BDA AGENDA 15/2024 | TOPIC OF THE WEEK | August 01, 2024

The public sector in Germany is growing: it now employs over 10% of the workforce. However, the increase in personnel is not leading to better performance. At the same time, the public sector is depriving the labor market of workers and specialists who are urgently needed in the economy. There is a great need for action, and good ideas are available.

Digitalization, reducing bureaucracy and the use of artificial intelligence: the public sector needs more of this.

The public sector is facing similar challenges to the private sector. Germany is getting older, the so-called baby boomer generation is retiring and the shortage of labor and skilled workers is intensifying. However, the administration is already overloaded. It is suffocating under the increasing number of tasks imposed on it by the legislator. In addition, processes are not digital enough and not automated enough. As a result, the administration is tying up more workers and specialists than necessary. These are employees who often manage unnecessary bureaucracy. These skilled workers would be better placed where they can drive value creation.

The economy needs an efficient and powerful public service. It must support companies with investment projects and enable growth instead of slowing down entrepreneurial dynamism. The administration must become a locational advantage for Germany in order to attract and retain companies as well as employees and skilled workers.

It is time to fully exploit the potential of new technologies. The introduction of e-files, the use of software and artificial intelligence are just some of the necessary steps. Digitization and automation projects must be tackled in a harmonized manner across all federal levels. Administrative processes must be digitized end-to-end and streamlined in order to increase efficiency and customer focus. The one-in-one-out principle, which the federal government committed to 10 years ago, must finally be implemented consistently. For all new laws and regulations, the Normenkontrollrat (NKR) must ensure that the compliance costs for businesses and citizens do not increase any further. Last but not least, an open error culture and a technology-open mindset must be developed. This is the only way to improve processes and structures and accelerate the digitalization of public administration.

The Positions on digitalization and optimization in the public sector make clear in 10 points what needs to change to make the public sector more digital, efficient and customer-oriented - and the administration an asset for Germany as a business location.