On average, companies in Europe have about 200 interactions with government agencies per year. Depending on the EU member state, these interactions are still handled traditionally - on paper and in person - or are already highly digitized. Germany lags behind other European countries in the digitization of public administration. Combined with excessive bureaucracy, this costs us 146 billion euros economic output annually.

The deepening of the EU single market offers great potential for improving the competitiveness of our industry and for growth in Germany. According to IMF calculations, barriers in the single market result in costs - converted into tariff equivalents - that amount to trade costs of up to 110% for services and up to 44% for industrial goods. With its proposal for the EU Business Wallet (EBW), the European Commission is making an important contribution to making administrative procedures for businesses more efficient. The Regulation on the Establishment of the EU Business Wallet creates, for the first time, a Europe-wide framework for digital business identities.

BDI calls for the wallet to be consistently geared toward practical applicability. Only when businesses can handle administrative procedures, provide documentation, and conduct digital transactions across borders using a unified solution will the benefits for the economy and public administration anticipated by the European Commission materialize.

Between Digital Identity and the Digital Single Market

The EU Business Wallet complements the existing eIDAS ecosystem and is intended for businesses and economically active individuals. This explicitly includes the self-employed and sole traders. This clarification is of considerable importance to industry because businesses regularly collaborate with tax advisors, attorneys, and specialized service providers.

The EU Business Wallet enables a verified digital corporate identity for business-to-government and business-to-business applications. Its particular added value lies in handling identity verification, proof of authorization, and digital transactions via an interoperable European standard. Companies benefit from less bureaucratic reporting processes, lower transaction costs, and improved cross-border collaboration.

At the same time, industry welcomes the principle of equivalence. Public authorities in the European Union should legally recognize digital procedures via the Wallet on the same footing as paper-based or in-person procedures. For this requirement to work in practice, public authorities need the necessary technical infrastructure and consistent digital connectivity.

Advantages of the EU Business Wallet

A central element of the regulation is the proposed mandate and role management. Companies do not act as individual persons. Numerous employees perform tasks on behalf of their organization and require different authorizations to do so. For example, the Chief Information Security Officer’s team must report cyber incidents to the relevant national authorities, while the HR department registers employees with social security agencies.

The BDI therefore supports the proposed ability to manage roles and representation rights within the wallet. Employees should be able to demonstrably act on behalf of their company. The combination of the personal European Digital Identity Wallet and the EU Business Wallet will enable the legally secure delegation of responsibilities in the future.

Furthermore, the regulation opens up additional application possibilities. The Digital Product Passport is an example of how corporate identities, credentials, and product information can be securely linked. This creates a reliable foundation for digital value-added and supply chain processes in industry.

Rapid Implementation and Replacement of National Siloed Solutions

The European Commission estimates the potential savings fromEU Business Wallet at up to 160 billion euros per year. Given the current economic situation in some EU member states, these potential savings must be realized quickly. The European Council and the European Parliament should advocate for swift implementation and support measures for local governments. It is important that all public administrations - regardless of their size - adopt the EU Business Wallet. A high level of digitization is a decisive competitive factor.

Equally important is the integration of existing national systems. Today, companies often register multiple times at the regional, national, and European levels. The EU Business Wallet will only fully fulfill its purpose if it replaces these fragmented structures and consolidates them into a unified European solution.

The regulation offers an opportunity to reorganize administrative procedures and digital business processes across Europe. It will boost competitiveness and efficiency and serve as an anchor of trust for the Digital Single Market. It is crucial that technical implementation, modernization of registries operated by public administration, and the regulatory framework be closely coordinated.