The Ministry of Business and Industry has just published the “Report on Better Regulation for Business and Industry 2024”. It shows a significant increase in the administrative burdens imposed on Danish companies – especially as a result of EU regulation, writes DIBusiness.dk.
- 2024 has marked an unprecedented level of new burdensome legislation for business and industry. Companies have been required to spend approximately DKK 10 billion annually going forward to comply with new legislation. This is more than four times the cost of all legislation from the last 5 years combined. It is absolutely crazy, and it underlines the need for regulatory simplification, says Deputy Director Kim Haggren, Confederation of Danish Industry (DI).
EU regulation alone accounts for almost 9.7 billion DKK of the 10 billion DKK it will cost to comply with the rules. The largest single burden is the extensive requirements for sustainability reporting under the EU's CSRD directive.
- We are 100 percent behind the intentions for more sustainability. But it has become a bureaucratic monster. Companies are currently spending billions on reporting and systems that could have gone to green investments. This is neither wise nor sustainable, says Kim Haggren.
DI warns that the development risks weakening the competitiveness of companies both in Denmark and in the rest of the EU.
- We see a danger that Europe will regulate itself out of the global race. We need better rules – not just more rules. If we want to preserve jobs and investments in Denmark, the burdens must go down, not up, says Kim Haggren to DIBusiness.dk
The path to relief
However, the report also shows that digitalization can be a path to relief. The national digitalization effort, including digital accounting, MitID and electronic invoicing, is estimated to save companies up to now billions of DKK annually if fully implemented.
- Here, Denmark is actually showing that it is possible to significantly ease burdens with modern digital solutions. We need to take that path much more purposefully – both at home and in the EU, says Kim Haggren.
DI now looks forward to Denmark, as the EU presidency in the second half of 2025, putting burden reduction and simplification high on the EU agenda.
- The Danish EU presidency is a golden opportunity to kick-start real regulatory simplification throughout Europe. We need fewer, smarter and simpler regulations that promote growth and green transition – not stifle it, says Kim Haggren to DIBusiness.dk.
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