COST-BENEFIT-ANALYSIS OF ECONOMIC INCENTIVES AT NATIONAL LEVEL Introduction

According to the European Foundation economic incentive methods can be described as methods which financially reward those enterprises that ensure and develop good and safe working conditions (European Foundation for the Improvement of Living and Working Conditions, 1995). In recent years European policy makers have become more and more interested in economic instruments such as economic incentives to improve the working environment, mainly because strict regulation approaches have not been proved as effective as imagined (Elsler and Nikov, 2003). The community strategy on health and safety confirms the role of economic incentives as levers for raising awareness and complying with legislation: "The development of awareness may also be reinforced, particularly in SMEs, by providing direct or indirect economic incentives for prevention measures. Such incentives could include a possible reduction in social contributions or insurance premiums depending on the investment made in improving the working environment and/or reducing accidents, economic aid for the introduction of health and safety management schemes, introduction of health and safety requirements into procedures for the award of public contracts." (A new Community strategy on health and safety at work 2007-2012, European Commission, Brussels, 21.01.2007, COM (2007) 62 final).