One-in, one-out principle

Since 2017, the Ministry of Economic Affairs and Employment has been applying the so-called one-in, one-out principle on a trial basis. According to the one-in, one-out 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. The scope of application also excludes taxes, fines and penalties, terms of contracts, 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.

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 in 2017 as concerns government proposals issued by the Ministry of Economic Affairs and Employment. Meanwhile, government proposals drafted in the Ministry of Economic Affairs and Employment in 2018 increased the burden by about EUR 500,000 per year. In 2019–2020, the burden fell by EUR 490,000.

The application of the one-in, one-out 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 was updated to a 2021 version on 15 January 2021. The updated version contains the most recent cost-of-living index.

Further information: erno.mahonen(at)tem.fi, satu.pentikainen(at)tem.fi