The establishment of a new regulatory body tasked with enforcing Germany’s loyalty-to-collective-bargaining law is proving difficult to justify to the public, according to Digital Minister Karsten Wildberger. In remarks published by “Der Stern”, Wildberger candidly stated that, in his personal opinion, the body is “not easily relatable” to citizens. This admission underscores a growing unease within the ruling coalition regarding the practicality and public perception of increasingly complex regulatory frameworks.
The “Tariftreuegesetz” (loyalty-to-collective-bargaining law), championed by Labour Minister Bärbel Bas (SPD), mandates that companies actively combat wage dumping in public contracts and establishes the “Prüfstelle Bundestariftreue” as its enforcement arm. While Wildberger’s ministry claims to have advocated for a streamlined implementation to minimize bureaucracy, the Digital Minister acknowledged the inescapable reality of existing “projects in the pipeline” that will inevitably generate new administrative burdens. He also highlighted the looming pressure of forthcoming regulations from the European Union, further complicating the situation.
Wildberger’s criticisms were particularly pointed towards the European Parliament, which he accused of excessive “pure bureaucratism”. He argued that a shift in priorities is crucial, emphasizing the need for speed and innovation instead of expanding regulatory frameworks. This sentiment suggests a growing disconnect between German policymakers and the EU legislative process, particularly regarding the potential for stifling economic growth through over-regulation.
The recent presentation of initial deregulation measures by Wildberger, detailed in a correspondence to the coalition parliamentary group, reveals an ambitious plan to enact approximately 50 initiatives aimed at reducing bureaucracy by the second quarter of 2026. The projected cost savings are substantial, estimated to reach “several billion euros”. However, the stark reality of the unpopular new regulatory body and the struggle to explain its necessity to the public raises questions about the long-term political viability of the coalition’s commitment to both tackling wage dumping and fulfilling its pledge to reduce bureaucratic red tape. The initiative highlights a potentially fraught balancing act for the German government: showcasing a commitment to social responsibility while addressing concerns about economic competitiveness and public accountability.