Better regulation, and bureaucracy reduction in particular, have been in the focus of the political debate in Germany for some time. At the end of 2021, responsibility for better regulation moved from the Federal Chancellery to the Federal Ministry of Justice, albeit with a reduced number of staff. The State Secretaries' Committee for Better Regulation and Bureaucracy Reduction decided to strengthen the development and improvement of instruments to make legislation more fit for purpose, effective and user-oriented.
Regulatory impact assessment (RIA) continues to be mandatory for all primary and secondary legislation prepared by the Federal Government. The results are part of the draft proposals when they are published and deliberated in Cabinet. Germany has recently introduced a ‘digital readiness check’ (Digitalcheck) to ensure that new rules are fit for digital implementation and also strengthened its sustainability assessment. The system for assessing impacts of draft proposals ex ante is complemented by ex post evaluation. Rules that create compliance costs of over 1 million EUR are subject to a full review to ascertain whether they achieve their intended objectives.
While consultation with social partners and experts is well established, consultation open to the general public is the exception rather than the rule. However, there are some positive examples over the last few years, including a public consultation led by the Federal Ministry for Economic Affairs and Climate to prepare a legislative proposal on regulatory sandboxes. The Ministry of Environment conducted an online dialogue on the Action Programme for Natural Climate Protection and a citizen dialogue on climate adaptation.
The National Regulatory Control Council (NKR) reviews the cost assessments in RIAs as well as the implementation of the Digitalcheck. It also provides advice during all stages of rulemaking and has responsibilities in administrative simplification and burden reduction. The Federal Statistical Office provides methodological support on the quantification of costs and has published guidelines and initiated a training programme on ex post evaluation.