Klingbeil: Unlockwork costs Germany 766 million euros!

Klingbeil: Unlockwork costs Germany 766 million euros!

Deutschland - The Federal Ministry of Finance has determined a total loss of undeclared work in 2024 of 766 million euros in a current report. However, this amount is only a fraction of the real damage, the true dimensions of which, according to experts, still go far beyond. Federal Minister of Finance and Vice Chancellor Lars Klingbeil (SPD) emphasizes that the number of unreported cases is considerably higher. In a study, it is predicted that the scope of illegal work could grow to 511 billion euros by 2025, which corresponds to 11.5 percent of gross domestic product (GDP) ( Welt , Zeit ).

The damage was increased compared to the previous year: in 2023 it was 615 million euros. Despite this increase, the quota of the cases covered remains alarming: the amount uncovered corresponds to only 0.15 percent of the estimated real damage. In order to counteract this, Klingbeil announces that it will intensify the investigation and uncover more cases in order to ensure government income.

intensive measures against undeclared work

Klingbeil plans to contribute a draft law before the summer break that includes measures to better combat undeclared work. A central point of this strategy will be the use of automated data analysis and artificial intelligence. These technologies are intended to support and help financial inspectors to identify and punish illegal employment more effectively.

The focus is particularly on badly affected industries such as the hairdresser industry, cosmetics and barbershops as well as nail studios. Klingbeil also criticizes the past efforts of his predecessor Christian Lindner, who in his opinion were inadequate. These new strategies were considered necessary to adequately counter the challenges of financial crime in Germany.

New course in financial policy

Another aspect of the planned measures is the reversal of the burden of proof in the event of an assets, which means that suspects must prove that their assets have been legally acquired. This is intended to significantly increase the control of tax fraud, money laundering and undeclared work. Klingbeil emphasizes that these measures should not only lead to uncovering undeclared work, but also to protect the integrity of the financial system.
Information on financial control is provided on the website of the Federal Ministry href = "https://www.bundenfinanzministerium.de/web/themen/zoll/finanzkonrolle-schwarzbeit.html"> Federal Ministry of Finance ).