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Is less regulation "better regulation"?[fr][de

Published: Monday 26 September 2005    | Updated: Monday 21 May 2007   

The Commission will withdraw around 70 legislative proposals as part of its “better regulation” strategy. Some business circles find the proposed list insufficient, others claim it is "deregulation" instead of "better regulation".

Background:

Cutting down on red tape has become one of the miracle solutions of the Barroso Commission to strengthen European industry's competitiveness and win back citizens’ confidence in the European Union. Under the Prodi Commission the debates on better regulation had already received quite some attention but with little result. 

Key developments during the Prodi term: 

From the start of its mandate, the Barroso Commission announced its intention to streamline EU legislation. As part of its relaunch of the Lisbon agenda, it put the regulation exercise in the context of a renewed focus on economic growth and jobs. In March 2005, the Commission issued a communication Pdf external entitled 'Better regulation for growth and jobs in the European Union'.

 

More on this topic:

Other related news:

The Commission screened nearly 200 pending legislative proposals that were introduced after 1 January 2004. It evaluated these proposals "with regard to their general relevance, their impact on competitiveness and other effects". Three criteria were used to test the proposals:

  • consistency with the Lisbon objectives and the goal of promoting competitiveness;
  • lack of substantial progress in the legislative process for a significant period of time;
  • in line with new impact assessment guidelinesPdf external of 15 June 2005.

DG Enterprise officials confirmed to EurActiv that the proposals were screened against the "political objectives" of economic growth and jobs but also claimed that the other two dimensions of the Lisbon strategy (social and environmental) were taken into consideration.

The final list will be presented to the European Parliament by Enterprise Commissioner Verheugen on Tuesday 27 September in the afternoon. 

A draft version of the list, seen by EurActiv, mentions the following policy areas and legislative proposals (only most important ones) for withdrawal:

  • Agriculture: 3 proposals
  • Competition: 2 proposals
  • Development: one proposal on ACP issue
  • Economic and Financial Affairs: one proposal on Italian budget deficit
  • Enlargement: 12 proposals for decision which have become irrelevant because of accession;
  • Enterprise and Industry: 14 proposals (statute European association, statute European mutual society);
  • Environment: 2 proposals (UN Protocol on Water and Health, civil liability for damage caused by crossborder effects of industrial accidents on crossborder waters)
  • Fisheries: 5 proposals
  • Justice: 2 proposals (freedom of travel for third-country nationals, notifying Council of Europe on European arrest warrant)
  • External Relations: 9 proposals
  • Research: one proposal (consultative committee for fusion programme)
  • Health and consumers: 2 proposals (labelling of foodstuffs)
  • Taxation: 4 proposals (promotion biofuels for transport)
  • Trade: 4 proposals
  • Energy and transport: 6 proposals (weekend bans)
  • Internal Market: 2 proposals to be withdrawn, reconsidered in view of impact (sales promotion) 

In the environmental area, two important dossiers are maintained but will undergo new economic analysis: F-gases and shipments of waste.

According to a Commission official, the temporary workers draft directive will not be withdrawn but will be reviewed in the light of the services directive. 

The list presented on 27 September is only the first phase of a long-term exercise to simplify EU legislation. In October, the Commission will announce a work programme to clean up the whole body of EU legislation, known as the acquis communautaire, from the current 80,000 pages to 50,000 pages. 

Positions:

Some members of the European Parliament are concerned about Mr Verheugen's initiative. Although legally the Commission has the right of initiative (and therefore the right to withdraw proposals), the MEPs claim that the Commission should have consulted with them. 

Monica Frassoni, co-President of the Greens/EFA Group in the Parliament, warned against "undue haste in ditching draft EU laws". "The President of the Commission should not be so influenced by Council deadlock, tabloid sensationalism or scare-mongering from industry and their political mouth-pieces in the EPP," said Frassoni.

President of the Party of European Socialist Poul Nyrup Rasmussen questioned the "better regulation" proposal of the Commission, saying it amounted to "deregulation" only.

Nor is the whole of industry positive about the Commission's deregulation drive. According to the Financial Times GermanyGerman industry association BDI has expressed scepticism and said the list does not seriously tackle the problem of overregulation.

SME assocation UEAPME stated in a press statement that the Commission's "clean-up list" is "no panacea". UEAPME secretary-general Hans-Werner Müller underlined that better regulation "must not merely be about withdrawal of outdated texts but must be a more comprehensive process, aiming at improving both laws in the pipeline and in force". He also added: "Better regulation does not mean no more regulation however. Clearly there is a need for new legislation in some areas such as environmental protection. In these areas it is key that the principle of simplification prevail."

EurActiv welcomes further reactions from EU Actors for more coverage of this issue after its final presentation in the Parliament. Send reactions, positions papers or press releases to editor@euractiv.com .

Next steps:

  • On 17 October, the Commission will present a communication on the simplification of the 'acquis' (the whole body of EU laws). The communication will present a work programme, a method and delivery mechanisms. The whole exercise could take until the end of the Barroso mandate.
  • The Member States will have to demonstrate their commitment to better regulation practices through their National Lisbon action plans, which they have to present in October.

Links

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