Justus Haucap presented and discussed our study commissioned by the INSM Bureaucracy and its consequences for the economy in Germany at a panel discussion of the Initiative Neue Soziale Marktwirtschaft (INSM), which was also attended by Federal Minister of Justice Dr. Marco Buschmann.
Haucap emphasized that a market-based economic system requires a regulatory framework with clear rules. However, this framework must be efficient. Otherwise, the ability of companies to compete and grow would be threatened by reducing their opportunities to invest in research into new products and production processes as well as in the renewal and expansion of production capacities. This is particularly critical in light of digitalization and rising energy costs. In addition, excessive bureaucracy is exacerbating the labor shortage in companies.
To counteract the growth in bureaucracy and limit bureaucracy to the necessary minimum, the demands are therefore as follows:
💡 a cost reimbursement obligation for government information obligations for companies
💡 an obligation for regular administrative benchmarking, including the publication of results
💡 Digitization of the administrative apparatus
In addition, the possibility of sunset legislation - i.e. the establishment of expiry dates for regulations including the evaluation of regulation - should be given greater consideration than in the past. Reducing bureaucracy can strengthen companies, limit government spending on public administration and promote economic growth in Germany.