Why an independent Digital Ministry is indispensable and how it could be structured

As Germany has failed to master its internal digital transformation over the past decade, it is time for a new federal government to reorganize itself structurally in this respect as well. While restructuring the ministerial administration is complex and time-consuming, the cost of a neglected digital transformation could be the prosperity of tomorrow. The bundling of digital topics in one department must address various challenges – the central issue here is which problem the Federal Republic wants to solve and why certain international role models regularly serve as orientation.

International role models such as Singapore, Taiwan, Estonia, and Denmark demonstrate that a modern digital state is shaped by streamlined, citizen-centric administrative processes and a digital identity for society and the economy – an approach that should serve as a blueprint for Germany.

The paper outlines three options for a new Federal Ministry for Digital Transformation:

1. Exclusive responsibility for digital public infrastructure 
2. Expanded responsibilities with additional competencies
3. A transitional solution as an interim step

The clear recommendation is the first option: a ministry with exclusive responsibility for digital public infrastructure. This approach highlights the need for a precisely defined mission and clear mandates for the new ministry. It should not simply be another ministry but a purpose-built institution with a strategic focus.

How the German Digital Ministry Should Be Structured

Implementing this reform with an independent Digital Ministry requires a reorganization of existing structures:

• Strengthening the Federal Minister for Digital Transformation as the CIO of the federal government, responsible for digitalization in the state, administration, and infrastructure
• Reallocating responsibilities from the Federal Ministry of the Interior and Community (BMI) in areas such as cyber and information security, digital society, information technology, digital administration, and transferring core tasks to the new Federal Ministry for Digital Transformation – while keeping the operational cyber and IT security functions of law enforcement agencies within the BMI
• Consolidating federal digital initiatives, such as Digital Service and the Center for Digital Sovereignty
• Centralizing IT and digitalization budgets across all ministries
• Transferring non-financial digitalization units from the Federal Ministry of Finance (BMF)
• Reassigning data and digital policy, as well as digital infrastructure, from the Federal Ministry for Digital and Transport (BMDV) to the Federal Ministry for Economic Affairs and Climate Action (BMWK)
• Bundling all regulatory tasks in the digital sector within the BMWK 
• Integrating cloud and open data divisions into the new digital ministry
• Abolishing the IT Council and its subcommittees to enable more efficient governance
• Granting exclusive responsibility for the **Data Institute** to the new ministry

Why This Reform Is Needed Now

This model is pragmatic, cost-neutral, and establishes clear responsibilities. Moreover, it can be implemented relatively quickly after a new federal government takes office. Through such an organizational and strategic realignment, Germany could not only modernize and digitize its administration but would also strengthen the foundation for economic innovation and competitiveness in the digital age.

Read the entire analysis: "Digitale Zukunft gestalten: Warum ein eigenständiges Digitalministerium unverzichtbar ist" here as a PDF. Please note, to date the analysis is only available in German.