Select Committee on European Scrutiny Eleventh Report


6 Simplification of Community legislation

(28354)

5924/07

+ ADDs 1-2

COM(07) 23

Commission Communication: Action Programme for reducing administration burdens in the European Union

Legal base
Document originated24 January 2007
Deposited in Parliament8 February 2007
DepartmentCabinet Office
Basis of considerationEM of 20 February 2007
Previous Committee ReportNone, but see footnotes 22 and 23
Discussed in CouncilMarch 2007
Committee's assessmentPolitically important
Committee's decisionCleared

Background

6.1 The first initiative to simplify Community legislation was launched in 1997, and the Commission has since issued a regular series of Communications addressing this issue, notably one in March 2005,[22] which focused on improving and extending the use of impact assessments for new proposals, screening pending legislative proposals, and introducing new ways of simplifying existing legislation.

6.2 This was followed in November 2006 by a further Communication,[23] which reviewed ways of reducing administrative burdens arising from compliance with Community legislation, particularly as regards reporting requirements. It said that a common methodology had been developed for assessing administrative costs, which the Commission had applied in its own impact assessments for new legislation, and that the priority now was to reduce the burden imposed by existing legislation. The Commission was therefore working with Member States to develop a way of measuring those burdens, and had summarised developments so far in an accompanying working document. It went on to point out that some Member States had already concluded that a 25% reduction in the administrative burden was feasible, and it said that it would shortly be presenting an Action Plan setting out a coordinated longer term approach for joint Community and Member State measurement and reduction targets.

The current documents

6.3 It has now done so in this latest Communication, which addresses the ways in which the administrative burdens can be identified, measured and reduced by 25% by 2012 — an objective which it suggests could in the medium term lead to an increase of about 1.4% in the Community GDP, equivalent to €150 billion. The Commission also points out that this is a shared objective which can only be achieved by the Member States and the European institutions acting jointly, and that the aim is not deregulation as such, but rather to streamline the ways in which policy objectives are implemented, without compromising the underlying aims.

6.4 In essence, it is proposed that the Commission (with the help of Member States) should measure (using the EU Standard Cost Model) the administration burdens relating to Community legislation and transposition, and draw up appropriate reduction proposals, whilst the Member States should proceed in a similar fashion as regards purely national legislation. The aim will be to provide by November 2008 as assessment which will lead to the planned reduction in the administrative burden by 2012, and the Commission identifies measures in 13 priority areas which, on the basis of data from a number of Member States (including the UK), it says cover the "vast bulk" of administrative burdens originating from Community law. The areas in question are: company law, pharmaceutical legislation, working environment/employment relations, tax law (VAT), statistics, agriculture and agricultural subsidies, food safety, transport, fisheries, financial services, environment, cohesion policy, and public procurement — though the Commission adds that, if further work should indicate a need to include additional areas, these will be added to the list. The Commission also proposes that the measurement exercise should be carried out by a contractor, in collaboration with it and the Member States, and a High Level Group of National Regulatory Experts has been asked to appoint a single contact in Member States' governments.

6.5 Because of its size and complexity, the measurement exercise will take some time, but, in view of its commitment to reduce these administrative burdens quickly, the Commission has proposed 10 fast-track items — relating to company law, agriculture, statistics, transport and food hygiene — which could reduce those burdens by about €1.3 billion, and it has asked that special priority should be given to these.

6.6 The Communication concludes by asking the spring European Council to endorse the Action Programme, together with its target of a 25% overall reduction by 2012 in the administrative burdens caused by Community and national legislation. It also invites Member States to support the Commission in measuring the burdens associated with Community legislation and its transposition, to set by October 2008 targets for reducing the administrative burden at national level, and to report on the measurement and reduction of administrative burdens annually, starting in October 2007.

The Government's view

6.7 In his Explanatory Memorandum of 20 February 2007, the Minister for the Cabinet Office (Mr Pat McFadden) says that the Action Programme raises some subsidiarity issues, in that it asks Member States to set targets for reducing the administrative burdens stemming from national legislation, and that the proposed Community targets would cover Member States' legislation which transposes Community obligations. However, he adds that, as the Plan would not impose any burdens additional to those which the UK has set itself, these issues are not in practice of great concern, and that the Government supports the aim of reducing administrative burdens in the Community by 2012, which it regards as an important means of achieving its own goals.

Conclusion

6.8 In common with the earlier Communications which we have considered, these documents seek to take forward the welcome aim of simplifying Community legislation. As such, they are of obvious interest, and, although we do not think they give rise to any issues requiring further consideration, we think it right, in clearing them, to draw them to the attention of the House.





22   Better Regulation for Growth and Jobs (26448) COM(05) 97: see HC 38-xv (2004-05), para 9 (6 April 2005).  Back

23   A strategic review of better regulation in the European Union (28073) 15510/06: see HC 41-v (2006-07), para 6 (10 January 2007). Back


 
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