kom (2016) 0710 - Ingen titel

Europaudvalget 2016
KOM (2016) 0710
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EUROPEAN

COMMISSION

Brussels,

XXX

SWD(2016) 400 final

PART 1/2

COMMISSION STAFF WORKING DOCUMENT

Regulatory Fitness and Performance Programme

REFIT and the 10 Priorities of the Commission

Accompanying the document

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL

COMMITTEE AND THE COMMITTEE OF THE REGIONS

Commission Work Programme 2017

Delivering a Europe that protects, empowers and defends

{COM(2016) 710 final}

kom (2016) 0710 - Ingen titel

Regulatory Fitness and Performance Programme

REFIT and the 10 Priorities of the Commission

25 October 2016

kom (2016) 0710 - Ingen titel

Table of Contents

Introduction ............................................................................................................................................. 4

Priority 1: A New Boost for Jobs, Growth and Investment ..................................................................... 6

Priority 2: A Connected Digital Single Market ......................................................................................... 9

Priority 3: A resilient Energy Union with a Forward-Looking Climate Change Policy ........................... 12

Priority 4: A deeper and Fairer Internal Market with a Strengthened Industrial Base ......................... 14

Priority 5: A Deeper and Fairer Economic and Monetary Union .......................................................... 19

Priority 6: A Reasonable and Balanced Free Trade Agreement with the U.S. ...................................... 21

Priority 7: An area of Justice and Fundamental Rights based on Mutual Trust .................................... 23

Priority 8: Towards a New Policy on Migration ..................................................................................... 26

Priority 10: A Union of Democratic Change .......................................................................................... 28

Note:

No REFIT initiatives are currently implemented in priority 9 - A Stronger Global Actor.

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Introduction

This document presents the key developments and results of REFIT, the Regulatory Fitness and

Performance programme

. It also contains detailed information on the first 22 REFIT Platform

opinions and the way in which the Commission intends to follow-up on these.

REFIT aims to make sure that EU law remains fit for purpose and delivers the results intended by

policy makers in the most efficient and effective way. It targets removing red tape and lowering costs

without compromising policy objectives and EU high standards. REFIT is about regulating better,

making EU legislation fit for purpose, simpler and less costly, aiming to ensure a clear, stable and

predictable regulatory framework supporting the delivery of our common goals and allowing

businesses and our citizens more freedom to pursue their goals.

REFIT works on the basis of the systematic evaluation of the performance of existing EU legislation or

policies. This evaluation serves to identify inefficiencies, burdens, inconsistencies and gaps across the

EU acquis. Where considered necessary, follow up can take the form of legislative revisions,

simplification and codification of regulatory measures, measures to improve implementation, repeals

of regulation and withdrawal of outdated proposals.

REFIT relies strongly on stakeholder input to focus its work. It is the citizens, the small entrepreneurs,

the public administrators who benefit from the advantages but also face the inefficiencies of EU laws

and their implementation by Member States on a daily basis. They are thus best placed to suggest

where improvements can make a real difference. To this end, in 2015, the Commission set up the

REFIT Platform to further improve the ongoing dialogue with stakeholders and Member States on

improving EU legislation

. The Platform collects and assesses suggestions for the reduction of

regulatory and administrative burdens stemming from EU regulation or its implementation by

Member States. An online portal has been set up to this end

. The Commission has committed itself

to react to all the resulting Platform's suggestions and explain how it intends to follow up

REFIT requires a joint effort by all those involved in the design, approval, implementation and

enforcement of EU law: the European Parliament, the Council, the Commission and the Member

States and all other levels of government.

This document summarizes the key elements of the REFIT scoreboard

, the information tool through

which the Commission regularly tracks and presents the progress of REFIT actions throughout the

REFIT was launched in December 2012 (see COM(2012)746). It builds on experience gained with the

Administrative Burden Reduction (ABR) Programme implemented since 2007 and integrates other

initiatives related to regulatory fitness such as the Simplification Programme and the follow up to the

ABR programme (ABR+) and to the Top 10 consultation, as well as the SME Scoreboard:

http://ec.europa.eu/info/law-making-process/evaluating-and-improving-existing-laws/refit-making-eu-

law-simpler-and-less_en

The Platform is composed of high-level experts from business, civil society (including the social partners) the

Economic and Social Committee, and the Committee of Regions and Member States. The Platform

receives suggestions sent in via the 'Lighten the load – Have your say' website. It can bring in ideas

from the Platform members themselves or their contact networks.

http://ec.europa.eu/smart-regulation/refit/simplification/consultation/consultation_en.htm#up

COM(2015)215 final

SWD(2016)400, part 2.

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whole policy cycle from evaluation, to adoption and implementation, providing as much information

as available on the final results compared to initial (simplification and savings) objectives.

Since 2012, two screenings of the EU's regulatory acquis have been carried out to assess the

performance of EU regulation and identify where REFIT actions can best be focused. Almost 200

initiatives for burden reduction and simplification have been launched, including withdrawals,

repeals, evaluations and impact assessments to identify further possibilities. Under the Juncker

Commission, 119 REFIT actions were included in the Commission Work programmes for 2015 and

2016 and 93 proposals in the EU legislative procedure have been identified for withdrawal, 90 of

which have already been withdrawn. This work will continue in 2017 and it is strengthened by the

recent work of the REFIT platform which issued 22 opinions to date. The Commission Work

Programme lists (34 legislative initiatives under REFIT, 19 withdrawals, 16 repeals). It answers to the

recommendations of the REFIT Platform by envisaging follow up for 21 out of 22 opinions issued to

date (in 15 cases under this year's work programme). The sole exception regards the Platform

recommendation for a standard VAT declaration, on which an earlier Commission proposal had to be

withdrawn this year due to lack of support from the Council in the legislative procedure. Information

on the exact content of the Commission follow up will continue to be tracked and communicated as

the relevant Commission initiatives are finalized.

