Communication from the Commission to the Council and the European Parliament - The SLIM Initiative
Date: 1996-11-06
Institutions: European Commission
Subjects: administrative formalities, legislation, project of common interest, single market

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

Brussels, 06.11.1996 
COM(96)  559  final 

Communication from the Commission 
to the Council and the European Parliament 

The  SLIM  Initiative 

Report of the Commission on 

the SLIM Pilot Project 

Simpler Legislation for the Internal Market 

Communication from the Commission 
to the Council and the European Parliament 

The SLIM  Initiative 

The SLIM initiative  (Simpler  Legislation for the  Internal Market) was  launched in 
1. 
May  1996. With strong encouragement from Internal Market Ministers, it was targeted 
to  identify ways  in which Single Market  legisiation.could  be simplified  It forms  part of 
the  Commission's  Confidence  Pact  for  Employment.  Simplifying  legislation  can 
contribute  to the  Pact's  objectives  of enhancing the competitivenes and employment-
creating potential of business. It can also help to make the workings of the Union more 
transparent  and  effective,  without  endangering  necessary  protection  for  the  citizen. 
The  "Better  Law-Making"  report  to  the  European  Council  at  its  Dublin  meeting  in 
December  1996 will provide an overview of Community action on simplification. 

In small SLIM Teams, four or five experts from Member State administrations  worked 
together  with  the  same  number  of  representatives  of  users  of  the  legislation.  Each 
Team was chaired by a Chairman personally nominated by the Commissioner respon 
sible for the  legislation  in each of the four  sectors that  had been chosen for the  first 
phase of the exercise: Intrastat (the system for collecting intra-Community trade statis 
tics);  construction  products;  the  recognition  of  diplomas;  and  the  ornamental  plants 
sector. Member States were invited to submit their views in writing. The Commission's 
report oh the first phase is annexed to this communication. 

Recommendations of the SLIM Teams 

The  nature  of the SLIM Teams'  recommendations and the degree  of  simplifica 
2. 
tion or improvement that might result varies from sector to sector.  In the case of Intra 
stat, specific  simplifications  have  been recommended that can be implemented  in the 
short  term  with  more  radical  options  as  the  basis  for  future  consultation  and action. 
The other Teams  have  put forward  recommendations  or options that will  be  of  great 
help  to  the  Commission  in  coming  to  a  view  on  the  way  forward.  In  the  case  of 
construction  products, the options  considered  could contribute  to  opening  up  a vitally 
important sector where the proper functioning of the Single Market has so far remained 
blocked. 

Each SLIM Team identified a number of avenues towards  simplifying  or  improv 

3. 
ing the legislation. Their reports are available on request. 

(i) 
The  outcome  of  the  Intrastat  exercise  reflects  the  in-depth  studies  that  had 
already  been  undertaken.  The  recommendations  include  simplifying,  or  no  longer 
collecting, certain data from  1 January  1998; a substantial  reduction  in the  number of 
subheadings  in  the  nomenclature  from  10,500  at  present  to  approximately  6.500-
7000;  and  adjusting  the  collection  system  or  introducing  a  new  one  to  reduce  the 
burdens  on  business.  This  could  involve  more  use  of  sampling,  a  two-tier  system 
reducing the frequency  of detailed returns and/or use by a group of Member  States of 
the single flow system, based only on export data. 

The Commission's response - Steps are already being taken to implement some of the 
recommendations on reduced data requirements. The Commission supports the idea 
of using a simplified nomenclature which still reflects the majority of user needs without 

increasing the burden  on enterprises also involved in external trade transactions.  This 
simplified nomenclature  should not exceed  7.000 positions  and should be  operational 
on 1 January 1998.  It also agrees with the SLIM Team that the different frameworks for 
the collection of statistics should be examined.  In particular,  the Commission has to be 
prepared to adapt legislation to allow Member States who wish to introduce the single-
flow system  for intra-Community trade statistics  to do so. The Commission  will initiate 
studies of the two-tier approach and possible application of sampling for completion by 
1999. 

