Germany has a lawyer problem

Finance & economics | Free exchange Germany has a lawyer problemIts endless bureaucratic rules trap would-be reformersShareIllustration: Alvaro Bernis Dec 11th 2025|5 min readMost of Germany’s famous firms, including AEG, Deutsche Bank and Mercedes-Benz, were established in the late 19th century. The time is known as the Gründerzeit, or founding period, referring not just to the proclamation of the German empire in 1871, but also to the hundreds of companies that set up shop. Less well-known is that in the same era Germany’s peculiar—and peculiarly dominant—bureaucracy took shape. It is top-down, formalistic and lawyerly. And it is causing problems. Already have an account?Log in Continue with a free trial Get full access to our independent journalism for free Get started Or create a free account to unlock just this article Create account Explore moreShareReuse this contentThe Economist TodayHandpicked stories, in your inboxA daily newsletter with the best of our journalismSign upYes, I agree to receive exclusive content, offers and updates to products and services from The Economist Group. I can change these preferences at any time.More from Finance & economicsWhat a stiff drink says about China’s economyThe baijiu business is the latest to be struck by “involution”America’s bond market is quiet—almost too quietScott Bessent has a cunning planWall Street is drooling over bank mergersThe world’s most fragmented financial industry faces dramatic change ButtonwoodAsia’s inexpensive AI stocks should worry American investorsTech mania looks very different in Japan, South Korea and TaiwanWhich economy did best in 2025?Our annual ranking returns Free exchangeAI misinformation may have paradoxical consequencesTo understand why, consider the side-blotched lizard