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Better regulation in Lithuania

Better regulation in Lithuania. Ms Aurelija Ž ulkut ė Ministry of Economy of the Republic of Lithuania Internal Market Coordination Department. Status quo. Better regulation policy in Lithuania is very fragmented Impact Assessment Consultations Administrative burdens Other initiatives

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Better regulation in Lithuania

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  1. Better regulation in Lithuania Ms Aurelija Žulkutė Ministry of Economy of the Republic of Lithuania Internal Market Coordination Department

  2. Status quo • Better regulation policy in Lithuania is very fragmented • Impact Assessment • Consultations • Administrative burdens • Other initiatives • Responsible / coordinating institution not yet appointed • Explicit BR policy not yet defined • First attempt to evaluate BR – OECD report

  3. Findings of OECD report • Strengths • Planning process • Policy making and regulation drafting • Enactment process • Enforcement and compliance process • Weaknesses • Structure for implementing BR policy and explicit policy on regulatory management • Quality assurance process • BR tools: consultations, RIA, simplification

  4. Impact Assessment • Enforced from 2003 • Applicable by all new legislation approved by the Government • Guidelines introduced in 2004 • Basic assessment • Evaluation of status quo • Evaluation of alternatives • Accomplished by responsible institution • Expanded assessment • Based on detailed analysis • Evaluation of 8 areas • Accomplished by responsible institution / independent experts

  5. Consultations • Public consultations • General • Enforced from 1999 • Obligatory in some cases • Methods chose by responsible institutions • Specific: Tripartite Council of Lithuania • Enforced from 1995 • Deals with social, economic and labour issues by its choice

  6. Administrative Burden for Business (1) • The study: May 2005 – July 2006 • The content of the study : • Methodology of calculating Administrative burden • Test of the Methodology on some business sectors • Recommendations on simplification of business regulation • Feasibility study on establishment of institution, representing business interests

  7. Administrative Burden for Business (2) • Methodology • Based on Standard Cost Model • Tested in 2 sectors on business specific legislation: • Countryside tourism • Public catering (restaurants, canteens, cafes and etc.) • Adopted on 2nd of May, 2006, by order of Minister No 4-152

  8. Administrative Burden for Business (3) • Test Results of the Methodology • Countryside tourism • Total burden per year: 0.8 mill € or 215 € per operator • Public catering • Total burden per year: 6 mill € or 2082 € per operator

  9. Administrative Burden for Business (4) • Problems • No experience at national level • Limitations of questionnaires, presented to business • Poor business involvement in the process • No involvement of experts from the sectors • Unit responsible for administrative burden no yet appointed

  10. Future plans • Explicit national better regulation action plan, based on OECD recommendations, 4th quarter of 2006 • Reviewed and updated RIA methodology by integrating consultation mechanism, 1st quarter of 2007 • Proposal to appoint / establish institution responsible for coordination of BR policy, 2nd quarter 2007 • Simplification of business regulation in some areas program, 3rd quarterof 2007

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