"The need to reduce excessive administrative burden and simplify regulations stems from the fact that imposed obligations, restrictions and processes hinder efficiency. Therefore, where it is possible to reduce the burden, it must be done," wrote Minister of Justice and Digital Affairs Liisa Pakosta (Eesti 200) in the bill's explanatory memorandum.

Pakosta explained that the "one in, one out" rule stipulates that if a legislative initiative increases administrative burden, it must be accompanied by a simultaneous reduction in existing burden. This ensures that any added burden is thoroughly considered.

"To implement the rule, amendments are planned to the regulation on good legislative drafting and legislative drafting techniques, which has been in force since 2011. The amendments will clarify the requirements for the intention to draft legislation, the bill itself and the explanatory memorandum," the minister said.

The changes apply to legislation drafted within the executive branch. In addition to bills, the rule is also intended to apply to draft regulations of the central government and ministers.

More specifically, the rule's implementation will require that, during the intention-to-draft stage of a bill, information must be provided on whether the proposed changes will increase the administrative burden and, if so, by how much the existing burden is planned to be reduced. Exceptions include the imposition of taxes, fines or state fees; the conclusion, amendment or termination of international treaties and the enactment of requirements with temporary validity.

"In future, the summary section of a bill's explanatory memorandum must include information about the administrative burden associated with the bill and, where relevant, specify how much the burden will be reduced. The impact assessment must explain the change and reduction in administrative burden," the minister explained.

The rule will apply to both laws and regulations. Each year, more than 100 draft bills and approximately 30 intentions to draft legislation are typically prepared and submitted for coordination.

While no precise data exists for draft regulations, the draft legislation information system shows that in 2024, 94 draft government regulations and 373 draft ministerial regulations were submitted for coordination.

At the same time, the minister noted that not all draft legislation includes legal provisions that affect administrative burden.

The rule should make life easier for businesses

"Based on data from 2024, 24 percent of the draft legislation submitted for coordination increased the administrative burden on businesses, and 3 percent increased the burden on individuals. In addition, 15 percent of the drafts included changes that both increased and decreased the burden on businesses — in such cases, the requirement to reduce administrative burden would likely already be fulfilled," the minister noted.

Pakosta projected that, given the number of bills increasing administrative burden and the planned exemptions, the "one in, one out" rule would need to be applied to approximately 20 to 30 bills per year.

The explanatory memorandum states that the change may slightly slow the legislative process, as amendments affecting administrative burden will now need to be considered more thoroughly, receive greater scrutiny during coordination and in some cases may even fail to receive approval.

The implementation of the rule may also result in so-called omnibus bills.

Pakosta also pointed out that since the Ministry of Justice and Digital Affairs does not oversee draft regulations by the government or individual ministers, each minister will be responsible for applying the "one in, one out" rule to their own draft regulations. This increases the risk that, despite an increase in administrative burden, the rule may not be applied at all or may be enforced inconsistently.

The regulation is scheduled to enter into force on Europe Day — May 9 of this year.

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