bureaucracy

BaFin President Mark Branson has made a plea for less complex financial supervision and regulation. But this is likely to run up against the realities of how the EU functions.

Leipzig based economist Gunther Schnabl argues that German mistrust of market mechanisms, and politicians' tendency to increase bureaucracy, are holding back economic growth.

A country comparison by the Center for European Economic Research (ZEW) concludes that bureaucracy and over regulation are stifling growth and making Germany an unattractive business location.

Germany can only emerge from its economic slowdown through increased investment. However, many companies are avoiding it as a business location. An Ifo survey highlights the need for reforms, while a recent report from consultants Strategy& points to the dangers of continued deindustrialization.

For too long, the German coalition, in its subliminal anti-capitalist reflex, has brushed aside the warnings of the economy about loss of competitiveness. This is now taking its revenge - and a comprehensive rescue plan is needed.

Germany is failing in every possible way: inadequate market measures, excessive central planning and bureaucracy, escalating social costs, deteriorating infrastructure, rising energy prices, and a diminishing appeal for highly skilled individuals. Yet, Berlin remains committed to the misguided path.