Spain's Regulatory Burden Hinders Business Growth: Over 400,000 Provisions Weigh on SMEs
Spain's regulatory landscape is facing challenges that hinder business growth and competitiveness. With over 400,000 provisions approved since 1979, including 11,775 new regulations in 2022, the country is grappling with regulatory overabundance. This proliferation of rules adds costs, increases administrative burdens, and slows business dynamism, particularly for small and medium-sized enterprises (SMEs).
The heterogeneity of regulations across regions and sectors creates complexity for companies operating in multiple areas. This regulatory maze discourages investment and the adoption of new technologies. A 10% increase in regulatory volume leads to a 0.5% drop in employment in small companies, highlighting the significant impact on SMEs.
To tackle these issues, Spain needs effective mechanisms for regulatory evaluation and coordination. This would help reduce duplication, strengthen impact assessments, and support business creation and job growth. A clearer regulatory framework would boost overall competitiveness and encourage territorial expansion.
Addressing Spain's regulatory challenges is crucial for fostering a business-friendly environment. By implementing effective evaluation and coordination mechanisms, Spain can simplify its regulatory landscape, promote business dynamism, and support the growth of SMEs. This, in turn, would contribute to the country's economic competitiveness and job creation.
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