Danish companies faced an unprecedented surge in bureaucratic burdens in 2024, primarily due to new EU regulations, costing them nearly ten billion kroner annually, according to a new report from the Ministry of Industry, Business and Financial Affairs. Conversion costs for adapting to these new rules added an additional eight billion kroner. The business community is expressing concern over the “historically large” burdens and is urging the government to take concrete action to reduce bureaucracy.

Business organizations are criticizing the government for the growing amount of bureaucracy, which they say is hindering Denmark’s competitiveness. Morten Langager, director at the Danish Chamber of Commerce, stated that companies are “drowning in a tsunami of rules and burdens” and that the new burdens are “both depressing and critical.” Jesper Beinov, director of SMVdanmark, described the figures as “violent” and criticized the political system, stating that “fine words and good intentions mean absolutely nothing in the real world.”

The report blames the EU for the increased bureaucracy, particularly the implementation of the EU requirement for sustainability reporting (CSRD), which costs companies around five billion kroner annually to comply with and has cost six billion kroner to adapt to. The Ministry of Industry, Business and Financial Affairs acknowledged that it will work to save burdens of at least six billion kroner annually by simplifying reporting requirements.

While the business community welcomes the politicians’ new and critical approach to bureaucracy, they emphasize that the damage has already been done. Kim Haggren from the Confederation of Danish Industry (DI) pointed out that companies have already hired staff to comply with the requirements and are now in limbo due to uncertainty about future rules. Haggren also noted that Denmark is often the most thorough in implementing EU directives, resulting in Danish companies being hit harder than their European competitors.

Minister for Industry, Business and Financial Affairs Morten Bødskov acknowledged the issue and stated that the government is “in the process of tackling that.” He highlighted the government’s initiatives, including pressing the pause button on new regulations and gathering forces in a permanent ministerial circle to ensure a systematic view of burden reliefs. Bødskov also emphasized the government’s concern with cutting Danish regulation to “make everyday life easier” for companies. The business community has high expectations that Denmark will soon take over the EU presidency for six months, providing a unique opportunity to put bureaucracy at the top of the agenda in Europe.