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Priority 1: A New Boost for Jobs, Growth and

Investment

1. Context

Boosting jobs, growth and investment in a sustainable manner is key to further reduce unacceptable

high unemployment and increase the welfare of Europe's citizens and the competitiveness of its

businesses. Achieving these goals not only requires launching new initiatives but also making sure

that the existing EU legislation is kept fit for purpose, unnecessary costs eliminated and rules

simplified where possible. This is the purpose of the REFIT programme.

2. New REFIT Initiatives

During 2017,

the Commission will follow-up on the seven opinions issued by the REFIT Platform. On

the basis of an evaluation of the Drinking Water Directive and the European Citizen's Initiative

'Right2Water', the Commission will present a REFIT revision of the Drinking Water Directive in 2017

to adapt quality standards and risk prevention, improve access to information and transparency.

Follow-Up to REFIT Platform Opinions:

Prompted by stakeholder submissions, the REFIT Platform

issued seven opinions in this priority area which will be followed up by the Commission with

initiatives in 2017.

On the

Common Agricultural Policy,

the REFIT Platform issued three opinions on the efficiency of the

CAP, cross compliance and overlaps between Pillars I and II. The REFIT Platform Stakeholder group

recommended to carry out a more strategic review of the CAP with a view to ensuring the

effectiveness and efficiency of the CAP, while the Government group objected to such a review and,

instead recommended to follow the existing evaluation planning established by Regulation

1306/2013. The Commission will be consulting the public throughout 2017 on the simplification and

modernisation of the Common Agricultural Policy (CAP) to maximize its contribution to the

Commission's ten priorities and to the Sustainable Development Goals. This will focus on specific

policy priorities for the future, taking account of the opinions of the Refit Platform

In its opinion on

Waste electrical and electronic equipment (WEEE),

the REFIT Platform recommends

action to implement a common harmonised reporting and registration system that takes

enforcement and manageability into account without adding unnecessary burden on the Member

States. In order to address this recommendation, the Commission is planning to propose an

implementing act on a standard format and frequency of reporting by the end of 2017.

The Platform adopted 2 opinions on the

Common Provision Regulation governing the Cohesion

Fund, ERDF and ESF.

It recommends that far-reaching legislative changes should be avoided in the

interest of legal certainty, but that small changes to clarify rules, simplify implementation and

remove inconsistencies should be envisaged and that this opinion be sent to the High Level Group on

Simplification of the ESI Funds. The European Commission has transmitted this opinion to this group,

which is currently preparing its reply to the Platform.

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Concerning overlaps in legislation on chemicals and safety and health at work,

the REFIT Platform

considered that the Commission should raise awareness and issue guidance on the implementation

of legislation in these areas. In response, the Commission plans to issue a Common Understanding

explaining the interface between REACH and OSH legislation. In addition, several evaluations in this

area will conclude during 2017 and assess the need for further action.

3. Progress and Results

Evaluations and follow-up:

Following a

review of Greening obligations under the Common

Agricultural Policy

after the first year of implementation, the Commission is working on targeted

modifications to relevant delegated and implementing acts simplifying certain greening rules for

farmers and national administrations in order to increase the acceptance of greening by farmers and

to improve its environmental performance. A comprehensive evaluation of greening measures will

be carried out in 2017.

The Commission is currently taking stock of

reporting obligations across the environment acquis

covering about 60 pieces of legislation and approximately 170 reporting obligations. In this context,

the Commission plans to propose the repeal of the Standardised Reporting Directive and its

associated reporting obligations

. Following on these preparatory activities, the Commission will take

further action to streamline reporting requirements

In the area of environment, the results of not less than 11 evaluations are expected before the end of

2017. The

fitness check on the Birds and Habitat

directives is expected to be completed by the end

of 2016.

Pending proposals and adopted legal acts:

The Commission continues a

comprehensive

simplification of the Common Market Organization

under the Common Agricultural Policy. The

initiative should be completed in 2017 leading to the reduction of 200 implementing and delegated

acts to around 40

. So far 8 new delegated regulations and 6 new implementing regulations have

been adopted, 30 regulations have been repealed, 57 regulations have been declared obsolete and a

further 18 delegated and implementing acts are planned for adoption by the end of 2016.

A proposal made in 2014 to simplify

organic farming

provisions is pending in legislative procedure.

The initiative will modernise and harmonise the rules for organic production and improve consumer

confidence by excluding contaminated products and aligning controls. The proposal foresees the

elimination of 37 of the current 135 information obligations for operators.

In the area of

fisheries,

the Commission proposed a set of simplified technical rules for the

protection of marine organisms to support a sustainable fishing policy with rules easier to follow and

better enforceable. In addition, the Commission adopted a simplified framework for fishing

In the context of the proposal for repeal of the Standardised Reporting Directive (91/692/EEC) planned for end

2016.

Initiative for Monitoring, Transparency and Focused Reporting planned in the Commission Work Programme

for 2017.

Calculation based on the possibility for a single delegated and implementing regulation for each major heading

of the CMO, including 15 Commission Regulations on marketing standards.

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authorizations with the objective of reducing costs to ship owners and national authorities and allow

for effective and efficient enforcement of rules.

Implementation on the ground:

Considerable cost savings to business, consumers and public

administrations have been estimated for several initiatives in this priority area and confirmed by

feedback from Member States and stakeholders:



Shipments of Waste:

Cost reductions on the ground have reached up to 70%, exceeding

initial estimations of 50% or EUR 44 million per year.

Environmental Impact Assessments:

Annual direct savings are estimated at EUR 21.4 million

for business and up to 5.3 million for public administrations. Savings will be checked on the

ground through an evaluation planned for 2018.

