PDF to HTML - Convert PDF files to HTML files

Europaudvalget 2011-12
KOM (2010) 0543 Bilag 2
Offentligt

NOTE

Consultation on Smart Regulation: Response from the Danish Gov-

ernment

The Danish Government thanks the European Commission for this oppor-

tunity to comment on the progress made within the Smart Regulation

agenda in the EU.

General comments

Overall, the Danish Government supports that there is a high level of am-

bition within the smart regulation agenda in the EU. It is crucial for

growth and employment in Europe that there are good framework condi-

tions for European businesses. Therefore, it is important that the EU

works towards making the every-day life of businesses easier. Efficient

public service and regulation must ensure that businesses spend their time

on running their business and not on unnecessary administrative work

and bureaucratic processes. However, burdens on businesses should not

be reduced by moving them over onto public authorities. It is important to

find genuinely simpler measures for the economy as a whole.

The Danish Government supports that smart regulation efforts are based

on a balanced approach and focus on enhancing the quality of regulation.

An enhanced quality of regulation provides easy and smooth administra-

tion in businesses and increases their compliance which in turn leads to

higher fulfilment of policy objectives. The Danish Government empha-

sises that regulatory burdens should only be reduced in cases where it

does not lead to a reduction of the fundamental protection levels in the

regulation, especially within the area of occupational health and safety.

The Danish Government takes for granted that the role and competence

of the Advisory Committee for Safety and Health at Work are not com-

promised by smart regulation efforts.

The Danish Government supports that the efforts towards reducing regu-

latory burdens in EU regulation are broadened and encompass a focus on

the end-users of regulation and their perceived burdens and that this focus

will be the guiding principle for all smart regulation efforts in the EU.

The focus on the rules themselves needs to be supplemented with a focus

on how the rules are communicated, implemented, enforced and fit into

the every-day administrative practices of businesses. These aspects define

just as much the businesses’ challenges in their relationship with public

PDF to HTML - Convert PDF files to HTML files

2/6

authority and have consequences for the businesses’ time consumption

and thereby their costs. As an example of this broader approach, digitisa-

tion should feature much more prominently in smart regulation efforts as

smart e-government solutions can make it easier for businesses to comply

with and understand rules because ICT systems can be aligned and are

flexible to use for the businesses.

The Danish Government supports that the relevant end-users are not only

kept in mind but also directly involved in smart regulation efforts so that

areas or pieces of legislation are selected for simplification in cooperation

with end-users and their representatives.

On November 23, 2011 the Commission presented a report on minimis-

ing regulatory burdens for SMEs (COM(2011) 803), the actions of which

were endorsed by the European Council in its conclusions of December

9, 2011. The Danish Government will follow with great interest the con-

crete policy proposals stemming from the new Commission approach

presented in the report regarding a reversed burden of proof, especially

annex 2 of the report, as well as policy proposals containing exemptions

of SMEs or micro enterprises. The Danish Government’s initial approach

to the suggestions in annex 2 and future policy proposals containing ex-

emptions will be based on the general approach to smart regulation men-

tioned above.

The Danish Government finds that exemption of certain groups of busi-

nesses (e.g. based on size) from pieces of legislation is a relevant simpli-

fication tool in certain cases. While fully respecting the Commission’s

internal working methods and the endorsement by the European Council,

the Danish Government, however, finds that in the area of occupational

health and safety, keeping end-users (both businesses and workers) in

mind and involving them, including the Think Small First principle, is a

better point of departure for simplifying regulation for businesses. For the

individual worker, health and safety at work is important regardless of the

size of the business in which he or she is employed.

Specific comments

Section I: Enhancing the quality of EU legislation

As regards the question of how to monitor results the Danish Government

encourages the Commission to ensure that relevant and detailed infor-

mation on annual progress on the smart regulation agenda is publicly and

easily available at a single access point, e.g. a website. In order to ensure

tangible results for European businesses it is important that the Commis-

sion keep track of the overall progress within the smart regulation agen-

da, including results of fitness checks, the overall development of regula-

tory burdens (e.g. based on the quantifications in the Commission’s im-

pact assessments) and relevant results on adopted and/or implemented

simplifications for businesses.

