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Stoiber group to cut EU costs by €40 billion

Published 14 September 2009 - Updated 23 December 2011
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The European Union could save up to €40 billion in administrative burdens, according to a package devised by a high-level group for the reduction of such costs, chaired by German conservative Edmund Stoiber.

In an interview with broadsheet Die Welt, the former minister-president of Bavaria and former chairman of Germany's conservative CSU party said he was ready to unveil a plan to the Commission this week which promises total cost savings of over €40 billion spanning 13 different legislative areas. 

About €6 billion would be saved by removing a requirement for 16 million businesses to produce annual accounts and undergo audits. Other cost-saving measures include the introduction of electronic receipts at tax offices and the obligatory installation of expensive tachometers for labourers only when journey distance exceeds 150 kilometres. Tachometers, a safety feature that measure a driver's rest period, cost €4,000 each. 

To ensure the longevity of such measures, Stoiber will also recommend the establishment of an independent body to examine the potential cost of every piece of legislation. Currently the onus falls under the Commission's remit, but Stoiber argues that "when officials have to police their colleagues, they cannot make independent decisions". 

Stoiber admits he faces "a big battle" to get the proposed measures approved quickly, as the respective institutions cannot agree on the specifics. Cost-savings, which so far run to €650 million to date, have not reached their potential yet, says the minister, because "when things get serious the sceptics suddenly appear: consumer rights activists, environmentalists and security fanatics". It is with some irony then that Stoiber's own motto, according to his website, is "action over talking". 

His political fame should move the process along quicker than the status of an "an academic economist from the University of Hamburg," he adds in the interview. "I don't have any problems getting access to the commissioners. I can call [German Chancellor Angela] Merkel or [French President] Nicolas Sarkozy or Dutch Prime Minister Jan Balkenende," he argued. 

Background: 

Edmund Stoiber was nominated to chair the high-level group advising the European Commission on reducing administrative burdens imposed by EU legislation on 14 September 2007. 

The high-level group is composed of 15 members representing a wide segment of society: namely small and large business organisations, trade unions, NGOs and the worlds of academia and politics. 

The group was given a three-year mandate. Its main role, according to the Commission, is to provide support for implementing the 'Action Programme for Reducing Administrative Burdens in the European Union'. 

The programme was first presented by the European Commission in January 2007 and was endorsed by the European Council of March 2007. It aims to cut by 25% the administrative burdens of businesses in the EU by 2012. 

The first ten fasttrack reduction measures had already been presented prior to the establishment of the high-level group, and once adopted freed up an estimated €1.3 billion for productive investments. They have benefited among others farmers and the transport sector. Merger procedures were also simplified. 

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