(ii)  The construction products team put forward three options, with its views on the 
pros  and  cons  of  each.  These  ranged from  improving the working  procedures  of  the 
Commission and the European staodardisation bodies to the radical option of abolish 
ing the compulsory  link between the application of the Construction  Products  Directive 
and the  availability  of  harmonised  standards. A  third  option,  in two  stages,  was  also 
considered. 

The Commission's response - The Commission will come forward with proposals along 
the lines  of the report of the team. It intends to pursue the suggestion  consisting  of a 
combination  of short term measures  which  are likely to accelerate  the  implementation 
of the  Construction  Products  Directive  and longer  term measures,  providing  a new 
basis  for future  achievements  with  regard to a complete  and coherent system  for the 
construction sector as a whole. 

(iii)  The  diplomas  Team  favoured  the  retention  of  sectoral  directives  for  individual 
professions where they  already  exist; however,  a majority  proposed that the Commis 
sion  re-examine the question  of a transfer  of the  professions  covered  by these  direc 
tives to the General System for the recognition of diplomas following the  1999 review. 
The Team also suggested streamlining aspects of the legislation, particularly  in relation 
to  the  operation  of  the  advisory  committees  concerned  and  the  criteria  governing 
education and training. 

The Commission's  response  -  The Commission  will  come  forward  with  proposals  in 
1997 to streamline  the working of the Advisory Committees  and to simplify the  updat 
ing of lists of  diplomas  eligible  for automatic  recognition.  It  intends  to pursue  the 
suggestion  that a  more output-oriented  approach  to the definition  of education  and 
training requirements should be introduced in the context of a review of the  education 
and training requirements of the nurses' directive.  The  Commission will also undertake 
an examination  of the possible  transfer of the professions  concerned  to the  general 
system following the 1999 review of that system. 

(iv)  The  ornamental  plants  Team  was  sharply  divided  on the  question  of  whether 
there should even be any Community legislation in this field. If retained, that legislation 
should  be  clarified  and  simplified.  For  example,  there  should  be  differing  forms  and 
degrees of control at different  stages of the production/distribution  process and the list 
of  species  covered  should  be  determined  at  least  by  reference  to  their  economic 
importance, the regime governing imports from third countries should be reviewed and 
further  efforts  made  to  achieve  better  coincidence  with  Community  plant  quarantine 
controls. 

The Commission's  response  -  The Commission  will  come  forward  with  proposals  by 
May 1997. These proposals  will be based on a thorough  examination  of the  different 
options put forward by the SLIM Team. 

A^ 

-3 

Evaluation of the SLM  working  method 

4. 
The overall assessment of the SLIM approach is that it can work and has already 
borne fruit  so far. The Commission  has demonstrated  its commitment  to  simplification 
in this  first  phase  of  SLIM. Therefore,  the  Commission  intends  to  pursue  the  project 
and to  come  forward  with  an extension  of  SLIM  into  a second  phase  involving  other 
sectors.  However,  for  this  to  be  feasible,  the  Council  must  show  equal  resolve  by 
assuming its political responsibilities. It must, in particular, endorse the working method 
and  it  must  commit  itself to taking the  necessary  actions to  achieve  concrete  results. 
This implies not only being ready to accept the proposals the Commission will present 
concerning Community  legislation, but also that Member States devote equal attention 
to simplifying national legislation where necessary. 

Drawing on the lessons of the first phase and the advice of Member States through the 
Internal  Market  Advisory  Committee  in  conjunction  with  other  appropriate  fora,  the 
Commission will identify the sectors for the next phase. The Commission will formulate 
the remit of each SLIM Team as clearly as possible, allow adequate time for the prepa 
ration  of  reports  and  ensure  the  fullest  possible  transparency  vis-à-vis  all  Member 
States.  During  this  second  phase  it will  report  to  the  Council  on the  follow-up  to  the 
initial group of sectors as well as progress on the second group. Further extension will 
depend on concrete results being obtained. 

