Achieving a New Regulatory Culture in the European Union: An Action Plan

In this EPC working paper the authors draw up an action plan for better regulation with a view of reinforcing the objectives of the Lisbon agenda.

Achieving a New Regulatory Culture in the European Union: An Action Plan – Executive Summary

Regulation is a basis for social, environmental and health protection. It is also a determinant of economic growth.

In recent years, the European Council has regularly confirmed its commitment to improve the quality of EU legislation. A number of initiatives on Better Regulation have been undertaken, including a comprehensive European Commission Action Plan on Better Law-making and, most recently, an Inter-Institutional Agreement on Better Law-making.

However, despite the considerable progress made in recent years, continued efforts to reform the system are needed. In particular, there is a need for:

• A clear vision of the reform process as a whole.
• Strong leadership to promote the reforms.
• Clear (quantitative) targets and time scales.
• Adequate resources and skills for undertaking Impact Assessments.

In order to reinforce the work of the European Commission, the Council and Parliament, and provide insights and ideas for future EU Presidencies, the European Policy Centre has developed an Action Plan, which seeks to develop a new ‘regulatory culture’ throughout the entire decision-making process of the EU.

The Action Plan identifies three main areas for action and suggests a number of specific improvements.

Driving a New Regulatory Culture in the European Commission

To instil a new regulatory culture among the officials, advisors and regulators working in and for the European Commission, the Action Plan recommends:

• The appointment of a Commission Vice-President with responsibility for Better Regulation.
• The publication of a formal and binding policy statement for Better Regulation.
• The provision of an adequate level of well-trained resources to support the implementation of Better Regulation programmes.
• An enhanced role for the SME Envoy.

Developing and Consolidating the Organisational ‘Architecture’ Underpinning Better Regulation

To achieve an effective and consistent implementation of the Inter-Institutional Agreement on Better Law-making, the Action Plan recommends:

• The creation of a ‘Regulatory Assessment Office’, within the European Commission, responsible inter alia for establishing binding regulatory quality standards (including quantitative targets), developing common methodologies, and supporting individual Directorates-General in the preparation of impact assessments.
• The establishment of an independent ‘Regulatory Audit Bureau’, within the Court of Auditors, responsible for overseeing the operation of the Better Regulation process in all the principal EU institutions.

Both the Regulatory Assessment Office and the Regulatory Audit Bureau should be provided with adequate resources to enable them to perform their tasks effectively.

Engaging All of the EU Institutions in the Drive to Improve Regulatory Quality

To extend the new regulatory culture throughout all the institutions involved in the EU decision-making, the Action Plan recommends that:

• The principal roles and responsibilities of each of the EU institutions should be established in mandatory guidelines.
• MEPs and members of the Council should be provided with a set of comprehensive guidelines on regulatory quality requirements.
• The Council and the Parliament should play a more significant role in the pre-legislative phase.
• The Council and the Parliament should regularly call public hearings.
• The Council and the Parliament should upgrade their structure and create internal organisations responsible for improving inter-institutional coordination and carrying out impact assessments on any major ame ndments they table.

Specific Improvements

The Action Plan also identifies a number of improvements that are required in specific areas to further improve the quality of legislation. These include:

• A formal and mandatory consultation process applied by all institutions at all stages of the decision-making process, and supported by adequate resources.
• A more thorough, comprehensive and transparent Impact Assessment system, whereby preliminary analyses are mandatory for each Commission proposal and subsequent extended Impact Assessments are limited in number.
• A clearer, more consistent risk communication policy.
• A review of the implementation procedures, whereby comitology committees are made more transparent and accountable and the transposition and enforcement of EU legislation by Member States is accelerated and improved.

If implemented fully, the Action Plan will help to deliver better and simpler regulations. It will also reduce the quantity of regulation. Hence, it will reduce the negative impacts of regulation on the ability of businesses based in the EU to innovate; to improve productivity; and to respond to change. It will as a result, create more and better jobs and more wealth, while providing a high level of environmental and social protection for the citizens of the EU.

Visit the EPC website to read theanalysis in fullor toread other EPC analyses.