The leaders of Germanys's 16 states on Thursday agreed on a 200-point plan to modernize government services.

The country is notorious for its bureaucracy, which limits much official communication to mail and, sometimes, fax. Chancellor Friedrich Merz has made addressing it a priority for the coalition government.

Now, Germany's 16 state premiers have agreed on a "federal modernization agenda" aimed at cutting red tape and making life easier for citizens and businesses, according to Alexander Schweitzer, state premier of Rhineland-Palatinate.

"By consolidating structures, we make it easier for citizens to access services and at the same time relieve the burden on administrations," he said.

What is in the modernization plan?

The premiers discussed the plan with Merz during a meeting at the Chancellery in Berlin.

Some measures include:

• Allowing emails to replace paper documents that are still required for official use.
• One-time data collection: Citizens and companies submit information only once, with agencies sharing data centrally.
• Faster approvals: Many types of applications are automatically approved if authorities do not respond within three months.
• Reducing paperwork by cutting reporting and disclosure obligations, as well as documentation requirements, by at least one-third to save companies time and reduce personnel costs.

The economic impact of bureaucracy is significant. A study by the Ifo economic institute in November showed that excessive bureaucracy costs Germany nearly €150 billion ($175.94 billion) a year in lost economic output.

Merz's government approved measures in October aimed at reducing bureaucracy on a national level and making it quicker and easier to do business.

The state premiers hope their proposals will complement those measures.

"The population wants reforms; they want to overcome the stagnation," Saxony's state Premier Michael Kretschmer said.

Edited by: Sean Sinico