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Berlin Targets Bureaucracy to Jumpstart Stagnant Growth

Germany plans to slash red tape in a bid to save businesses and citizens €600 million annually. This legislative push aims to restore competitiveness to Europe’s largest economy, which has struggled with sluggish growth and a mounting backlog of administrative hurdles that critics claim stifle private sector investment.

Berlin Targets Bureaucracy to Jumpstart Stagnant Growth

Digital Minister Karsten Wildberger announced a package of over 10 measures intended to build on the €10.4 billion in savings already achieved since November 2025. The coalition government is shifting toward digital-first policies, including the replacement of mandatory in-person employment agency visits with video consultations and the simplification of healthcare services. Electric vehicles will also see relief through exemptions from specific environmental regulations.

Helena Melnikov, Chief Executive of the German Chamber of Commerce and Industry (DIHK), has identified documentation requirements as a primary bottleneck for corporate operations. To address this, the government is introducing a 'silence is consent' mechanism. Under the new regulatory framework, public authorities will face stricter processing deadlines, with applications automatically granted if officials fail to respond within four months.

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