Germany's federal government has unveiled a comprehensive modernization agenda during a recent cabinet retreat in Berlin, aiming to create a more digital, efficient, and citizen-friendly state.

Key reforms focus on streamlining administrative processes, replacing outdated laws with digital-friendly legislation, and establishing a unified digital framework for cooperation across federal and state levels.

Major initiatives involve centralizing online vehicle registration, simplifying business startup procedures to within 24 hours via a web portal, and creating a portal for citizens to suggest bureaucratic improvements.

The plan includes around 80 measures designed to reduce bureaucracy costs by 25%, saving approximately 16 billion euros, and to cut the federal workforce by 8%, with implementation targeted within 24 months.

Additional measures include training government staff with AI tools to craft practical, less bureaucratic legislation, implementing EU law directly, and applying the 'one-in-one-out' rule more strictly to reduce regulatory burdens on businesses.

The agenda includes creating a unified digital framework for administrative cooperation across federal and state levels and reducing duplicate structures within ministries.

The agenda also targets an 8% reduction in personnel within ministries and government agencies, and a 10% cut in administrative costs, especially by minimizing legal exceptions in social law.

A novel feature is the introduction of a budget veto right for the head of the Ministry for Digital and State Modernization, allowing blocking of IT-related expenditures to control costs and promote reuse of existing solutions.

The government plans to enforce a strict 'exemption rule,' requiring that for each new law, an existing law must be repealed, although this has often been overlooked in the past.

Discussions during the retreat also covered boosting Germany’s economic competitiveness, with insights from Princeton economist Markus Brunnermeier, aiming to revitalize the economy.

During the retreat, Transport Minister Patrick Schnieder suffered a health incident, collapsing and being hospitalized; he is currently undergoing examinations and unlikely to participate in ongoing proceedings.

A significant reform involves designing new laws from the outset to be compatible with digital processing, thereby streamlining administrative workflows.

Developed five months after Chancellor Friedrich Merz's government took office, the agenda aims to reinforce modernization efforts with initiatives like establishing a new Ministry for Digital and State Modernization to ensure faster, more reliable decision-making and to build public trust.