Germany’s federal administration is at a critical juncture. Despite em-ploying over half a million people across 946 agencies, its efficiency is declining, costs are soaring, and public trust is eroding. Personnel expenditures have doubled in the past decade, outpacing economic growth, while the complexity of administrative structures blocks responsiveness and innovation. The root cause lies in a ministerial administration largely unchanged for two centuries, fostering duplication, silo thinking, and frag-mented responsibilities.
This paper argues for a bold, systemic reform aligned with the Federal Government’s modernization agenda and coalition agreement. The core recommendation: bundle standardizable cross-cutting tasks – such as HR, IT, procurement, and compliance – into specialized federal service agencies, leveraging existing struc-tures like the Federal Administrative Office. This approach will eliminate redundancies, enable professional-ized services, and free ministries to focus on their core policy missions.
Equally critical is the restructuring and downsizing of the subordinate area. The current proliferation of agencies must be consolidated through clear governance, standardized processes, and modernized oversight. By reducing complexity and concentrating resources, the federal administration can become leaner, more agile, and better equipped to meet demographic and digital challenges.
These recommendations are the result of a two-year dialogue within the Gesprächskreis Staatsmodernisierung of Konrad-Adenauer-Stiftung, a forum of senior federal officials, political representatives, and experts. Meeting regularly since mid-2023, the group has combined practical experience from federal ministries with ex-ternal perspectives to develop actionable proposals for a more effective administration. These ideas were refined through a cross-party roundtable in October 2025, ensuring broad consensus and feasibility.
The proposed reform does not require constitutional change. It builds on the principles of the Basic Law – maintaining ministerial responsibility while introducing centralized operational support. Decisions remain political; execution becomes efficient. Exceptions to standardization should require Cabinet-level justification, ensuring discipline and transparency.
This is not an exercise in austerity. It is a strategic investment in capability, resilience, and trust. A “Whole-of-Government” approach will accelerate decision-making, break down silos, and deliver measurable improve-ments in service quality. Reforming the federal administration is not optional – it is the prerequisite for a state that can act decisively in times of change and deliver for its citizens in the digital age.
Read the entire monitor “Mehr Leistung, weniger Staat: Warum die Bundesverwaltung reformiert werden muss” here as PDF. Please note, to date the analysis is only available in German.
