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The commissioner has pledged to slash, by 2012, the administrative costs suffered by businesses after new figures reveal that progress has been sluggish so far.
On 14 November, Enterprise and Industry Commissioner Günter Verheugen announced plans to give fresh impetus to the Commission’s efforts to cut the burden of red tape.
Simplifying and improving the EU regulatory environment is one of the Commission’s key instruments under the Lisbon Strategy to revitalise Europe's economy.
Dubbed "better regulation", the initiative has its origins in the Edinburgh European summit of December 1992, where EU heads of states pledged to make improving the EU regulatory environment one of the Community's main priorities, but real progress only began after the adoption of the 2002 Action Plan for Better Regulation
.
A number of concrete targets and objectives were then laid down in a communication adopted in March 2005, entitled "Better regulation for Growth and Jobs in the European Union
". The document defines the issue in a simple equation: "Less red tape = more growth" and sets out three objectives:
Up to now, the initiative has had limited results:
Latest estimates reveal that the annual burden for business due to administrative costs of EU legislation will be double the original estimate of €320 billion.
The lack of progress on this agenda caused Commissioner Verheugen to lash out at his staff last month, accusing them of “obstructing his campaign to streamline or scrap legislation” (see EurActiv 10 October 2006). In his strategic review of better regulation, presented on 14 November 2006, the commissioner reveals that he proposes to reinforce the better regulation initiative by:
Enterprise and Industry Commissioner Günter Verheugen said: “We have been speaking about this for some time, now we are delivering. This will make a real difference to European businessmen.” But, he said: "the Commission cannot succeed alone", adding that the Council, Parliament and member states had to take action too.
UNICE, the Confederation of European Business, welcomed the Commission’s committment to simplifying and improving the regulatory environment in Europe but UNICE President Ernest-Antoine Seilličre said: "We need concrete progress on better regulation. Only real results will boost confidence in the overall worth of the project.” The organisation said: "Progress on simplification is far too slow even if the Commission manages to speed up the adoption of proposals. Almost all simplification proposals which have been adopted by the Commission are still pending before the Council and European Parliament and there is a considerable risk that new burdens will be added during the legislative process."
Some members of the European Parliament have expressed concerns about Verheugen's Better Regulation initiative, saying that 'deregulation' does not amount to 'better regulation' and calling for more say in the process of withdrawing existing proposals.