On October 26, 2026, the Netherlands announced a sweeping reduction in bureaucracy. By 2035, approximately 25,000 full-time positions within the central government administration are set to be eliminated. Through the use of artificial intelligence (AI), a decrease in regulations, and the streamlining of government agencies, the country aims to achieve annual savings of 3.5 billion euros. While The Hague has thus established concrete targets for cutting bureaucracy, the German state apparatus continues to expand; in 2025 alone, the public sector added 95,100 employees. At the same time, the German federal government is planning to create around 1,046 additional administrative posts to manage two new taxes. Consequently, Germany’s promises to reduce the administrative burden are being countered by a growing workforce and rising bureaucratic costs.
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Netherlands plans to cut one in six government jobs
The Dutch government intends to significantly downsize its central civil service. Out of the current 160,000 full-time positions, approximately 25,000 are set to be eliminated by 2035. By 2027, the state apparatus must achieve savings of 900 million euros; thereafter, the annual savings target will gradually increase to 3.5 billion euros. Individual ministries, however, have yet to develop their specific plans for these cuts.
State Secretary Eric van der Burg is focusing on reducing administrative tasks and leveraging artificial intelligence. Furthermore, at least 500 regulations are to be abolished or simplified each year. The government also aims to reduce the number of advisory bodies, standardize IT systems, and shrink office space. The police and the defense sector are exempt from these cuts. Crucially, the plan involves not only digitizing workflows but also eliminating certain government functions entirely.
Germany’s state apparatus continues to grow despite promises of austerity
In Germany, by contrast, recent trends show a persistent increase in the number of public sector employees. According to the Federal Statistical Office, the public sector employed approximately 5.5 million people as of mid-2025—an increase of 95,100 compared to the previous year.
The more narrowly defined German federal administration is also expanding. A study by the Initiative for a New Social Market Economy (INSM) reveals that the number of planned positions has risen by 48,684 since 2017, reaching 305,753 for 2026. The government’s draft budget for 2027 already accounts for 310,487 positions—an additional 4,734 roles. Meanwhile, annual personnel expenditures for the state apparatus are projected to climb from just under 32 billion euros in 2017 to more than 51 billion euros by 2027.
New sugar and plastic taxes further inflate the state apparatus
This contrast is particularly evident in the case of the planned sugar tax. While the Netherlands aims to reduce its public sector workforce, Germany anticipates a need for approximately 227 additional positions to implement this new levy. According to published planning data, 200 of these roles would be assigned to the customs administration, 23 to the Federal Information Technology Centre, and nearly four to the Federal Ministry of Finance. Annual personnel costs alone are estimated at around 28 million euros.
Furthermore, the planned plastic tax is expected to require an additional 819 positions, with annual personnel costs of approximately 46 million euros. Together, these two levies account for a projected requirement of 1,046 new positions, with annual personnel costs totaling roughly 74 million euros. It should be noted, however, that these are planning figures rather than actual new hires. Following a cabinet decision on October 14, 2026, the sugar tax is set to take effect in July 2027.
German economy sheds jobs while facing an ever-increasing bureaucratic burden
While the state is planning to add more personnel, the private sector is cutting jobs. In 2025 alone, the manufacturing sector lost approximately 143,000 employees. At the same time, numerous companies are being weighed down by mounting bureaucracy, including documentation requirements, licensing procedures, and mandatory statutory reporting. According to calculations by the Bundesbank, the average bureaucratic costs for the companies surveyed rose from five to seven percent of their revenue between 2022 and 2024. Consequently, meeting government requirements is tying up significant economic resources.
The latest assessment from the National Regulatory Control Council also shows no fundamental turnaround. During the reporting period from July 2025 to June 2026, the annual bureaucratic costs borne by the economy increased by approximately 1.3 billion euros. Although the broader measure of total compliance costs fell significantly, this decline was largely driven by a single, highly impactful legislative relief measure. Meanwhile, new burdens for businesses emerged in other areas.
Reduction of Bureaucracy Announced – Staff Cuts Yet to Materialize
The German federal government has resolved to cut eight percent of positions across certain parts of the federal administration by 2029; however, security agencies are exempt from this measure. Nevertheless, budget planning for 2026 and 2027 indicates an overall increase in the number of federal positions. Consequently, the staff reductions announced for individual government departments have not yet translated into a general downsizing of the federal administration. At the same time, new mandates and shifting political priorities are driving a need for additional personnel.
The crucial difference lies less in stated political intentions than in the planned implementation. The Netherlands has already quantified its targeted staff reductions and projected annual savings. In contrast, Germany continues to adopt new administrative mandates, even as current staffing levels rise. While the German federal government also pursues the goal of reducing bureaucracy, the actual relief achieved thus far has fallen short of expectations. It remains to be seen, however, whether the Netherlands will successfully implement its stated course of action.
Less State in The Hague – More Administrative Tasks in Berlin
The differing approaches to new regulations are particularly revealing. The Dutch government intends to fundamentally review state functions and simplify existing rules. Germany, by contrast, is planning new levies that will require additional administrative capacity to enforce. For instance, while a sugar tax is intended to lower the long-term costs associated with health issues, it simultaneously creates new administrative burdens. Similarly, a tax on plastics necessitates additional oversight, IT systems, and personnel.
This comparison highlights a fundamental issue within German reform policy: as long as the state continues to create new mandates, digitalization and more efficient processes alone are unlikely to achieve a lasting reduction in staffing requirements. Therefore, any effort to reduce bureaucracy must also critically examine the necessity of both existing and proposed regulations. The Netherlands has now established a concrete savings target to address this. Germany, by contrast, has yet to demonstrate that its announced relief measures can reverse the actual rise in staffing levels and costs.
Author: Blackout News
Sources: Rijksoverheid (26.10.26) – Handelsblatt (26.10.26) – EuroNews (07.10.26)