Egg Labelling:

Member States who fully implemented the requirements estimated cost

reductions between 9% and 63% while initial estimations by the Commission amounted to

44% or approximately EUR 600 million.



However, in the case of

Waste of electrical and electronic equipment (WEEE)

simplification benefits

could not fully be realized as Council and Parliament did not maintain the Commission's proposal for

a single registration for all EU obligations, with interoperability and data-transfer between Member

State producer registers. In 2017, the Commission will propose an implementing act on a standard

format and frequency of reporting.

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Priority 2: A Connected Digital Single Market

1. Context

The Commission aims to create a Digital Single Market to make the EU's Single Market fit for the

digital age – tearing down regulatory walls and moving from 28 national markets to a single

European market. This could contribute EUR 415 billion per year to the EU economy and create

hundreds of thousands of new jobs. Regulatory Fitness initiatives contribute to this objective by

bringing down barriers and removing unnecessary costs, making the EU legislation fit for purpose.

This leads to new opportunities for businesses and improves the offer to consumers. In order to

release the full growth potential of a connected Digital Single Market, the Commission will deliver in

2017 a VAT package covering proposals on e-commerce, e-publications and e-books and initiatives

on advancing the data economy.

2. New REFIT Initiatives

In its Work Programme for 2017,

the Commission plans to carry-out a legislative revision of the

Regulations on the

European Agency for Network and Information Security (ENISA)

and on the

“.eu”

top-level domain

which will be updated to changing market circumstances. The planned mid term

review of the implementation of the Digital Single market Agenda may identify further necessary

proposals for the revision of existing legislation.

New evaluations: In 2017, the Commission will carry out an evaluation of EU legislation on the legal

protection of databases.

3. Progress and Results

Evaluations and follow-up:

Four regulatory evaluations have delivered results during 2016 and will

all be followed-up by legislative reviews within the year. This concerns the following Directives:



Mini One-Stop-Shop:

The existing one-stop shop allows businesses in the areas of telecom,

broadcasting and electronic consumer services to declare and pay VAT in the Member State

where they are established rather than where their customers are resident. By the end of

2016, the Commission will present a further legislative proposal to modernise and simplify

VAT for cross-border e-commerce, in particular for SMEs. This will include extending the One-

Stop-Shop to online sales of tangible goods to final consumers. The estimated saving to

business is EUR 2.3 billion a year.

Audio-visual Media Services:

The Commission proposal [COM(2016)287] will bring

simplification and more flexibility to current rules. The economic benefit could amount to

EUR 122 million for a single TV broadcaster or to EUR 441 million per year EU-wide for

sponsorship.

The Satellite and Cable Directive:

The initiative [COM(2016)594] aims to enhance cross-

border access to broadcasting and related online services across the EU. Removing barriers in

the digital single market will reward creators and creativity and strengthen the EU's



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broadcasting sector while giving consumers access to a wider variety of content across

borders.



The Telecoms regulatory framework:

This has been reviewed [COM(2016)590] to keep up

with technological progress such as 5G. Costs resulting from market reviews could be

reduced by 10-15%.

Pending proposals and adopted legal acts:

In 2016, the legislator adopted the Commission's

proposal on Strengthening

Network and Information Security.

The new Directive for

collective rights

management of musical works (CRM Directive)

had to be transposed by Member States by April

2016.



Network and Information Security (NIS):

The new act will reinforce cyber-security and

increase confidence in the digital economy. Micro-enterprises have been exempted from

some notification requirements.

The Directive on Collective Rights Management (CRM):

The functioning of Collective Rights

Management Organisations (CMOs) will be improved by increasing their transparency and

accountability towards their members and right holders. The Commission proposed an

optional micro exemption for setting up a supervisory function and for certain financial

reporting obligations which was not retained in legislative procedure.



VAT Mini One-Stop-Shop:

Doing business in more than one Member State often means dealing with

several tax administrations in different languages. Dealing with multiple VAT obligations can be very

burdensome and costly for companies. The implementation on 1 January 2015 of a mini One-Stop-

Shop for the EU providers of telecommunications, broadcasting and electronic services to consumers

(Council Directive 2008/8/EC) was a big step forward in simplifying VAT compliance rules in the EU.

The initial One-Stop-Shop system that was limited to non-EU providers of electronic services is now

extended to EU businesses and to broadcasting and telecom services. It allows businesses to declare

and pay the VAT in the Member State where they are established rather than where their customers

are located. The estimated annual savings on administrative burden today are EUR 500 million. The

portal is currently used by more than 14 000 businesses. Building on the existing set-up, the

Commission will extend the Mini One-Stop-Shop in 2017 to cross-border online sales of goods to

consumers, introducing a common VAT threshold to help start-up e-commerce businesses.

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EUR 500m

Burden

reduction for

Business

Used by

14,000

businesses

VAT Mini

One Stop

Shop 2015

Cross-Border

B2C supplies of

electtonic

services

28 MOSS

portals hosted

by each

Member State

EUR18 billion

in trade

EUR3 billion in

VAT Revenues

in 2015

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Priority 3: A resilient Energy Union with a

Forward-Looking Climate Change Policy

1. Context

A European Energy Union will ensure that Europe has secure, affordable and climate-friendly energy.

Wiser energy use while fighting climate change is both a spur for new jobs and growth and an

investment in Europe's future. Building an Energy Union also requires looking at existing legislation

and making sure it is fit for purpose, as simple as possible and with no unnecessary costs and

burdens, making sure EU energy and climate legislation can fully deliver on its ambitious objectives

and benefits.

2. New REFIT Initiatives

In its

Work Programme for 2017,

the Commission will propose initiatives to gradually move to zero-

emission vehicles which will also enhance competitiveness of the industry. These revisions will

include rules on:



Clean Vehicles

in order to improve procurement incentives and rules.

