Table of Contents
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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
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.
- European Commission: DG Enterprise – Better Regulation http://ec.europa.eu/enterprise/policies/better-regulation/index_en.htm
Communication: Better Regulation for Growth and Jobs in the European Union http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX%3A52005DC0097%3AEN%3ANOT
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