Benefits of regulatory proposals: German NKR report

The Normenkontrollrat (independent regulatory oversight body) has just published a study on international practices of quantifying the benefits of regulatory proposals in RIAs, on the basis of methodologies in Australia, the United Kingdom, the USA and the European Commission. From page 63; key findings and conclusions make some very useful points:
- there currently isn't a standalone method for measuring benefits;
- central BR units are useful in operating standardisation and quality assurance of impact assessment;
- "willingness-to-pay" is a key factor of quantification;
- assessing the initial impact of a regulatory proposal often requires a case-specific methodological approach because issues pose complex, multi-causal problems;
- results of the process often fall short of expectations; economic impact are more frequently well measured than complex social issues;
- "there is only patchy and anecdotal evidence that RIAs have a positive impact on the policy making process."

Major new book on Smart Regulation in Europe

Just published: "Verso la smart regulation in Europa" (Maggioli Editore) ! (Towards SR in Europe). This collective work (450 pp) under the direction of F. Barazzoni and F. Basilica (Italy) collects country chapters in a review of the state of smart regulation initiatives in Europe. All the best experts contributed to this panorama of regulatory quality: in addition to the editors (for Italy), H. Brinkman & F. Frick (Germany, P. Nurmi (Finland), P. Karkatsoulis (Greece), J. Nijland (Netherlands), M. Leitao Marques (Portugal, E. Schizas (U.K.), S. Penec and A. Marusic (Serbia). Your blogger wrote the EU chapter and France (with M. Hainque). All chapters are accompanied by a translation into Italian.
Written by experienced practicioners connected with the academic world, this book contains an unprecedented analysis of Better Regulation and its evolution towards Smart Regulation, the political objective that Europe adopted in 2005 to simplify the regulatory environment and create the conditions for introducing smarter rules and avoid imbalances between costs and benefits, unclear or unworkable rules . It shows that Smart Regulation is now an essential aspect of economic policy of European countries and the Union itself, making it a lever to improve growth, competitiveness, economic development and employment.
According to the back cover notice "the importance of these issues has led the authors to reflect together on the most innovative initiatives to improve the quality of regulation adopted in various countries and European institutions, analyzing its strengths and weaknesses. The comparative approach highlights the main trends and significant differences between the approaches and tools of reform adopted by individual countries and European institutions, offering insights for scholars and practitioners for further study and practical developments, both in the European national, in the belief that improving the regulation still represents a challenge that requires continuous adjustments in light of the economic environment and the system of European governance." You can preview large sections of the new volume in Google Books.

SR on bilateral Franco-German cooperation agenda

Earlier this week, the celebrations of the 50 years of the Elysée Treaty on franco-german friendship was the opportunity to draw up a list of renewed cooperation in the future. The final declaration (in French and German), includes a short paragraph on Smart Regulation:
"25. Smart regulation and an effective reduction of unnecessary administrative costs contribute to the improvement of growth and competitiveness, in particular of SMEs. France and Germany will exchange on approaches and experiences and intensify the franco-german cooperation, with special emphasis on initiatives at the European level."

SCM network perfects anti red tape tools

The Standard Cost Model Network (SCM) met in Nicosia (Cyprus) on 3 April to share news and insights into recent developments in regulatory costs. Delegates from nearly all EU countries, with Switzerland, and the European Commission were invited by the Cyprus ministry of finance to discuss recent trends in measurement and reduction techniques, in the context of updated smart regulation strategies at MS and Community levels. Among the notable presentations :
- Sweden reported on a policy to improve implementation of regulation by information and training of officials in local government ;s)
- Switzerland presented the methodology used to conduct a general check up of federal legislation, which draws on SCM expertise adapted to specifics of the Swiss context ;
- Germany announced that a new methodology will soon be discussed with EU partners, going beyond paperwork to address the full range of costs (including compliance costs) ; an international manual, drawing on German experience (see Bertelsmann manual on regulatory costs), may result from this cooperation ;
- The European Commission gave an update on its business agenda, which features a wide-scale consultation exercise to identify the «top ten » most irritating procedures, which will be later simplified, and more effective "fitness checks" of EU law.

Germany renews campaign against bureaucracy

The German government has updated its 2006 commitment to cutting bureaucracy, in a landmark decision dated 27 January 2010. The courtesy English translation of this interesting document is now posted on this site (not yet available elsewhere).
This is an unofficial summary of its contents for BR experts:
The 2006 federal programme is to be expanded to encompass compliance costs, once the appropriate methodologies have been developped.
New simplification measures will be adopted to reach the 25% reduction target by 2011; ministries will list and assess reduction measures by May 2010; a new federal plan will be adopted in July by the State Secretaries’ Committee;
Six priority areas have been selected including planning, tax declarations, business permits and electronic submission of company registration, citizens' application for services
New burdens created after 2006 will need to be offset by further cuts (net target);
Other measures include expanding the ex ante evaluation of effects of all new federal regulation proposals on citizens, businesses and public authorities, broadening the competences of the National Regulatory Control Council and pressing for similar action at EU level.

Germanic approach to RIA

Lorenzio Allio, who contributed to this publication, informs us about a new book in preparation on the German, Austrian, Swiss approach to RIA. The Regulatory Impact Assessment (RIA) is defined in rules of procedure. But this does not automatically lead to the smooth implementation of the legislation in practice. This book (in preparation for April 2010) analyzes the experiences and shows (inter) national trends. The different perspectives of science, policy and management are the subject of the first part. The second part examines the relevance of administrative costs and related actions under the RIA. The forecasting behavior of the actors is a necessary condition for effective RIA, as shown by the example of European chemicals regulation REACH. The third part discusses experiences with the RIA in Austria and Switzerland. This is supplemented by a general overview of the practice of the RIA in OECD countries. The fourth part deals with development perspectives of the RIA: Is the principle of sustainable development enshrined in the RIA? What measures can be taken to improve the implementation of RIA in practice?