The role of the Member States 

5. 
The  Commission  emphasises  that  Member  States  must  demonstrate  their  own 
commitment to the challenge of simplifying legislation. The Commission's  review of the 
Impact  and Effectiveness  of the Single Market concluded that the successful  abolition 
of  the  "first  line"  of  market-fragmenting  measures  has  increased  the  importance  of 
removing remaining national regulatory obstacles to cross-border transactions and that 
there  is  little  sign  yet  that  Member  States  are  ready  to  observe  the  self-discipline  in 
rule-making  that  they  advocate  so  firmly  for  the  Union.  Only  Member  States  can 
respond to this challenge  and the Commission calls  upon the Council to  commit  itself 
to that task to the fullest extent. 

Report of the Commission on 

the SLIM Pilot Project 

Simpler Legislation for the Internal Market 

A ui 

-2 

1. 

I The  Initiative 

1.1.  Simpler  legislation  can  improve the competitiveness  of business  and enhance 
its  employment  creating  potential1  and  can  also  contribute  to  the  transparency  and 
effectiveness of Community action, while continuing to ensure a high level of protection 
for  the  citizen.  The  SLIM  initiative  responded  to  the  growing  call  from  business  and 
professional  circles for  legislation that  achieves  its objectives while  avoiding  imposing 
unnecessary  burdens. The  Council formally  endorsed the  initiative  in  its  resolution  of 
8 July  on  legislative  and  administrative  simplification  in  the  Internal  Market  and  the 
European Council called on the Commission to report to the Council on the SLIM pilot 
project by the end of  1996. The initiative is to be viewed in the context of the Commu 
nity's efforts to  improve the competitiveness  of business  and its  employment-generat 
ing  potential,  as  indicated  by  its  inclusion  among the  measures  designed to  promote 
competitiveness in the Commission's Confidence Pact for Employment. 

1.2. 
The  SLIM  pilot  project  is  a  new  phase  in  the  efforts  of  the  Commission  to 
simplify  and  improve  legislation  so as to  lighten the  burden  of  regulation  on  business 
and the professions in the single market while still achieving Community  objectives2. It 
is  based  on  a  new  working  method,  bringing  together,  in  small  Teams,  four  or  five 
experts  from  national  administrations  and  an  equal  number  of  representatives  of  the 
users  of  the  legislation.  Each  team  is  chaired  by  a  nominee  of  the  Commissioner 
responsible  for  the  sector  concerned.  Working  against  very  tight  deadlines,  these 
Teams  were  asked to  come forward with suggestions  for  simplifying  legislation.  Four 
areas  were  scrutinised:  the  Intrastat  system  of  statistics  for  intra-Community  trade, 
construction  products, the recognition of diplomas and ornamental plants. The conclu 
sions drawn by each Team would permit the Commission to decide what further  action 
is called for. The Teams consulted the Member States which did not have an expert on 
the Team and received written submissions from interested parties. 

The  pilot  project  has yielded  positive  results.  The Commission  considers  that, 
1.3. 
given  the  time  constraints  (only  three  to  five  working  days  were  available)  and  the 
complexity  of the issues confronting the SLIM Teams, the results validate the working 
method  used  and justify  considering  its  extension  to  other  areas  of  legislation  under 
certain conditions, particularly with a view to encouraging innovation in Europe. For its 
part, the  Commission  intends to  take  action  in each  of the  four  areas.  However,  the 
Commission emphasises that the success of the initiative can ultimately be judged only 
in the  light  of the ability  of Council and Parliament to accept  legislative  change  in the 
interests of simplification. 

