German government reforms aim to boost high‑tech industry and cut bureaucracy

The German government unveiled a reform programme targeting the country's high‑tech sector. It promises faster foreign‑trade procedures, reduced bureaucracy and quicker permitting, especially for export‑oriented companies. The plan highlights photonics as a strategic base technology for medicine, semiconductors, quantum and defence, and calls for its inclusion in future funding. Jörg Mayer, CEO of the industry association SPECTARIS, said, “The German high‑tech industry needs reliable framework conditions to invest, innovate and grow internationally.”

The Initiative Neue Soziale Marktwirtschaft (INSM) assessed the package, applauding labour‑law flexibilisation – such as extended fixed‑term contracts, eased dismissal rules for high earners and the abolition of telephone sick‑leave reporting – and steps to cut reporting obligations. However, it warned that tax relief is limited and the reforms offer only a “big step for the coalition, a small one for the economy,” according to INSM managing director Thorsten Alsleben. The coalition also reaffirmed a 1:1 implementation of the pension commission’s recommendations and pledged a future reduction of federal staff, though details remain unclear.