REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR PROJECTS IN

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR � PROJECTS IN THE FIELD OF BETTER REGULATION AND REDUCING ADMINISTRATIVE BURDENS Ministry of Interior, 10. September 2013 1

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR GOVERNEMENT’S STRATEGIC GOAL SIMPLIFICATION OF BUSINESS ENVIRONMENT / LEGAL FRAME FOR BOOSTING THE ECONOMY AND CITIZENS’ CONTENMENT 2

WORKING PROGRAMME / PROJECTS / ACTIVITIES REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR 3

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR From EASE OF DOING BUSINESS IN RS - 2007 In 61. place among 178 countries 61. to 37. place EASE OF DOING BUSINESS IN RS - 2012 Improvement 24 places! In 37. place among 178 countries Slovenia is in top 3 of EU MS concerning the progress in simplifying the business environment. 4 Source: Doing Business 2013 –Analysis

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR EASE OF DOING BUSINESS IN RS Slovenia’s rankings over the years (doing Business analysis) 2007 2008 2009 2010* 2011 2012 2013 Ease of Doing Business 61 55↑ 54↑ 53↑ 42↑ 37 35 Starting up the business 98 120↓ 41↑ 26↑ 25↑ 28↓ 28 30↓ Dealing with construction permits 63 62↑ 69↓ 59↑ 63 61↓ 61 Employment 146 166↓ 158↑ 162↓ / / Registering property 97 99↓ 104↓ 108↓ 109↓ 97↑ 79↑ 83↓ 48 68↓ 84↓ 87↓ 109↓ 116↓ 97↑ 104↓ Protecting investors 46 19↑ 18↑ 20↓ 20 20 24↓ 17↑ Paying taxes 84 63↑ 78↓ 84↓ 81↓ 80↑ 80↓ 63↑ Trading across borders 108 69↑ 78↓ 84↓ 86↓ 56↑ 54↑ 57↓ Enforcing contracts 84 79↑ 79 60↑ 60 57 56↑ Resolving insolvency 35 34↑ 38↓ 40↓ 38↑ 39↓ 42↓ Getting credit SOURCE: Doing Business 2013 - Analysis of 178 countries 5

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR The benefits of good legislation Better (or Smart) regulation aims for the following effects: - Increasing the competitiveness of business / economy - Accelerating the market’s openness - Improving living standard - Increasing transparency In practice: - Decreasing of costs for businesses - Boosting (encouraging) business sector - Effective legislation - Better legislation = better meeting obligation Pursuing better regulation is one of the priorities also on the EU level. 6

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR BETTER REGULATION POLICY – implementing acts 2009 • Resolution (of the Government and National Assembly) on Legislative Regulation 2010 • Amendments to the Rules of Procedure of the Government • Amendments to the Guidelines of the Secretary General of the Government • Handbook for Conducting Impact Assessment • IT support for regulation processes and “e-Democracy “ sub-portal 7

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Implementation of the proposed documents(1) • All four documents (resolution, rules of procedure, instructions, manuals), and already published Handbook for the planning, management and evaluation of public participation processes represent a set of principles for the implementation of better regulation. • This means that we have integrated the principles of the regular rulemaking process, which means that we shall carry out assessment of the effects of all acts and in their preparation cooperate with the public (except for the acts to be adopted by urgent procedure, and even the assessment will be carried out (ex post)) • The proposed policy that is implemented through the presented documents requires the review of the line ministries. Quantitative monitoring should be implemented through the GS of the Government, qualitative through the line ministries for their domain in the context of inter-ministerial coordination. This provides the widest possible "monitoring system".

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR CONDUCTING REGULATORY IMPACT ASSESSMENT - RIA KEY ISSUES: • It is to be done by the ministries • Process is a part of “normal” legislative procedure • RIA is used for all regulative acts (taking into account the principle of proportionality); exemptions are “emergency cases” – compulsory revision after max 2 years • Supervision is conducted in the process of interministerial consultation 9

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR RIA – CURRENT ACTIVITIES • Systematic preparation and implementation of better regulation tools and methodologies ü pilot projects – impact assessments on the economy (including SME test) – prevention of unnecessary burdens ü introducing ex-post assessments (evaluations) of stock legislation in order to ensure tangible effects (example: checking the effectiveness of amended legislation in the field of occupational health and safety) 10

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR SME Tests • Member States have been asked to ensure policy enactment while minimizing costs and burdens for businesses through a comprehensive program for reducing administrative burdens, and to specifically assess the future regulatory impact on the economy ("SME test"). "SME test" should constitute an integral part of a comprehensive assessment of the impact of regulations, which will include economy, society and environment issues. • We conducted several pilot SMEs tests on various laws (amendments of the Small Business Act, amendments to the Law on the Promotion of Tourism Development Act, Tax Registers Act, the Financial Operations, Insolvency Proceedings and Compulsory Dissolution Act). • SMEs test was presented at the Strategic Council, which approved continuation of activities. • At the Ministry we have upgraded the tests this year with the application that is easy to use.

