EU Commission urges Germany to modernize public administration

Europe's largest economy should put more effort into reducing complexity between administrative levels and making greater use of common standards, the EU's executive arm said.

Germany should also improve the framework conditions for investment in housing construction to make housing more affordable. Germany is experiencing a high demand and limited supply of housing, especially in its biggest cities.

Every six months, the commission scrutinizes the economic situation of the bloc's 27 member states, and monitors compliance with debt and deficit rules for the 21 EU countries which use the euro as a common currency.

EU countries which use the euro as a common currency are obliged to keep their annual deficits below 3% of gross domestic product (GDP) and debt below 60% of GDP.

In its assessment, the commission noted that Germany expects to exceed the limit with a deficit of 4.25% of gross domestic product (GDP) forecasted for 2026.

As Germany is, however, making use of a special rule that allows a higher deficit for defence spending, Berlin is currently not facing any infringement proceedings, the commission said.

Fiscal infringement proceedings have been pending against Austria, Belgium, Finland, France, Hungary, Italy, Poland, Romania and Slovakia.

On Wednesday, the commission proposed opening proceedings against Bulgaria while closing its proceedings against Malta.