Entrepreneurs are spending an enormous amount of time, money, and energy on regulations. Small entrepreneurs, for instance, spend valuable hours maintaining an overview of how they handle personal data in ordinary matters such as payroll and customer administration (GDPR). Additionally, small electrical appliances must be inspected annually, making it cheaper for hairdressers to throw away a working hairdryer and buy a new one than to pay for an expensive inspection. They would rather spend this time on entrepreneurship, building beautiful companies in the Netherlands, and earning money to continue funding our healthcare, education, and defense.
Minister Karremans: “The pace must and will increase. Entrepreneurs are already waiting too long for fewer regulations, with far too little result so far. Every hour and every euro that an entrepreneur spends on regulations is one that they cannot invest in their business. That must change. Therefore, I have received political commitment in the Cabinet for this new approach, which is less voluntary, with a strong objective for the entire Cabinet. This way, we will reduce the regulatory burden for entrepreneurs as quickly as possible. For example, consider simplifying the obligation to annually track the CO2 emissions of commuting and business travel of employees (the WPM), so that entrepreneurs spend less money and time on it.”
Business Climate Under Pressure
The business climate in the Netherlands deteriorates every year, partly due to increasing regulatory pressure. The costs for entrepreneurs to comply with regulations have increased by 731 million euros in recent years. We are no longer in the top 5 most competitive countries in the world but have dropped from fourth to tenth place. With the new approach to regulatory pressure, we aim to structurally improve the business climate in the Netherlands. The main new measures are:
- Addressing 500 Regulations
The Cabinet has decided to address 500 regulations by summer 2026, either by eliminating them or reducing their regulatory burden. The goal is ultimately a 20% reduction in regulatory costs by the end of 2026. Examples of regulations being addressed include the reporting obligation for work-related mobility (WPM), the General Data Protection Regulation (GDPR), regulations regarding the reintegration of sick employees, inquiries by the Central Bureau of Statistics (CBS), and the requirement for additional registration in the hospitality sector. - Taskforce for Reducing Regulatory Burden
A new task force consisting of entrepreneurs, representatives from the business community, and policymakers will work on eliminating and simplifying regulations. They will seek solutions to existing regulatory pressure problems. This includes smart use of data, agreements with sectors, exceptions for SMEs, and the principle of high trust, high penalty. The task force will also look at how the concerns behind regulations can be resolved differently. - Hackathon to Reduce Regulatory Burden
The next Entrepreneurs Summit will focus on reducing regulatory burden. During a hackathon, entrepreneurs and the government will work together on concrete solutions to tackle regulatory pressure. - Addressing Causes of Regulatory Burden
The Cabinet wants to intervene in the underlying dynamics that lead to regulatory pressure. Such as the assumption that new regulations are always the best solution to problems, the distrust towards entrepreneurs from the government, and the tendency to want to address every risk with regulations.
Minister Karremans: “We must get rid of the reflex that every problem requires a new regulation. Behind every regulation often lies a legitimate concern, but we should not close off that concern with a thicket of regulations that are not always effective. We need to move towards an approach that is based on trust in entrepreneurs, but at the same time acts more decisively when that trust is abused. With this new approach, we are doing what is necessary for a strong Dutch business climate, now and in the future.”
Independent Advice on Investment Climate and Earning Capacity
In addition to addressing regulatory pressure, the Cabinet also wants to strengthen the investment climate and future earning capacity of the Netherlands in other ways. Therefore, Peter Wennink has been asked to prepare independent advice by the end of the year. He will translate the main recommendations from the European Draghi report on the future of European competitiveness into the Dutch context.