Arteriosclerosis in Germany: Why reforms are repeatedly postponed
Deutschland kennt seine wirtschaftlichen Probleme seit Jahren. Doch Reformen werden immer wieder vertagt. Warum der Status quo so mächtig ist und wie wir Veränderungen wagen können.
Quick Look
- Frank Dopheide analyzes the reform backlog in Germany.
- Bureaucracy, a shortage of skilled workers and digitalization are identified as chronic problems whose treatment is repeatedly postponed due to fear of short-term pain and political inertia.
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Why It Matters
Die Bundesbank hat neue Daten zur Belastung deutscher Unternehmen durch bürokratische Anforderungen veröffentlicht. Diese zeigen, dass Unternehmen etwa sieben Prozent ihres Umsatzes für Bürokratie aufwenden müssen.
Germany has known about its economic problems for years. But reforms are repeatedly postponed. Why the status quo is so powerful and how we can dare to change.
The author: Frank Dopheide is the founder and managing director of the management consultancy Human Unlimited, which specializes in the topic of “Purpose”.
The waiting room is full. Bureaucracy, transformation, digitalization, restructuring and a shortage of skilled workers are sitting on the chairs. Everyone has known about her diagnosis for years. Suffering is one thing, going under the knife voluntarily is quite another. This is how arteriosclerosis is progressing in the country. The painful treatment is repeatedly postponed.
The bill still comes. New research results from the Bundesbank show that companies now have to spend around seven percent of their turnover on bureaucratic requirements, and the trend is rising. For almost 70 percent of companies, it is the biggest pain factor, ahead of the shortage of skilled workers and high production and labor costs.
And there are side effects, especially for smaller companies. If bureaucracy increases by one percentage point of sales, sales per employee are on average three percent lower.
Reducing bureaucracy: “The glue on the coffee machine will be removed”: relief package should save billions.
The government is reacting, relying on talk therapy and setting up commissions. Acting hurts and the pain doesn't take long to come. The side effects set in immediately, including for the treating staff. The noticeable improvement will take a few more years.
Open Questions
- Welche konkreten Reformschritte sind politisch mehrheitsfähig?
- Wie lässt sich der Widerstand gegen notwendige Strukturveränderungen überwinden?
