Ifo: The Annual Cost of Excess Bureaucracy in Germany Amounts to 146 Billion Euros

According to a study conducted by the Ifo Institute, excessive bureaucracy costs Germany up to 146 billion euros in lost economic output each year. Oliver Falck, Director of the Ifo Center for Industrial Organization and New Technologies, stated in the report, “The magnitude of the costs caused by bureaucracy highlights the urgent need for reforms. The cost of inaction is significantly greater compared to the untapped growth potential that could be achieved through reducing bureaucracy.” Falck also assessed, “If Germany could catch up to Denmark in the digitalization of public administration, its economic output would be 96 billion euros higher each year.”