Germany's digital transformation is not making any progress: while the world is increasingly focussing on digital solutions, the country is lagging behind its potential. In a recent re-start paper, the digital association Bitkom shows why it is urgently time for more innovation, digital sovereignty and an independent digital ministry. The paper is available to download free of charge in time for the Bundestag elections at the end of February.
Re-Start paper highlights digitalisation challenges
Germany is still struggling to catch up with the pioneers of digitalisation. This applies to the economy, large areas of society such as our education system and, in particular, to administration. According to Bitkom, not even a third of the 334 digitalisation projects undertaken by the previous federal government in the current 20th legislative period have been completed after three years. This costs trust in the state and its institutions and is a burden on Germany as a business location, its companies and the people who live here.
According to Bitkom, politicians must once again prove that they are willing and able to recognise, tackle and solve challenges and problems - for the people and companies in this country. The last major reform was more than 20 years ago. Since then, Germany has been treading water while the world around us has changed massively - and will continue to do so. Bitkom has summarised some of the main challenges in its new start paper:
The economy is shrinking, for several years. Germany has the lowest growth within the eurozone and among the G7 countries. In the global IMD location ranking, we have fallen from 6th to 24th place within ten years - with deficits particularly in innovation, government efficiency and infrastructure. Germany is under-invested and over-regulated.
The demands on the state are increasing - and at the same time money is becoming scarce. Our state and its administrations are not up to date in terms of infrastructure and technology, but also in terms of internal structures and processes. The lack of administrative modernisation generates costs without benefits, not only for the state but also for companies, and sometimes drives citizens to despair. Germany's analogue administration is a massive locational disadvantage.
External pressure is increasing. Multiple crises, wars and hybrid threats require Germany to show commitment, willingness to perform and the ability to act with technological sovereignty within the EU alliance.
The country needs a vision for the future. Preserving the status quo is not suitable as a political programme in a multi-crisis such as the one we are currently experiencing. Instead of protecting the old, Germany must first and foremost create something new. We need confidence and a North Star: Where should Germany be in five and ten years' time?
Bitkom calls for a rethink
Germany therefore needs a new start. We need to become a country with an appetite for the future again, with an idea of where we are heading, with good, innovative ideas, with an appetite for new things. Politics must once again inspire people. For this to succeed, the foundations must be right: Germany needs economic growth for social cohesion and state efficiency. It is particularly important to ensure greater security in cyberspace. Bitkom has compiled concrete proposals for this.
- promoting the economy
- strengthen social cohesion
- improve security and resilience, including in cyberspace
- modernisation of the state
Germany must play to win again instead of just playing to win: We must aspire to be at the forefront of the digital economy worldwide and achieve the top spot in a number of key technologies, such as digital medicine, smart mobility and IT security. Our administrations must work consistently and exclusively digitally and offer their services to companies and private households digitally across the board. We need to take everyone with us on this journey into the digital world. This requires a North Star and a Re-Start.
This paper, which is available to download free of charge on the occasion of the Bundestag elections on 23 February, provides concrete ideas for the path to a digital Germany.