Berlin: In a bold push to stimulate a slowing economy, Germany’s cabinet on Wednesday announced a comprehensive package of 50 regulatory reform projects aimed at cutting bureaucratic red tape and reducing the compliance burden on businesses. The government says these measures are expected to lower companies’ regulatory costs by roughly €16 billion around 25% of the current total by the end of the legislative term, potentially in 2029.
Digital Minister Karsten Wildberger presented a report highlighting early progress, claiming the government has already achieved €3 billion in reduced bureaucracy costs within just six months of taking office. The planned reforms include speeding up planning and permitting for transport projects, revising construction contract laws to remove unnecessary procedural requirements, and raising the company size threshold for appointing workplace safety officers from 50 to 250 employees, which the government estimates will eliminate over 120,000 posts.
Chancellor Friedrich Merz emphasized the importance of sustained efforts, announcing plans to hold regular cabinet sessions focused solely on deregulation, possibly on a quarterly basis, signaling a long-term commitment to trimming bureaucratic hurdles.
Vice-Chancellor and Finance Minister Lars Klingbeil described the initiative as a way to “make it easier for companies to grow and invest.” By reducing procedural constraints and administrative overhead, the government aims to revitalize investment, improve business efficiency, and accelerate infrastructure development, which has been hindered by complex regulations in recent years.
Despite government optimism, reactions from industry associations were muted. The Federation of German Industries (BDI), which has submitted around 250 reform proposals over recent years, noted that little has been implemented so far. Wolfgang Grosse Entrup, head of the chemicals lobby VCI, criticized the government’s past record, stating: “There is a great deal of mistrust in business: every government announces it, but none follows through.” He added that excessive forms and verification requirements imposed by both Berlin and Brussels continue to weigh heavily on industries, more so than energy costs or taxes.
Similarly, the independent Regulatory Control Council (Regulierungs Kontrollrat) cautioned that the actual savings from the announced reforms may be much smaller than projected, estimating them at only around €100 million.
Analysts warn that translating ambitious deregulation plans into tangible results will require careful coordination among federal ministries and regional authorities, especially as many regulatory powers rest at the state (Länder) level. Additionally, ensuring that reforms do not compromise safety, environmental, labour, or consumer protections remains a delicate balancing act.
If implemented effectively, the initiative could strengthen Germany’s business climate, attract investment, and improve the efficiency of infrastructure projects, reinforcing the country’s role as Europe’s economic powerhouse. However, the ultimate impact will hinge on the government’s ability to deliver visible, practical outcomes, overcoming bureaucratic inertia and skepticism from the business community.