Germany’s large economy has been an excellent performer for many decades. Governance and regulatory systems have important traditional strengths, including both a clear, well-conceived competition law and policy as well as key regulatory instruments. It is no surprise that regulatory quality is a core objective in a country founded on the rule of law and with a long-standing tradition of professional administration. Building on its traditional strengths, regulatory reform can improve the functioning of markets. The government has recently launched a wide range of reforms, including Agenda 2010, to help increase employment, reduce public spending and cope with a rapidly ageing population. As well as labour market reforms, future plans include the introduction of greater competition in key product markets such as the retail trade and crafts. Further substantial progress is also needed in the liberalisation of infrastructure sectors. This report also argues for adjustments to regulatory governance traditions so that necessary changes can take place more quickly, at least cost to the economy and with the participation of all relevant stakeholders. Communicating reform objectives and benefits will help sustain momentum and public support.

Germany is one of many OECD countries to request a broad review by the OECD of its regulatory practices and reforms. This review presents an overall picture, set within a macroeconomic context, of regulatory achievements and challenges including regulatory quality, competition policy, and market openness. Its special focus is on regulatory progress in the electricity, gas, pharmacies, and telecommunications sectors.

The background material used to prepare this report is available at: www.oecd.org/regreform/backgroundreports

In the same series:

Regulatory Reform in Canada
Regulatory Reform in the Czech Republic
Regulatory Reform in Denmark
Regulatory Reform in Finland
Regulatory Reform in France
Regulatory Reform in Greece
Regulatory Reform in Hungary
Regulatory Reform in Ireland
Regulatory Reform in Italy
Regulatory Reform in Japan
Regulatory Reform in Korea
Regulatory Reform in Mexico
Regulatory Reform in the Netherlands
Regulatory Reform in Norway
Regulatory Reform in Poland
Regulatory Reform in Spain
Regulatory Reform in Turkey
Regulatory Reform in the United Kingdom
Regulatory Reform in the United States

The policy starting point for these reviews is presented in the OECD Report on Regulatory Reform: Synthesis, and the supporting two-volume OECD Report on Regulatory Reform: Sectoral and Thematic Studies, published in 1997.