US goes back to basics of (drastic) RR

A major discussion has been going in past weeks in Washington about the nature and extent of a new wave of regulatory reforms. There is too much information and opinion online for this blog to summarize. But it is by our standards a major event, and interested experts are invited to check it out, for potential new insights. An apparently objective introduction is provided by an online article in the Washington Post.
What is most striking for us observers is the intensity of the attack on regulation, which makes the UK deregulation unit look moderate.
For a detailed presentation of the draft Regulatory Accountability Act, one of the new texts under consideration, see an article from the Heritage Foundation.

New package for the business environment (France)

This week's Council of Ministers heard a report by the minister in charge on the package of 80 measures in favour of business. Most of them originate in the feedback received during the Assises de la Simplification on 29 April. The most innovative is the creation of an "electronic safe" where companies can store information often requested by administrations, to avoid multiple submission of the same data. Another ground-breaking initiative is the possibility for firms to get a legally binding position from the administration on a permit or authorization scheme, prior to taking a corporate decision. Statistical requirements are also being reduced. About three quarters of the measures have been implemented on schedule, 30 being subject to amendments of existing legislation (see bill adopted by the National Assembly, now in the Senate). A new package, stemming from a parliamentary report, will be presented on 6 December, when a second session of the Assizes will be held. The invitation to the press was published yesterday.

Accountants criticise EC plan for SMEs

Friend of the network Manos draws our attention to his organisation's reaction (published today on Euractiv) to the recent report by the Commission on relief from EU law for SMEs (23 November). Under the title "Smart regulators must be able to tell regulatory burdens from regulatory capital," the Association of Chartered Certified Accountants (ACCA) points out that the Commission's inititatives on exempting small businesses from individual regulations risk misinterpreting the needs of SMEs and introducing "two-tier markets". This viewpoint is based on the newish concept that regulation does not only impose costs (which when not justified are called burdens): "some regulations, including those governing financial disclosures, "are more like public investment in that they build capital – trust, standards and confidence – which private firms can then leverage to create value." Exemptions from these specific rules would not be economically stimulating. For discussion.

EC upgrades Think Small First principle

Last week the European Commission presented a number of initiatives to boost the contribution of Small and Medium Enterprises (SMEs) to the creation of growth and jobs, relying principally on exempting the smaller companies (micro-enterprises) from some EU laws. A press release summarizes the news, but it is worth reading through the Report to Council and Parliament on "minimizing regulatory burden for SMEs." The new steps are taken within the Europe 2020 strategy with smart regulation playing a rôle in making European business more competitive by providing a lighter regulatory environment. They build on the Small Business Act (2008) which has eased access to finance. The report states that administrative burdens have already been reduced by 22%, with more proposals from the Commission (totalling 33% reduction) still in the legislative pipeline and lists existing full or partial exemptions granted to micro-enterprises. The package also contains an action plan to involve SMEs better in law-making. A landmark document which will contribute to the reflection on what will come after the end of the current Action Programme for reducing administrative burdens, which closes next year.

Smart Regulation slated to promote sustainable growth

Yesterday, your blogger attended the conference in Paris on "Smart Regulation and Sustainable Growth" organised by the Korean Legislative Research Institute and the University of Aix-Marseille (FR). The two communities of experts were represented and explored how they could better work together for more effective policy outcomes. This would include tapping the potential of the principles of Better/Smart Regulation to improve the long-term perspective in making and enforcing regulation, to enhance results in the areas of green growth, climate change and biodiversity. Contributions also addressed the effectiveness of regulations compared to other interventions, and means to enlist citizens in securing enforcement, including through easier and less costly access to litigation. Korea put forward the point that incentives could be a major factor for obtaining the right change of behaviors. Participants were referred, for further study, to the OECD publication "Towards Green Growth" (April 2011) which includes sections on how well conceived regulation can contribute to the policy (see pp 45 sq). This blog will report as proceeds are published online.

European regions ponder smart regulation

With all eyes on the new Belgian government constituted after a record inter-regnum, how could we not signal that Flanders has just uploaded proceeds of the conference announced on this blog, which invited officials from regions of European countries to reflect on "How do Flanders and the other European regions cope with the competency for smart regulation in a multilevel environment?" Representatives from Wales, Lombardy, Scotland and Flanders presented their regional policy of smart regulation and discussed with OECD, EC and the Committee of Regions how they could interact with the smart regulation central strategy. The other Belgian region (Walonia) seems not to have been present. A pity neither German lander, nor Spanish communities (for a study of their regulatory work see a previous post), attended. (For more information see also post on Commitee of Regions multi-level governance and better regulation.)

Visas hinder ease of doing business

Making it easier to enter the country for people bringing investment seems a pretty obvious way for a naitonal administration to increase business opportunities and returns by fostering FDI. But many countries have not yet been able to curb their bureaucratic tendencies and cease penalising themselves. This has recently been highlighted at the 5th Arabian Business Forum in Dubai. A quick look around the world shows that Singapore, top performer in business and competitiveness indexes, offers a variety of visas for potential workers and investors. The city-state has a specific Entrepreneur Pass for those intending to set up businesses, and a Multiple Journey Visa can be issued for up to five years.