Legal challenges on the path to simplifying conditions for conducting economic activity

Abstract

The article is devoted to the analysis of legal challenges and problems related to the draft Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding Simplification of Conditions for Conducting Economic Activity.” The relevance of the study is determined by the need for deregulation to create a favorable business climate and reduce administrative pressure on entrepreneurs. At the same time, the importance of a balanced approach is emphasized in order to avoid negative consequences such as a decline in product quality, increased inequality, increased corruption risks, and loss of state control.

The aim of the work was to conduct a scientific analysis of the draft law and provide substantiated proposals for its improvement. The study used the method of normative and legal reductionism, which allows simplifying the system of state regulation while maintaining a balance between efficiency, security, and constitutional principles.

Results. The paper highlights both the positive aspects of deregulation (lower costs, attracting investment, stimulating competition) and the potential negative consequences (lower quality, restrictions on innovation). The main part of the work contains a critical analysis of the proposed amendments to the Water and Forest Codes of Ukraine, the laws of Ukraine “On Air Protection,” “On Foreign Economic Activity,” “Fundamentals of Ukrainian Legislation on Health Protection,” “On Architectural Activity,” etc. Key observations include insufficiently clear delineation of licensing procedures, overly broad discretionary powers of the Cabinet of Ministers of Ukraine, potential conflict with Ukraine's international obligations under the GATT and WTO, the lack of independent mechanisms for appealing decisions, the disproportionate nature of penalties, and the significant administrative burden. The article expresses reservations about the abolition of regulation in other areas, in particular traditional medicine, architectural activities, and extracurricular education, which could lead to violations of consumer rights, chaotic development, and a decline in the quality of services.

Conclusions. Particular attention is paid to the need to harmonize legislation in the field of water resources and cultural heritage protection. In their conclusions, the authors emphasize that the process of simplifying the conditions for doing business is relevant and necessary, but it must be carefully justified and take into account all possible risks to ensure balanced economic development.