Reducing bureaucracy

Brussels' nail file versus Washington's chainsaw

The approaches to reducing bureaucracy between DOGE in the United States and the Omnibus package in the European Union could hardly be more different. This is partly due to cultural factors.

Brussels' nail file versus Washington's chainsaw

FDP leader Christian Lindner wanted to take a chance on a little more Musk and Milei in the early stages of the German parliamentary election campaign. This did not go down well last December – months before the Tesla boss took his chainsaw to the US bureaucracy. His Department of Government Efficiency is taking such a brutal approach that the acronym DOGE is already used as a verb in the USA. An authority was „doged“ when mass redundancies were carried out without prior notice.

Calculated collateral damage

In cutting red tape with a chainsaw, Musk is pursuing the same radical approach that he takes as the head of Tesla. Expensive parts such as radar or distance sensors are removed from the cars at short notice and without informing customers. Collateral damage such as the odd accident is part of the calculation. The driverless Cybercab, which will soon be launched, needs 50% fewer parts than a Model 3. After all, you can do without a steering wheel, etc., if you can manage without a driver. With Musk, people are always guinea pigs.

Lindner should have realised that this approach is alien to most Europeans. It's not for nothing that local car manufacturers are extremely cautious when it comes to cancelling models and drive options. It is sometimes considered a radical innovation if the five shades of grey for the factory paint finish on a new model are reduced to just three. Or when there are only six different wheel rims to choose from instead of eight. Fundamental rethinking is difficult when every detail triggers extensive discussions in product development.

No fear of the „omnibus“

It is therefore fitting that the EU Commission prefers to use a nail file rather than a chainsaw for its large-scale bureaucratic reform. The „omnibus“ is travelling at such a leisurely pace that the Green Deal need have no fear of being overrun by it. Because even if many European companies are now exempt from the direct reporting obligation, most of them will still be indirectly affected. Companies will also realise that they could slip into the reporting obligation in the long term as a supplier, takeover target, or as a result of their growth.

Because of the incalculable collateral damage in the USA, it is anything but clear which approach to reducing bureaucracy will ultimately be more successful. One thing is certain: No matter how hard Brussels chops, a nail file will not have the same effect as a chainsaw – for better or for worse.