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The future of Mittelstand enterprises | 2026 Requirements and opportunities for a trust-based bureaucracy

Ongoing research project

Initial situation/policy problem

In view of the ever-increasing bureaucratic burden, companies often complain about a high density of regulations, complicated procedures, and a lack of trust on the part of regulators in their legal compliance and entrepreneurial competence. To achieve a noticeable reduction in bureaucracy, IfM Bonn has recommended a comprehensive paradigm shift towards a more trust-based and risk-differentiated regulation. Examples of this include type approvals in prefabricated house and vehicle construction, the posting of EU workers to Germany, and trust-based regulations in various economic sectors in the UK. Experimental clauses can be used to introduce such measures on a trial basis, for which there will also be a federal legal basis in the future with the Regulatory Sandboxes Act.

Research goals/approach

The aim of the project is to develop practical recommendations for the implementation of a trust-based bureaucracy, taking into account the entire regulatory cycle. In a first step, a literature and document analysis will be used to examine the areas in which trust-based and risk-differentiated regulations and procedures have already been established or are being planned. Subsequently, half-standardised expert discussions will be held with the relevant stakeholders (including (local) politicians, administrative authorities, business associations, and enterprises) to analyse the application requirements, obstacles, success factors, and effects of these new approaches. On this basis, a typology will be developed that highlights the different designs and forms of trust-based bureaucracy.
 

Contact

Annette Icks
Tel. +49 228 7299764
icks@ifm-bonn.org

Profile of Annette Icks

Michael Holz
Tel. +49 228 7299760
holz@ifm-bonn.org

Profile of Michael Holz