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR • The aim of the test is to present SMEs with clear and concrete effects that it will have on adoption of specific regulation on the economy, especially in SMEs. This will be the framework for the systematic introduction of tools for adoption of high-quality and effective rules.

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR PUBLIC CONSULTATION – specific provisions • Proposals and opinions addressed to the government by expert and general public are to be deliberated by relevant ministries and when possible included when amending or recasting. • Drafter invites interested public with a general invitation and attached draft to participate in the process. Drafter may address expert public with an invitation specifying open issues. • Public consultation period takes 30 – 60 days and is decided by the drafter. • Drafter is obligated to answer in written on reasons for not implementing specific solutions in 15 days from enacting or forwarding the draft to further procedure. 13

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR PUBLIC CONSULTATION - priority - COMPULSORY PUBLICATION OF DRAFT LEAGISLATION ON e-DEMOCRACY PORTAL http: //e-uprava. gov. si/e- uprava/edemokracija. euprava AND - INVITING THE PUBLIC and relevant stakeholders in the preparation process (as early as possible) 14

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR OTHER PROJECTS AND ACTIVITIES of BRP • REDUCING RED TAPE AND MINUS 25% PROJECT (360 MIO € SAVINGS FOR THE ECONOMY) • ENTRANCE CONDITIONS (PROFESSIONAL AND ACTIVITIES REGULATION) AND “PSC” PROJECT • PROPER IMPLEMENTATION OF MEASURES AND REGULATIONS • EVALUATION OF MEASURES AND REGULATIONS • BETTER SERVICES 15

AREAS FOR IMPROVING THE BUSINESS / LEGISLATIVE REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR ENVIRONMENT FOR THE DEVELOPMENT OF THE ECONOMY • • Preparation of a Single document to raise the competitiveness and ensure better business environment Pilot project e-reporting in the field tourism Program of eliminating administrative barriers and reduce regulatory burdens (MINUS 25%; www. minus 25. gov. si) Single communication plan SMEs test (assessment of the effects on the economy) Reengineering of occupations and activities (deregulation of entry conditions) Project "PSC" / single online point for domestic and foreign business entities and / reengineering of physical "VEM" one stop points(www. eugo. gov. si, www. eugo. gov. si/si)

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR REDUCING ADMINISTRATIVE BURDENS • Renewed Action Programme for reducing administrative burdens and regulation burdens 2012 – 2013 enacted by the government on 5. 7. 2012 (project minus 25% STOP the bureacracy!) – the line ministries have to carry out the measures (269) by the end of 2013; estimated savings for the economy min 360 mio € per year • Priority fields: environment and spatial planning, finances, labour legislation, corporate legislation, public procurement, public tenders • Proposals from business / citizens via portal minus 25% or e-mail address: oao. predlog@gov. si 17

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Phases of the Action Programme 1. Phase: Review of legislation (deadline for implementation- realized); 2. Phase: Measuring administrative costs in accordance with SCM methodology (EMMAS) – realized 3. Phase: Collection substantive proposals/measures to reduce burdens – realized 4. Phase: The process of implementing legislation changes and implementing other measures (deadline for implementation - 2013) 5. Phase: (evaluation) Second measurement of administrative costs - efficiency of changes with a view of achieving the objective of the Action Plan (deadline for implementation: May 2014) 18

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Aggregated data regarding Measurement phase 19

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR REDUCING ADMINISTRATIVE BURDENS Some examples of new proposals: • enabling submitting applications by electronic means • tax-paying procedure simplification by reducing number of subaccounts – 5 mio EUR savings • validity prolongation of the environmental licence (from 5 to 10 years) • merging of administrative procedures in the field of waste handling • reducing the enormity and complexity of various procedures laid down in Companies Act • restoring electronic medical file • abolition of administrative burdens caused by electronic operations and procedures (in the field of Agriculture) 20

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR REDUCING ADMINISTRATIVE BURDENS Some examples of already realised measures: • omission of yearly reporting obligation (if the incomes were duly notified throughout the year) • restoration of e-Card services enabling supervision over social security contributions • introduction of the electronic subscription to the obligatory medical insurance • introduction of lump sum of indirect costs (of 15%) to the (justified) direct costs in the framework of European Social Fund • omission of mandatory internal revision for the enterprises with less than 10 employees • omission of the reporting obligation on demands and number of copyright contracts to the Employment Service of RS • introduction of alternative to acquiring information for population count (on the basis of the administrative information already collected) 21

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Portal “STOP the bureaucracy!” 22

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Web portal Ministry of the Interior established web Portal for implementation of the Programme -25%, (http: //www. STOPbirokraciji. si) – inviting and enabling the interested public to participate in achieving minus 25% goal • Portal “STOPbureaucracy” consists: - Web site - System for managing comments and - National database of administrative burdens measurement of national regulations • Portal “STOPbureaucracy” enables: - To collect all up to date information on implementation of the Action Programme minus 25% To obtain analysis reports on the results of particular peace of legislation which was previously measured To provide concrete proposals to relevant line ministries 23

