Introduction to Better Regulation and practical experience in Denmark EU seminar in Israel on Better Regulation 14th 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 and 89,4 % 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 National effects Regulated businesses Quantification Description

Mandatory IA thresholds ConsequencesObligation for IA’s Taxes, levies, grants ect.Quantification always Administrative burdensQuantification if > 4 mio. DKK a year Remaining compliance costsQuantification if > 10 mio. DKK a year Derivative and behavioral effects Qualitative descriptions of significant consequences GDP-effectsQuantification 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 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 Solmunde Chief Advisor _________ Mobile Web: Ministry for Business and Growth Denmark