Symposium on Good GovernanceParliamentary Exchange & Dialogue Participation, Accountability, Transparency and Effectiveness in Good Governance on the example of the work of the Nationaler Normen kontrollr at Wolf-Michael Catenhusen Vice Chair of the Nationaler Normen kontrollr at Berlin,

1. Symposium on Good Governance
Parliamentary Exchange & Dialogue
Participation, Accountability, Transparency
and Effectiveness in Good Governance on
the example of the work of the Nationaler
Normenkontrollrat
Wolf-Michael Catenhusen
Vice Chair of the Nationaler Normenkontrollrat
Berlin, 29 April 2013
Quality
through
Transparency

2. Task and Composition of NKR
Established by a formal federal
law (August 2006)
Independent advisory body
Appointment of 10 members for
a term of office of 5 years
Start of second term:
20 September 2011
NKR Task
Model: The Netherlands Support and Advice
to the Federal
Government in the
reduction of
bureaucracy and
better regulation
I.
Avoid the creation
of new
administrative
burdens
II.
Perceivable
reduction of
existing
administrative
burdens

3. Structure of the NKR:
10 honorary Members
Chairman: Dr. Johannes Ludewig
Deputy Chairman: Wolf-Michael Catenhusen
Secretariat
Head: Dr. Dominik Böllhoff
11 staff members (9 legal advisors, 2 assistants)

4. Bureaucracy reduction and better regulation in Germany –
relevant developments since 2005
2005 2006 2007 2008 2009 2010 2011 2012
SCM
• First SCM studies in Germany on
Länder level
• Involvement NKR in Ex ante-
procedures (information obligations)
• SCM baseline measurement
• Reduction target 25%
Ex post -
projects
• Cross-level ex post projects (e.g.
BAföG, Optimising entry procedures)
• Revision of NKRG, examination of
compliance costs
Compliance
costs
• Development of a systematic ex post
evaluation procedure
Evaluation
Benefits
• Intensified discussion on assessment
of benefits
1.
2.
3.
4.
5.
6.
7.

5. Bureaucracy Reduction 2006-2011 – Reduction target regarding the business
sector
- 5,99 Mrd. €
(12,3%)
- 10,88 Mrd. €
(22,1%)
- 10,73 Mrd. €
(21,7%)
- Basis Standard Cost Model
- Baseline Measurement: Identification
of about 9.500 information
obligations
- Result: 50 billion €
- Target: (net) reduction of 25% by
December 2011
- Success so far: 22% (11 billion €)
- Index of bureaucracy costs: further
pursuit of net target

6. Revision of the NKR Act – more transparency:
Taking compliance costs (cc) into account
Costs deriving from
substantive
obligations, e.g.
installation of a
partical filter
Costs deriving from information
obligations, e.g. documentation of the
installation of the filter
What is part of cc?
Cabinet decision of 27 January 2010:
“… the government‘s programme of 25 April 2006
is to be further developed and expanded to take
into account the total compliance cost federal
legislation places on citizens, businesses and
public authorities.“
Since then:
1. Expansion of the ex-ante-procedure to include
compliance costs
2. Enforcement of the mandate of the NKR
3. No baseline measurement but reduction of the
costs in eight priority areas via multi-level-
projects across different fields of law, e.g.
planning and building law for infrastructure
projects, tax declarations, …

7. Proclamation
Intention of the Ministry to Regulate or
to Change an Existing Law
Enforcement/
Existing Law
Draft Text of the Law
Transmission to Parliament
(Bundesrat and Bundestag)
Adoption by
Parliament
Cabinet Decision
Deliberations in
Parliament
Interministerial
Coordination,
Involvement of the
Länder,
Consultation of
Stakeholder
NKR-Opinion
NKR assesses the calculations done by
the ministries in every new proposal as
part of the impact assessment (cover
sheet and explanatory memorandum)
Description of the impact
assessment (including
compliance costs) in the
cover sheet and the
explanatory memorandum
of the draft bill
Drafting of the New
Bill
Ex-ante procedure

8. Avoid unnecessary burden through cost transparency
Objective of the law
- More transparency regarding pricing at gas stations in order to effectively
combat antitrust offences
NKR – Examination compliance costs and alternatives
- No cost estimate in the draft law
- In its opinion NKR requested subsequent quantification
Cost estimate – better basis for decisions
- Compliance costs petrol stations: 85 million €
- Cost driver: requested data on the quantity of sold fuel (85%)
BT-Committee + Consultation – Reduction of the costs
- Waiving of the data on quantity of sold fuel
- Thus: Unnecessary costs were avoided (70 million €)
Example Law to Establish a Market Transparency Office

9. Burden reduction – Opportunities for lower costs
Simplification of Electronic
Invoicing
Appreciable relief by…
• Abolition of the demand to have electronic invoices
signed with a qualified electronic signature
• Total relief for more than 500.000 businesses: 4 bn. €
Exemption of micro-
enterprises from
accounting
obligations
• Relief: 36 mio. € for 500.000 micro-enterprises
Reduction in retention
periods
• Reduction potential: 2,5 bn. €
• Step-by-step reduction in retention periods under
commercial and tax law from 10 to 7 years
• Bundesrat has not yet approved legislative proposal

10. NKR examined a total of 278 regulatory initiatives since 1
July 2012*
* As of 26 April 2013
(13%)
 Regulatory initiatives imposing a burden = 122 (44 %)
 Regulatory initiatives involving a relief = 31 (11 %)
 Regulatory initiatives with no or just minor impact = 125
(45 %)
 On average the NKR examines 330 regulatory initiatives per
year.

11. Effective burden reduction requires a holistic approach
Transparency on follow-up costs
- since 2011 presentation of all
compliance costs of businesses,
citizens and public authorities
Independent scrutiny by the NKR
Involvement Länder und
municipalities
Index of bureaucracy costs
- Reduction target 25%
- Keep the costs low in a
sustainable manner
Systematic ex post
evaluation
Systematic inclusion of
EU regulation

12. Future Challenges
Admin Burden
– Control that admin burdens stay low (index of
bureaucracy costs)
– Internationally accepted methodology (OECD
guidance)
Comp. Costs
– Systematic ex post - evaluation
Control
of Comp. Costs
– Ensure that legislation in Brussels is drafted in the least
burdensome way (National interventions and strengthening the
European IA system)
EU
Benefits – Discussion on if and how benefits should be
assessed in regulatory initiatives

13. 13
Contact
Nationaler Normenkontrollrat
Willy-Brandt-Straße 1
10 557 Berlin
Internet: http://www.normenkontrollrat.bund.de
E-Mail: nkr@bk.bund.de