2. 

| The working methods  of the SLIM Teams  | 

2.1. 
Between  June  and  early  October  1996,  each  SLIM  Team  met  for  a  total  of 
between  three  and five  days.  In general, the  limited  number  of  participants  and their 
familiarity with the sectors concerned facilitated an informal working atmosphere and a 
frank exchange of views. This enabled ideas to be discussed in a more open way than 
would have been possible in a more formal setting. The Teams displayed a willingness 
in  many  cases  to  include  options  for  simplification  or  improvement  in  their  reports 

See Commission Communication of 8 May  1996 on the SLIM pilot project  (Simpler  Legislation for the 

Internal Market) - COM(96) 204 final. 
2 

The  Commission's work  on  simplification  and  related  matters  has  been the  subject  of  reports  to  the 
end-of-year  meetings  of the  European  Council  in  1993,  1994,  1995 and June  1996. The  report  entitled 
"Better Law-Making"will be presented to the European Council at its Dublin meeting in December  1996. 

which  were  not  favoured  by  all  members.  This  has  been  reflected  in  the  reports,  in 
some  cases  with  an  indication  of  the  positions  of  individuals.  The  meetings  were 
supplemented  by written  exchanges,  particularly  with  regard  to  the  finalisation  of  the 
reports.  The  secretariat  was  provided  in  each  case  by  the  Commission  department 
responsible for the sector. 

2.2. 
The Teams  consulted  all Member  States: the  INTRASTAT  Team  on the  basis 
of  some  30  individual  "proposal  sheets",  the  diplomas  Team  on  the  basis  of  a  short 
consultative  document,  the  ornamental  plants  Team  and  the  construction  products 
Team  by  a  simple  written  invitation.  Many  representative  organisations  also  made 
written  submissions3.  The written  submissions  were  of  considerable  assistance  to  the 
Teams and were taken into account in drawing up their reports. 

3. 

| Summary  of results  of the  pilot  project4 

3.1. 

INTRASTAT 

3.1.1.  Background - The  Intrastat  system was introduced  in  1993 to allow the compi 
lation  of  statistics  on  intra-Community  trade  in the  absence  of data  formerly  collected 
at borders. The  information  is collected from  about  430,000 firms  (some  two thirds  of 
firms are exempt). 

3.1.2.  Problems - The system is costly both to enterprises and to administrations. The 
statistics  produced at  EU  level  are  not  of  sufficient  quality  and  become  available  too 
late. Efforts have been made to overcome these problems, but all proposals for simpli 
fication  are  confronted  with  a  conflict  between  the  desire  of  firms  to  be  relieved  of 
reporting burdens and the demands of users of the statistics for detailed information. 

3.1.3.  Key points of the SLIM Team report - The proposals for simplification aim at: 

• 

reducing  the  data  requirements  to  the  minimum  needed  to  produce  intra-
Community trade statistics; 

•  using  a  simplified  goods  nomenclature,  which  covers  the  majority  of  users 

needs; 

•  adjusting  the collection  system or  introducing  a new one to  reduce the  bur 

dens on business; 

•  support measures to ease the introduction of the revised system. 

The  SLIM  team  recommends  that  from  1 January  1998,  a  number  of  data  elements 
should either  be simplified or should no longer be collected, especially  those  of  limited 
interest.  These  should  be  announced  to  business  as  a  single  package  in  order  to 
minimise the costs of adaptation. 

The  SLIM Team  also  recommends  a substantial  reduction  in the  number  of subhead 
ings  in  the  nomenclature.  Using  the  Harmonised  System  6-digit  level  as  a  basis,  a 
number  of  subheadings  from  the  existing  Combined  Nomenclature  (CN)  could  be 
added.  This  would  bring  the  number  of  commodity  codes  down  from  10.500  to 
approximately  6.500  - 7.000. A joint  committee  should  be established  to  consider  the 
justifications  for  these  additional  subheadings. The  new  nomenclature,  HS6+, will  be 

Lists of the contributions  received have been appended to the individual reports of the Teams. 

