Annexes to COM(2015)215 - Better regulation for better results - An EU agenda - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2015)215 - Better regulation for better results - An EU agenda. |
|---|---|
| document | COM(2015)215  |
| date | May 19, 2015 |
In the past, the European Parliament and the Council have at times been hesitant to agree to measures that would reduce administrative burdens. For example, a proposal for a standard VAT declaration has been diluted and blocked by the Member States in the Council – putting at risk € 15 billion in savings. Member States also often go beyond what is strictly required by EU legislation when they implement it at national level ("gold-plating"). This may enhance the benefits but can also add unnecessary costs for businesses and public authorities which are mistakenly associated with EU legislation.
However, the Commission recognises that a new political mood in both the European Parliament and Council provides the opportunity for all - not just to commit to the principles of better regulation – but to make those principles stick.
Real change will only happen through a commitment shared between all EU institutions, and each and every Member State. The Commission is proposing a new agreement with the European Parliament and the Council. The aim is that all parties commit to legislate better and to work together better so that citizens, businesses and society as a whole can see the benefits of the EU in their daily lives. We see better regulation as a major political priority – for new proposals, and for existing legislation. Given our shared responsibility to the EU public at large, we call upon the other institutions to do likewise, and work together with us to achieve it.
In particular, we are calling on the European Parliament and the Council to:
• Prioritise initiatives that would simplify or improve existing laws such as those initiatives identified in the Commission's REFIT programme – to deliver the intended benefits more quickly;
• Carry out an impact assessment on any substantial amendments that the European Parliament or the Council propose during the legislative process. Where the European Parliament and the Council find an agreement significantly different from the initial Commission proposal, they should assess the likely economic, social and environmental impact and regulatory burden before any final decision is taken;
• Agree that legislation should be comprehensible and clear, allow parties to easily understand their rights and obligations include appropriate reporting, monitoring and evaluation requirements, avoid disproportionate costs, and be practical to implement;
• Agree that each institution may call for an independent panel to carry out an assessment of these factors following any substantial amendment to the Commission proposal. Such an assessment should be finalised and made public within a reasonable amount of time and take into account any existing impact assessment work. Each institution would appoint to the panel a member who would demonstrably have the specific expertise needed, no conflict of interest and who would act independently from the appointing authority;
• Agree that legislation already in force should have been properly evaluated, to see whether existing tools could be used to do the job – before considering new initiatives;
• Include systematically in every new act provisions to allow monitoring and future evaluation;
• Urge Member States to avoid unjustified "gold plating" of EU rules when transposing them into national law. While this may help achieving the legislation's objectives in the local context or aim to deliver greater benefits, it may also impose significant extra burdens. Member States should be invited to explain the reasons for any such gold-plating;
• Agree to a revised common understanding on delegated acts, including criteria to delineate between delegated acts and implementing acts; 10
• Be more transparent and participative;
• Commit to better legal drafting so that EU laws are correct, comprehensible, clear, and consistent - so that everyone understands their rights and obligations easily and with certainty;
• Promote "recast" legislation, so that laws remain clear and well-structured even after being amended; and
• Make EU legislation as accessible as possible: so everyone can see the legislation that affects them— online, up-to-date, reliable, complete and consolidated.
The Commission's proposal for a new interinstitutional agreement provides a solid foundation for negotiations and the Commission hopes the three Institutions can finalise a new agreement by the end of this year.
4. Refreshing the Existing Stock of Legislation
Looking at benefits and costs should be more than just a "snapshot" taken at the birth of a policy: assessment and evaluation should continue over a policy's lifetime to ensure it stays fit for purpose. This means looking back, after a policy has been implemented, at the impact the policy actually had on specific sectors, and suggesting ways to lighten the load without reducing the policy ambition. Such an evaluation will generally involve an open public consultation.
We should be clear about where there have been disappointing results and unintended consequences, whether economic, social or environmental. We should be prepared to reconsider and improve it where needed. We also need to find new ways to discuss and agree with the European Parliament and the Council about what has worked and what has not. Without this, there can be no meaningful attempt to cut red tape or make the necessary changes to legislation.
The natural tendency of politicians is to focus on new initiatives. However, the EU is judged not just on new political initiatives, but on the benefits and the burden of existing EU legislation. As such, actively managing existing EU legislation is just as important politically as preparing new initiatives.
Over time, even well-designed legislation may become out of date, more burdensome than it needs to be, or ceases to achieve its objectives. For example, changes in the market may mean a law is no longer useful, relevant, or serving its purpose. Changing technology may offer the opportunity to deliver the policy goal in a better way – for example, allowing a form to be submitted online. Lessons learned from implementing a policy through better monitoring and evaluation may also provide fresh evidence about which policy solution is the best.
4.1.The REFIT programme – keeping EU Law fit for purpose
The Regulatory Fitness and Performance Programme (REFIT) is the Commission's programme for ensuring that EU legislation remains fit for purpose and delivers the results intended by EU law makers. REFIT is not about deregulation but rather about regulating better. It aims to unlock the benefits of EU law for citizens, businesses and society as a whole in the most efficient and effective way, while removing red tape and lowering costs without compromising policy objectives. REFIT is not a one-off review: it is a lasting commitment to keeping the body of EU law lean and healthy.
