A better Europe will need better regulation

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Series Details Vol.11, No.38, 27.10.05
Publication Date 27/10/2005
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The European Union better regulation agenda is at a key stage of its development. There is growing recognition within the major institutions of the need for reform. We have now started on the journey - there have been several worthwhile initiatives emanating from the EU and there is an increased focus on better regulation. But this is just the beginning of what must be a sustained drive towards improving the regulatory landscape. The EU must continue its push if it is to tackle its two major challenges: to compete successfully in a global marketplace and to win over a sceptical public. If these challenges are to be confronted successfully then now is the time to turn rhetoric into action and to deliver tangible results.

Per capita, growth in gross domestic product (GDP) already lags well behind the US. The gap in productivity and competitiveness between the US and the EU is actually widening. The economies of China and India are growing stronger by the day, putting increasing pressure on national economies and the collective EU economy. If the EU is to compete with these powers and fulfil the goals of the Lisbon Agenda, then it must regulate better.

Public confidence in the EU is low. The recent rejection of the European constitution by the people of France and the Netherlands reflects this. Regardless of whether any of the accusations levelled against EU regulation are accurate or fair, the EU is perceived by many of its citizens as a bureaucratic monster, interfering unnecessarily. The EU needs to go on a charm offensive and show its citizens that it can secure the protections they desire and still bring prosperity. It needs to prove to the business community that it can increase competitiveness at the same time as achieving social objectives. This can only be done by ensuring regulation is proportionate, targeted and delivered in the most efficient and effective way.

The better regulation agenda does appear to be gathering pace. Since the Lisbon Strategy was published in 2000 we have seen declarations such as the 2003 inter-institutional agreement on better lawmaking and the 2004 six-presidency initiative on 'Advancing Regulatory Reform in Europe'.

In 2005 alone, under the stewardship of President José Manuel Barroso and Commissioner Günter Verheugen, there have been some promising assertions made by the Commission. In March it was announced that all key Commission proposals must undergo an impact assessment. This year has seen the Commission investigate a methodology to measure administrative costs. The Commission also launched a consultation exercise to seek out areas of legislation ripe for simplification, and has this week launched a new strategy to formalise a rolling programme for simplification.

All of these initiatives are worthy statements of intent, but has any real progress been made? I believe it has. I was impressed by the content of the Commission's revised impact assessment guidelines published in June. These guidelines set out a sound basis for a thorough analysis and justification of upcoming Commission proposals. I was especially encouraged by the announcement in September 2005 that the Commission is to withdraw proposals in the pipeline that fail to meet the standards for better regulation. It shows that the Commission is serious about tackling the impact of unnecessary regulation on the EU's competitiveness and is prepared to take difficult decisions to achieve this.

I welcome moves such as the European Parliament's internal market committee undertaking an impact assessment following amendments it made to a proposed directive on pre-packed products. This has rarely been done in the past and is precisely the kind of good practice that needs to become common practice. The Council has provided some much-needed momentum to the better regulation agenda and is also taking forward the need to update impact assessments following amendments it makes to proposals.

The Commission has to ensure that its impact assessment guidelines are followed. Getting the quantity of impact assessments right is one thing; improving their quality is another. This includes a thorough analysis of alternative methods of delivery. Regulation can often be the right choice but it should not be the automatic choice. Choosing the most appropriate and least-burdensome tool for achieving policy objectives is essential, to allow innovation to flourish.

The EU can improve its dialogue with its stakeholders. Effective consultation means consulting at the right time, in the right way and with the right people. Effective consultation gives businesses, the public sector, voluntary organisations, consumers and citizens a stake in the EU's decision-making processes. There should be a more systematic early dialogue with stakeholders and this consultation should be made transparent..

Devising an EU model to measure and potentially reduce the administrative burdens resulting from regulation is vital. Other member states, including the UK, have followed the Dutch lead and have instigated national programmes and the cost savings from such an exercise have been estimated at around 1% of GDP, a significant reduction.

If the EU is to become a major force in the ever-changing global marketplace and improve the quality of life for its citizens then the hard work starts now.

  • Sir David Arculus is chairman of the UK's Better Regulation Task Force.

Commentary feature by the chairman of the UK's Better Regulation Task Force who suggests that the European Union better regulation agenda was at a key stage of its development, when on 25 October 2005 the European Commission presented a three year action programme aimed at simplifying the existing EU legislation. The author stresses the necessitiy to improve the regulatory landscape in order for Europe to become a major force in the global marketplace and improve the quality of life for its citizens.

Source Link http://www.european-voice.com/
Related Links
United Kingdom: Better Regulation Task Force: Homepage http://webarchive.nationalarchives.gov.uk/20100402230200/http://archive.cabinetoffice.gov.uk/brc/index.html
European Commission: Press Release: IP/05/1343, Better regulation continued: Commission wants to simplify over 1,400 legal acts, 25.10.05 http://europa.eu/rapid/pressReleasesAction.do?reference=IP/05/1343&format=HTML&aged=0&language=EN&guiLanguage=en
European Commission: Memo: MEMO/05/394, Simplifying EU legislation makes life easier for citizens and enterprises, 25.10.05 http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/05/394&format=HTML&aged=0&language=EN&guiLanguage=en

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