4 

These summaries  of the issues confronting  each SLIM Team and the recommendations  or options  put 
forward  by them has been  prepared  by the Commission. More  details  are provided  in Annex  1. However, 
reference  to  the  individual  reports,  which  are  available  from  the  Commission,  is  essential  to  a  full 
appreciation  of the work  of the Teams  and in particular  to an  understanding  of the  underlying  arguments 
and of the varying degrees of support from Team members for the recommendations  and options 

- 4-

optional  for  the  declarants,  who  may  continue  to  use  the  CN.  The  detailed  results  on 
intra-Community  trade  will,  however,  be  made  available  according  to  the  HS6+ 
detailed level. 

Regarding  collection  systems, the  SLIM  team  supports the  idea  of introducing  systems 
in  the  future  that  will  involve  fewer  enterprises  or  otherwise  substantially  reduce  the 
overall  declaration  burden  on  business,  while  being  acceptable  from  the  point  of  view 
of  the  quality  of  statistics.  Four  frameworks  for  the  collection  of  statistics  have  been 
considered,  some  of  which  could  be  combined.  However,  these  suggestions  require 
further study  before any proposals can be made. 

The  introduction  of  the  simplification  initiatives  should  be  accompanied  by  continuing 
actions  on  the  modernisation  of  collection  and  compilation  systems  and  the  return  of 
statistical  results  to  data  providers.  The  EDICOM  project,  which  promotes  the  use  of 
electronic  data  interchange  for  statistics  and  computerised  tools,  will  contribute  to 
these activities and its continuation should be approved without further delay. 

regarding  reduced  data  requirements. 

3.1.4.  Commission  Response  -  The  Commission  is  already  taking  steps  to  implement 
some  of  the  recommendations 
the 
idea  of  using  a  simplified  nomenclature  which  still  reflects  the  majority  of  user  needs 
without  increasing  the  burden  on  enterprises  also  involved  in  external  trade 
transac 
tions.  This  simplified  nomenclature  should  not  exceed  7.000 positions  and  should  be 
operational  on  January  1,  1998.  It  also  agrees  with  the  SLIM  Team  that  the  different 
frameworks  for  the  collection  of statistics  should  be  examined.  In particular,  it has  to  be 
prepared  to  adapt  legislation  making  it  possible  for  Member  States  who  wish  to  intro 
duce  the  single-flow  system  for  intra-Community 
trade  statistics  to  do  so,  and  will  initi 
ate  studies  of  the  two-tier  approach  and  the  possible  applications  of  sampling  to  be 
completed  by  1999. 

It  supports 

3.2. 

CONSTRUCTION  PRODUCTS 

3.2.1.  Background  -  The  construction  sector  represents  9%  of GDP  within  the  Union 
and  involves  2  million  enterprises.  Construction  products  legislation  at  Union  level  is 
unique  in the sense that all construction  products are  regulated through  a  single  Direc 
tive  (the  CPD),  Directive  89/106  of 21.12.1988  on the  approximations  of  laws,  regula 
tions  and  administrative  provisions  of  the  Member  States  relating  to  construction 
products5. 

3.2.2.  Problems  -  Regulating  such  a  large  sector  of  the  economy  through  a  single 
Directive  was  known  from  the  beginning  to  be  quite  ambitious  and  its  implementation 
to  date  has  been  unsatisfactory.  The  functioning  of  the  Single  Market  through  this 
Directive  requires  adoption  of  Technical  Specifications,  either  Harmonised  Standards 
or  European  Technical  Approvals  or  recognised  National  Technical  Specifications. 
Eight  years  after  the  adoption  of  the  CPD,  none  of  these  are  available,  so  that  the 
Single  Market  in this sector has yet to become a reality. 

