Dp 05 ST09041
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COUNCIL OF THE EUROPEAN UNION | Brussels, 8 May 2006 | |||
9041/06 | ||||
COMPET 108 | ||||
NOTE
from: | Presidency |
to: | COREPER/Council |
Subject : | Progress Report on Better Regulation |
In preparation of the Competitiveness Council on 29/30 May 2006, delegations will find attached a draft Presidency Progress Report on Better Regulation, which will be sent to the Council as a basis for an exchange of views on future priorities as regards work on better regulation
Presidency Progress Report to the May Competitiveness Council: Better Regulation
Introduction
The Better Regulation agenda aims to improve the quality and form of EU legislation and ensure it meets its objectives without imposing unnecessary burdens. The March 2006 European Council underlined the importance of Better Regulation as a core element of achieving the goals of the Lisbon Strategy to create jobs and growth, urging all institutions and Member States to implement their respective commitments.
The Austrian Presidency has taken forward better regulation in all relevant Council formations in line with the six-Presidency initiative on regulatory reform (Ireland, Netherlands, Luxembourg, United Kingdom, Austria and Finland) of December 2004, following up the Competitiveness Council Conclusions of 28-29 November 2005.
The Presidency also notes progress in other EU institutions. The Presidency welcomed the Commission announcement at the March 2006 European Council of a planned analysis of progress to date and of where further work is needed in all areas of better regulation. The Presidency also welcomes developments in the European Parliament, particularly the reports [to be] adopted in the plenary session of 16th May.
The Austrian Presidency highlights the following work in progress:
Impact Assessment
The Presidency notes that 85 items of the Commission's Legislative and Work Programme 2006 will be subject to a proportionate Impact Assessment (IA) and welcomes the launch of a comprehensive independent evaluation of the Commission IA system in May 2006. The results of this are expected in early 2007, and the Presidency expects this will focus on improving
quantitative analysis, earlier and more transparent stakeholder consultation, greater focus on SME impacts, measurement of administrative costs of policy options and the use of alternatives to regulation. The review could also consider further incorporating assessments of the subsidiarity and proportionality principles into Impact Assessments.
Commission IAs have provided technical information to inform political debate and improve legislative outcomes across Council formations. Experience suggests that greater clarity for chairs on how to embed examination of impact assessment into discussions, and of when further information could be requested from the Commission, would ensure consistency across Council formations.
In response to a suggestion from COREPER and to the need for clarity about how Commission IAs should be analysed in Council, as expressed at the December High Level Technical Group for Inter-Institutional Cooperation, the Presidency produced a practical handbook entitled "Handling Impact Assessments in Council - Guidance for Working Party Chairs", in consultation with the Council Secretariat, Member States and the Commission.
Simplification
The Presidency notes the ongoing implementation of the Commission's rolling programme of simplification as announced in October 2005. Simplification at Community and national levels can make regulation less burdensome on economic operators, easier to apply and thereby more effective in achieving its objectives. 54 simplification initiatives are listed in the Rolling Programme for 2006. By early 2006, 15 simplification proposals had been presented, representing actions programmed for 2005 and for early 2006, 3 of which have been completed in Council, while 19 Commission simplification proposals are pending before the legislator.
The Commission has identified the need for further simplification and will update its rolling programme following its analysis of the acquis in the sectors of waste, automotive and construction.
The 2006 Spring European Council also called on Member States to complement this work with national programmes, as a number of Member States are doing in the context of their National Reform Programmes.
Screening of pending legislative proposals
The systematic screening of existing proposals is a visible and practical element of the Better Regulation agenda. The Commission's 2005 screening exercise was concluded in March 2006 with publication in the official journal of 67 proposals that the Commission has withdrawn. The Presidency invites the Commission to continue to screen pending proposals and to consider repeating this exercise.
Assessing and reducing administrative costs
The Presidency notes and welcomes progress made in the Commission and the ECOFIN Council on assessing and reducing administrative burdens. The Commission has updated its Guidelines for Impact Assessment to include a full operational manual for assessing administrative costs for use in impact assessments. In response to a European Council request, the Commission has launched a pilot project to measure administrative costs associated with EU rules in specific areas. The Commission was invited to explore options for establishing measurable targets in specific sectors for reducing these costs and will report to Council by the end of 2006. Preliminary results will be available in the autumn.
Specific measures for SMEs
The European Council underlined the crucial role of SMEs in creating growth and better jobs in Europe and the need to develop comprehensive supportive policies for SMEs of all types, as well as a regulatory environment that is simple, transparent and easy to apply. The Presidency notes the Commission will bring forward specific provisions to encourage SME growth and development, such as longer transition periods, reduced fees, simplified reporting requirements and exemptions. Examples of these measures can be seen in the current version of the REACH Regulation under negotiation, such as a 'targeted approach' for registrations of between 1 and 10 tonnes of a substance. This encourages a risk-based approach while giving due attention to environmental protection objectives.
Progress on cooperation with the European Parliament
The Presidency notes the ongoing implementation of the Inter-Institutional Agreement on Better Law Making and co-operation and dialogue between the EU institutions.
State Secretary Winkler represented the Presidency at the European Parliament debate on Better Regulation on 4 April, and European Parliament representatives presented their work on Impact Assessment to the Working Party on Competitiveness and Growth on 27 March. The High Level Technical Group for Inter-institutional Cooperation (Parliament, Council and Commission) met on 16 December 2005 to discuss Impact Assessment, Simplification, Transparency and the use of alternatives to regulation.
Subsidiarity
At the 2006 European Subsidiarity Conference “Europe begins at home” on 18/19 April in St. Pölten, the Austrian Presidency focused on the inter-relation of better regulation and a more effective application of the subsidiarity principle in the European legislative process. Subsidiarity, proportionality and improvement of the regulatory environment are closely linked, as these principles oblige the Union to limit actions to those that are necessary and effective.
The conference examined the contribution that the current better-regulation initiatives and projects in the context of the European Union could make to this agenda. The Commission was encouraged to consider options to ensure examination of these principles in Commission Impact Assessments was consistent and systematic, and how economic analysis and other objective measures could inform decisions about the necessity of EU action.
Raising Better Regulation expertise
The Presidency notes and welcomes the initiative to organise training for national officials, which is being developed in the framework of the Directors of Better Regulation Group. Several institutions and universities are currently being considered as candidates to hold a first pilot course in 2006.
Further Work
Better Regulation requires long-term commitment by all institutions and Member States. Further work in the Council is needed to implement the decisions and commitments made, including by making full use of impact assessment and giving priority to progressing simplification proposals. The Council will review progress on simplification in Autumn 2006 on the basis of a detailed report from the Commission.