PDF to HTML - Convert PDF files to HTML files

3/6

The Danish Government supports the broadened focus on the entire poli-

cy cycle, including ex post evaluations and fitness checks. However, the

Danish Government also finds that more can be done to ensure genuine

end-user involvement so that evaluations are based more on innovative

methods, e.g. field work, than on desk research. Furthermore, The Danish

Government would like to see more and quicker progress regarding fit-

ness checks. If the development of a fitness check methodology and the

actual selection and production of fitness checks are more transparent and

end-user focused, fitness checks hold the potential for delivering positive

and tangible results because they cut across different policy areas and

therefore have a more holistic approach to simplification. Businesses do

not sectionalise rules according to the division between different public

authorities and smart regulation efforts should take account of this.

As a good practice example of how end-users can contribute to the defini-

tion of evaluation priorities the Danish Government would like to high-

light the Burden Hunter project regarding Danish consumer legislation.

Standard Cost Model measurements indicated that the legislation caused

administrative burdens but there was a lack of knowledge about how con-

sumer regulation actually worked in real life, about the level of compli-

ance and about how the regulation was perceived. Therefore, an open and

explorative approach was used wherein25 different businesses and trade

organisations were interviewed about their perception of consumer regu-

lation, their concrete practices and ideas for simplification. Furthermore,

the fit between rules and actual practice was investigated through anthro-

pological observations. The information and ideas obtained resulted in

concrete simplification proposals. In sum, through systematic and itera-

tive end-user involvement, concrete problem areas and innovative solu-

tions were identified and prioritised in an evaluation of the consumer leg-

islation.

The Danish Government recognises the progress made in the EU system

regarding impact assessments, notably the European Commission’s ef-

forts. The Danish Government emphasises that thorough impact assess-

ments are important for evidence-based policies which in turn ensure that

the purpose of each policy is fulfilled in the right way, for the right end-

users and with the right and proportional level of burdens. However, the

Danish Government also finds that, when doing impact assessments, the

European Commission could improve on keeping in mind and involving

relevant end-users, on quantifying the relevant impacts (not only adminis-

trative burdens) and potentials and on systematically investigating digiti-

sation possibilities.

Section II: Ensuring the effective implementation of EU legislation

The Danish Government finds that correct and timely implementation of

EU regulation is important for the functioning of the single market and its

contribution to growth and employment in the EU. Looking at the entire

PDF to HTML - Convert PDF files to HTML files

4/6

policy cycle, effective implementation is also facilitated by a smart regu-

lation focus in the preceding stages of the policy cycle. Consequently,

implementation needs to be taken into account from the beginning of a

piece of legislation’s journey through the policy cycle. Clear and precise

language is a prerequisite in this regard.

Assistance from the European Commission in the form of package meet-

ings and workshops in the individual member states could contribute to

improving the implementation of EU legislation, especially if the imple-

menting level of public authority is included. The Danish Government

also finds that the exchange of best practice is a useful tool for ensuring

better implementation, in accordance with the report ”Europe Can Do

Better: Report on best practice in Member States to implement EU legis-

lation in the least burdensome way” by the High Level Group of Inde-

pendent Stakeholders on Administrative Burdens (November 2011).

Moreover, the Danish Government stresses that application and enforce-

ment of single market legislation and principles are just as important as

correct and timely implementation. The Danish Government therefore

finds that the informal problem solving network, SOLVIT, and the EU

Pilot are important tools for ensuring better application and implementa-

tion of EU legislation in the member states.

