The planned increase in German identity card fees is drawing sharp criticism, with industry leaders warning of disproportionate impacts on consumers and small businesses. Stefan Genth, CEO of the German Retail Federation (HDE), has accused the government of imposing an unfair burden and undermining fair competition.
Currently, a German identity card costs around €37; the proposed increase, slated to raise the price to €46, represents a roughly 24% jump. Genth argues this increase is not justified by actual cost increases and described it as “simply unfair” to citizens. He fears the policy will ultimately jeopardize jobs.
The timing of the increase is particularly contentious, coinciding with the rollout of new automated photo booths from the Federal Printing Company in government offices. From May 1, 2025, applicants will be required to submit digital biometric photographs, effectively eliminating the option of traditional paper photos. This shift, critics contend, is a deliberate effort to funnel applicants towards the government’s automated system.
While the law is intended to allow citizens freedom of choice regarding where their ID photograph is taken – whether with private sector providers like photography shops or pharmacies, or directly at government offices – Genth argues the fee increase effectively forces consumers to subsidize the federal government’s investment in photo booth technology. “Even those who consciously choose a private provider for better quality will indirectly contribute to the cost of the Federal Printing Company’s equipment” he stated.
Genth went further, characterizing the fee increase as a “hidden subsidy”. He claims the government is creating an artificial advantage, effectively pushing private photography businesses – numbering over 1,000 throughout Germany – out of the market. He insists this approach is antithetical to the principles of a social market economy.
The HDE is demanding a clearer separation of costs, advocating that those utilizing the automated service offered by the Federal Printing Company should pay a separate, explicitly priced fee reflective of the actual costs of the service. “The fees must solely be based on the actual production costs of the ID card, not on additional costs for photo booths”. He concluded with a direct warning to the government: “The state must not create a special position for itself”. The debate highlights growing concerns over government overreach and its effect on small businesses within Germany’s economy.