WRITTEN QUESTION E-3967/98

by Paul Rübig (PPE) to the Commission

(4 January 1999)

Subject: Cost assessment for European legislative acts

The principle that specific legislative acts should be adopted as soon as an urgent need arises has gained acceptance both within the Member States and at a European level. In this connection, subsidiarity, SLIM and Fiche d'impact are key concepts which stand for greater efficiency and transparency.

Streamlined and sensible legislation requires in particular a comprehensive assessment of the financial impact of a given measure both on the administration and on those at whom the legislation is targeted. After all, it is usually the external cost which can be quite substantial.

1. Is the Commission satisfied with the current format of the financial statement annexed to its legislative proposals?

2. Are there any guidelines or common principles for the evaluation of financial impact?

3. In what manner can greater account be taken of the financial impact of legislation in future?

Answer given by Mr Santer on behalf of the Commission

(2 March 1999)

1. The financial statement referred to in Article 3 of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities, as last amended by Regulation No 2779/98(1), must be annexed to any Commission proposal or communication with potential impact on the Community budget. This enables the Council and Parliament to assess whether Community action is needed, whether it is in proportion to the objectives sought and whether the implementing arrangements have an acceptable level of cost-effectiveness. Several of the measures taken by the Commission as part of the SEM 2000 project are designed to improve the content and quality of the information supplied to the legislative and budgetary authorities for this purpose.

2. and 3. The Commission has for several years been involved in evaluating the impact of its legislative proposals, particularly the impact on the public and on businesses. The Commission has recommended that its departments should carry out evaluations not just when adopting proposals, but also throughout the legislative process(2).

There have also been exchanges of information on best practice as regards evaluation techniques with the Member States and businesses, in particular small and medium-sized enterprises (SMEs).

In this connection, the Honourable Member's attention is drawn to two important Commission initiatives:

(a) the SME impact assessment sheet which is attached to proposals likely to have a significant effect on businesses and SMEs in particular; it covers a detailed evaluation of the regulations, including a cost analysis where possible.

(b) the preliminary pilot project, launched in July 1998, concerning the business panel; the purpose of this project, which supplements the SME impact assessment sheet, is to evaluate, in conjunction with the Member States and by consulting businesses directly, the cost and consequences for them of new legislative proposals concerning the single market; Parliament was duly notified of this project, which is operating satisfactorily (Commission communication to the Council and Parliament; the business panel; a pilot project)(3).

(1) OJ L 347, 23.12.1998.

(2) See General guidelines on legislative policy, Bull. EU 1/2-1996, point 1.10.11.

(3) COM(98) 197 final.