A recent study conducted by the German Association of Research-Based Pharmaceutical Companies estimated that bureaucracy cost the German economy about 67 billion euros ($79.14 billion) in 2024, equivalent to about 1.5% of the country’s GDP.
According to the association, administrative burdens reduce productivity and divert resources from vital areas such as research and development or production. Industry-specific regulations account for about 16 billion euros of these costs, with the financial services sector bearing the brunt due to strict consumer protection rules.
The manufacturing sector comes second, with annual costs of 2.5 billion euros, equivalent to about 1,400 euros per employee.
