Government deregulation measures bring large savings to companies and make life easier for citizens
Government proposals submitted during 2024 will reduce the administrative burden on companies by approximately EUR 120 million a year. In addition, at least 133 norms harming businesses and citizens have been dismantled.
The Ministry of Economic Affairs and Employment published the first Government-wide report on the trends in regulatory burden and deregulation on 26 February 2025. The report examines the changes to regulation proposed during Parliament’s spring and autumn sessions of 2024.
Monitoring the regulatory burden is based on the Programme of Prime Minister Petteri Orpo’s Government, which aims to abolish 300 norms that hamper companies and citizens and to ensure that the administrative burden on companies will not increase during the government term.
“Ease of regulation plays an important role for our competitiveness. The Government aims to reduce excessive regulation and the administrative burden. This will promote business activities and improve the conditions for entrepreneurship,” says State Secretary Mika Nykänen.
State Secretary Nykänen chairs the steering group for deregulation and reduction of administrative burden. The work has been carried out in cooperation with other ministries, and initiatives have also been submitted by interest groups.
Administrative burden on companies to be reduced by EUR 120 million a year
Administrative burden refers to the costs incurred by companies from their statutory obligations to provide information, such as notifications and registrations.
At the beginning of the spring session 2024, the ‘One in, One out principle’ was introduced for the whole Government. The principle is meant to ensure that in case of new regulation, obligations will be eased elsewhere. The ministries have estimated the impact of government proposals on the administrative burden of companies in euros.
According to the report, the Government’s proposals submitted during 2024 will reduce the administrative burden on companies by approximately EUR 120 million a year. The government proposals to amend the Accounting Act, the Building Act and the Act on Co-operation within Undertakings have had the most prominent effects on the administrative burden.
At least 133 norms harming citizens and businesses have been dismantled
During its term, the Government aims to dismantle at least 300 norms that harm businesses and complicate the lives of citizens. In this context, norms refer to a wide range of regulations: laws, decrees, orders and instructions issued by authorities, and municipal regulations. In deregulation, it is essential to make changes to existing practices in order to streamline operations.
With at least 133 norms dismantled according to the report, the Government has reached almost half of its target so far. The legislative amendments increasing local collective bargaining and revising the Building Act have had the greatest impact.
The Government has also started other projects aimed at deregulation, such as the programme for deregulation and piloting in municipalities, the results of which will be reported separately.
Deregulation is also a goal in the EU
Another objective of Prime Minister Orpo’s Government is to reduce EU regulation that increases the administrative burden on companies. The report includes a survey carried out by the ministries on EU regulations that are burdensome for companies from Finland’s perspective. A total of 22 such regulations were identified, such as the Corporate Sustainability Reporting Directive and the Regulation on Deforestation-free products.
“Overall, the burden imposed by EU regulation has been much higher than that of national regulation in recent times. However, the new Commission plans reduce this burden considerably. Finland supports this goal,” Nykänen adds.
Inquiries:
Erno Mähönen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 083
Tiina Haanpää, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 063