The Minister of Economic Affairs and Infrastructure Kristen Michal initiated together with the Minister of Entrepreneurship Liisa Oviir, the Minister of Finance Sven Sester and the Minister of Public Administration Arto Aas an ambitious project to reduce the bureaucratic burden on businesses.
The project aims at creating favourable conditions for the economic growth by contributing to the state reform agenda, which is one of the five main priorities of the current Government.
The Government has agreed in coalition agreement that:
- (4.1) We will build on the principle that the number of workplaces in the governmental sector will be reduced proportionately to the decrease in the population of working-age.
Aiming to reduce the number of workplaces and administrating agencies, we will reduce the duplication between ministries and state agencies as well as reduce over-regulation and bureaucracy in the public sector.
- (4.2) We will avoid over-regulation and over-production of legislative acts. We will set a requirement based on which a new legislative act will be drafted only under the condition that the ultima ratio principle is followed, i.e. if convincing justification and an analysis of the implementation practice are provided.
We will favour the use of clear and simple legal and official language. We will initiate a broad-based parliamentary process with an objective to develop a legal culture that aims to reduce bureaucracy.
- (8.62) We will continue the development of the e-environment (Company Registration Portal, a new e-Tax Board) that has been created to facilitate the activities of business start-ups, small businesses, and the communication with the state.
We will automate the reporting, statistics collection and control, and make it thus less burdening for the enterprises.
The taskforce for reducing bureaucracy and administrative burden
The delivery of this goal requires coordinated action and cooperation of majority of public institutions and main stakeholders.
For this purpose, the Minister of Economic Affairs and Infrastructure proposed the Government to create a taskforce for coordinating and monitoring the activities directed at reducing bureaucracy and administrative burden.
The members of the taskforce are high level civil servants of public institutions and representatives of the main stakeholders.
The taskforce is supported by the Ministry of Economic Affairs and Communications and financed from the structural funds designated to enhance administrative capacity.
The activities of the taskforce can be divided into three pillars:
- Reducing the administrative burden on businesses
- Deregulating the economic activity by addressing unnecessary requirements
- Reducing the bureaucracy within the public sector
- State representatives:
- Ministry of Justice
- Ministry of Finance
- Ministry of Economic Affairs and Communications
- Ministry of Social Affairs
- Estonian Health Insurance Fund
- Bank of Estonia
- Chamber of Commerce and Industry
- Employers Association
- Estonian Service Industry Association
Head of the Taskforce
Phone: +372 625 6413
liis.kasemets [at] mkm.ee
Reducing the administrative burden on businesses
The Ministry of Economic Affairs and Communications carried out an extensive public consultation to collect the ideas directly from the business community about their main areas of concern.
The consultation was successful as it triggered a large amount of feedback, which was analysed by the ministerial experts and subsequently developed into an action plan to be implemented over the period of two years.
The results of the public consultation of ideas:
- 252 proposals
- 204 on reduction of burden
- 164 will be implemented fully or partially
Deregulating the economic activity by addressing unnecessary requirements
The modern governments tend to regulate extensively to limit the economic activity, usually with a legitimate reason to guarantee public order and safety. At the same time, it is increasingly important to sustain favourable conditions for competition, which is the foundation of growth-friendly economic policies.
The Ministry of Economic Affairs and Communications carried out a mapping exercise for the overview of the current situation.
|Legal acts containing regulation on economic activity||67|
|Different type of activity licenses||180|
|Special requirements in 180 activity licenses||1220|
|Different types of notices of economic activity||51|
The Ministers behind the initiative agreed that each ministry undertakes at least one policy area and analyses the necessity of the requirements with a common goal to decrease the burden for businesses.
Reducing the bureaucracy within the public sector
The Minister of Public Administration carried out another round of consultation among public institutions to collect the ideas for reducing the bureaucracy within the public sector. Ministries, agencies, local governments and other public institutions submitted 963 proposals, which were analysed to contain around 609 problems to be addressed by another action plan developed and monitored by the taskforce.