Cars and light commercial vehicles

proposing CO

emission standards post-2020. On the

basis of the result of the evaluation which found that intermediary targets were met and EU

rules had a positive impact on emission reductions for cars and vans as well as on energy

security. The evaluation also revealed a significant discrepancy between real-world and test

cycle emissions with adverse effects on the effectiveness and efficiency of the legislation.

Road charging

applying the user-pay and polluter-pay principle, to propose improvements

for those Member States choosing to use this tool, including including for the interoperability

of electronic tolling services.

Combined transport

in order to further promote intermodal transport in the EU and thus

contribute to reducing emissions. The evaluation of combined transport rules showed that

the potential benefits to the environment are not yet fully harvested. Up to EUR 2.1 billion of

external costs could be saved annually with a moderate shift of freight away from roads to

rail or waterways.



New evaluations:

In 2017, the Commission will carry out an evaluation of the EU legal framework for

energy taxation (Energy Tax Directive).

3. Progress and Results

Evaluations and follow-up:

Before the end of 2016, a comprehensive Fitness Check on

planning and

reporting obligations in the area of Energy Union governance

will conclude and evaluations on

renewable energy and energy performance of buildings will deliver results and will be followed-up by

revisions of the respective Directives.

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With regard to the legislation on

energy performance of buildings,

preliminary findings indicate that

removing the obligation to conduct a feasibility study of high efficiency alternative systems for new

buildings could lead to cost savings of ca EUR 200 million per year. A simplified inspection regime for

Member States authorities may deliver further savings of on average EUR 200 per inspection for ca.

13.5 million occasions of inspections in non-domestic buildings in 15 concerned Member States

during 2020-2030.

Fitness Check on Planning and Reporting obligations of Energy Union Governance:

The Fitness

Check aims to quantify average administrative costs per Member State and the Commission

stemming from 91 reporting obligations included in 31 pieces of legislation. This exercise is

supported by surveys in all Member States and in depth interviews. On this basis, the Fitness Check

will make recommendations on the basis of which existing planning and reporting obligations can be

repealed, integrated into the new Governance reporting framework or need to be kept seperately.

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Priority 4: A deeper and Fairer Internal Market

with a Strengthened Industrial Base

1. Context

The Single Market is one of Europe’s greatest assets. It is an engine for building a stronger and fairer

EU economy, creating the jobs, growth and competitiveness advantages Europe needs. More

integrated and deeper capital markets will channel more funding to companies, especially SMEs, and

infrastructure projects. Better worker mobility will let people move more freely where their skills are

needed. And combating tax evasion and tax fraud will ensure that all contribute their fair share.

Regulatory Fitness initiatives contribute to these objectives making sure existing legislation on the

Single Market is fit for purpose and can fully deliver on its objectives and benefits in as simple a way

as possible and without undue burdens. REFIT initiatives are being pursued in a number of policy

areas including competition; financial services; health and food safety; internal market, industry,

entrepreneurship and SMEs; transport and mobility; taxation and customs and communications

networks and technology.

2. New REFIT Initiatives

The Commission will carry-out the following legislative revisions within its

Work Programme for

2017:

In the area of competition:



The

General Block Exemption Regulation (GBER)

will be revised to facilitate appropriate

public support for ports and airports.

In the area of taxation and customs:



The Commission will bring forward measures to

implement the

VAT Action Plan,

to simplify

VAT for smaller companies and set the foundations for a modern, more efficient, business-

friendly and fraud-proof definitive VAT regime across Europe, taking account of the opinons

of the REFIT Platform. A more effective and proportionate approach to VAT rates is a key

element of this reform.

General arrangements for

excise duty

will be revised to align and ensure coherence between

customs and excise legislation, improve legal certainty and ensure the uniform application of

EU legislation. At the same time, the Commission will also revise the structures of excise

duties applied to alcohol and alcoholic beverages. This follows on an evaluation.

Common Consolidated Corporate Tax Base (CCCTB):

In parallel with its Work Programme for

2017, the Commission is re-launching the Common Consolidated Corporate Tax Base with a

compulsory common tax base as the first step.



Common Consolidated Corporate Tax Base (CCCTB):

Estimates indicate that regulatory measures

could reduce time costs for setting up a new subsidiary in a Member State by up to 67%. If 5% of

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medium-sized companies would expand abroad, a one-off cost saving of around EUR 1 billion could

be expected. If all multinational entities apply a CCCTB, recurring compliance costs could go down by

about EUR 0.8 billion.

In the area of internal market, industry, entrepreneurship and SMEs:



The Commission will act to strengthen the

single market in goods,

notably by facilitating

mutual recognition and addressing the increasing amount of non-compliant products on the

EU market through revisions of the relevant legislation. This will allow entrepreneurs to offer

their products more easily across borders while offering incentives to boost regulatory

compliance and restoring the level playing field to the benefit of businesses and citizens.

In the area of mobility and transport:



The Commission will revise legislation on

Training, Qualification, Licensing in Road

Transport.

Rules for

access to the International market for coach and bus services

will be revised in

order to improve competition on domestic coach markets and ensure non-discriminatory

access to terminals and other infrastructure.

The Commission will propose how to simplify rules on

access to the EU road haulage

market,

facilitate implementation and strengthen a level playing field.

In order to ensure a genuine level-playing field for the road transport industry and adequate

working conditions,

social legislation in road transport

will be revised.

code for small crafts

will be proposed in order to facilitate and simplify the construction

and cross-border trade of small passenger vessels as well as their registration, following up

on the Fitness Check on EU passenger ship safety legislation.

In order to optimise the allocation of resources, increase flexibility in organising freight

transport and improve productivity, legislation on

Leasing of Vehicles

will be revised.

