Quality of regulation is a factor of great weight when it comes to the potential of regulation to meet its objectives. However, regulation through delegated law-making powers, regulation by decree, is still prone to short-sighted, political incentives and in addition not subject to the same legal mechanisms of scrutiny as ordinary laws. An increased use of regulation by decree can thus mean an increased risk of regulation of a lower regulatory quality and with a lower potential to meet regulatory goals. Delegation of law-making powers in Denmark is rising both generally and in the area of business regulations. This can be seen as a Danish version of a movement towards a ’regulatory state’, in which the establishment of (independent) agencies has been replaced by continuously increased ministerial powers.
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