Mr. Kegel, the German government has pledged to reduce bureaucracy for companies. Which simplifications have been received by companies so far? And which simplifications are absolutely necessary and should be accelerated?

Dr. Gunther Kegel: The annual economic report that has just been published identifies increasing bureaucracy as a serious obstacle to economic growth. This is not a new insight, but the German government has once again acknowledged this shortcoming. A serious, but on the whole only weak effort to counteract this can be seen. There is no sign of any real reduction in bureaucracy. It sometimes seems as if the federal government itself has fallen into the clutches of bureaucracy.

More consistent action is required in order to take effective action against over-bureaucratization. We are a long way from the often proclaimed principle of 'one in, one out', according to which every new bureaucratic regulation is offset by an equivalent reduction. If the reduction of bureaucracy is to be more than just lip service and actually bring tangible relief, we need to take bolder action. The aim must finally be to focus on competitiveness and attractiveness as a business location and to put opportunities before concerns.

New EU regulations are currently being introduced. How do you view the AI Act and the Supply Chain Due Diligence Act?

Kegel : People are now rightly talking about a regulatory tsunami in the EU. More and more points are being regulated in detail without considering the practical effects. The Supply Chain Duty of Care Act, which is currently under discussion, threatens to impose further burdens on companies. The law is clearly alien to the industry, fails to recognize the complexity and interconnectedness of global supply networks and causes enormous bureaucratic effort. It also harbors a high risk of legal action. And worst of all: in many cases, the law provides no discernible benefit and misses the point of protecting human rights, which companies feel obliged to uphold.

Similarly with the AI Act: Europe's ambition should not only be to create the first AI law in the world, but also the best. This has not been the case so far. In its overregulation, it threatens to become a brake on innovation. As an association, we are taking a stand against this and calling for swift clarification. Unlike at present, the regulation must be able to be interpreted clearly and with legal certainty and must not overburden small and medium-sized companies in particular. It is more important to create incentives for AI innovations than the finest regulatory ramifications, so that AI development and AI applications can continue to take place in Europe in the future and not just in the USA or China.

What organizational challenges will companies face? How can companies overcome them?

Kegel: The reporting obligations imposed are now so extensive that companies have to maintain ever larger staffs of highly qualified specialists. Large companies may still be able to cope with this, but small and medium-sized companies in our sector are quickly reaching their limits. Assigning more and more employees to documentation costs time and money. This goes against the bottom line. But what is most frustrating: When hundreds, sometimes even more than a thousand reporting points have finally been meticulously processed and sent, there is no feedback on them. It's like working into a black hole.

Can the ZVEI support companies in this? How does the ZVEI already support companies?

Kegel: The ZVEI supports its members on several levels. Firstly, we are their political voice. We regularly talk to political decision-makers in Berlin and Brussels in order to create an understanding of the needs of companies. For example, we explain how the markets work, clarify how the EU internal market should continue to develop and establish global connections. Always with the aim of strengthening the competitiveness of companies and the location and avoiding or reducing excessive regulation. On the other hand, we also act as translators to a certain extent, explaining regulation and offering our members guidelines for implementing the given legal framework. We do this through our committee work, for example.

What concrete influence can associations have on politics and how do you rate the chances of success of your involvement?

Kegel: The ZVEI represents the interests of the electrical and digital industry. We represent over 1100 companies and an industry with over 900,000 employees in Germany alone. Working for good conditions secures our social prosperity and valuable jobs. We see ourselves as an important industry voice, but we also aim to contribute to socio-political debates. For example, how best to tackle climate change or how AI should be used to create benefits. As is usual in a pluralistic society, we are just one voice among many and our positions sometimes get through and sometimes not. We will stick to this and continue to stand up for our convictions.