EU strikes ‘better regulation’ deal

Timmermans gets agreement on program of reforms to slash regulatory red tape.

After six months of talks, EU institutions have struck an agreement on the European Commission’s “better regulation” agenda to slash red tape and improve the lawmaking process, a key part of Jean-Claude Juncker’s presidency ambitions.

In the final version of the agreement, seen by POLITICO, the Commission, European Parliament and Council of Ministers “recognize their joint responsibility in delivering high quality legislation” in order to strengthen the EU’s economy.

But the deal also includes new promises to ensure the transparency of the better regulation process — a change from the proposal unveiled in May by the man spearheading better regulation, Commission First Vice President Frans Timmermans.

After attacks from trade unions and NGOs on the Commission’s plans to streamline its work in a bid to cut red tape, Timmermans assured detractors that “better regulation is about making sure we deliver on the ambitious policy goals we have set ourselves in the most efficient way.”

At the same time, Timmermans promised internal reforms in the Commission, with the creation of a regulatory scrutiny board to conduct impact assessments on any initiatives before they are allowed to make their way through the legislative process.

Although negotiations ended on time — before a self-imposed deadline of Christmas — the Council and Parliament had expressed concerns about a power-grab by the Commission, which would be conducting impact assessments on planned legislation before the other institutions had a chance to get involved.

The final text says impact assessments can have “a positive contribution … in improving the quality of Union legislation,” and says there can be “substantive amendments.” That term is not defined in the agreement — meaning that the Council and the Parliament could make as many changes as they want.

Negotiators also agreed to create a centralized platform to “facilitate traceability of the various steps in the legislative process,” an effort to answer critics who said the initiative sacrificed transparency in the name of streamlining regulation.

Improvements in transparency between the institutions and greater access to documents was included in the text, at the request of the Parliament’s Liberal group leader, Guy Verhofstadt.

MEPs and the Council will also get to have a say on the Commission’s annual work program, a check-list of annual priorities. In October, the Commission proposed 10 priorities and 23 legislative initiatives for 2016.

Asked about the agreement, NGOs and trade union representatives broadly approved of it, but said they are concerned about the impact on environmental, social and health standards.

Christina Colclough, the head of EU affairs at UNI Europa, a trade union federation, said she was disappointed by the main goal of the agreement, to focus on cutting red tape, saying that it could come at the expense of important regulations.

“They are following the negative narrative of somehow the EU being over-regulated, and are making no reference at all on the benefits of being a member of the EU,” she said.

Colclough, who founded the Better Regulation Watchdog — an alliance of more than 60 NGOs and trade unions critical of the Commission’s plans — also pointed out a lack of transparency on impact assessments, which won’t be made public if they are rejected by the regulatory scrutiny board.

EU ambassadors approved the agreement Thursday, and European affairs ministers are likely to give their green light next Tuesday. The College of Commissioners is likely to approve the final agreement on the same day.

In the Parliament, the agreement will be on the agenda of the political group leaders next week, with a vote by all MEPs likely in February.