Cutting Red Tape: What Does the European Commission Do to Deliver?

MEMO/05/249

Cardiff/Brussels, 12 July 2005

Cutting red tape: What does the European Commission do to deliver?

Avoiding overregulation and streamlining bureaucratic procedures contributes to growth and jobs. Unnecessary rules stand in the way of sustainable growth, deter business investment and hinder job creation. This is why the European Commission has launched an initiative improve the regulatory environment on the European level. This initiative is an integral part of the Commission’s “Partnership for Growth and Jobs” (see IP/05/311 and MEMO/05/93). But the regulatory environment for companies consists also, and indeed mainly, of national rules. Consequently, Member States have to do their part in cutting back bureaucratic excesses, too.

The Commission is currently working on the five following action fields:

-Improve the quality of impact assessments of EU legislation,

-Carry out a screening of pending proposals that were adopted before 1 January 2004 with respect to their competitiveness and other impacts,

-Reinforce efforts to simplify existing EU legislation,

-Establish a group of high-level national experts on regulatory matters to advise the Commission,

-Create public “better regulation”windows on the Internet to allow stakeholders to give their views on bureaucratic burdens due to EU legislation.

1.Screening of pending proposals

A new exercise was launched by the Communication on “Better regulation for growth and jobs” of March 16th 2005, consisting in screening proposals predating 1st January 2004 and still pending before the Council and the Parliament. The focus lay on those proposals with slow progress in the legislative process, absence or insufficient assessment of the impacts of proposals or change of circumstances.

A total of 215 pending proposals (dating from before 1 January 2004) have been identified and examined by the Commission services. Some, which have become obsolete, will be subject to technical withdrawals. Others (115) have been screened for their competitiveness impacts. After consultation with the competent services, the Commission will decide on a list of pending proposals eligible for withdrawal (technical or political) or modification/replacement. In the latter case, justification will be required. On this basis, the Commission is confident that it should be in a position before the summer break to announce a numberof proposals to be withdrawn or modified and a provisional list of these proposals.

2.Simplification of existing legislation

The Commission launched an ambitious programme for simplification of existing legislationin 2003.So far,more than 30 policy sectors have been screened, 60 legal acts with a potential for simplification have been identified, of which more than 30 have now been proposed to the European Parliament and the Council. However, 16 of these proposals are still pending before the legislator (see annex III - List of Commission’s legislative proposals with simplification implications pending before the other institutions).

New Integrated Sectoral Approach: collaboration with stakeholders

The next phase of the simplification programme will be presented in October. It will include a sectoral approach.The objective is to verify whether the rules applicable to each sector are both consistent and coherent and do not harm competitiveness.

Three priority sectors have initially been identified. These have been found to be particularly burdened by the accumulation of EU legislative texts while being of considerable importance to overall economic competitiveness.

Automotive Sector

The CARS 21 High Level Group)is currently reviewing existing European legislation with a view to improving the regulatory framework affecting the competitiveness of the automotive industry. The Group will make recommendations on a regulatory roadmap for the next ten years.

(More information on CARS 21

Construction sector

Although mainly ruled by the construction products directive (CPD) itself, the sector’s competitiveness is also affected by other EU legislation (e.g. rules on health and safety, the recognition of qualifications, public procurement and the protection of the environment and the consumer).

Waste sector

Waste legislation impacts on many industrial sectors such as cement, glass, non-ferrous metals, steel, wood and paper in various ways. The present definition of ‘waste’ has in itself been considered appropriate by stakeholders, however there is a need to clarify further the status of secondary raw materials (e.g. scrap metal, wood chips and recovered paper). In the framework of its thematic strategy for waste, to be launched soon, the Commission will take into account the importance of a clear waste/non-waste regime for secondary raw materials.

Simplification: Other action on EU level

In November 2004 the Competitiveness Council endorsed a list of simplification priorities covering 20 legal acts. The Commission has responded to the Council requirements in its Legislative and Work Programme 2005 with 3 initiatives. In 2005, the Commission will cover 13 of the 15 priorities identified by the Council (see Annex IV) by adopting 3 legislative initiatives and 1 autonomous act and launching 7 non legislative initiatives covering 9 of the Council priorities.

In addition, the Commission will look into the initial list of 144 simplification proposals identified by the Council Working Group when preparing the list of priorities.

