Despite long-standing calls for reducing bureaucracy, retail companies are not seeing the results of government efforts. A recent survey by the German Retail Federation (HDE) of around 500 businesses in the sector shows that 89 percent of respondents report high or very high bureaucratic burdens. Over the past five years, 97 percent of businesses feel that bureaucracy has only increased.
'Reducing bureaucracy has been a popular catchphrase at all levels of politics for decades. The current federal government has made significant efforts to reduce it and relieve businesses, but it seems that little progress has been made in practice. In addition, we are facing a regulatory tsunami from Brussels,' said HDE President Alexander von Preen.
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The HDE survey highlights that over the last five years, 97 percent of retail companies have experienced more bureaucracy, with almost two-thirds reporting a significant increase in burdens. 'It should be concerning that, despite all efforts to provide relief, businesses are still feeling a rise in bureaucracy,' von Preen added. More than half of the respondents attribute most of the bureaucratic burden to the federal level, while a quarter point to the EU as the primary source.
Retailers feel particularly constrained by documentation requirements (74 percent) and reporting obligations (71 percent). Larger companies are especially frustrated by reporting requirements and EU regulations, while for medium-sized businesses, tax-related demands are a significant issue. Bureaucratic challenges are most evident in personnel management (77 percent) and taxation (69 percent). Data protection laws (73 percent) and labour laws (61 percent) are also often cited as obstacles due to the extensive regulations and employer obligations.
'This can't continue like this. There have been good initiatives in recent years, but they aren't enough. We need bolder and more significant steps to reduce bureaucracy,' said the HDE president. He emphasised the need for more flexible working hours, arguing that the rigid daily maximum working hours no longer meet the demands of the digital workplace. Instead, he proposed shifting to a weekly maximum working time within labour laws. Regarding work time documentation, a simpler solution should be found, with the related documentation requirements being streamlined. Additionally, von Preen called for the removal of extra national regulations in the Federal Data Protection Act regarding the appointment of data protection officers. This would allow the General Data Protection Regulation (GDPR) to apply uniformly across the EU.
More information:
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