REFIT and ambitious policy-making go hand-in-hand. Candid assessments of existing legislation will often serve to highlight ways of lightening the regulatory load to improve implementation and raise standards. They can also identify new policy challenges emerging in a fast-changing world that older legislation is ill-equipped to address.
Since its launch in 2012, REFIT has already brought into much sharper focus the day-to-day challenges the existing stock of legislation brings for citizens and businesses. Progress is monitored using the REFIT scoreboard: the latest version is published today. 11 Building on this momentum, the Commission intends to strengthen REFIT so as to achieve better, more tangible results. REFIT will be more:
Targeted – by focusing on the most serious sources of inefficiency and unnecessary burden;
Quantitative – estimates of the potential benefits and cost savings will accompany each REFIT proposal; an update of the estimates will be published following adoption of the legislation; and the Commission will work together with Member States and stakeholders to check whether this potential is being translated into real impacts on the ground;
Inclusive – the new REFIT Platform will be an invaluable source of suggestions to improve EU laws;
Embedded in political decision-making – REFIT will feature prominently in each year's work programme and in the Commission's political dialogue with the other EU institutions before and after the adoption of the work programme.
REFIT is a shared responsibility. The Commission calls on the European Parliament and Council to give strong backing to initiatives designed to improve the effectiveness and efficiency of the existing stock of legislation.
4.2.REFIT in action
All future REFIT initiatives will reflect this new strengthened approach, drawing on the work of the new REFIT Platform and the results of ongoing evaluations, in particular those evaluations and Fitness Checks identified as priorities under REFIT.
Lessons learned from these reviews will help shape the design of future legislative proposals. Where regulatory costs are found to be disproportionate to the goals pursued, alternative approaches to achieving the same goals will be explored. For instance, future reviews of the rules on the VAT special scheme for small businesses, the EU custom single window and the Ecological Focus Areas could lead to significant savings.
New and ongoing initiatives to reduce burdens…
A number of new initiatives will be announced as part of the Commission work programme later in the year. However, the Commission is already working actively to reduce burdens in areas such as:
– Public procurement: The Commission will propose a standard data form to address the difficulties experienced by SMEs faced with the repeated need to fill in lengthy and complex public procurement documentation.
– Business statistics: The Commission will measure and deliver cost-savings for business under a Framework Regulation Integrating Business Statistics (FRIBS) and Single Market Statistics (SIMSTAT).
– Chemicals Legislation: EU chemicals legislation has brought considerable cost savings to businesses operating in the Single Market. However, small companies find it difficult and costly to comply with the associated administrative requirements. The Commission will tackle these concerns by simplifying the rules for substances used in small quantities and by delivering an action plan to help SMEs to meet the 1 June 2018 registration deadline for these quantities. Proposals to simplify the authorisation procedure, reduce the amount of information required and increase the predictability of the process will be made in 2015.
Repealing outdated legislation…
In addition, the Commission will continue to screen sectoral legislation to identify and propose the repeal of outdated legislation that no longer serves its purpose or is excessively burdensome. Twenty-three candidates for repeal have been identified in various policy areas 12 . Annual exercises to identify obsolete acts are carried out in the areas of agriculture and fisheries. These best-practices will be extended across the Commission.
Evaluations and Fitness Checks…
In addition, reviews and comprehensive evaluations are underway and will prepare the ground for possible future action across a wide range of policies and legislation – for instance on late payments, pesticides; food nutrition and health claims; motor insurance; the EU Derivatives Regulation and the Capital Requirements Regulation.
Other evaluation work in the REFIT pipeline is also nearing completion. In particular:
– The Fitness Check of the General food law (Regulation 178/2002) will evaluate whether its fundamental principles and definitions have been implemented effectively and whether new responsibilities for operators are fit for purpose, taking into account the rules and standards established by the subsequent legislation, their implementation and the resulting cumulative effects and potential overlaps.
– As a follow up to the comprehensive evaluation of Occupational Health and Safety set to conclude end 2015, the Commission will identify shortfalls that need to be addressed and develop specific measures to relieve the burdens for SMEs and to help them comply with EU requirements. Possible action to improve coherence and consistency between Occupational Health and Safety legislation and chemicals legislation (REACH) will be considered.
– Similarly, the results of the Fitness Check on chemicals legislation outside of REACH (to be concluded in 2016) will identify possible further burden reduction actions.
Improving implementation…
Reducing administrative burden is not only about changing legislation. There are many other ways to help improve the way EU law is implemented. For example, the Commission will:
– Launch a broad review of reporting requirements to see how burdens can be alleviated. This review will have a particularly strong focus on areas where stakeholders have recently indicated their concerns, such as agriculture, energy, environment and financial services.
– Cooperate with Member States in examining the best ways to ensure compliance with EU law at national level, including those that have initiated a review of how well EU and Member State regulation combines to help protect the environment (as in the 'Make It Work' initiative). The objective is to identify solutions to enhance the efficient application of EU law at national and local level by reducing its complexity while maintaining its level of protection.
