Challenges for the EU’s Better Regulation Strategy Frank Frick Regulatory Craft Conference Halifax / Canada, September 29th, 2008

2 EU - regulation setting global standards ? 500 million citizens in 27 countries –the world‘s largest economic block what matters? quality, speed, mass of users, compliance, power in international organizations (EU: 27 votes!) Economist: Brussel as the world‘s regulatory capital / FT: Standard bearer (i.e. 110 chinese studying REACh in Helsinki) possibly an economic advantage: enterprises used to EU standards, no need to prepare but it is a disadvantage, if it becomes a race for more regulation transatlantic regulatory cooperation would lead to worldwide agreed standard but: different philosophies of regulation: emphasis on precautionary principle in Europe, assumption of corporate innocence in conjunction with high fines in case of wrong-doing in the US

3 cornerstones of the EU Better Regulation approach overall goal: Lisbon Strategy = to make Europe the most competitive knowledge-based society - consultation (increasingly important to gain acceptance and legitimacy) - impact assessment (> 100 commission IAs per year) & IABoard to scrutinze IAs - simplification - reduction of administrative burden & independent watchdog (measurement exercise in 13 policy fields)

4 Suggestions to meet the challenges Focus the Better Regulation agenda on three strategic goals: Limit the overall level of regulation (Problem: Quantity, too much regulation) Improve the quality of regulation (Problem: Quality – minimise side effects) Improve transposition in the Member States (Problem: Errors, gold plating) 2.Involve all parties Strengthen the commitment of the Parliament (Problem: part of the problem) Widen the consensus among Member States, Council, Commission Establish a link with sub-national regulatory & administrative bodies Problem: Players below member state level decide the fate of regulation

5 Suggestions to meet the challenges Fine-tune the toolkit Assess alternative forms of regulation (Problem: law is not the answer) Enhance the role of impact assessment (Problem: decide when to use ia) Establish a uniform measurement tool of administrative burdens 4. Arrange an ongoing dialogue in the leading bodies Review the aquis communautaire Improve the communication of the Better Regulation Strategy Work towards a wide public debate with the stakeholders

6 One major challenge for the EU's Better Regulation Strategy the usual wisdom: -add institutions, -add tools, -increase governance efforts not wrong, but this is not the key – danger of falling into the complexity trap, increase decision time and decision making costs – and losing the hearts and minds of citizens

7 A call for a new framing of the better regulation debate Are we achieving long lasting, tangible progress for citizens and businesses in Better Regulation? Do they really feel and value what is being done on their behalf? Move the perspective of citizens and businesses to the centre of attention! It takes strong leadership and Euopean statesmen and –women to create a robust framing. „Voters vote their identity and their values, which need not coincide with their self-interest.“ (Lakoff) Good framing for Better Regulation: think in moral goals, not in technical programs. Better Regulation is an important contribution to the goal of European integration.