Germany has never been a country that shies away from innovation. From the birth of the automobile to cutting-edge industrial engineering, it has long set the pace for technological progress. But when it comes to digital transformation, the country is at a crossroads.
While other nations push ahead with artificial intelligence (AI), cloud computing, and cybersecurity reform, Germany risks being held back by bureaucracy, rigid procurement rules, and a lack of digital infrastructure in the public sector. The good news? The solutions are within reach if policymakers are willing to act.
For the Bundestag elections in 2025, the Business Software Alliance (BSA) is calling for a bold, future-oriented digital strategy that embraces efficiency, cybersecurity, and smart regulation. This recommendation is not just for Germany’s sake, but for the European Union as a whole.
Why Digital Modernization Matters More Than Ever
For all of Germany’s economic strength, its public administration remains stubbornly analog. The joke about Berlin’s reliance on fax machines is well-worn, but reflects a deeper truth that many government agencies have outdated IT systems that slow down services and waste valuable resources.
A digital-first government isn’t just about convenience but more about resilience. With an aging workforce and rising budget pressures, Germany needs technology to do more of the heavy lifting. In our manifesto, BSA points to modern B2B software as a way to cut bureaucracy, speed up services, and free skilled professionals to focus on more complex tasks. The potential gains in efficiency are enormous — if decision-makers are willing to prioritize them.
Then there’s cybersecurity. As Europe’s largest economy, Germany is an attractive target for cyberattacks, yet investment in digital security still lags behind the scale of the threat. BSA argues that cybersecurity must be a fundamental pillar of the country’s digital strategy, embedded from the start rather than added as an afterthought. Stronger international cooperation on cyber defense will be crucial.
It’s About People, Too
None of this will work without a digitally skilled workforce. Germany’s dual education system has long been a model of success, but it needs a rapid update to prepare workers for the AI-driven economy.
The country’s STEM pipeline remains too narrow, and unless more young people — especially women — are encouraged into technology careers, Germany risks a skills shortage that will slow its digital progress. There is a real need for lifelong digital learning, from schools to professional reskilling programs. If Germany gets this right, it won’t just secure its own economic future, it will set a standard for digital education across Europe.
Germany’s Role in the Global Technology Landscape
Germany played a central role in crafting the EU’s General Data Protection Regulation (GDPR), which has since become a global benchmark. As new challenges emerge, particularly in AI governance and data privacy, the country must once again take a leadership role in setting fair but forward-thinking rules.
Digital sovereignty is another key debate, with some advocating for reducing reliance on foreign technology providers in favor of European-built solutions. However, the real challenge is finding the right balance of supporting homegrown innovation while remaining open to international collaboration. The focus should be on creating a strong and diverse digital ecosystem, not retreating into digital isolationism.
The Road to 2025: A Moment of Choice
Germany has everything it needs to be a leader in the digital age — world-class engineers, a strong industrial base, and a respected voice in international policy — it just needs to act. The choices made in the next legislative period will determine whether the country stays ahead or falls further behind its global competitors.
The Bundestag elections in 2025 offer a turning point. Will Germany seize the opportunity?
Explore BSA’s policy recommendations here (German language).
