Germany Unveils Broad Red Tape Relief Plan for Small and Mid-Sized Companies
Published on 07/17/2026 at 06:24 | Redaktion boerse-global.de
The German government has approved a wide-ranging package aimed at easing the burden on small and medium-sized companies, with annual bureaucracy costs set to fall by 10,4 Milliarden Euro.
The measures were adopted on 15. Juli in the so-called Entlastungskabinett. Since November 2025, 43 measures have already been implemented. The latest package adds further steps, including the planned Berichtsentlastungsgesetz.
Office checks to be relaxed
One of the main changes concerns the inspection of electrical equipment. In dry, low-risk areas such as offices, companies may in future be allowed to waive separate checks on very small devices such as kettles or charging cables.
The government says this will cut annual costs by around 720 Millionen Euro. In damp or sensitive environments such as large kitchens, existing inspection intervals will remain unchanged.
The thresholds for safety officers will also be raised. In KMU with fewer than 50 Beschäftigten, the obligation to appoint one will no longer apply. According to estimates, this affects up to 123.000 Stellen.
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Digital tools aimed at microbusinesses
On 16. Juli, the statutory accident insurer VBG launched new support tools. They are aimed at small firms with up to 20 Beschäftigten.
The package includes an app-based risk assessment and a central portal for training and communication. The digital tools are intended to make workplace safety possible without a heavy administrative load.
A VBG specialist said the free offers were designed specifically for start-ups and microbusinesses. They improve legal certainty while also reducing the time needed for documentation.
Trial work at a new employer
The package also includes the law to modernise labour promotion. It introduces a “Job-to-Job-Erprobung”.
Employees will in future be able to work on a trial basis for four to six weeks at a potential new employer without terminating their existing contract. The original contract is suspended, and pay continues to be handled by the first employer.
The aim is to make it easier to change sectors, especially during periods of crisis. The legislative process is due to be completed by November 2026.
Company doctors to get access to ePA
There is also relief planned in the health sector. The law on digital healthcare, GeDIG, will give company doctors comprehensive access to the electronic patient file.
That is expected to reduce costs by around 445 Millionen Euro. The previously required explicit consent for every access will no longer be necessary in this context.
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More reforms planned through year-end
The government says it wants to push ahead with cutting bureaucracy until the end of 2026. Planned steps include revising the receipt obligation, with a minor-case threshold of 30 Euro and digital QR code alternatives.
An EU-wide relief directive is also to be implemented.
Criticism has already come from the agricultural sector. The secretary general of the Zentralverband Gartenbau expressed concern about planned cuts to federal subsidies for agricultural accident insurance. He warned that these could strain businesses economically despite the broader relief measures.
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