The Council of the European Union adopted conclusions on Smart Regulation in December 2014, which re-emphasise that EU regulation is needed to achieve agreed EU policy goals. However, the conclusions call for regulation at minimum cost, while protecting and promoting competitiveness, growth and jobs, as a first priority, whilst merely asking for “due consideration” for protection of consumers, health, the environment and employees.
The Council stresses that European regulation should be “fit for purpose” through the effective use of so-called “smart regulation” objectives and tools throughout the policy cycle. Notably, it wishes to encourage the use of regulatory cost reduction, integrated impact assessment, ex-post evaluation, fitness checks, simplification and stakeholder consultation. All of these extra checks and balances provide additional opportunities to potentially affected industries to rally against the proposals and are likely in practice hold up any new regulations in the public interest.
An early warning came with the Juncker Commission’s suggestion to drop the air quality proposals put forward by their predecessors in 2014. Despite the fact that the proposal is also backed by a strong economic case, on the basis of health gains and reduced costs for health services, as well as significant job creation opportunities, and the support of key employers – the objections of a small number of affected interests appears to have been given precedence over public health and environmental protection.
The Council conclusions make specific recommendations in four areas: REFIT Programme, small and medium enterprises (SMEs) and micro-enterprises, regulatory burden reduction, impact assessment, as well as ex-post evaluation.
In the REFIT Programme, the Council pushes for the initiative to be implemented, including more “evaluations, simplifications, withdrawals and proposals for repeals of the most burdensome EU proposals and legislation”. We agree that proposals which are not delivering for health and people living in Europe should be reconsidered and amended to maximize their positive impact. Ex-post evaluation is necessary to ensure that EU policies demonstrably serve the needs and goals of European citizens, and not only the markets and business interests. However, a notable number of the REFIT initiatives proposed for withdrawal or amendment concern health, labour or environmental policies that aim to uphold high standards of protection in Europe.
The Council calls on the EU institutions to “enhance efforts to reduce the overall regulatory burden”, seemingly without undermining the policy goals of regulation itself. Civil society organisations reject the call for arbitrary quantitative targets which undermine the purpose and effectiveness of regulations which serve to protect and improve public health, labour standards, safety, consumer rights or environmental quality.
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To know more:
See reaction to proceedings and outcomes of the Stoiber group on Reducing Administrative Burden.
Conclusions on Smart Regulation by Competitiveness Council
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