BDA, the German employer association, has filed a complaint about bureaucracy ahead of the Bundesrat’s upcoming debate on the Wage Fidelity Act (Bundestariftreuegesetz). “The bureaucratic demands for public tenders are already far too high for most companies” said BDA president Rainer Dulger in an interview with “Welt” (Friday edition). “In the future it will become even less attractive to pursue federal contracts. This anti‑growth law sends a devastating signal of excess state control-especially at a time of economic strain-and scares away potential investors” he added.
According to a survey by the opinion‑research institute Forsa on the BDA’s behalf, 75 % of the 1,000 surveyed companies consider the bureaucratic requirements for public tenders excessive. Forty‑three percent are even considering not bidding on public contracts in the future.
The Wage Fidelity Act, approved by the Bundestag at the end of February 2026, obliges companies carrying out federal public contracts worth more than €50 000 to adhere to collective‑agreement standards for wages, vacation, and working hours. This requirement also applies to subcontractors. A breach could result in exclusion from future award processes. Delivery contracts and federal defense orders are excluded from the regulation. The Bundesrat will discuss the law on Friday.