Most companies in the EU cite overregulation as a barrier to investment and consider it the biggest challenge, particularly for competitiveness, according to research referenced in Mario Draghi’s report. For several months, deregulation has been a widely discussed topic both at the EU level and in Poland, with the first concrete proposals for simplifications already emerging.
“There is hardly any doubt that excessive bureaucracy has accumulated, creating an entire administrative accounting system, especially around funds from the EU budget. This concern is voiced not only by entrepreneurs but also by farmers and local government officials—practically everyone who relies on these funds. Bureaucracy is one of the biggest barriers to economic growth. Deregulation of unnecessary provisions and all kinds of absurdities is needed,” says Krzysztof Hetman, a Member of the European Parliament from the Polish People’s Party and former Minister of Development and Technology, in an interview with Newseria.
In his report, Mario Draghi identified the removal of regulatory burdens and the simplification of EU law as key priorities in the fight for competitiveness. According to research by the European Investment Bank cited in the publication, over 60% of EU enterprises consider regulations a barrier to investment, while 55% of SMEs identify regulatory obstacles and administrative burdens as their greatest challenge.
A January report by BusinessEurope, which represents business organizations from various countries, indicates that most of its members believe administrative burdens for companies have increased over the past year due to legislative changes at the EU level. According to BusinessEurope representatives, 86% of companies in the EU employ staff solely for regulatory compliance, incurring costs of about 1.8% of turnover (rising to 2.5% for SMEs). By comparison, energy expenditures for businesses after the energy crisis account for approximately 4% of their turnover.
“We have overregulated the entire system, and unfortunately, we must first review it to determine what can be changed and which regulations can be repealed. Secondly, we should introduce a strict rule that if one regulation is introduced, another should be withdrawn—preferably two—to prevent drowning in regulations,” argues Krzysztof Hetman.
In the recently announced EU Competitiveness Action Plan (the so-called Competitiveness Compass), the European Commission outlined its strategy for improving efficiency and competitiveness in the EU economy, based on Draghi’s recommendations. To stimulate competitiveness and economic growth, a favorable business environment is essential. In its 2025 work program, the European Commission announced plans to eliminate regulations that are unnecessary, disproportionate, or redundant. By the end of its term in 2029, the Commission aims to reduce administrative burdens by 25%, and for SMEs, by 35%. The first deregulation package, proposed in late February, includes simplifications related to reporting and ESG obligations, the Carbon Border Adjustment Mechanism (CBAM), and EU investment programs. The Commission estimates that this could save approximately €6.3 billion in annual administrative costs and attract an additional €50 billion in public and private investment capacity.
“If we push for change, advocate, and do the necessary work in the European Parliament, deregulation at the European level is achievable with the help of the European Commission. This applies not only to business activities but also to agriculture, as the regulatory burden is similarly excessive in both sectors,” says Hetman.
Deregulation efforts are also accelerating in Poland. It is being handled by the Plenipotentiary for Deregulation and Economic Dialogue at the Ministry of Development and Technology, Dr. Mariusz Filipek, who was appointed in January 2024 by Krzysztof Hetman, along with a team of business representatives. Their first deregulation package was adopted by the Council of Ministers on March 11. The new regulations propose over 40 changes affecting various aspects of business operations at different stages, including new company inspection rules, reducing their duration from 12 to six days, streamlining administrative dialogue with businesses, and transparent business law principles, such as the “one in, one out” rule, which mandates that when introducing a new regulation, lawmakers should strive to eliminate an existing one. Most of the changes are set to take effect on May 1.
In February, Prime Minister Donald Tusk proposed that entrepreneurs themselves draft a set of deregulation proposals for the Polish economy. The team, led by InPost CEO Rafał Brzoska, has already published initial legal change proposals with justifications.
“I have no doubt that deregulation is possible and will succeed. A new parliamentary committee for deregulation is to be established at the request of the Polish People’s Party parliamentary group. We now have everything necessary to simplify and make business law more flexible,” says Krzysztof Hetman.
According to Grant Thornton’s “Legal Barometer” report, 34,400 pages of new legislation were passed in Poland in 2023, introducing 1,604 modifications to business regulations, while the vacatio legis for tax laws was a record-short 31 days. Experts from the Business Centre Club point out that the lack of legislative stability has particularly impacted small and medium-sized enterprises, which often lack the resources to quickly adapt their processes to new regulations.
