The courage to introduce temporary legislation

Bureaucracy is a major barrier to investment and innovation in Germany. For this to change, bureaucracy must be rethought. This study argues in favour of time-limited regulations and administrative provisions. International experience shows that mandatory and consistently implemented evaluations under sunset clauses can effectively reduce bureaucratic burdens.

What are sunset clauses?

Sunset clauses are provisions in legislation which stipulate that these provisions will automatically lapse after a specified period, unless a decision is expressly taken to continue them either unchanged or in an amended form.

The term originated in the 1970s in the USA: laws cease to be valid, much like the sun sets below the horizon.

Where can we find good examples and valuable experience from abroad?

The US states of Idaho and Virginia, as well as Australia and South Korea, for example, already apply sunset clauses and thereby systematically and bindingly evaluate various pieces of legislation – under the supervision of a high-level political body.

In all these countries, the results of the reviews are publicly available. The successes and failures in reducing bureaucracy are also disclosed. Reducing bureaucracy is a top priority in these countries.

How should the German legislature implement sunset clauses?

The research team proposes the following approach for Germany to implement sunset clauses:

1. Gradually introduce sunset clauses with an obligation to carry out evaluations in regulations and administrative provisions, and subsequently apply them to legislation as well.
2. Explicitly enshrine the reduction of red tape as an evaluation objective. Every evaluation must include a mandatory ‘red tape reduction module’.
3. Conduct evaluations in a proportionate, data-driven manner and in accordance with binding quality standards.
4. Create a mandatory digital evaluation tool for public authorities.
5. Coordinate evaluations centrally through a body at a high political level and ensure it is functionally independent.
6. Create an online dashboard where all evaluation dates, results, statements and follow-up measures are publicly accessible.
7. Systematically evaluate not only new legislative acts but also the existing regulatory framework.
8. Supplement sunset clauses with further instruments, such as measurable quantitative targets for reducing bureaucratic costs, and provide additional incentives by publicly highlighting the successes or failures of public authorities in reducing bureaucracy.
9. Regularly evaluate the sunset processes themselves as well.
10. Develop strategies for incorporating artificial intelligence into the evaluation process.