EU policies are excessively regulatoryin character

Anna Dekalchuk, November, the 5th

Outline

1. Different types of regulation within the EU framework

2. The Commission: widening and deepening of regulation

3. “Better governance” project: tackling overregulation by the regulator

0. G.Majone, different perspectives. Fff What is a regulatory policy

Different perspectives

degree of intervention

dirigisme regulatory state laissez-faire

European Left American Left Right

public ownership statutory regulation self-regulation

Different perspectives

modes of regulation

distributive regulatoryredistributive

direct-expenditure programmes limited budget constraints

Different perspectives

types of policies

Regulatory policies – these are policies that “lay down rules governing behavior”

1. Different types of regulation within the EU framework

Council Directive 84/527/EEC of 17 September 1984 on the approximation of the laws of the Member States relating to welded unalloyed steel gas cylinders

Old school harmonization

10 years to pass one directive – too long

1. Different types of regulation within the EU framework

New approach towards regulation

The Cassis de Dijon case (1979) laying down mutual recognition principle

Commission communication (COM(1985)19) “Technical harmonization and standardization: a new approach"

Council Resolution (85/C 136/01) of 7 May 1985 on a new approach to technical harmonization and standards

2. The Commission: widening and deepening of regulation

pure mutual recognition race to the bottom (reduction of standards)market failures (regulation of the problem by the market itself doesn‟t seem possible)

EU regulation is an answer to:

EU regulation is important for the internal market to work in a proper way

BUT

2. The Commission: widening of regulation

Domestic level:pay-as-you go (PAYG) pensions vs. occupational pensions based on funding

(public pensions) (private pensions)

2000, Commission proposal for a directive for Institutions for Occupational Retirement Provisions (based upon single market treaty provisions): mutual recognition + some scope of regulation

Adopted directive – the least common denominator: Swiss cheese with a lot of holes

Another area of public policy traditionally solely regulated by the MS – subject to European integration (it is directive, not OMC)

Occupational pensions case study

See for more details, M. Haverland, „When the Welfare State Meets the Regulatory State: EU Occupational Pension Policy‟

2. The Commission: deepening of regulation

Commission Regulation No 2257/94 of 16 September 1994 laying down quality standards for bananas

Minimum requirements: “free from malformation or abnormal curvature of the fingers”.

Classification: (1) 'Extra' class; (2) Class I; (3) Class II.

Sizing: “the minimum length permitted is 14 cm and the minimum grade permitted is 27 mm”.

2. The Commission: deepening of regulation

Commission Regulation No 1677/88 of 15 June 1988 laying down quality standards for cucumbers

“slightly crooked cucumbers may have a maximum height of the arc of 20 mm per 10 cm of length of the cucumber”

3. Better regulation:tackling overregulation by the regulator

2002, Better regulation strategy:

application of better regulation tools at the EU level:

simplification, reduction of administrative burdens, impact assessment;

working more closely with Member States;reinforcing the constructive dialogue.

3. Better regulation:tackling overregulation by the regulator

Commission Regulation No 1221/2008 of 5 December 2008 … laying down implementing rules … in the fruit and vegetable sector as regards market standards

“Now we have finally … put that particularly problem to bed, by getting rid of EU-wide marketing standards for 26 different types of fruit and vegetables – including the totemic cucumber”

Mariann Fischer Boel

“We simply don’t need to regulate this sort of thing at EU level!”

3. Better regulation:tackling overregulation by the regulator

Subsidiarity and proportionality principles

“Yes, Minister”, fragment of “Party games” episode, 17th of December, 1984

3. Better regulation:tackling overregulation by the regulator

THANK YOU FORYOUR ATTENTION