Introduction to Better Regulation and practical experience in Denmark

EU seminar in Israel on Better Regulation14th July 2015

Agenda

• Better regulation policy

• Quantification of compliance costs

• Types of costs measured

• Mandatory IA thresholds

• Organizational setup

• IA procedure and public consultation

The better regulation policy objective

In Denmark 99,7 % of businesses are SME’s and89,4 % are micro businesses

All unnecessary burdens on SME’s from regulation is a barrier for growth in the economy and ultimately the welfare of the Danish people

This is increasingly true in a more and more competitive and globalized economy

Therefore…..

Danish better regulation policy

Simplifying existing regulation

Reduction of 3 billion in burdens yearly on businesses by 2020 (Compliance costs incl. Admin. burdens)

Actionplans on how to reach the target.

Business forum for simpler rules

Danish better regulation policy

Preventing burdens from new regulation

Impact assessments with quantification

The Government Economic Counsil

Common commencement dates

EU – implementation committee

Background information on impact assesments

• The political mandate on IA’s

• Quantification of significant compliance costs

• Common guidelines and methodology

• Mandatory procedure and consultation

Quantification of compliance costs

• Applies to all types of business regulation

• Primary (laws)

• Secondary regulation (Announcements)

• EU proposals (Acts and directives)

Types of costs in impact assesmenst

GDP-effects

Compliance costs

Derivative effects

Direct effects

Remaining compliance costs

Administrative consequences

Taxes, levies, grants ect.

Behavioral effects

Nationaleffects

Regulated businesses

Quantification

Quantification

Description

Mandatory IA thresholds

Consequences Obligation for IA’s

Taxes, levies, grants ect. Quantification always

Administrative burdens Quantification if > 4 mio. DKK a year

Remaining compliance costs Quantification if > 10 mio. DKK a year

Derivative and behavioral effects

Qualitative descriptions of significant consequences

GDP-effects Quantification if > 50/100 mio. kr. at national level

Organizational setup

Ministries are responsible for the IA and the measurement of compliance costs

Danish Business Authority has an support function and quantifies the administrative burdens.

Ministry of Finance quantifies the GDP-effects

Procedure and public consultation

• All regulation is sent to public consultation at the webportal www.høringsportalen.dk

• IA has to be done and included when new regulation is sent in public consultaiton

• Laws – always in the remarks

• Announcements - in seperate template (but only if above threshold)

• IA’s with burdens above the threshold has to be approved by the Government Economic Counsel before public consultation

• IA’s are validated in the public consultation

• IA’s shall be corrected if new data occurs in the consultation

• Laws – before submitted to parliament

• Annoucements – before it’s issued

Better regulation = Simpler rules

Jakob SolmundeChief Advisor

_________Mobile +45 35291656E-mail: JakSol@erst.dk

Web: www.erhvervsstyrelsen.dkMinistry for Business and Growth Denmark