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Usability of portal Through portal we provide: • transparency (all data analyzes carried out in one place) • the possibility of participation of users in the creation of legislation (the possibility of making complaints to the relief of two-way communication) • monitoring the net impact of legislative changes (both quantitative and substantive) • updating of information (national and EU level) and • international comparability. 24

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Collecting proposals via portal - Collecting proposals / suggestions, comments – a two-way communication with portal users. - Proposals are selected/sorted by various field of work and line ministries. - When published the system sends proposals to the relevant line ministries - opportunity for ministries to give opinions and to implement it during legislation changes and implementing other measures. In case of no replying – resending the comments / proposals / suggestions – RESPONSE IS MORE THAN 85 % 25

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR The Eugo Slovenia • The Eugo Slovenia is a national business point that helps foreign business entities from the EU, EEA Member Countries and the Swiss Confederation who want to do business in Slovenia. • The site provides information about the conditions and procedures required for performing a certain activity or profession in the Republic of Slovenia.

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR The background • The fundamental document that presents the background to Eugo Slovenia is the requirement of the European Directive on Services or the Directive 2006/123/EC on services in the internal market, i. e. that each EEA Member Country must establish its own website or point of single contact which guarantees providers of services with access information on the requirements of national legislation in one place. • The content of the PSC is also closely connected with the implementation of the Directive on Professions of the Directive 2005/36/EC of the European Parliament and Council on the recognition of professional qualifications, and therefore, with the Act Regulating the Qualification Recognition Procedure for Access of Citizens of EU, EEA Member States and the Swiss Confederation to Regulated Professions and Professional Activities in the Republic of Slovenia (OG RS no. 21/02, 92/07 and 85/09) and with the Act on Services in the Internal Market (OG RS no. 21/2010).

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR The point of single contacts The Eugo Slovenia is part of the EUGO network of national business contact points. http: //ec. europa. eu/internal_market/eu-go/

EU Internal market REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Requirements Simple procedures of obtaining business permits The PSC to support procedures of obtaining permits for performing regulated activity Elimination of administrative barriers and simplification of procedures

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR MARKET ENTRANCE CONDITIONS (professions, activities) Professions and activities regulation renewal ü Simplification of access processes and reduction of red tape ü Proper implementation of EU legislation (services and professions directive) ü Procedure standardization in order to introduce esubmission 30

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Effects of the PSC • reducing of administrative burdens • elimination of administrative barriers in field of obtaining permits for performing business activities • all information and all administrative procedures through one point • facilitate the employment of unemployed persons • reducing of grey economy and establishing a competitive market at a national and EU level • facilitate access to information on business conditions in other EU Member States for domestic business entities

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Development of the PSC • Eugo Slovenia is in the development stage that must be concluded by 2015 and is part of the PSC project (Points of Single Contact). • Due to the complexity of the PSC project, it was divided into two parts: üPSC 1: development of information content üPSC 2: development of electronic procedures

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR The Eugo Slovenia – a main part of the project PSC 1 (informational function) – to offer information on conditions and permits in the RS to services providers and users from any Member Country in the Republic of Slovenia in a simple and transparent way. PSC 2 (process function) – implementing electronic support for procedures related to the issuing of various permits. PSC 1 PSC 2

PSC 1 REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR The PSC 1 project is being implemented in three stages: 1. the analysis of regulations and list of conditions for the execution of activities (published on the website foreigners/nationals) 2. cautioning about systemic irregularities in the current legislation and the preparation of proposed actions for amendments, 3. the introduction of better legislation, or deregulation, if necessary. Launching of the PSC 21. 6. 2012

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR PSC 1 Till the end of 2015 conditions and procedures for all regulated activities in the RS will be published by the Eugo Slovenia. Timeline: • set 1 – June 2012: craft, tourism, construction– published • set 2 – December 2012: veterinary medicine, real estate, law, detective agencies, employment agencies, driving schools • set 3 – May 2013: healthcare, social services, protection and security, trade, justice, the environment, transport and logistics, hospitality and accommodation • set 4 – December 2013: energy sector, finance, education, sport, culture, agriculture, other personal and business services • set 5 – 2014: other.

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR EUGO SLOVENIA

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Comprehensive view • User can find the information through the search engine which is the main element of the home page, or within an individual life cycle of a company. • Content is covered comprehensively. It includes information on: üwhat are the first steps entering Slovenia, üwhich documents are required for cross-border/temporary provision of services in Slovenia ühow to establish a company in Slovenia üwhich permits are needed to carry out certain activities or professions ütaxes, bookkeeping methods and ways to employ workers in Slovenia üobligations to creditors in the case of termination of your business in Slovenia.

REPUBLIC OF SLOVENIA MINISTRY OF INTERIOR Thank you for your attention.