In October the Commission will present a calendar of simplification proposals to be tabled in 2006 and 2007 to follow-up the ongoing work on the Council priorities (see annex V).

Member States have to play a role, too

The regulatory environment for companies consists also, and indeed mainly, of national rules. In the taxation, labour and even environment fields for example, the bulk of the measures are adopted at national level.

Simplification of the regulatory environment for companies is a joint challenge of both the EU and MemberStates. Some legislation, e.g. in the fields of taxation, labour and even environment, is adopted at national level.

The Commission, therefore, wants to develop a partnership with each MemberState to analyse the simplification initiatives launched at national level with a view to promoting best practices. This analysis should cover, in particular, the methodology and structures put in place by the Member States. The High Level Group should take on a role in examining the elements of analysis.

In order to promote best practices, the Commission would like to select certain ‘test cases’, which should deter Member States from enacting supplementary provisions outside the scope of the directive when transposing directives. Such kind of “gold-plating” usually creates extra burdens on operators in the sector (e.g. in terms of binding technical requirements, extensions of labelling requirements, additional compulsory indications on labelling etc.). Several Member States have already introduced their own controls and screening programmes to avoid regulatory excess.

3. Better Impact Assessments for Commission proposals

On 15 June the Commission decided on revised internal rules to strengthen the impact assessments which accompany Commission proposals.This will help to bring more coherence and quality (and in some cases self-restraint) to the Commission’s work.

The Commission Impact assessment (IA) sheds light on the underlying issue or problem, possible options for public intervention and the likely economic, social and environmental impacts of legislation, thereby allowing politicians to take their decisions in the light of the best available evidence.

The internal Commission Impact Assessment Guidelines have been updated in order to support the Commission services which work with IA during all stages of the evaluation process. Specifically, they

-Provide guidance on measuring administrative costs.

-Clarify the obligation to conduct a serious evaluation of alternative options, such as “no EU action” (except where the Treaties define an obligation to act), simplification of existing EU legislation or alternatives to ‘traditional’ instruments (e.g. co-regulation or self-regulation);

-Reinforce the consideration of subsidiarity and proportionality at the earliest stages of IA.

Enhanced cooperation involving EP, Council and Commission

The European Parliament, the Council and the Commission are making good progress in negotiating an inter-institutional “Common Approach” to impact assessment. This “common approach” is likely to be a short and general document, setting out key “traffic rules” in the inter-institutional handling of impact assessment, in line also with existing Commission policies on better regulation such as the revised Impact Assessment Guidelines. The challenge is now for the other institutions to systematically analyse their amendments and set out their economic, social and environmental impacts.

4.Expert groups

To facilitate the development of better regulation measures, the Commission announced in its March Communication its intention to set up a group of high-level national regulatory experts, to advise the Commission on better regulation issues in general, in particular simplification and impact assessment. The group should look at both EU and national legislation.

This group should help the Commission to strengthen cooperation with Member States in order to encourage national implementation of better regulation and in order to develop a coherent set of common indicators. These should facilitate monitoring of progress as regards the quality of the regulatory environment both at EU level and in the MemberStates themselves and serve as a basis for benchmarking and to define targets and priorities for better regulation programmes for the coming years in Member States’ national Lisbon programmes

5.“Tell us where to cut red-tape”: Stakeholder input through public consultation

In the first half of 2005 the following consultations have been made public:

-Tired of being tied up in red tape? How do stakeholders feel the regulatory environment of the EU can be improved and administrative burden reduced

-Cleaner cars: consultation on tighter emission limits under the “Euro 5” proposal (to be published on 14th of July 2005)

-Vehicle emissions limits: Euro V regulation on light duty vehicles

-Medical devices: consultation on the proposed revision to the Medical Devices Directive (MDD)

-Human tissue engineering: comments on the proposed regulation on advanced therapies in biotechnology (gene therapy, cell therapy, and tissue engineering)

-Future of EU car industry: what is the best regulatory framework for the automotive sector in the EU.

So-called public better regulation windows will give businesses, NGOs and citizens the opportunity to express their concerns regarding unnecessary burdens imposed by EU legislation. These windows will be created in the websites of the respective Commission services and will serve the purpose of publishing consultations and informing about Commission initiatives and progress in simplification.

