package of measures to cut bureaucracy on Wednesday, with the reforms expected to save businesses and citizens about €600m ($700m) a year. The package is part of Berlin's efforts to restore the competitiveness of Europe's largest economy after years of weak growth.

Digital Affairs Minister Karsten Wildberger said the package includes more than 10 initiatives. The measures would bring the total annual savings from reforms introduced since November 2025 to €10.4bn ($12.1bn). The coalition government formed by the Christian Democratic Union, the Christian Social Union and the Social Democrats has pledged to cut bureaucracy costs for businesses by a quarter, equivalent to about €16bn ($18.6bn) a year.

The measures include replacing some in-person appointments at employment agencies with video calls, digitizing processes in the healthcare sector and scrapping the requirement for electric vehicles to display environmental stickers.

The German Chamber of Commerce and Industry said its recent survey shows bureaucracy is the biggest challenge for 45% of companies.

The government is also preparing broader reforms, including stricter deadlines for public authorities. Under the proposals, some applications would be approved automatically if the responsible authority fails to issue a decision within four months.

(Reuters, Lud)