German cabinet advances bureaucracy reforms with 600 million euros in new annual savings

· Politics DEU

Germany's government has approved a fresh package of deregulation measures aimed at cutting red tape, adding roughly 600 million euros in annual relief for businesses and citizens. The move brings the cumulative savings since the cabinet launched its reform agenda to 10.4 billion euros per year.

The largest single measure, the Law for Data and Digital Innovation in Healthcare, is expected to strip 445 million euros in annual costs from the sector by mandating fully digital transmission of medical records and allowing hospitals to use cloud infrastructure. Other changes exempt electric vehicle owners from displaying environmental stickers, permit jobless claimants to attend video appointments instead of visiting job centres in person, and introduce a rule under which applications are deemed approved if authorities fail to act within four months.

Digital Affairs Minister Karsten Wildberger has set a target of reducing bureaucracy costs by 25 percent, or 16 billion euros, before the legislative term ends in 2029. Industry leaders are pressing for faster action, while FDP Secretary-General Martin Hagen warned that excessive regulation costs Germany about 146 billion euros in lost economic output each year.

Related stories