One for One principle

Since 2017, the Ministry of Economic Affairs and Employment has been applying the so-called One for One principle on a trial basis. According to the One for One principle, direct increases in regulatory burdens imposed on businesses must be matched by equal reductions in regulatory burdens in another context.

Since the pilot project in 2017, the principle has been applied to national legislation or legislation exceeding the EU minimum regulation, but not to labour legislation drafted on a tripartite basis. The scope of application also excludes taxes, fines and penalties, emergency legislation resulting from exceptional circumstances or for the purpose of averting danger, the opening of markets to competition, the promotion of competition and the prevention of the abuse of monopoly power.

In 2017, approximately 30 government proposals were prepared in the Ministry of Economic Affairs and Employment, of which three had cost impacts relevant for the One for One calculation. An Excel calculator was developed during the pilot project for the assessment of impacts on enterprises and for conducting One for One calculations. As a result, the annual regulatory burden resulting from national legislation is estimated to have been reduced by approximately EUR 150,000. Meanwhile, government proposals drafted in the Ministry of Economic Affairs and Employment in 2018 increased the burden by about EUR 500,000 per year.

The application of the One for One principle makes the impacts of government bills on enterprises more transparent and creates a mechanism for ensuring that the regulatory burden on industries does not increase. However, the application of the principle requires resources and induction training. The background for the application of the principle and the results were discussed in more detail in a final report completed on 19 December 2017.

The calculator and the related manual were updated to a 2019 version on 8 February 2019.  The updated version contains the most recent salary and price inflation data.

Further information: erno.mahonen(at)tem.fi