1

Annexes:

Annex I:Overview: Progress in Better Regulation since March 2005

Annex II: List of Commission’s legislative proposals with simplification implications

Annex III: Follow-up of the list of Council priorities for simplification of EU Legislation

Annex IV: Possible legislative initiatives 2005/2007

Annex I

Overview: Progress in Better Regulation since March 2005

Key Actions / Progress

1. Improve the quality of impact assessments of EU legislation

/

• New and updated guidelines

1. Carry out a screening of pending proposals that were adopted before 1 January 2004 with respect to their competitiveness and other impacts

/

• Process of assessment of options regarding pending proposals (inter-departmental; inter-service meetings) in order to finally endorse a list specifying decision on withdrawal or modification/replacement (College) List of potential candidates for withdrawal is currently being established.

1. Reinforce efforts to simplify existing EU legislation

/

• Preparation of response to Competitiveness Council’s list of simplification priorities on 20 legal acts

• Communication on the progress regarding simplification in October 2005

1. Establish a group of high-level national experts on regulatory matters to advise the Commission

/

• Selection of members for group of high-level national regulatory experts by end July 2005, first meeting in September

1. Create public “better regulation” windows on the Internet to allow stakeholders to give their views on bureaucratic burdens due to EU legislation.

/

• Public consultations are on-going
• Creation of public better regulation window by each DG; Secretary General recently sent instructions to Commission services

Annex II

List of Commission’s legislative proposals with simplification implications pending before the other institutions (last update: June 2005)

Regulatory area / Legal act(s) and explanatory notes / Adoption by the Commission and status
in Council/European parliament
Automotive construction sector / Directives 88/77/EEC and 1999/96 on emissions from heavy-duty vehicles. / Agreement in first reading between the Parliament and the Council last March: in process of adoption by co-decision.
Directive 70/156/CEE relating to type approval of motor vehicles and their trailers. / Co-decision procedure ongoing. Council political agreement expected in the third quarter of 2005 and common position expected by the end of the year under UK Presidency.
Chemicals / Council Directive 76/769/EEC of 27 July 1976 on the approximation of the laws, regulations and administrative provisions of the Member States relating to restrictions on the marketing and use of certain dangerous substances and preparations.
NB: Directives 91/155/EEC, 93/67/EEC, 93/105/EEC and 2000/21/EC and Regulations (EEC) No 793/93 and (EC) No 1488/94 shall be repealed by the REACH Regulation. / The European Parliament is expected to deliver its first reading opinion in autumn 2005. The Council is due to adopt its political agreement (maybe even its common position) during the UK Presidency.
The Regulation is foreseen for adoption by the end of 2006.
Metrology & Packaging / Pre-packaging legislation. / First reading under UK Presidency (in the Competitiveness Working Party).
Rural policy post-2006 / Repeal and replacement of Regulation 1257/1999 by a new Council Regulation. / Adoption expected by end 2005.
Road transport / Replacing and simplifying Regulation EEC 3820/85 on driving conditions. / Possible adoption for the end 2005
Road transport / Directive on driving licences to replace 6 older acts (Council Dir. 91/439, Council Dir. 94/72, Council Dir. 96/47, Commission Decision 96/427, Council Dir. 97/26 and Commission Dir. 2000/56). / Final adoption expected beginning of 2006.
Company Law / 2nd Company Law Directive 77/91/EEC. / Possible adoption end of 2005.
Drugs / Council Regulation (EEC) 302/93 on the European Monitoring Centre for Drugs. / Expected to be examined under the UK Presidency.
Justice and Home Affairs / Regulation establishing a Community Code governing the movement of persons across borders / Pending before the Council working group.
Taxation / Sixth VAT Directive (77/388/EEC- 28 acts and some 150 OJ pages). / Possible adoption end of 2005.
Social affairs / Directives on equal treatment between men and women. / First reading of the Parliament expected in 2005.
Waste / Regulation 259/93 (shipment of waste). / Possible adoption end of 2005.
Air quality / Council Directive 93/12/EEC relating to the sulphur content of certain liquid fuels. / Final adoption due in 2005.
Cohesion policy / Legislative package for the next programming period (2007-2013) - COM (2004) 492-496. / Pending before the Council.

