German Lawmakers to Debate Controversial Firm Data Deletion Plan
The Innenausschuss of the German Bundestag is set to discuss a contentious proposal on April 27, 2016. The proposal seeks to amend the Federal Statistics Act, mandating the deletion of company identification numbers after a decade. This amendment, if passed, could significantly impact economic research. Longitudinal data, which tracks firms over time, is crucial for understanding economic trends and monitoring business activities. Deleting these records would hinder this process, making it difficult for scholars to follow the evolution of companies and the economy. The German government's AFiD project, which combines datasets using firm identifiers, could be severely affected. Thereseia Bauer, Minister of Science, Research, and the Arts for Baden-Württemberg, has warned that this restriction would jeopardize many research projects. The German Economics Association, with 4,000 members, has also protested against the proposal in an open letter. The Federal Statistical Office already employs robust measures to protect firm data confidentiality, including anonymization and secure research facilities. These safeguards ensure that data is used responsibly while preserving privacy. German lawmakers are urged to reject this proposal. Instead of limiting data usability, they should support efforts to improve government statistics for better research and policy understanding. The deletion of firm identification numbers after 10 years would do more harm than good, hindering economic research and monitoring.
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