Legislation on

Road Infrastructure and tunnels safety

will be revised to improve safety

management practices, allow for a level playing field in safety management and reduce

administrative burdens.



All of these proposals build on evaluation findings.

In the area of financial stability, financial services and Capital Markets Union:



The Commission will ensure follow up on the

Call for Evidence on the cumulative impact of

the EU regulatory framework for financial services.

Rules on

OTC derivatives, central counterparties and trade repositories (EMIR)

will be

reviewed in order to eliminate disproportionate costs and burdens to small companies in the

financial sector, corporates and pension funds and to simplify rules without putting financial

stability at risk.

New evaluations:

In 2017, the Commission will carry out evaluations in the following regulatory

areas: financial conglomerates, motor insurance, national discretion in the audit regulation,

prudential treatment of investment firms, feed additives, aerosol dispensers, liability for defective

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products, European Observatory on Infringements of Intellectual Property, the European Standard

Procurement Document, airport charges, and the common system of value added tax.

Follow-Up to REFIT Platform opinions:

The REFIT Platform issued 12 opinions for the areas covered

by this priority:

In its opinion on

Points of Single Contact,

the REFIT Platform recommends the establishment of a

single entry point for business in each Member State to assist companies operating in the Single

Market. The Commission will address these concerns in a proposal on the Single Digital Gateway

planned for the first half of 2017.

The

Platform

also

issued

opinions

the

area

Taxation

and

Custom Union.

Two opinions on VAT reverse liability and on simplified VAT document requirements

for intra-Community trade will be addressed by a legislative proposal on the definite VAT regime

foreseen for 2017, in which the Commission has announced the aim to re-establish the principle of

taxation of cross-border supplies in the same way as domestic supplies and extend the current Mini

One-Stop-Shop to cover cross-border business-to-business supplies of goods. The opinion concerning

the VAT information portal will influence the continuing work of the Commission with Member

States on the best design for a web portal. The Commission made a proposal in 2013 for a standard

VAT declaration but does not intend to return to the issue following its decision this year to withdraw

the proposal.

2 opinions by the REFIT Platform on

State Aid rules

are feeding into the ongoing implementation of

the existing legal framework. In the field of

Health and Food Safety

(Food

contact materials and

residues in live animals), the Commission will examine how the recommendations of the Platform

could be addressed in the context of its implementation follow-up of EU food contact materials

legislation and it plans to follow up on the opinion on veterinary medicinal residues in foodstuffs

through a new delegated act planned for adoption before the entry into application of the new

Official Control Regulation which is foreseen for adoption in legislative procedure later this year.

The opinion on the

Construction Products Regulation

will be addressed by the Commission as part of

the on-going Fitness Check and through further consultations with stakeholders to improve the

functioning of European standards for construction products due to start before the end of 2016.

In its opinion on

financial reporting,

the REFIT Platform identifies the need to streamline reporting to

various supervisory authorities to reduce unnecessary administrative burden on financial institutions.

This opinion complements the evidence gathered by the Commission as part of its 'Call for evidence'

and will lead to a Fitness Check on financial reporting in 2017.

The Platform also issued an opinion on the

Financial Conglomerates Directive (FICOD)

recommending that the Commission undertakes a review. The Platform concerns will be taken into

account in the ongoing evaluation, due to be completed early in 2017.

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3. Progress and Results

Evaluations and follow-up:

25 evaluations are ongoing in this priority area and 8 evaluations have

been finalized recently. These include for example:



Market access for transport of goods:

Regulatory savings have been assessed at EUR 8-14

million, considerably lower than the expected EUR 172 million estimated at the time of

adoption due to late implementation of the European Register of Road Transport

Undertakings. Costs for setting up national registers are calculated at 70% lower than

estimated. The findings will be followed up by a proposal in 2017 (see under point 2 above).

Port Reception Facilities:

EU law has led to estimated savings of up to EUR 71 million

annually through reduction of discharges at sea. The current reporting and notification

provision can be further simplified to reduce administrative burdens. The evaluation findings

will be followed up by a proposal in 2017 (see under point 2 above).



In 2016,

the Commission adopted three proposals to amend existing legislation on

passenger ship

safety

[COM(2016)369, 370 and 371] seeking to reap the simplification and saving potential (of up

to 1 million euros annually) identified by the fitness check on passenger ship safety.

Pending proposals and adopted legal acts:

Pending REFIT proposals include:



European Venture Capital and Social Entrepreneurship Funds:

Amendments proposed by

the Commission will make these two forms of specialised funds more attractive, reduce

costs, and realise economies of scale. Current estimates suggest a total of EUR 32 million in

cost savings over five years. The modified rules will further unblock the flow of capital,

leading to increased confidence in cross-border investments and to better functioning of the

internal market.

Prospectus Directive:

Recourse to the new disclosure regime for SMEs is estimated to save

SMEs around EUR 45 million per year while about 320 SMEs are likely to benefit. The

alleviated disclosure regime for secondary issuances is likely to translate into additional

savings of around EUR 130 million per year.



In 2016, the legislator adopted new legislation on

animal health

which promises major savings

through simplification and more efficient rules for the prevention of animal diseases. It also offers

possibilities to reduce administrative burdens by allowing the use of new technologies, such as

electronic certificates, electronic identification and database interlinks. The simplification of rules for

movement of animals can save up to EUR 39 million per year.

Implementation on the ground:

New simpler rules apply in a number of areas from 2016 on. This

includes:



Public Procurement:

New simplified award procedures for public contracts are in force since

April 2016. In particular the introduction of a

European Standard Procurement document

allows an easier access to public tenders in all Member States for business and in particular

SMEs.

