A comprehensive reduction in bureaucracy could boost Germany’s real economic output by 42 billion euros within five years. This finding comes from a study conducted by economists Claus Michelsen and Simon Junker of the Association of Research Pharmaceutical Manufacturers, along with Ferdinand Fichtner from the Berlin University of Technology and Economics, which was reported by the “Handelsblatt”. The study calculates that if administrative overhead were reduced by a quarter, 250 million working hours would become available. Michelsen suggested that employees could then be utilized more productively.
In the short term, however, this freed-up labor could initially lead to a surplus of workers in companies. According to the study, up to 23,000 people might lose their jobs within the first two years. On a longer-term scale, the anticipated decrease in prices and the rise in real incomes are expected to stimulate consumer spending and investment, with private consumption seeing the largest boost-estimated at 18 billion euros. Michelsen predicts that a gentle boom phase could begin by the end of 2030.
A second study, also reported by the “Handelsblatt”, highlights the difficulties in implementing such reforms. Sociologist Stefan Kühl, who investigated six waves of bureaucratic criticism since the 1950s for the Roman-Herzog Institute, noted that reform projects rarely progress significantly, despite considerable effort. Kühl advocated for a “bureaucratic bashing moratorium,” suggesting that instead of using the term “bureaucracy” as a generalized pejorative, a more cautious approach is necessary.
