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The German government has unveiled an ambitious 80-measure plan to create what it calls a "faster, digital and more capable state" that makes decisions more quickly, delivers services more reliably and strengthens public trust. The comprehensive modernization agenda, detailed in a 40-page document obtained by German Press Agency, represents the Merz administration's first major policy initiative five months after taking office and establishing a dedicated Ministry for Digitalization and State Modernization.
Central to the plan are significant cost reductions and efficiency improvements. The government aims to cut bureaucratic costs by 25 percent, representing approximately €16 billion in savings, while reducing federal personnel by eight percent. These measures are designed to address longstanding complaints about Germany's complex administrative procedures and lengthy processing times that have hampered both citizens and businesses.
Key digital initiatives include the centralization of online vehicle registration, which would relieve approximately 400 local and state registration offices from maintaining their own portals, generating substantial savings. For entrepreneurs, the government plans to enable business registration within 24 hours through a centralized web portal. Additionally, a bureaucracy reporting portal will be established where citizens can submit specific improvement suggestions for government services.
The modernization effort also focuses on improving the quality of legislation itself. Ministry staff involved in drafting legal texts will receive specialized training and AI tools to help create more practical, less bureaucratic laws. The government commits to implementing EU law without "bureaucratic over-fulfillment" and will apply the "one-in-one-out" rule more consistently, requiring that any new regulatory burden on businesses must be offset by relief elsewhere. During the cabinet retreat, Chancellor Merz emphasized that the government is doing everything possible to help the German economy regain its footing.