Danish companies are facing increased regulatory burdens, costing them billions of kroner annually, with much of the blame initially directed towards EU regulations. However, a closer examination reveals a more complex picture of shared responsibility between Danish politicians, businesses, and EU institutions.

Industry Minister Morten Bødskov presented a report highlighting a significant surge in regulatory costs for Danish businesses, reaching DKK 9.9 billion, a thirteen-fold increase in a single year. While the report suggests that a small fraction of this burden originates from Denmark’s own decisions, the focus quickly shifted to blaming the EU.

MEP Morten Løkkegaard has been criticized for decrying EU regulations while simultaneously voting in favor of them within the European Parliament. One major contributor to the increased costs is the Corporate Sustainability Reporting Directive (CSRD), which accounts for DKK 5.8 billion of the total burden.

Despite the current backlash, Danish politicians from various parties initially supported and actively promoted the adoption of sustainability reporting requirements. They argued that uniform European standards would benefit Danish companies and provide a competitive edge. However, the implementation has been uneven across EU member states, and the EU Commission is now considering simplifying or suspending these regulations, leaving Danish companies with wasted investments.

A recent report attempted to address the issue of regulatory burdens but was criticized for focusing on innovation and offering new strategies rather than tackling the root causes of bureaucracy and excessive regulation. The author argues that a genuine effort to reduce burdens requires a collective commitment from the government, politicians, and businesses, moving beyond the convenient excuse of blaming the EU. They emphasize the need to actively work towards implementing the Draghi report’s recommendations, both within the EU and domestically, to foster growth, prosperity, and job creation while maintaining sustainability goals.