CEA Supports the Adoption of the Action Plan for Administrative Unburdening of the Economy


Croatian Employers' Association welcomed the initiative of the Ministry of Economy, Business and Trade and the Government's decision on the adoption of the Action Plan for administrative unburdening of the economy. This way CEA supported planned speed of implementation of the plan, which the Ministry of Economy, Business and Trade plans to implement by the end of 2017. As a reminder, the CEA immensly contributed to the creation of the Action Plan for administrative relief of the economy, by participating in the application of the Standard Cost Model (SCM) methodology. Regulatory Impact Assessment shows the cost which the business sector has to endure by following administrative procedures (such as difficulty in opening businesses, acquiring sanitary licensing and compliance requirements for regulations on safety at work), which indicates the scope for increasing the savings of time and money by reducing these barriers.
Excessive bureaucracy and non-tax expenses that CEA systematically warns of are one of the major obstacles to strengthening the competitiveness of the Croatian economy, and thus the stronger economic growth.

"We are pleased that the Government began the new year with a concrete plan to further unburden the economy. Tax reform, as we said, is a good first step, but it is not sufficient for significant improvement in terms of business and investment climate. This Action Plan is another necessary step in the right direction and it is good that the Government is moving with it immediately. In addition to removing administrative barriers in the existing legal framework it is particularly important to introduce a system that will ensure that in future the new laws are not made without detailed analysis of their effects on the economy and viability in practice" said the director general of CEA, Davor Majetić.

Some examples of the possible administrative un-burdening are starting a business by electronic means, without the need for additional documents and seals. The digitalization of business and the Tax Administration. While maintaining the necessary standards, reducing the high demand and costs in the field of sanitary and health conditions and safety at work. The Ministry of Economy, Business and Trade has all these and many other changes planned to be introduced by the end of 2017.
The Action Plan also introduced a number of measures that attempted to liberalize access to the market of professional services (eg. In the areas of the legal profession, audit and driving).

Croatian Employers' Association of expects further reform measures from the Government that should be a combination of deeper, structural and simpler, faster feasible reforms in order to create conditions for stronger and long-term sustainable economic growth. CEA's tool for measuring progress in reforms (HUP Skor) year after year confirms stagnation and insufficient reform measures.
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