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VFA Study Puts Germany’s 2024 Bureaucracy Cost at €67 Billion

The pharma association urges digital simplification rather than deregulation to reduce compliance time and strengthen competitiveness.

Overview

  • The VFA estimates bureaucracy absorbed about €67 billion in 2024, roughly 1.5% of economic output, based largely on employee time devoted to compliance.
  • Around €51 billion stemmed from general rules such as labor, tax and commercial requirements, with about €16 billion tied to sector‑specific regulation.
  • Financial services face the densest rulebook, while industry accounts for a €2.5 billion sector‑specific burden and about €1,400 per employee annually for compliance.
  • Pharma is hit hardest, with about one in five working hours spent on documentation and reporting, per‑employee costs over twelve times the industrial average and total bureaucracy costs that have more than doubled since 2012 to nearly €2.5 billion.
  • The study, presented in Berlin at the Day of Innovative Health Economy and shared with dpa, frames its estimate as conservative and links modernization and digital processes to improved location attractiveness.