1 DG Enterprise & Industry European Commission Conference on Better Regulation: Practical Steps Forward Reykjavík 6 June 2006 OVERVIEW OF THE BETTER REGULATION STRATEGY IN THE EUROPEAN COMMISSION Presentation by Silvia Viceconte European Commission DG Enterprise & Industry

2 Overview of the Better Regulation Strategy in the European Commission  A little historical context… With the Single Market largely in place emphasis partly shifted to institutional reforms to promote regulatory quality.   A few words on Better Regulation and why it is so high up on the agenda...   Better Regulation stimulates growth and innovation » more jobs & competitive advantage.   Better laws increase confidence between lawmakers and citizens   The re-launched Lisbon strategy kept up political momentum.

3 Overview of the Better Regulation Strategy in the European Commission  Better Regulation? i. Introduce a new culture of regulatory management ii. Clear policies and political commitment iii. Improved institutional procedures iv. Introduction of new tools and practices on impact analysis, consultation and simplification

4 Overview of the Better Regulation Strategy in the European Commission  To translate into action, the Commission adopted a : Better Regulation Action Plan (2002)  Main elements: Impact Assessment Impact Assessment Analysis of alternatives to regulation Analysis of alternatives to regulation Consultation and expertise Consultation and expertise Simplification/Modernisation of existing legislation Simplification/Modernisation of existing legislation Improved access to regulation Improved access to regulation

5 Overview of the Better Regulation Strategy in the European Commission Communication on Better Regulation for Growth and Jobs in the EU (March 2005) Proposes 3 key action lines: 1. Reinforcing BR at EU level 2. Reinforcing BR at MS level 3. Increasing co-operation between MS and the Commission on BR

6 Overview of the Better Regulation Strategy in the European Commission 1. Reinforcing BR at EU level a) Impact assessment b) Consultation c) Screening of pending legislative proposals d) Simplification of existing EU legislation e) Inter-institutional Agreement on Better Lawmaking

7 Overview of the Better Regulation Strategy in the European Commission 1. Reinforcing BR at EU level a) Impact assessment  Revised guidelines for IA adopted in June 2005: economic, environmental and social impacts;  Update of guidelines in March 2006: measurement of administrative costs;  Independent review of the Commission’s IA system in 2006;

8 Impact Assessment in the European Commission Revised Guidelines on Impact assessment: Key analytical steps: 1. Identify the problem : who is affected, does the EU have the right to act (subsidiarity test)? 2. Define the objectives : general, more specific, operational/ consistency with other EU policies? 3. Develop main policy options : « no EU action » option, non- regulatory option, which options early discarded & why? 4. Analyse their impacts : likely economic, social, environmental impacts of shortlisted options? Affected groups, sectors, regions?

9 Impact Assessment in the European Commission Revised Guidelines on Impact assessment: Key analytical steps: 5.Compare the options : Positive & negative impacts of shortlisted options? Balancing administrative costs against other regulatory costs: if one option imposes lower administrative costs, this is NOT in itself a sufficient reason to prefer it. 6.Outline policy monitoring and evaluation  Stakeholder consultation & collection of expertise can/should run throughout the process : this ensures that the proposed policy is practically workable & legitimate from the point of view of the stakeholders.

10 Impact Assessment in the European Commission 1.Reinforcing BR at EU level a) Impact assessment  Major exercise to measure administrative costs to be launched (results expected in 2007): Goal: identify what share of costs < Community rules & Goal: identify what share of costs < Community rules & < implementation by MS Administrative costs to be measured in 6 sectors & for all levels of legislation (EU, national, regional) Administrative costs to be measured in 6 sectors & for all levels of legislation (EU, national, regional) Pilot Project: focus on 1 industrial sector affected by the Constructions Products Directive, to be studied in 10 MS (final report: expected by the end of 2006) Pilot Project: focus on 1 industrial sector affected by the Constructions Products Directive, to be studied in 10 MS (final report: expected by the end of 2006)

11 Overview of the Better Regulation Strategy in the European Commission 1.Reinforcing BR at EU level b) Consultation  Commission has long consultation tradition  « General principles & minimum standards for consultation of interested parties » (11/12/2002)  Consultations accessible through « Your voice in Europe » website c) Screening of pending legislative proposals  183 proposals screened, 67 withdrawn (via publication in OJ of 17/03/2006)

12 Overview of the Better Regulation Strategy in the European Commission 1. Reinforcing BR at EU level d) Simplification of existing EU legislation  New simplification phase with a focus on competitiveness  Based on a broad consultation of both MS and stakeholders  3-year rolling programme

13 Overview of the Better Regulation Strategy in the European Commission 2. Reinforcing BR at MS level  Responsibility of the MS  Commission will encourage BR/simplification 3. Increasing co-operation between MS and the Commission on BR  Consultative Group of High Level National Experts on BR

14 For more information: Useful links Better Regulation: Guidelines Impact Assessment: ent/index.htm ent/index.htm Impact Assessments planned & carried out: