Prime Minister Donald Tusk announced that on Thursday he would present the first package of solutions to translate into the deregulation of the Polish economy. A special team for deregulation and economic dialogue is working on government proposals for facilitating business people. The social side is represented by a team chaired by the creator of the first president of InPost Rafał Brzoski. By June 1, they are to submit a total of 400 deregulation proposals, of which the majority will apply directly to business.
They will include, among others: tax facilities, reduction of bureaucracy, digitization administrative processes, changes in employing foreigners or adaptation to EU regulations.
Companies want such deregulation
The government Think Tank Polski Economic Institute (PI) decided to check the expectations of entrepreneurs regarding deregulation and what effects can be removed by the removal of bureaucratic barriers. At the beginning of April this year, the Institute conducted a survey among 500 companies. They were asked what areas of business activity in their opinion would influence the change proposed by Prime Minister Donald Tusk in cooperation with Rafał Brzoska.
Business Insider Polska has learned the results of the State Think Tank.
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Business expects such deregulation effects
First of all, entrepreneurs expect that Deregulation will strongly reduce the costs of conducting business activity (52 percent).
“To meet current administrative requirements, companies often have to incur additional costs related to the employment of accounting specialists or the purchase of software,” say PIE experts.
This nuisance especially affects microfirms with less capital, which is why they are much more often (58 percent) than large enterprises (40 percent) expect positive effects on this side.
Nearly half (48 percent) of surveyed companies expect that less bureaucratic burdens will translate into shortening the waiting time for administrative decisions.
“In a dynamic business environment, quick decision making is a competitive advantage, and complex procedures are its brake” – emphasize PI analysts.
According to about 40 percent Entrepreneurs deregulations will positively translate into the competitiveness of companies and improve the investment conditions.
This is confirmed by research, among others World bank, which shows that Countries with a lower level of formal business barriers reach a higher level of market efficiency and innovationespecially in the small and medium -sized enterprise sector.
Deregulation also affects access to external financing. 39 percent enterprises, especially from the construction industry (41 percent) and service (48 percent), expect that simplification of procedures will facilitate the acquisition of loans, subsidies or investment funds.
“The European Investment Bank indicates that excessive administrative complexity limits companies – especially micro -and small – to effectively apply for external funds,” PIO analysts.
Ok 40 percent Entrepreneurs expects less burden to help them adapt to a rapidly changing economic situation.
“In conditions of uncertainty – indicated as a barrier by over 60 % of companies – operational efficiency and flexibility are crucial” – emphasize the experts of the government's Think Tank.
The economy will benefit from deregulation
In the commentary on the results of research, Pie experts point out that scientific analyzes show that deregulation reforms may also bring macroeconomic benefits. According to OECD, improving regulatory efficiency and Simplification of the administrative environment can increase private investment and increase the economic growth rate by up to 0.5-1 percent point. annually.
“It is worth remembering, however, that not every regulation is an obstacle. Transparent and proportional regulations perform an important function – they protect the market, ensure consumer security and strengthen trust in business relations. The problem is only excess, vague or excessive detail of regulations – they create real barriers to the development of companies” – they believe PIE analysts.
Author: Bartek Godusławski, journalist Business Insider Polska
