17.07.2015
Better regulation at EU level

European Commission should now review regulation of the past years

The European Commission counts better regulation and a focus on delivering what really matters among its current priorities. The GDV welcomes the intentions to improve the regulatory environment, which have been emphasized by the Commission in its agenda of 19 May 2015. Now, as a next step, it is essential to evaluate the impacts of the existing acquis with those that are affected. This exercise needs to include all levels of regulation.

The regulatory measures taken by the EU as a response to the financial and economic crisis have contributed to reestablishing confidence. Now it is time to review these measures through the Regulatory Fitness and Performance programme (REFIT). The general commitment of the European Commission to carry out more ex-post-evaluations is therefore very welcome.

The GDV has compiled concrete examples of inconsistencies and unnecessary bureaucratic burdens through European regulation. This includes contradictory double regulation on insurance derivatives in Solvency II and EMIR as well as redundancies for distribution through many new disclosure requirements (IMD2, PRIIP, Solvency II, etc.). Especially for financial services, regulation at subordinate levels (Level 2 & 3) has become crucial. The principles of better regulation therefore should also be applied on these levels, in particular with a view to the work of the European supervisory authorities (ESAs).

Moreover, future regulation should also be formulated along the principles of better regulation. To enhance the European Commission’s consultations of stakeholders is a step in the right direction. This also applies to the Commission’s emphasis on the principles of subsidiarity and proportionality as well as its proposal to carry out impact assessments during the legislative process.

The reduction of administrative burdens should now become a political reality and all European institutions should adhere to the same principles.

The GDV’s most important considerations concerning better regulation at a glance:

  • Conduct a strict review of policy options in terms of administrative burdens.
  • Structure impact assessments of the European Commission in a more comprehensive, sustainable and transparent fashion.
  • Establish a permanent inter-institutional culture of better regulation and corresponding mechanisms.
  • Carry out more ex-post-evaluations and draw the necessary conclusions.
  • Observe the boundaries of action: always respect the principles of subsidiarity and proportionality.
  • Do not make regulation at subordinate levels the rule.
  • Improve impact assessments and the integration of stakeholders in the process of subordinate regulation.
  • Take better regulation into account with a view to guidelines by the European supervisory authorities (ESAs).
  • Consider all regulatory levels together to get an overall view of the impact of EU legislation.

Our Position Paper in the download section details the above points and includes concrete examples as suggestions for closer reviews.

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