Bureaucracy in Germany cost the economy an estimated €67 billion ($79.1 billion) in 2024, according to a new study by the Association of Research-Based Pharmaceutical Companies (vfa). Administrative burdens reduce productivity and divert resources from areas such as research and development or production, according to the vfa. The costs cited in the study are conservatively estimated and mostly reflect the working hours spent on bureaucracy. The focus is on compliance costs and the study does not compare any financial benefits companies may gain from bureaucracy. Manufacturing follows with €2.5 billion in annual costs, amounting to around €1,400 per employee.