Measuring and reducing administrative costs for businesses in Romania

Businesses face growing challenges as the economic environment is increasingly dynamic, volatile and unpredictable. In this context, exploiting available resources with maximum effectiveness and efficiency and keeping a healthy cost - revenue balance is on the agenda of most business owners. Berenschot supports this process by helping the Romanian Government research the hidden costs that stem from complying with the legislation and that place pressure on businesses. It is a fundamental step for reaching the goal of a 25% reduction of administrative burdens on businesses.

Project and expected results

Using the Standard Cost Model, Berenschot - together with its Romanian partners - is conducting the first ex-post baseline measurement of administrative burdens stemming from legislation in fields regulated by the Ministry of Finance, the Ministry of Transport and Infrastructure and the Ministry of Agriculture and Rural Development. The aim of the project is twofold:

  • it creates a clear evaluation of the costs that businesses incur when having to comply with the information obligations required by the legislation.
  • ˜it creates a measurement and monitoring mechanism, supported by software tools, that will act as an objective support instrument for the reduction of administrative burdens and simplification of legislative obligations in the future. This insures the project's sustainability by creating a system that can easily be updated.

In addition to creating the systems, and performing the national measurement, Berenschot organised for the purpose of knowledge transfer, for the relevant Romanian Government officials study visits in leading countries in reducing regulatory burdens: the Netherlands and Denmark.

Expertise

  • ˜Berenschot has been providing technical assistance to the Romanian public sector since 2007 and has ever since developed valuable knowledge and experience in this sector in Romania.
  • ˜Berenschot provides several experts in administrative burden reduction and simplification, including dr. André Nijsen, who is one of the designers of the Standard Cost Model. The Standard Cost Model, pioneered by the Netherlands is identified by the World Bank and the European Commission as a best practice method for measuring administrative burdens.
  • ˜Additionally, Berenschot provides a team of Dutch and Romanian experts in the (policy) fields of transport and infrastructure, IT and international project management.
  • ˜Further, our Romanian partners - GEA Strategy and Consulting and BDG Business Development Group - complement the team with experts with a top track record, knowledge and experience within the Romanian public and private sectors as well as with European Union funded projects.

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