3.2.3.  Key  points  of  the  SLIM  Team  report  -  The  SLIM  Team  put  forward  three 
options: 

• 

Improvement  of  working  procedures  of  the  Commission  and  the  European 
standardisation  bodies  for  delivering  Technical  Specifications  in  particular 
with  regard  to  Harmonised  Standards:  this  option,  which  would  not  require 
any modification of the  Directive,  aims  in a short time  perspective  to  improve 
the  procedures for its implementation. 

5  OJL40,  11.2.1989, p.12 

- 5-

•  Abolish the compulsory  link between the application  of the  Directive  and the 
availability  of Technical  Specifications.  This  would  allow  industry  to  be  able 
to start to put their  products on the market with the CE marking on the basis 
of  independent  certification  without  reference  to  Harmonised  Standards,  as 
in other "New Approach" Directives. 

•  A two-stage  option: improve working procedures  as at the first  point  starting 
immediately  and,  in  parallel,  developing  an  action  to  bring  closer  together 
national  regulations  on  construction  works.  (A  comprehensive  system  of 
common standards for products would be more easily supported by common 
rules on construction works.)  In the light of the progress  made, the  situation 
could be re-examined with a view to  aligning the  CPD with the  principles  of 
the "New Approach" or repealing it. 

The SLIM Team points out that the first option would have the advantage of being able 
to be applied without delay. The second option would have the  advantage  of  re-instat 
ing, for  standards, the  role of  independent  support to  regulations,  as  conceived  in the 
"New Approach". They comment, however, that there is little confidence  in construction 
circles in a system built on direct compliance to essential requirements. The opening of 
a procedure for formal amendment of the Directive could also run the risk of reopening 
discussion  of  the  text  beyond  the  initial  intentions  and  result  in  a  period  of  juridica! 
uncertainty.  Finally they  point out that the third option provides  a solution of short term 
measures  which  are  likely  to  accelerate  the  implementation  of  the  CPD  while  at  the 
same  time  providing  a  new  basis  for  future  achievements  with  regard  to  a  complete 
and coherent system for the construction sector as whole. 

The Team comments that simplification  of procedures, as envisaged  under  SLIM, and 
the thereby  reduced burden on manufacturers,  is probably  more evident  in the second 
and third options. 

3.2.4.  Commission  Response  -  The  Commission will  come  forward  with proposals 
along the lines of the report of the team. It intends to pursue the suggestion  consisting 
of a combination of short term measures which are likely to accelerate the implemen 
tation  of  the  Construction Products Directive and longer term  measures, providing a 
new basis for future achievements with regard to a complete and coherent system for 
the construction sector as a  whole. 

3.3. 

RECOGNITION OF DIPLOMAS 

3.3.1.  Background - Seven sectoral  Directives  governing  doctors,  nurses  responsible 
for  general  care,  veterinary  surgeons,  dental  practitioners,  midwives,  architects  and 
pharmacists, were  adopted  between  1975 and  1985. With the  exception  of the  Direc 
tive  governing  architects,  these  Directives  lay  down  minimum  common  standards  of 
education  and training for the profession  concerned  and contain  lists of  national diplo 
mas which  meet  these  common  standards  and  as  a consequence  benefit  from  auto 
matic  mutual  recognition.  For architects, the  Directive  lays down certain  criteria  which 
must  be  met  in  order  for  a  diploma  to  benefit  from  mutual  recognition;  however, 
Member  States  may  continue  to  award diplomas  in the  field  of  architecture  which  do 
not  meet  these  criteria  and,  as  a  result,  fail  outside  the  scope  of  the  recognition 
provided for in the Directive. 

