Most bills increase companies' administrative burden in 2024

Of the draft laws submitted for coordination last year, 25 proposed increasing the administrative burden on businesses, while eight aimed to reduce it. Drafts affecting the general public tended to show a downward trend in administrative burden.
Last year, the Riigikogu passed 95 laws, 87 of which were initiated by the government. As of the end of the year, 392 domestic laws were in force in Estonia, 47 percent of which were amended over the course of the year, according to the government's overview on the implementation of good legislative drafting principles submitted to the Riigikogu.
There were 587 laws in force concerning the ratification of or accession to international treaties, with 13 new ones in preparation.
In 2024, ministries submitted 124 draft laws and 32 legislative intent documents for coordination. While the number of legislative intent documents decreased compared to the previous year, the number of submitted draft laws rose by a quarter.
The Ministry of Climate, Ministry of Finance and Ministry of Justice submitted the most draft laws for coordination, each forwarding 22 proposals.
The Ministry of Social Affairs submitted the most legislative intent documents. This year, the share of submissions from the Ministry of Justice and the Ministry of Digital Affairs is expected to increase, due to structural changes within the ministries.
Most bills added to companies' administrative workload
Of the draft laws submitted for coordination last year, 25 increased the administrative burden on businesses, while eight reduced it. Another 11 draft laws changed the burden in both directions — simplifying certain procedures while simultaneously introducing new obligations.
The changes that reduced burdens were primarily related to simplifying or accelerating permit and registration procedures.
A third of the draft laws that increased burdens originated from the Ministry of Climate, and about half of those were related to the transposition of European Union law. In most cases, the proposals affected specific sectors rather than the business community as a whole.
Increases in administrative burdens often went hand-in-hand with greater workloads for the public sector. "In summary, it can be said that in 2024 there were several times more draft laws that increased the burden on both the public sector and businesses than those that reduced it," the government noted in its report.
According to the report, the burden on the general public tended to show a downward trend last year. Of the draft laws submitted for coordination, three would increase the burden on residents, eight would reduce it and five had mixed effects.
"Most changes that increase the administrative burden on businesses are not extensive. For example, a change may affect only a small number of businesses in highly specific sectors or impose a very minor obligation that a business needs to fulfill only once," the government said in its analysis.
Alongside the burden-increasing draft laws, changes aimed at easing requirements or lifting restrictions were also prepared. "However, it must be acknowledged that when taking into account the financial scope of obligations and the size of the target groups, the overall burden added to businesses last year outweighed the planned simplifications and reductions," the report stated.
Number of bills that leave just a few days for feedback down
One area of concern has been the time it takes to process draft legislation. According to the principles of good legislative drafting, the process should be clear and agreed upon and stakeholders must be given the opportunity to participate meaningfully in the legislative process.
In practice, however, the time spent on processing a draft can range from a few days to several years.
In 2023-2024, the average time for government-initiated bills to move from the start of coordination to submission to the Riigikogu was 127 days. Once in the Riigikogu, the average time to adoption was 109 days.
According to the analysis, coordination practices improved significantly last year, with the standard deadline extended from 12 to 15 working days. The number of drafts submitted with only a few days' notice also declined. While in 2022 there were 23 draft laws submitted with a deadline of less than five days, last year that number fell to six. A full 15-working-day deadline was set for nearly half of all legislative drafts.
The coalition has made it a priority to cut red tape and regulations for businesses in Estonia, including through conscious efforts to reduce the number of new rules and obligations and assembling an advisory body made up of private sector organizations to propose and comment on policy.
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Editor: Barbara Oja, Marcus Turovski