Annex III

Follow-up of the list of Council priorities for simplification of EU Legislationadopted by the Council on the 25th November 2004

# / Council priorities /
Commission action / Type of action
Stakeold-consult. / Non-Leg / Legislative
1 / Council directive 91/414/EEC concerning the placing of plant protection product on the market / Proposals for simplification (Ref. WP 2005: 2003/SANCO/61) / 2nd and 3rd quarters 2005 / - / 3rd or 4th quarter 2005
2 / Fourth Council directive 78/660 on the annual account of certain types of companies / Possible study on MS implementation[1] / Possible end 2005 / Possible: 2nd half 2005 / Possible for 2006
3 / Twelfth Council Company Law Directive 89/667/EEC on single-member private limited-liability companies / Communication on transfer of businesses / Possible / 2nd half 2005 (communication) / Possible
4 / Council directive 75/439/EEC on the disposal of waste oils / Thematic Strategy on Prevention and Recycling of Waste (Ref. WP 2005: 2004/ENV/001) / January 05/March 05 / September 2005 (communication) / The communication is likely to be accompanied by a package of measures
5 / Council directive 75/442/EEc on waste
Council directive 91/156/EEC emending directive 75/442 on waste / Thematic Strategy on Prevention and Recycling of Waste (Ref. WP 2005: 2004/ENV/001) + revision of directive 75/442 / 2 stakeholder questionnaires + a MS one / September 2005 (communication) / The Commission is preparing a revision of the Directive by September.
6 / Council directive 91/689/EEC on hazardous waste / Thematic Strategy on Prevention and Recycling of Waste (Ref. WP 2005: 2004/ENV/001) / January 05/March 05 / September 2005 (communication) / The communication is likely to be accompanied by a package of measures
7 / Directive 2000/76/EC on the incineration of waste / Study to be launch in 2005, results expected for 2006. / No / 2005 (study) / No so far
8 / Directive 2000/13/EC on the approximation of the laws of the Member States relating to the labelling, presentation and advertising of foodstuffs / Discussions with experts of MemberStates and stakeholders are to take place, prior to an impact assessment, in view of drafting a proposal to replace the existing Directive in 2006 / 2nd quarter 2006 / 3rd quarter 2005 (impact assessment / Possible legislative proposal end 2006 anticipated by a stakeholder consultation during the 2nd quarter of 2006
9 / Council Directive 71/320/EEC of 26 July 1971 relating to the braking devices of certain categories of motor vehicles and of their trailers
Council Directive 76/756/EEC of 27 July 1976 relating to the installation of lighting and light-signalling devices on motor vehicles and their trailers / The Commission’s intents to repeal these and other directives and to make parallel UNECE Regulations mandatory once Dir. 70/156/EEC recast is in place[2] / - / - / To be determined
10 / Council Directive 89/106/EEC on the approximation of laws, regulations and administrative provisions of the Member States relating to construction products / Study to evaluate the Internal Market and competitiveness effects of the Construction Products Directive / First round possible by end 2005 / Launch a study in 2005 / Possible proposal not before 2007
11 / Council directive 93/42/EEC concerning medical devices / Proposals for simplification Medical Device Directive (Ref. WP 2005: 2005/ENTR/007) / No (only MS) / 2nd quarter 2005
12 / Council Directive 87/404/EEC on the harmonization of the laws of the Member States relating to simple pressure vessels / Report on the pressure equipment directive (legal obligation).
Public consultation to collect stakeholders feedback[3]. / 2005 / May 2005 report (legal obligation) / Possible legislative proposal not before the end of 2005
13 / Council Directive 89/391/EEC on the introduction of measures to encourage improvements in the safety and health of workers at work / Consultation of social partners according to Article 138 of Treaty in two steps (Ref WP 2005: 2005/EMPL/010) / Two phases: April 2005 and 3rd QT 2005 / Possible simplification proposal end 2005
14 / Council Regulation (EC, Euratom) No 58/97 concerning structural business statistics / Proposal for a Regulation / 2005 / - / 2nd half 2005
15 / Council Regulation (EEC) No 3330/91 of 7 November 1991 on the statistics relating to the trading of goods between Member States / Commission regulation / No / - / Autonomous act of the Commission to be presented for a vote in the Intrastat Committee during the third quarter of 2005
Summary / 7 / 7 / 3+1
Legislative + non-legislative actions / 11

Annex IV