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Elżbieta Bieńkowska, Commissioner responsible for Internal Market, Industry, Entrepreneurship

and SMEs said:

"By reducing the volume of documents needed, the European Single Procurement

Document will make it easier for companies to take part in public award procedures. Public

administrations will benefit from a wider range of offers ensuring better quality and value for

money."



Clinical Trials:

New rules on clinical trials for new medicines gradually start applying. These

new rules facilitate multinational trials and reduce costs. It is expected that pharmaceutical

companies will save up to EUR 267 million annually in administrative burden and EUR 540

mio in compliance costs.

Professional Qualifications:

Since January 2016 simplified rules apply for the recognition of

professional qualifications earned in another Member State. This includes the European

Professional Card which is expected to deliver savings of up to 80 Euros for each user.

However, there are concerns that implementation delays do not yet allow citizens and

authorities in some Member States to enjoy full benefits.



Regulatory savings are reported by Member States and stakeholders regarding EU laws where

simplification has already been applied for some time:



Refund of Value Added Tax:

Cost savings to business reported by Member States in the

refund of VAT after new and simpler rules have been implemented range between 30% and

35%.

Late Payments:

Since the adoption in 2011 of the Directive on late payment, statistics have

shown a steady decrease in average payment delays by businesses and in the public sector.

Late Payments:

Average payment period (days) in the EU 2010-2014:



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Priority 5: A Deeper and Fairer Economic and

Monetary Union

1. Context

The Commission is working for a deeper and fairer Economic and Monetary Union in line with the

report of the Five Presidents. Initiatives under REFIT are contributing to this goal by ensuring

legislation in the areas of financial stability and financial services, social affairs and employment and

statistics remain fit for purpose, are as simple as possible and do not involve undue burdens.

2. New REFIT Initiatives

Work planned in the

Commission Work Programme 2017

under this priority includes legislative

revisions in two regulatory areas:



Regulation 924/2009 on

cross-border payments

will be reviewed with a view to improve

disclosure, reduce fees in cross-border transactions and extend its scope to all non-Euro

currencies;

Directive 91/533/EC on

Written Statements

will be reviewed in order to improve the rules

establishing employer's obligations to inform employees of the conditions applicable to the

contract or employment relationship.



In addition, the Commission will provide guidance to ensure a more effective and fairer

implementation of the

Working Time Directive.

New Evaluations:

In 2017, the Commission will evaluate legislation on part-time and fixed-term

work. The Commission will also carry out an evaluation of the four decentralised EU agencies active

in the field of employment and social policy, the European Foundation for the Improvement of Living

and Working conditions (EUROFOUND), the European Centre for the Development of Vocational

Training (CEDEFOP), the European Training Foundation (ETF) and the European Agency for Safety and

Health at Work (EU-OSHA).

Follow-up to REFIT Platform Opinions:

The REFIT Platform opinion on

environmental protection

investment statistics

recommends that the Commission continue its assessment on overlapping

reporting requirements under different regulations and replaces the regulation on structural

business statistics with the new Framework Regulation for integrating business Statistics (FRIBS). The

Commission recognises that administrative burden is created by double reporting obligations and has

examined the legal basis for environmental accounts. To address this, the Commission will make a

legislative proposal on FRIBS in 2016 which should ensure that there are no overlapping reporting

requirements – a simplification proposal for the Framework Regulation for Agricultural Statistics will

also be adopted in 2016.

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3. Progress and Results

Evaluations and follow up:

Before the end of 2016, results are expected of evaluations of legislation

on safety and health at work and on written statements, as illustrated by the below example:



Evaluation of Written Statement Directive:

The emerging findings of the evaluation show

that the notification of a written statement to employees is not a disproportionate burden

compared to the benefits it brings, e.g. legal certainty for both sides and less litigations. The

average one-off administrative cost per employed person for all company sizes is estimated

at 34 euros. – Following up to the evaluation, the Commission plans to review the Directive

in 2017 to ensure it remains effective and efficienct (see above) .

Proposals and adopted legal acts:

4 proposals for simplification and burden reduction by the

Commission are pending in legislative procedure and 5 legal acts have been adopted by Council and

Parliament and implementation will be followed-up with Member States (see Scoreboard for details).

Pending proposals include:



Integrating Social Statistics:

The proposal made by the Commission in August 2016 is likely

to deliver savings between EUR 3.1 million and EUR 34 million for statistical data collection

costs depending on the implementation at national level.

Implementation on the Ground:

Information on implementation is available for two initiatives under

this priority:



Company Accounts:

Initial estimations of savings of around 47% of total administrative costs

on average could be surpassed thanks to amendments in legislative procedure. Feedback on

implementation by Member States showed savings in the range between 8% and 82%.

Annual Accounts of Micro Enterprises:

Estimated savings were reduced by the legislator

from EUR 6.3 billion to EUR 3.5 billion. Implementation feedback showed cost reductions

between 42% and 70%.



Commissioner Marianne Thyssen said on the new framework for social statistics:

"The new

framework Regulation will bring together 7 existing surveys that are now carried out separately. This

will avoid duplication of the data and improve data collection. By merging the 7 surveys, we make

sure we use everywhere the same definitions, variables and precision requirements. This

standardisation will increase substantially data comparability, make the analysis of the data easier

and enable social statistics to be published earlier than today.

http://europa.eu/rapid/press-

release_MEMO-16-2868_en.htm

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Priority 6: A Reasonable and Balanced Free

Trade Agreement with the U.S.

1. Context

EU trade policy is working to create a global system for fair and open trade, open up markets with

key partner countries, to ensure that everyone plays by the rules and to promote trade as a force for

sustainable development. Trade brings lower prices and a wider variety of goods to the consumer

and helps businesses make the most of global opportunities thus boosting growth, jobs,

competitiveness and investment in the EU. REFIT contributes to the achievement of trade policy

goals by ensuring relevant legislation delivers on its objectives in the simplest way with the least

costs for companies, citizens and public administrations.

