In the beginning of 2009 a research study of the "Possibilities for Simplification of Information Obligations" that create administrative burdens for businesses in the context of Better Regulation was finalized in the Republic of Lithuania. The research study was performed by the Professional Law Partnership Jurevicius, Balciunas & Bartkus following an order from the Ministry of Economy. The basis for the research study in Lithuania (it also applies to research on the other European Union member states) was an Action Programme to reduce administrative burdens in the European Union established by the European Commission. As the European Council announced in March 2007, the target is to reduce administrative burdens by 25 percent by the year 2012.
The purpose of the research study prepared in Lithuania was to identify and determine the information obligations that create administrative burdens for businesses. In the research the information obligations compulsory to private businesses 's i.e. legal persons, branches and representative offices 's as well as natural persons performing individual activity were analyzed. The definition of "business" has not been applied widely and the information obligations imposed on semi-private businesses, like charity and support funds, as well as businesses acting in the voluntary sector and public or partly public owned businesses were not examined in the research study.
Summarizing the results of the research study an impressive figure was noticed: 2,078 information obligations applicable to private businesses were determined. More than half of all information obligations are of national origin (i.e. established under Lithuanian laws). Based on statistical data with regard to the number of private businesses, the employees thereof and the Gross Added Value generated in respective area of economic activity, the preliminary list of the priority areas where the administrative burdens could be reduced effectually is provided. The priority areas distinguished are as follows: Transport, Transactions with Real Property, Construction, Labor law, Tax law, Statistics, and Environment protection law.*
Taking into account the results of the research study the competent Lithuanian authorities shall identify and provide for the final list of the priority areas subject to the reduction of administrative burdens. The results shall be used for the measuring of the administrative burdens (costs).
Currently, the expected target is to reduce the administrative burdens imposed on businesses in Lithuania by up to 30 percent as established in the economic stimulation plan approved by the Lithuanian government. The government resolution on composing a commission for improving the business environment is being drafted as well. One of the main aims of the commission shall be the analysis of particular proposals gathered from businesses on simplifying legislation and reducing administrative burdens. Moreover, certain initiatives for simplification are being undertaken while implementing the Services Directive. Ad hoc measures are being taken by different ministries as well.
The reduction of administrative burdens is one of the measures for improved better regulation that is crucial while seeking the growth and improvement of the competitiveness of businesses. The particular measures would serve for saving time while the administrative burden is reduced with respect to the annulment of excessively complicated or useless information obligations. However, the impact of the completed research study and the reduction of administrative burden could be evaluated only in the long term perspective, since the saved costs that were spent on the execution of the respective information obligations will enable businesses to allow additional investment and innovation, and will improve productivity and overall competitiveness.
*For more details please see the whole text of the research study in Lithuanian language:
http://www.ukmin.lt/lt/strategija/studijos.php.
Lina Jusiute is an associate advocate at Jurevicius, Balciunas & Bartkus, a member of Baltic Legal Solutions, a pan-Baltic integrated legal network of law firms including Glikman & Partnerid in Estonia and Kronbergs & Cukste in Latvia, dedicated to providing a quality "one-stop shop" approach to clients' needs in the Baltics.
