Germany's reform package seeks €16 billion yearly cut in business bureaucracy costs

The German government’s new reform package introduces a report‑relief law that creates a general clause to suspend existing reporting obligations, aiming to reduce business bureaucracy costs by up to 25 percent – an estimated €16 billion per year, according to State Secretary Philipp Amthor. Amthor told Handelsblatt that the legislation could eliminate a “four‑digit range” of reporting duties and is expected to be passed before the end of the year.

Industry representative Angelo Castrignano, chair of the sheet‑metal forming association (IBU), described the package as “grundsätzlich positiv” but warned that further reforms are needed. He praised measures such as reduced documentation, the introduction of an “approval fiction” whereby projects are deemed approved if authorities do not decide within four months, and broader labour‑law reforms, saying they create space for investment and innovation. However, Castrignano urged the coalition to continue cutting social contributions and state spending, calling for “einen echten Befreiungsschlag” to restore Germany’s international competitiveness.