In 2017 the Commission will insist on the need to urgently drive forward further improvement in

Europe's trade defence mechanisms based on its Trade Defence Instrument reform proposals.

President Juncker stressed the urgency of a reform of Trade Defence in the 2016 State of the Union

address:

"Being European also means standing up for our steel industry. We already have 37 anti-

dumping and anti-subsidy measures in place to protect our steel industry from unfair competition. But

we need to do more, as overproduction in some parts of the world is putting European producers out

of business. This is why I was in China twice this year to address the issue of overcapacity. This is also

why the Commission has proposed to change the lesser duty rule. The United States imposes a 265%

import tariff on Chinese steel, but here in Europe, some governments have for years insisted we

reduce tariffs on Chinese steel. I call on all Member States and on this Parliament to support the

Commission in strengthening our trade defence instruments. We should not be naïve free traders, but

be able to respond as forcefully to dumping as the United States."

2. Progress and Results

Proposals and adopted legal acts:

A reform of

Trade Defence Instruments

proposed in 2013 by the

Commission remains pending in legislative procedure. The reform proposals intend to improve the

effectiveness and efficiency of two key trade defence instruments (anti-dumping regulation and anti-

subsidy regulation) by increasing transparency, predictability and legal certainty, improving

enforcement and facilitating the cooperation of all stakeholders concerned. The reform also includes

specific provisions to assist SMEs in dealing with Trade Defence cases.

In 2016 the Commission adopted a proposal for recasting the system of

export control of dual-use

items

to simplify the existing framework and reduce administrative burden for companies and public

administrations. Thanks to the introduction of new EU General Export Authorisations (EUGEAs),

controls would become four times less costly for companies, and up to 11 times less costly for

licensing authorities. In addition, the number of products subject to control on transfers within the

EU would be reduced by approximately 40%.

Commissioner Malmström said on the recast of export control for dual use items:

"We are living in

turbulent times. Preserving peace and protecting human rights are core objectives of the EU and our

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trade policy is essential to that aim. That's why we are proposing a set of modern rules to make sure

that exports are not misused to threaten international security or undermine human rights".

A comprehensive

initiative to codify, recast and repeal trade legislation,

streamline reporting

requirements and to carry out alignment with requirements in the Lisbon treaty is reaching

completion with the update of 26 acts (see scoreboard for details).

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Priority 7: An area of Justice and Fundamental

Rights based on Mutual Trust

1. Context

The EU strives to make life easier for Europeans who study, work, shop, travel or get married in other

EU countries, so that citizens feel at ease and trust that their rights are protected, no matter where

they happen to be in the European Union. To do this, the EU builds bridges between the different

national legal systems. A borderless and seamless European justice area ensures that citizens can

enjoy their rights across the continent. Regulatory Fitness initiatives contribute to this by examining if

existing legislation is fit for purpose, whether laws can be simplified and unnecessary costs reduced.

2. New REFIT Initiatives

Under the

Commission Work Programme 2017,

work is planned for the legislative revision of the:



EU Consumer Law:

Preliminary results under the on-going Fitness Check of EU Consumer Law

show that cross-border misleading marketing practices create damages to businesses of

more than EUR 500 million annually. A strengthened protection could significantly reduce

the number of fraudulent practices.

Schengen Information System:

The evaluation of the existing system pointed to a number of

policy choices regarding scope, data protection, overall architecture and security of the

system which could be assessed in the preparation of the proposal.

ePrivacy Directive

to update it in the light of latest technological developments and taking

into account the opinion of the REFIT Platform.



New Evaluations:

In 2017, the Commission will carry-out a Fitness Check of counter-terrorism

instruments.

Follow-up to REFIT Platform Opinions:

In its opinion on the

ePrivacy Directive,

the REFIT Platform

recommends that the revised ePrivacy Directive is aligned with the General Data Protection

Regulation, that additional exceptions to the ‘consent’ rule for cookies are considered and that the

Commission addresses national implementation problems. The Commission will pay particular

attention to these recommendations in the context of the ePrivacy review, with a proposal for a

revised directive planned for adoption early in 2017.

3. Progress and Results

Evaluations and follow-up:

In 2016 and 2017, results are expected of Fitness Checks and evaluations

in the areas of consumer law, emergency travel documents and equal treatment in social security.

Since May 2015, two evaluations have been concluded and were followed-up by legislative proposals

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in the areas of consumer protection cooperation and recognition and enforcement of judgments in

matrimonial matters and matters of parental responsibility (Brussels IIA Regulation):



Consumer protection cooperation:

The proposal (COM(2016)283) will help Member states to

enforce EU law more efficiently and in a coordinated manner for cross border markets. This

will in turn benefit consumers by making market conditions safe when purchasing across

borders.

Brussels IIA Regulation (COM(2016)411):

Citizens seeking recognition and enforcement of

judgments in matrimonial matters and matters of parental responsibility will be able to

reduce current average procedure costs of EUR 2,200 considerably through the abolition of

the exequatur process (specific authorisation of enforcement of a judgment).



Pending proposals and adopted legal acts:

Three main legal acts have been adopted by Council and

Parliament and are being implemented and another 5 proposals by the Commission are pending in

legislative procedure.

These include legislation on

Personal Data Protection.

Adopted in April 2016, a single European law

for data protection will replace 28 national laws and lead to estimated savings of up to EUR 2.3 billion

per year. The new EU law means direct benefits for citizens through better data protection and for

businesses that will see their administrative burdens reduced and will be able to operate with one

single legislative framework throughout the Union.

