Interinstitutional Agreement on Better Regulation: What It Means for the EU

The European Union (EU) has prioritized improving the quality of its legislation and reducing regulatory burden since the launch of the Better Regulation Agenda in 2002. The latest step in this direction is the Interinstitutional Agreement on Better Regulation signed on 13 April 2016 by the European Parliament, the Council, and the European Commission. The agreement aims to strengthen cooperation between the three institutions and improve the transparency, effectiveness, and efficiency of the EU`s policymaking process.

What does the agreement entail?

The Interinstitutional Agreement on Better Regulation contains a set of binding provisions that require the institutions to:

1. Promote transparency and stakeholder involvement: The institutions must publish a roadmap of their upcoming initiatives and conduct public consultations before adopting new legislation. The agreement also establishes a stakeholder group to provide advice and feedback on the EU`s better regulation efforts.

2. Assess the impact of new legislation: The institutions must conduct rigorous impact assessments to evaluate the economic, social, and environmental consequences of proposed legislation. The agreement outlines common standards and methods for impact assessments, as well as the creation of a High-Level Group on Better Regulation to ensure consistent and reliable analysis.

3. Simplify and streamline existing legislation: The institutions must conduct regular reviews of existing legislation to identify areas where rules can be simplified or abolished. The agreement establishes a common methodology for regulatory fitness checks to ensure that existing legislation meets its objectives and does not create unnecessary burden or costs.

4. Respect subsidiarity and proportionality: The institutions must ensure that new legislation respects the principle of subsidiarity, which means that decisions should be taken at the most appropriate level of governance, and the principle of proportionality, which means that the regulatory burden should be no greater than necessary to achieve the intended objectives.

What are the benefits of the agreement?

The Interinstitutional Agreement on Better Regulation is expected to bring several benefits to the EU, including:

1. Improved quality of legislation: By requiring impact assessments and stakeholder consultation, the agreement will ensure that new legislation is evidence-based, proportionate, and effective.

2. Reduced regulatory burden: By simplifying and streamlining existing legislation, the agreement will help businesses and citizens to benefit from a more predictable and consistent regulatory environment, reducing compliance costs and administrative burden.

3. Increased transparency and accountability: By promoting transparency and stakeholder involvement, the agreement will enhance the legitimacy and credibility of the EU`s policymaking process, making it more accountable to citizens.

4. Strengthened cooperation between institutions: By establishing a common framework for better regulation, the agreement will facilitate cooperation between the institutions and ensure consistency and coherence in the EU`s policymaking process.

In conclusion, the Interinstitutional Agreement on Better Regulation is a significant step towards improving the quality of EU legislation and reducing regulatory burden. It demonstrates the EU`s commitment to evidence-based, transparent, and effective policymaking and establishes a common framework for cooperation between the institutions. While the agreement is not a magic wand, it is expected to bring tangible benefits to businesses, citizens, and policymakers alike, and contribute to the overall competitiveness and sustainability of the EU economy.