Overview

• The NKR’s annual report shows a €3.2 billion year‑on‑year drop in compliance costs from July 2024 to July 2025, with −€1.7 billion for administration, nearly −€1 billion for business and −€0.5 billion for citizens.
• Despite the decline, the annual burden remains about €64 billion, and the council notes a substantial long‑term increase since 2011.
• The watchdog warns that recently adopted EU measures, including NIS2 cybersecurity rules and corporate sustainability reporting, could add billions in new costs.
• The federal cabinet’s modernization program includes a goal to reduce business‑related bureaucracy by 25%—around €16 billion—which the NKR calls ambitious but achievable.
• The report highlights the need to simplify social‑state procedures, cut duplicate proofs, accelerate digital one‑stop applications and build in early real‑world checks on laws, with proposals such as a nationwide "Germany app" for services.