3.3.2.  Problems - The sectoral approach, which creates a certain European  profile for 
education  and  training,  obliged  many  Member  States  to  amend  national  legislation 
governing  access  to  the  professions  concerned  and  in  some  cases  (for  example, 
dentists  in  Italy  and  Austria)  it  required  the  creation  of  a  profession  which  had  not 
previously  existed. The  sectoral  Directives  may  also  impede  reform  at  national  level 
when  the  changes  envisaged  would  render  national  rules  incompatible  with  the  rale-

. • - . . • . £ • ; . . :• 

- 

- 6-

vant  Directive.  This was  one  of the  reasons which  led the  Community  to  adopt  a  new 
approach  to  recognition  of  diplomas  -  the  general  system  -  which  leaves  to  Member 
States the decisions  as to the  appropriate  level and structure  of education  and training 
and  the  need  for  regulation.  However,  the  general  system,  unlike  the  sectoral  Direc 
tives, does not offer the migrant a guarantee of automatic recognition. 

In  addition,  the  need  to  keep  the  agreed  common  rules  on  education  and  training 
under  review  resulted  in  the  creation,  for  each  sectoral  Directive,  of  an  Advisory 
Committee.  These  committees, which are  currently  composed  of 45  members,  place  a 
considerable  administrative  burden  on the  Commission.  They  issue  recommendations 
and  opinions  addressed  to the  Member  States  and  also  advise  the  Commission  as to 
whether  amendments  to  the  Directives  are  necessary;  in  practice,  few  of their  recom 
mendations  for  changes  to  the  Directives  have  met  with  the  approval  of  the  Member 
States. 

3.3.3.  Key points from the SLIM Team  report - The SLIM Team  favoured the  retention 
of  sectoral  directives  for  individual  professions  where  they  already  exist;  however,  a 
majority  of the  Team  proposed  that  it would  be  appropriate  for  the  Commission  to  re 
examine  the  question  of  a  transfer  to  the  general  system  following, the  1999  review. 
They  considered  that  the  formulation  of  the  education  and  training  provisions  of  the 
sectoral directives  should  be  re-examined  with  a view to  moving to competency  based 
criteria  which  place  more  emphasis  on the  outcome  of the education  and training  than 
on  rigid  rules  governing  contents.  The  Team  also  put forward  options for  reducing  the 
administrative  burden  and  costs  of  running  the  system,  currently  1.5  Mecu  annually, 
through a streamlining of the Advisory committees concerned. 

3.3.4.  Commission  Response  -  The  Commission will come  forward with proposals in 
1997  to streamline the  working of the Advisory Committees and  to simplify the updat 
ing  of  lists  of  diplomas  eligible  for  automatic  recognition.  It  intends  to  pursue  the 
suggestion  that  a  more  output-oriented approach  to  the  definition of  education  and 
training requirements should be  introduced in the context of a  review  of the education 
and training requirements of the nurses' directive. It will also undertake an examination 
of the possible  transfer of the professions concerned  to  the  general  system following 
the  1999 review. 

3.4. 

ORNAMENTAL  PLANTS 

3.4.1.  Background  -  The  Community  rules  on  the  marketing  of  ornamental  plant 
propagating  material and ornamental  plants are contained  in Directive 91/682/EEC  and 
implementing  measures  made  thereunder.  This  Directive  set  out  minimum  quality 
standards  and conditions  at  Community  level with supporting  accreditation  procedures 
and documentary  evidence. 

3.4.2.  Problems  -  Due  to  its  hurried  adoption  at  the  end  of  1991, there  are  various 
inconsistencies  in  the  text  which  have  given  rise  to  problems  of  interpretation  for 
Member  States  when  transposing  and  implementing  the  legislation.  Furthermore, 
several  Member  States  had  asked  the  Commission  to  review  the  Directive  in  certain 
areas  as  its  scope  was  not  clear,  nor  the  extent  of  some  of  the  exemptions.  In  an 
attempt  to overcome  these  problems, the Commission  issued  an  Interpretative  Note to 
Member  States  in  1994  on  those  provisions  which  had  caused  most  difficulty. 
However,  this  was  not  sufficient  to  ensure  rapid  and  uniform  implementation  by 
Member  States.  Finally,  due to the difficulties  outlined  above, the  Commission  has  not 
been able to develop further implementing  measures required by the Directive. 

