EXPLANATORY MEMORANDUM ON EUROPEAN UNION LEGISLATION

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Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT ANDOF THE COUNCIL on establishing a single digital gateway to provide information, procedures, assistance and problem solving services andamending Regulation (EU) No 1024/2012

ANNEXES 1 to 3 to the PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing a single digital gateway to provide information, procedures, assistance and problem solving services and amending Regulation (EU) No 1024/2012

COMMISSION STAFF WORKING DOCUMENT Implementation plan Accompanying the document Proposal for a regulation of the European Parliament and of the Council on establishing a single digital gateway to provide information, procedures, assistance and problem solving services and amending Regulation (EU) No 1024/2012

COMMISSION STAFF WORKING DOCUMENT SYNOPSIS REPORT ON THE STAKEHOLDER CONSULTATION ON THE SINGLE DIGITAL GATEWAY Accompanying the document Proposal for a regulation of the European Parliament and of the Council on establishing a single digital gateway to provide information, procedures, assistance and problem solving services and amending Regulation (EU) No 1024/2012

COMMISSION STAFF WORKING DOCUMENT IMPACT ASSESSMENT Accompanying the document Proposal for a regulation of the European Parliament and of the Council on establishing a single digital gateway to provide information, procedures, assistance and problem solving services and amending Regulation (EU) No 1024/2012

COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a regulation of the European Parliament and of the Council on establishing a single digital gateway to provide information, procedures, assistance and problem solving services and amending Regulation (EU) No 1024/2012

Submitted by the Department for Business, Energy and Industrial Strategy on 19 May 2017

SUBJECT MATTER

1.  On 2 May 2017, the European Commission released a package of legislative and non-legislative proposals on compliance. The “Compliance Package” is designed to improve the compliance and enforcement of Single Market rules – meeting a commitment originally set out in the Commission’s Single Market Strategy in 2015.

2.  As part of the Compliance Package, the European Commission published a proposal for a Regulation to develop a more comprehensive, more user-friendly portal for the provision of information and assistance to help citizens and businesses navigate the Single Market (the Single Digital Gateway).

3.  The overarching objective of the proposal is to remove obstacles that exist for both citizens and businesses exercising their rights in the internal market. The proposal aims to achieve this by creating a centralised digital access point, and ensuring all the relevant information and procedures are available online and of a high quality. It also sets out quality requirements for the assistance and problem-solving services already provided by Member States.

4.  The proposal comprises the following provisions:

a)  The establishment and operation of a single digital gateway: the Regulation will require the European Commission to establish a common user interface integrated in a single portal;

b)  Provision of information online: the Regulation will require Member States to ensure their national webpages provide citizens and businesses with easy access to high quality, comprehensive information relating to internal market rights;

c)  Provision of procedures online: the Regulation requires Member States to have procedures related to internal market rights fully online and accessible by nationals from other Member States;

d)  Problem-solving and assistance tools: the Regulation requires the Single Digital Gateway to bring all the existing problem solving/assistance tools in one place;

e)  Quality requirements on information: the Regulation sets out quality requirements for the aforementioned provision of information, services and assistance tools and creates a user feedback tool to monitor quality;

f)  Quality monitoring: the Regulation creates a mechanism to provide evidence of failures in the functioning of the Single Market;

g)  Governance of the gateway: the Regulation creates new technical exchange tool for exchanging evidence and establishes a coordination group composed of the national coordinators to support the implantation of the gateway;

h)  Amends the Internal Market Information System: the Regulation amends the Internal Market Information System (EU/1024/2012) to allow Member States to share information collected from the gateway.

SCRUTINY HISTORY

5.  The Department for Business, Innovation and Skills submitted an Explanatory Memorandum (EM) on 12 November 2015 relating to ‘Communication from the European Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions - Upgrading the Single Market: more opportunities for people and business’. The Commons European Scrutiny Committee considered it but cleared it (report 24, session 15/16). The Lords Select Committee on the European Union cleared it (sift 1601, session 15/16).

MINISTERIAL RESPONSIBILITY

6.  The Secretary of State for Business, Energy and Industrial Strategy (BEIS) has primary responsibility for this proposal, with Ministers in other Departments maintaining an interest. Ministers in the Cabinet Office have an interest in relation to the Government Digital Service’s work on GOV.UK.

INTEREST OF THE DEVOLVED ADMINISTRATIONS

7.  The Scottish Government, Welsh Government, and Northern Ireland Executive have an interest where information or procedures relating to Single Market rights are provided by Devolved Administrations. The Devolved Administrations have been consulted in the preparation of this EM.

LEGAL AND PROCEDURAL ISSUES

i) Legal basis

8.  This section will be updated after the General Election on 8 June 2017

ii.) European Parliament Procedure

9.  Ordinary Legislative Procedure applies

iii.) Voting procedure

10. Qualified Majority Voting applies

iv.) Impact on United Kingdom Law

11. This section will be updated after the General Election on 8 June 2017

v.) Application to Gibraltar

12. This section will be updated after the General Election on 8 June 2017

vi.) Fundamental rights analysis

13. This section will be updated after the General Election on 8 June 2017

APPLICATION TO THE EUROPEAN ECONOMIC AREA

14. The proposed Regulation is not applicable to the EEA.

SUBSIDIARITY

15. This section will be further updated after the General Election on 8 June 2017.

POLICY IMPLICATIONS

16. This section will be updated after the General Election on 8 June 2017

CONSULTATION

17. The Commission carried out a public consultation of interested stakeholders between November 2015 and December 2016. It included a dedicated stakeholders' workshop, an online public consultation, meetings with stakeholder representatives, as well as exchanges with Member States (MS). Considering the scope of and responses to these activities, the Commission decided not to launch a specific consultation targeting SMEs and start-ups.

18. Respondents identified that there are many problems relating to access to information, availability of e-procedures and access to assistance services; their views have influenced the development this proposal.

IMPACT ASSESSMENT

19. An impact assessment was carried out by the Commission in preparation of this initiative. The Commission’s Regulatory Scrutiny Board’s initial opinion on 20 January 2017 led to the report being resubmitted in order to take into account their recommendations. Additional points raised by the Board in its final opinion of 7 March 2017 were also taken into account by the Commission.

FINANCIAL IMPLICATIONS

20. Given its role in facilitating cross-border trade and opening up the Single Market, the Commission has estimated that even a less ambitious implementation of the Single Digital Gateway Regulation could save businesses between EUR 7 billion and EUR 49.5 billion.

21. The Commission estimates that the cost of implementing this Regulation would be EUR 109 million of initial investment costs, and around EUR 8 million of annual running costs for all Member States and the Commission combined. The initial investment costs would be partially offset in one year by savings to cross-border businesses by removing additional translation and certification fees and consultancy costs of an estimated EUR 86 million.

22. For the countries that have the fewest procedures online, the Commission estimates that digitalising the remaining procedures would cost EUR 6.6 million.

TIMETABLE

23. The proposals were published on 2 May 2017. The Maltese Presidency is expected to hold introductory Working Groups in June. We expect the Estonian Presidency to prioritise the Regulation by holding regular Working Groups and to attempt to reach General Approach under their Presidency.

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