The Crisis As a Wake-Up Call: Modernise Public Services, Build on the Momentum for Digital Change, Make Legislation Easy to Enforce
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The Crisis as a Wake-Up Call: Modernise Public Services, Build on the Momentum for Digital Change, Make Legislation Easy to Enforce. ANNUAL REPORT 2020 of the National Regulatory Control Council Annual Report 2020 of the National Regulatory Control Council pursuant to Section 6 (2) of the National Regulatory Control Council Establishment Act (NKRG) Oktober 2020 Key Figures at a Glance Development of Annual Compliance Costs, reporting period 2019/20 1,000 1,000 in million Euros Public Administration 589.8 million Euros 500 500 0 0 Third Bureaucracy Relief Act Businesses -641.9 million Euros -500 -500 Citizens -776.4 million Euros -1,000 -1,000 All areas -828.4 million Euros -1,500 -1,500 -2,000 -2,000 Oktober 2019 Januar 2020 April 2020 Fig. 1: Development of annual compliance costs in the 2019/2020 reporting period Compliance cost monitor 2011 - 2020 Reporting Period 8.0 8.0 in billion Euros First Insurance 7.0 7.0 Bureaucracy Distribution All Areas Rent Protection Act Relief Act Directive 6.0 5.7 billion Euros 6.0 E-Procurement 5.0 5.0 Businesses Minimum Wage Act Second Bureaucracy Relief Act 4.2 billion Euros 4.0 4.0 German Regulation on the Award of Public Third Bureaucracy 3.0 Supply & Service Contracts below EU Thresholds 3.0 Upstream Emissions Relief Act Public Administration Energy Savings Reduction Regulation 2.1 billion Euros 2.0 2.0 Ordinance 1.0 Illegal Labour Act 1.0 0 Citizens 0 Statutory Health Insurance -0.6 billion Euros -1.0 Burden Relief Act -1.0 July 2011 July 2012 July 2013 July 2014 July 2015 July 2016 July 2017 July 2018 July 2019 Fig. 2: Compliance cost monitor (as of 1 July 2020) Citizens — Top 5 burdens Citizens — Top 5 burden relief -72 million Euros (8%) Harmonisation Act for Energy-Savings other legislative Legislation for Buildings (BMWi) -589 Third Bureaucracy Relief Act (BMWi) 28 initiatives other 102 measures Fourth Amendment Act of the German th 19 mill. Euros -112 7 SGB IV Amendment Act (BMAS) Skilled Crafts and Trade Code (BMWi) 23 (19%) 77 80 million Euros Passports and Identity Cards Security -803 mill. Euros -55 (81%) Basic Pension Act (BMAS) 10 Improvement Act (BMI) (92%) Top 5 measures containing 69 Ordinance Amending the Chimney Top 5 measures containing the largest annual burdens -25 Adoption Assistance Act (BMFSFJ) 10 and Inspection Ordinance (BMWi) the larguest annual relief for citizens for Citizens Ordinance for Extending Second Amendment Act of the Federal rounded values, rounded values, -21 10 Registration Act, other Regulations (BMI) Simplied Benet Access (BMAS) in million Euros in million Euros 0 10 20 30 -600 -500 -400 -300 -200 -100 0 Businesses — Top 5 burdens Businesses — Top 5 burden relief Animal Welfare Labelling Act (BMEL) 169 -1,168 Third Bureaucracy Relief Act (BMWi) -27 million Euros (2%) from other measures other measures Patient Data Protection Act (BMG) 118 -139 7 th SGB IV Amendment Act (BMAS) 245 mill. Euros 496 mill. Euros Amendment Ordinance to Housing Property (33%) (67%) -19 the Fertiliser Ordinance (BMEL) 84 Modernisation Act (BMJV) -1,356 mill. Euros Top 5 measures (98%) containing the largest 18th Amendment Ordinance of the Law For Transferring Oversight Over Top 5 measures containing annual burden for -17 Medicinal Prescription Ordinance (BMG) 65 Financial Investment Brokers (BMF) the largest annual relief businesses for businesses 2nd Amendment of the Financial rounded values, First Ordinance Amending the Professional 61 rounded values, -13 Investment Intermediary Regulation in million Euros in million Euros Truck Driver Qualication Ordinance (BMVI) (BMWi) 0 50 100 150 200 -1,200 -1,000 -800 -600 -400 -200 0 Public Sector — Top 5 burdens Public Sector — Top 5 burden relief Basic Pension Act (BMAS) 207 -92 Annual Taxation Act 2019 (BMF) -14 mill. Euros (7%) from other other th Third Bureaucracy Reduction Act (BMWi) 146 measures measures -55 7 SGB IV Amendment Act (BMAS) Implementation Act of the EU Waste -196 mill. Euros 256 mill. Euros 544 mill. Euros Law for the further reduction of Residual -25 Disposal Framework Directive (BMU) 65 (93%) (32%) (68%) debt discharge proceedings (BMJV) Top 5 measures containing Posted Workers Top 5 containing the 64 the largest annual relief -19 Relatives Liabilities Relief Act (BMAS) Implementation Act (BMAS) largest annual burdens on for the public sector the public sector First Wind Energy-on-Sea- rounded values, Digital Access to Family Benet 61 rounded values, -5 Amendment Act (BMWi) in million Euros in million Euros Act (BMI) 0 50 100 150 200 -100 -80 -60 -40 -20 0 'One in, one out'-Monitor Fig. 3: 'One in, one out'-Monitor 2015 - 2020 (as of 1 July 2020) 6 NATIONAL REGULATORY CONTROL COUNCIL ANNUAL REPORT 2020 Contents Key Messages 8 Foreword 10 1 Legislation and Administrative Practices During the COVID-19 Pandemic 13 1 1 Crisis Legislation and Crisis Management in a Multilevel System (February to June 2020) 13 1.1.1 Measures to Contain the Pandemic and Its Economic Consequences Scrutinised by the NKR. 13 1.1.2 Immediate Assistance and Interim Aid Procedures of the Federal Government and the Federal States . 