Systematic monitoring and thorough analysis of how the single market

works in the individual member states are useful tools for identifying

potential insufficiencies in implementation of EU legislation. The Danish

legislative process already ensures widespread transparency of the im-

plementation of EU legislation. The explanatory memorandum attached

to each piece of national legislation explains the relation to EU legislation

of that piece of legislation. Furthermore, legal texts and explanatory

memoranda are publically available on the website of the Danish parlia-

ment. The Danish Government therefore remains helpful with relevant

information on implementation of EU regulation in Denmark, even if it

were decided to introduce a commitment for member states to inform the

Commission on how regulations function in the member states, including

whether it has required changes in the national legislation.

Section III: Consulting the public

The Danish Government finds that this aspect of the smart regulation

agenda is especially important and should be strengthened, e.g. by con-

sulting on draft impact assessments. Involving the relevant end-users

through formal and informal consultations is, however, not enough.

Keeping the end-users in mind, e.g. by rigorously applying the Think

Small First principle, must saturate the entire policy cycle.

More concretely, the interaction with the relevant end-users needs to be

of higher quality, not quantity, e.g. through field trips, interviews, obser-

vation and by using visualisation tools such as process maps, maps of

service trips and story boards. Furthermore, it is important that the Com-

PDF to HTML - Convert PDF files to HTML files

5/6

mission informs the end-users (businesses, social partners, interest

groups, public authorities) of the consultation results (policy implica-

tions) and not just the consultation process.

Member states should play a larger role in alerting the relevant end-users

about EU consultations and in conveying information from national end-

users to the EU level in relevant cases, e.g. through fora such as the SME

Envoy Network. The Danish Government is aware of this role and seeks

to fulfil it to the greatest extent possible.

The Business Forum for Simpler Rules, recently established by the Dan-

ish Government, is an example of a new and innovative way of involving

end-users and stakeholders that goes beyond the traditional one-way con-

sultations. The Business Forum facilitates a more open and direct interac-

tion between regulators, businesses, interest groups and experts as the

Danish Government can receive input directly from businesses and/or

other stakeholders about problems (unnecessarily burdensome rules, in-

comprehensible communication, uncoordinated implementation etc.) and

ideas for solutions. Furthermore, the Business Forum’s website enables

the general public to submit input, comment on input submitted by others

and even follow the progress of concrete ideas or solutions. In turn, the

Danish Government is held accountable through a “comply or explain”

principle, meaning that either the Danish Government implements the

suggested simplifications or explains publicly why this cannot be done.

Section IV: Progressing together

The Danish Government strongly believes that the Competitiveness and

Growth Council conclusions from February 2012 provide a good com-

mon platform for the member states regarding the future smart regulation

efforts. The Danish Government hopes that the European Commission

and the European Parliament will join and base their work on this plat-

form and the guiding principle about end-user focus. The Programme for

the Competitiveness of Enterprises and SMEs 2014-2020 (COSME) may

also provide a common platform for the funding of smart regulation initi-

atives.

Based on the views expressed above, the Danish Government supports an

ambitious smart regulation agenda and remains willing to contribute to

the agenda with any experience and knowledge deemed helpful.

Section V: Open questions

The Danish Government finds that the smart regulation agenda increas-

ingly should be integrated with the agendas on the single market and the

digital single market. Smart regulation is also about uniform rules that are

easy to comply with. This is something that correct and timely transposi-

tion of single market regulation can contribute to. Inharmonious imple-

mentation resulting in extra administrative work is of course also a bur-

den for exporting businesses within the single market.

PDF to HTML - Convert PDF files to HTML files

6/6

Moreover, digitisation holds great potential for making the every-day life

of businesses easier. Therefore, the EU agenda on the digital single mar-

ket should be coordinated and promoted to a greater extent. The agendas

on smart regulation and the digital single market could, for example, be

integrated more by applying a more systematic thinking about digitisation

possibilities and the resultant costs and benefits in the policy design and

impact assessment stages of the policy cycle. A “Digital By Default”

principle would, for example, ensure that rules are designed from the very

beginning to be implemented, complied with and enforced digitally, un-

less there are compelling reasons to introduce manual, paper-based pro-

cesses.