The European Commission’s Package for Better Regulation
Earlier in March 2005, the European Commission adopted a new Communication "Better regulation for Growth and Jobs in the European Union" which outlines its better regulation package aimed at cutting red-tape, tackling excessive regulation and ensuring that the burden imposed by regulation is proportionate to its aim. This initiative is welcomed by JAMA who fully supports this initiative and shares the Commission view that there must be a better balance between costs and benefits of legislation. This of course will have to be achieved while preserving the basic objective of European legislation, as well a securing the functioning of the Internal Market.
Tackling red tape will have a direct impact on growth and competitiveness in the EU. This was outlined by Commissioner Verheugen who said: “Less red tape means more growth. The Commission is ready to do its part, to clamp down on overregulation and promote simplification. But we cannot go it alone. Member States must also reduce bureaucracy. This is holding back businesses from creating jobs.”
As mentioned in its submission to the CARS 21 consultation, JAMA is of the view that it is the cumulative effect of regulations, which individually may have strong persuasive merits but are often not mutually consistent, which have presented many sectors in the EU, include the automotive sector, with significant burdens. In present circumstances, there is a risk that the existing process of legislation places an unjustified and excessive burden in intra-community trade and starts to seriously threaten the EU’s competitiveness vis-à-vis the other trading block.
In its package, the Commission outlines its intentions to:
One of the key actions proposed by the Commission is the simplification of EU and national legislation. This was in fact started in 2003 when the Commission presented about 30 initiatives to simplify regulatory issues for economic operators, citizens and national administrators. In November 2004, a list of 20 priority items was agreed by the EU’s Competitiveness Council. Today, 17 proposals with simplification implications adopted by the Commission are pending before other EU institutions. Existing Commission proposals for simplification related to the automotive sector include:
+ indicates lightening of administrative burden as well as purely legislative simplification
In this new package, and in parallel with existing initiatives, the Commission confirmed its intentions to enter a new simplification phase through more involvement of industry, taking their experience into account. According to the Commission, more details on this new phase will be announced in October this year and will take into account the outcome of consultation with interested parties. JAMA encourages consultation with the automotive sector and will be happy to contribute constructively.
Some other actions that have also been introduced by the recent Communication include:
While much remains to be developed and implemented, JAMA views this initiative as an essential and welcome step towards better regulation principles and practices that take into account the full impact of regulations on all three pillars of sustainability.