Although the bureaucracy cost index was at a historic low in September 2023, suggesting a reduction in the bureaucratic burden on companies, the newly developed bureaucracy index by Stefan Wagner, professor of strategy at ESMT Berlin, reveals a different picture. This index, which measures the number of pages of applicable federal laws in DIN A4 standard pages, shows a significant increase of around 4% per year since 2010. While the volume of all federal laws in 2010 was still around 31,000 standard pages, this has risen to almost 50,000 standard pages in 2024.
Illustration 1: Bureaucracy index by Prof. Stefan Wagner, ESMT Berlin
The analysis emphasizes that simply counting individual laws says little about the actual burden. βThe current focus on federal legislation is of course a simplification,β explains Prof. Wagner. βA far greater number of legal regulations can be found in implementing ordinances, state laws, EU legislation, etc.β Prof. Wagner plans to publish the index annually and is also expanding the database to obtain a more comprehensive picture of bureaucratization in Germany.
The index results emphasize the need for political decision-makers to take measures to simplify legislation and reduce bureaucratic hurdles. They also highlight the importance of research and data analysis to stimulate discussion and change about bureaucracy and its impact on the economy and society.