Bureaucratic Hurdles Drive German Family Businesses Abroad

A large-scale survey reveals that increasing bureaucracy is hindering investments and prompting companies to consider relocating operations outside Germany.

• An ifo Institute survey of 1,763 companies found that 91% reported increased bureaucracy since 2022, with 95% of industrial firms affected.
• Nearly 46% of businesses delayed investments due to administrative challenges, while 18% are planning to move investments abroad.
• Large companies, particularly those with over 250 employees, are more likely to consider relocating, with 25% planning to shift investments overseas.
• Family businesses expressed significant dissatisfaction, especially with federal and state bureaucracies, while local administrations received more favorable reviews.
• Calls for reform include digitalizing processes, simplifying regulations, and implementing a 'practical check' for new rules to ease bureaucratic burdens.

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