Joint Statement on the final adoption of the new EU rules for personal data protection:

"The new

rules will ensure that the fundamental right to personal data protection is guaranteed for all. The

General Data Protection Regulation will help stimulate the Digital Single Market in the EU by

fostering trust in online services by consumers and legal certainty for businesses based on clear and

uniform rules. These rules are for the benefit of everyone in the EU. Individuals must be empowered:

they must know what their rights are, and know how to defend their rights if they feel they are not

respected. Our work in creating first-rate data protection rules providing for the world's highest

standard of protection is complete. Now we must work together to implement these new standards

across the EU so citizens and businesses can enjoy the benefits as soon as possible."

Joint Statement

by First Vice President Frans Timmermans, Vice President Andrus Ansip and Commissioner Vera

Jourova

http://europa.eu/rapid/press-release_STATEMENT-16-1403_en.htm

)

Implementation on the ground:

two REFIT initiatives have reached the stage of implementation by

Member States:



Package Travel:

The Directive is estimated to save consumers EUR 430 million/year by

reinforcing their rights. Simplification and cutting red-tape measures are expected to reduce

costs for businesses by EUR 475 million per year.

Small Claims:

The Regulation on small claims allows for a simplified and accelerated civil

procedure for cross-border claims up to a certain maximum value. The Regulation was

estimated to reduce average court proceeding costs by EUR 1,250 for any case which would

otherwise have to be dealt with under national ordinary civil proceedings. The use of modern

communication technologies promoted by the new Regulation could reduce costs of

proceedings further by between EUR 300 and EUR 700 per case and shorten court

proceedings by 9 days on average. The Commission proposed application of this procedure



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for claims up to a threshold of EUR 10.000. This was reduced by the legislator to EUR 5.000

with the result that estimated savings may not be fully realized.

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Priority 8: Towards a New Policy on Migration

Context

Under the European Agenda on Migration, the Commission has worked with the European

Parliament, the Council and the Member States to enable a swift coordinated response to the

refugee crisis and to outline a long-term framework based on solidarity and responsibility. Regulatory

Fitness contributes to these objectives by ensuring that the current EU acquis on migration remains

fit for purpose; that opportunities for simplification are used and that costs and burdens are reduced

while the benefits of EU law are maintained.

New REFIT Initiatives

Commission Work Programme 2017:

In 2017, the Commission will carry-out a legislative revision of

the Visa Information System (VIS) following up on the results of an evaluation. A comprehensive

Fitness Check on legislation in the area of legal migration will also start in 2017.



Visa Information System:

The evaluation of the Visa Information System completed in

October 2016 found that the costs of setting up the VIS were outweighed by the gains

brought by the system in terms of simplifying the visa procedure. At the same time the

evaluation showed that Member States need to do more to implement the VIS in order to

reap its full benefits and it recommends that the VIS regulatory framework is updated to

respond to new challenges in visa, border and security policies.

Progress and Results

Evaluations and follow-up:

An evaluation of the legislation on unauthorized entry, transit and

residence is expected to be completed before the end of 2016.

Pending proposals and adopted legal acts:

While legal acts codifying the Schengen Borders Code

and on Entry and stay in the EU for third-country nationals students, researchers and other groups

have been adopted by the legislator in 2016, the Commission proposal on a revision of the Visa Code

made in 2014 remains pending in legislative procedure.



Revision of the Visa Code:

The proposal for a revision of the Visa Code aims to shorten and

simplify procedures for short stays visits reducing costs and bureaucracy while maintaining a

high level of security. As a result, the common visa policy would become more user-friendly

and efficient for both the visa applicants and the visa issuing authorities.

Conditions for the entry and residence of third-country nationals for students, researchers

and other groups:

The recast Directive adopted on 11 May 2016 aligns, simplifies and

improves existing provisions for entry and residence of certain third-country nationals. It will

lead to a decrease of administrative burdens and enable more intra-EU mobility of third-

country researchers and students and facilitate job-seeking and business creation.

The Schengen borders code

codified in March 2016, will compile all existing amendments

into one text, making the provisions clearer, more accessible and easier to apply.



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

Asylum:

The Commission proposed a revision of the Common European Asylum System in

order to move towards a fully efficient, fair and humane asylum policy which can function

effectively both in times of normal and high migratory pressure.

Commissioner Dimitris Avramopoulos said on the adoption of the recast Directive on entry and

residence of third-country nationals for students, researchers and other groups:

"Hosting more

students and researchers is good for the EU economy, promoting more contacts between young

people from different educational and research cultures."

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Priority 10: A Union of Democratic Change

Context

Better regulation, accountability and transparency continue to be the core business model of this

Commission and all EU institutions need to apply these principles in a consistent and committed

manner in order to win back the trust of citizens.

New REFIT Initiatives

Commission Work Programme 2017:

To ensure that the EU's legal instruments have the intended

effect, the Commission intends to step up its efforts on the application, implementation and

enforcement of EU law. This includes proposals to simplify environmental reporting following the

recent Fitness Check, and measures to facilitate access to justice and support environmental

compliance assurance in Member States:



Simplification of environmental reporting:

The Commission plans to enable the

development of a more modern, effective and efficient monitoring and reporting for EU

environment policy in order to reduce regulatory burdens and make environmental

information more visible and accessible to citizens.

Access to Justice:

The Commission will promote effective judicial protection at national level

in environmental matters when implementing EU law while reflecting the case-law of the

European Court of Justice.

Environmental Compliance Assurance:

The Commission will support environmental

compliance assurance in Member States.



Follow-up to REFIT Platform Opinions:

The REFIT Platform adopted an opinion on the

European

Citizens' Initiative

suggesting that it could become more 'fit for purpose' through simpler

requirements for the preparation of such initiatives and a revision of the legal framework. The

Commission will consider this when it takes measures to simplify the implementation of the ECI.