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Administrative burdens on businesses

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Description

The economic impacts are “administrative costs on businesses” endeavours to issue a business regulation that does not impose excessive costs on businesses. In the EU´s approach to better regulation, the preparation of new legislation and simplification of existing legislation take into account the overall benefits and costs. Therefore regulatory costs, of which administrative costs are only one element, must be analysed in a broader context, encompassing in an integrated way the economic, social and environmental costs and benefits of regulation. This is why the assessment of administrative burdens must continue to form a part of the Commission´s integrated impact assessment procedure. Measuring administrative costs can help to improve the regulatory environment, but it cannot take a disproportionate weight in that broader analysis. Nor can EU legislation be presented as a mere cost factors, in particular as it often replaces 25 different national legislations and thus decreases operating costs at EU level.
 
The Impact Assessment Guidelines 2005 have been reformed in 2009. Compared to the version of the area “Administrative costs on businesses” in 2005, the key questions have only been reworded in 2009

This impact area is further specified by the taxonomy terms: Administrative Burdens on Business, Administrative Burdens on SMEs.

Relevant Policies

2007: Programme for measuring administrative costs arising from legislation in EU
 
Ø  Action Programme for Reducing Administrative Burdens
 
In 2005, the Commission proposed a common EU methodology for measuring administrative costs imposed by legislation – both existing and planned legislation. This methodology is based on the Standard Cost Model applied in several Member States. Adapted to EU needs and resources, this “EU Standard Cost Model” takes into account the fact that EU legislation often replaces 27 different national legislations and thus decreases operating costs at EU level.
 
The Commission´s Better Regulation Strategy is therefore simply aiming at measuring administrative costs and reducing administrative burdens.
 
This text is for information only and is not designed to interpret or replace any reference documents. The text is partially replicated from http://ec.europa.eu/enterprise/policies/better-regulation/index_en.htm

Legal Basis for the Commission to Act

Protocol on the application of the principles of subsidiarity and proportionality annexed to the treaty establishing the European Community: Art. 5
 
The Protocol on the application of the principles of subsidiarity and proportionality annexed to the treaty establishing the European Community provides that “any burden, whether financial or administrative falling upon the Union, national governments, regional or local authorities, economic operators and citizens, to be minimized and commensurate with the objective to be achieved.” Therefore it is a key objective for the European Union to reduce administrative burden. By this businesses can spent more time and resources on their core assets and activities  which may reduce production costs and allow additional investment and innovation, which in turn should improve productivity and overall competitiveness.

Web Resources

Communication: Better Regulation for Growth and Jobs in the European Union            http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX%3A52005DC0097%3AEN%3ANOT

Contact

Please link to relevant Directorate General Contact Details.

Administrative Burdens on Business

Administrative Burdens on SMEs

Publications and applications

Titelsort descending Type of practice Updated date
European Research for Impact Assessment Tools Publication 2014-04-17 14:41
IA Report: Action Plan for Energy Efficiency: Realising the Potential Application of a Model or Method 2013-09-05 10:14
IA Report: Action Programme for Reducing Administrative Burdens in the European Union Application of a Model or Method 2013-09-03 22:00
IA Report: Communication on Winning the Battle against Global Climate Change Application of a Model or Method 2013-09-05 11:40
IA Report: Defining the modalities for reaching the 2020 target to reduce CO2 emissions from new light commercial vehicles (2012) Application of a Model or Method 2013-07-24 21:45
IA Report: Defining the modalities for reaching the 2020 target to reduce CO2 emissions from new passenger cars (2012) Application of a Model or Method 2013-07-24 21:40
IA Report: Electronic identification of bovine animals and deleting the provisions on voluntary beef labelling (2011) Application of a Model or Method 2013-07-29 00:03
IA Report: Energy Efficiency Plan 2011 (2011) Application of a Model or Method 2013-07-27 13:30
IA Report: Internal market for electricity and gas Application of a Model or Method 2013-09-03 21:53
IA Report: Package of Implementation measures for the EU's objectives on climate change and renewable energy for 2020 Application of a Model or Method 2013-09-03 19:42
IA Report: Proposal for a Directive amending Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity Application of a Model or Method 2013-09-03 21:54
IA Report: Proposal for a Directive on energy efficiency (2011) Application of a Model or Method 2013-07-27 13:16
IA Report: Proposal for a Directive on reporting formalities for ships arriving in or departing from ports of Member States of the Community and repealing Directive 2002/6/EC Application of a Model or Method 2013-09-02 15:36
IA Report: Proposal for a Regulation of the European Parliament and of the Council on fluorinated greenhouse gases (2012) Application of a Model or Method 2013-07-24 21:34
IA Report: Proposal for a Regulation on a Common European Sales Law (2011) Application of a Model or Method 2013-07-29 23:20
IA Report: Proposal for a Regulation on ship recycling (2012) Application of a Model or Method 2013-07-25 18:34
IA Report: Regulation on type-approval of motor vehicles and engines with respect to emissions from heavy duty vehicles (EURO VI) and on access to vehicle repair and maintenance information Application of a Model or Method 2013-09-03 22:15
IA Report: Renewable Energy Road Map Application of a Model or Method 2013-09-03 20:22
The Policy-Relevancy of Impact Assessment Tools: Evaluating Nine Years of European Research Funding Publication 2014-07-09 16:32

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