– Finalise work on a database to provide a comprehensive and reliable overview of EU and Member State requirements for food labelling to assist SMEs in particular.
– Continue to carefully monitor that EU Directives are transposed in a clear, correct and timely manner and that EU rules are properly implemented and enforced in all Member States, bringing legal certainty and allowing citizens and businesses to benefit from the opportunities of the single market.
Simplifying EU funding…
Finally, the Commission has long advocated the simplification of the management of EU funds to help maximise the benefits of this funding while maintaining high standards of financial management. Progress on simplification is monitored through an Administrative Simplification Scoreboard, regularly published by the Commission. 13 The complexity of the administrative rules for the implementation of the EU budget, both at Union and Member States’ level, increases red-tape, delays, cost of controls and errors. Simplification is a building block of the new EU 'Budget focused on results' effort and the Commission will continue this work, for instance in the area of:
– The Common Agricultural Policy, where the Commission will simplify the management of the Common Market Organisation notably by merging 200 existing Commission Regulations into 40 implementing and delegated acts.
– The European Structural and Investment Funds, where the Commission will establish a high-level group to monitor the delivery of simplification by Member States; launch a series of studies to examine further options for cost reduction and simplification; and create an interactive database of legal texts and guidance documents for Member States, beneficiaries and stakeholders.
– Implementation of Horizon 2020, where a second wave of simplification measures for the framework programme for research and innovation is under preparation.
4.3.An inclusive approach
The Commission will actively seek stakeholder input on how to improve EU legislation.
Alongside the new website "Lighten the Load - Have Your Say" detailed above, the Commission is establishing a new "REFIT Platform" and will soon give people the chance to have their voice heard and provide a basis for inclusive work on a common agenda. The Platform will involve high level experts from business, social partners, and civil society appointed through an open and transparent process as well as experts from all 28 Member States, the European Economic and Social Committee and the Committee of the Regions. Any stakeholder with concerns or suggestions will be able to present their views on the impact of EU laws to the Platform and suggest how the legislation can be improved. The Platform will consider those suggestions, prompt views on specific themes, such as "barriers to digitisation" or "to innovation", and make concrete suggestions to the Commission.
The First Vice-President of the Commission will chair the Platform. The Commission will react to all the Platform's suggestions and systematically explain how it intends to follow up. The Commission will invite Member States to do the same in cases where suggestions relate to national transposition and implementation.
5. Conclusion
This Communication sets out a series of actions which demonstrate the Commission’s renewed commitment to apply Better Regulation to its everyday work. The aim is to work more transparently and inclusively to produce higher quality proposals, and ensure that existing rules deliver important societal goals more effectively.
However, the Commission cannot deliver Better Regulation on its own. This requires a shared commitment by all EU institutions, Member States and other actors such as the social partners. The European Parliament and the Council have a particular responsibility to produce better regulation. The Commission invites them to start negotiations rapidly on the basis of the Commission's proposal for a new interinstitutional agreement – with the aim to finalise it before the end of 2015.
(1) COM(2002) 704 complemented by COM(2012) 746, SWD(2012) 422 and COM(2014) 368
(2) Such roadmaps and inception impact assessments will be circulated via an automated alert system at https://webgate.ec.europa.eu/notifications/homePage.do ; http://ec.europa.eu/transparencyregister/public/homePage.do
(3) Without prejudice to specific arrangement applying to the Commission's proposals under art 155 (2) TFEU.
(4) Certain exceptions will apply to both draft delegated and implementing acts including: when the draft implementing acts concerns financial management and, for both types of acts, when no (or limited) discretion exists on the content; when extensive consultation has already taken place during the preparation of the act (such as that undertaken by an EU Agency); when urgency prevents such consultations; or for other duly justified reasons.
(5) An explanatory memorandum is required for all legislative proposals and delegated acts but not for implementing acts.
(6) A transitional period will apply until the end of 2015 for those initiatives which are already well advanced. In referring to the new requirements in the Better Regulation Guidelines, the new Regulatory Scrutiny Board will make a pragmatic assessment in its quality reviews taking into account the timing of the preparatory process for each impact assessment and main evaluation falling under its scrutiny. The public consultation on draft delegated and implementing acts and the publication of the respective planning will be phased in together with the necessary internal processing requirements.
(7) See the principles for better self- and co-regulation and the Community practice thereof: http://ec.europa.eu/digital-agenda/en/communities/better-self-and-co-regulation
(8) Definitions of small, medium and micro businesses are set out here: http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition/index_en.htm
(9) See IP/14/2761.
(10) These criteria would be formulated taking into account the Szájer report from the European Parliament (on the follow-up on the delegation of legislative powers and control by Member States of the Commission's exercise of implementing powers). Alignment of the regulatory procedure with scrutiny with the Treaty of Lisbon could follow the agreement on a new common understanding.
(11) SWD(2015)110
(12) For details see REFIT Scoreboard
(13) Simplification Scoreboard for the MFF 2014-2020, COM(2014) 114 final, 3.03.2014.