A vast majority (97%) of businesses claim to strengthen safety measures while minimizing bureaucratic processes.

Reducing Bureaucracy Boosts Confidence, Says Economic Survey

A vast majority (97%) of businesses claim to strengthen safety measures while minimizing bureaucratic processes.

Hear ye, hear ye! Fed up with the red tape and suffocating regulations? Well, it looks like you're not alone, bud. According to a massive survey by the Cologne Institute of the German Economy (IW) of over 2,000 companies, a whopping 97% expect that reducing bureaucracy will bring more confidence in economically sketchy times.

To break it down, 75% say bureaucracy reduction has a "strong influence", and another 22% say it has at least a "moderate" effect. Sounds like these companies are scramblin' for some freedom, don'cha think?

Businesses are also feelin' the strain of a moderate increase in labor costs. But here's the kicker: two-thirds see a strong positive effect, and 31% say it has a "moderate" influence. Nearly all companies also believe that the general direction of economic policy has a strong (61%) or moderate (31%) influence on their confidence.

Chief economist Michael Grömling of the IW had this to say: "Without confidence in future development, the necessary investments for future prosperity will not be made. Lack of confidence reduces risk-taking and worsens already critical expectations."

Translation: Get the bureaucracy outta the way, and businesses can start makin' moves! Bureaucracy reduction, deregulation, tax relief, social security system stabilization, and a growth-oriented economic policy are all crucial for the new federal government, Grömling reckons.

What makes businesses even more confident? Long-term competitive energy prices, investment- and innovation-oriented tax policy, and binding transformation policy. Another huge factor is improved export prospects to Asia and the US, with nearly one-fifth even seein' a strong effect.

Sources: ntv.de, rts

The IW Köln, known to some as the Institut der deutschen Wirtschaft Köln, hasn't explicitly outlined its specific proposals for the new federal government in the provided documents, but they've been advocatin' for regulatory simplification, digitalization of government services, reduction of reporting requirements, and more flexible labor market regulations for a while now. Keep your eyes peeled for their official statements, ya hear?

Community policy should be streamlined to promote vocational training, bolstering the workforce and fostering economic growth. A financing model that supports businesses investing in vocational training could possibly boost the nation's economy, as it aligns with the call for deregulation and a growth-oriented policy.

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