18 1.1.3 (Temporary) Bureaucracy Reduction . 20 1 2 The COVID-19 Pandemic – a New Stress Test: Draw Lessons for Future Crises 21 1.2.1 Modernise the Reporting Channels Between Authorities . 22 1.2.2 Crisis Management in a Federal System . 23 1.2.3 Ensure That the Public Administration Can Do Its Job . 24 1 3 Sustainable Modernisation Requires a Sparring Partner: “Modern Administration” Initiative 26 2. Better Regulation and Bureaucracy Reduction 29 2 1 Status of Digital Transformation in Government and Public Administration 29 2.1.1 Mid-Term Review of the Online Access Act . 29 2.1.2 Reduce Complexity and Standardise in a Competition-Friendly Manner. 32 2.1.3 Digital Certification Inspection: Make Legislation Easier to Enforce and More Digital-Friendly . 36 2 2 Contents First, Legal Paragraphs Second: Effectiveness and Practicality of Legislation 38 2 3 Better Regulation and Bureaucracy Reduction Initiatives at the Federal Level 42 2.3.1 Further Development of the Evaluation Concept of the Federal Government. 42 2.3.2 Federal Government Decisions on the Improvement of Cost-Benefit Transparency and Cost Containment . 46 2.3.3 Improved Involvement, Better Regulation: SME Test and Practicability Tests. 48 2.3.4 Federal Government and Federal States Develop New Package of Measures . 51 2.3.5 Burden Relief Proposals of the NKR: Economic Stimulus Package at Zero Cost. 52 2 4 Better Regulation at EU Level and International Cooperation 56 2.4.1 Cooperation of Independent Councils in the RegWatchEuropeNetwork: NKR Chairmanship . 56 2.4.2 Planned Introduction of ‘One-In, One-Out’-Rule at EU Level . 57 2.4.3 Additional Better Regulation Measures by the EU Commission . 58 2.4.4 Cooperation With the Council of the European Union and the European Parliament . 59 Contents 7 3. Impacts of New Legislation 61 3 1 Quality of Impact Assessments for Legislative Initiatives of the Federal Government 61 3.1.1 Scrutiny Findings in Opinions of the National Regulatory Control Council . 61 3.1.2 Deadlines and Procedures. 66 3 2 Development of Compliance and Bureaucracy Costs 69 3.2.1 Transparency in Compliance Costs . 69 3.2.2 Compliance Costs to Citizens . 72 3.2.3 Compliance Costs to Businesses and Impact of the ‘One-In, One-Out’-Rule . 74 3.2.4 Compliance Costs to Public Authorities . 83 3 3 Ex-ante Scrutiny of Compliance Costs from EU Legislation 87 4. Annex 89 4 1 NKR Proposals for Burden Relief in Light of the COVID-19 Pandemic 89 4 2 NKR Expert Report 2019 “Content First, Legal Text Second”: Implementation Recommendations 91 4 3 List of NKR Expert Reports and Joint Publications 93 4 4 Evaluation of Regulatory Initiatives 2020-2021 94 4 5 Key NKR Diary Dates in 2019/20 96 4 6 Overview of NKR Rapporteurs 100 4 7 Overview over NKR-Members from Previous Terms of Office 101 4 8 Abbreviations and Acronyms 103 4 9 List of Illustrations 105 8 NATIONAL REGULATORY CONTROL COUNCIL ANNUAL REPORT 2020 Key Messages 1. The State Must Be Able to Act in a Crisis – Reducing Business Burden Is Now More Important Than Ever Aid programmes for crisis management were launched at a record pace The Federal Government has made it possible for public participations, mandatory presence, general meetings or similar events to become more flexible That should become the rule from now on Further relief from bureaucracy is required and possible (see NKR proposals) - also to ensure that economic rebound investments do not kick in after the crisis 2. There Is a Dearth of Digital Public Services – an Obstacle to Crisis Management The COVID-19 pandemic shows the dramatic backlog in the modernisation of the public administration across all levels of government Whether it's fax-based reporting by public health offices, the lack in digital company accounts or the impossibility to electronically match registries - all of this could have been avoided In short: Only the systematic implementation of digital public services enables efficient crisis management! 3. We Must Learn From the Crisis – Modernisation of the Administration Must Finally Be Taken Seriously First it was the refugee crisis, now it is the corona pandemic which subjects the administration to another stress test The performance of public services must be systematically verified - rather than run the risk of being caught unawares by crises An independent expert panel may be a source of creative ideas and a driving force in this process It can support policy of the Federal Government and the Federal States - and call for unpopular but necessary decisions 4.