3.4.3.  Key  points  from  the  SUM  Team  report  -  While  some  members  of  the  SLIM 
Team  -  those who were  commercial  growers  -severely  doubted  the  need  for  Commu-

nity  measures  in this sector,  there was general  agreement that the  Directive  could be 
amended  to  clarify  it  and  to  lighten  the  administrative  burden  on  both  suppliers  and 
Member State authorities. The Team recommended that the scope of application of the 
Directive - in terms of who should be regulated by it - should be clarified and that there 
should  be  differing  forms  and  degrees  of  control  at  different  stages  of  the  produc 
tion/distribution  process.  The  list  of  species  covered  should  be  determined  by  refer 
ence to their economic importance, with a possibility for Member States to be released 
from  having  to  set  up  an  infrastructure  for  species  they  do  not  normally  produce  or 
market.  The  rules  regarding  the  denominations  of  varieties  under  which  material  is 
marketed  should be redrafted  and clarified and the  implementing  Directive  93/78/EEC 
should  be abolished.  Efforts  should  be made to  ensure  more  coherence  between  the 
Ornamental  Plants  Directive  and  the  Plant  Health  Directive,  and  the  concept  of 
equivalence as applied to third countries should be reviewed. 

3.4.4.  Commission  Response -  The Commission will come forward with proposals by 
May  1997. These proposals will be based on a thorough examination of  the different 
options put forward by the SUM Team. 

4. 

I The  need for national  initiatives  on simplification  and  improvement 

The SLIM Teams in the pilot project found that, by and large, they were  unable, in the 
time  available, to focus  on the  needs for  simplification  at  national  level  (although  the 
national  Intrastat  systems  had  previously  been  evaluated  on  the  basis  of  a  detailed 
questionnaire).  However,  they  were conscious  of the  importance  of this  dimension  of 
the  problem: the  diplomas  Team, for  example,  recommended  that  "the  administrative 
and legal formalities with which some Member  States  surround the  recognition  proce 
dure  should  be further  investigated  with  a view  to  their  removal  or  simplification  and 
clarification". This  serves to underline the view that has frequently  been expressed by 
representatives of business in the Community, that the burden of legislation is felt to be 
greater  at  the  national  rather  than  at  the  Community  level.  While  the  Commission 
continues to strive for simpler Community  legislation, action  is needed  in the  Member 
States too. In keeping with the Council resolution of 8 July  on legislative and adminis 
trative  in the  internal  market,  the  Commission  will  be  promoting  exchanges  of  views 
within the Internal Market Advisory Committee on such national actions. 

.'  - 8-

ANNEX  1A - INTRASTAT  -
Summary  of SLIM Team  recommendations 

REDUCED OR SIMPLIFIED DATA  REQUIREMENTS 

The  removal  of the  requirement to  report  certain  information,  such  as  net  mass for 
selected products, mode of transport and certain data which at present is collected at the 
option of the Member States (e.g., port of loading/unloading, region of origin and destina 
tion  etc);  a  change to  more  business-friendly  ways  of  declaring  some information; 
and an extension of the deadline for the INTRASTAT declaration. 

NOMENCLATURE 

Introducing the idea of Harmonized System-6+ as commodity nomenclature in Intrastat the 
SLIM team emphasises the need for a substantial reduction in the present commodity 
nomenclature allowing a limited number of subheadings to be introduced to cover specific 
user needs. This will bring the number of subheadings down from the present 10.500 
to approximately  6.500 - 7000. The selection of these additional subheadings should be 
the responsibility of a joint committee with representatives of sectoral federations, Member 
States and Commission services. The use of HS6+ will be optional to the declarants, who 
may continue to use the CN. The detailed results on intra-Community trade will,  however, 
only  be  made  available  according  to  HS6+.  The  HS6+  nomenclature  would  also  allow 
comparisons  to  be made with the  extra trade  statistics  and will  cover  international  trade 
statistics  recommendations.  The  SLIM  Team  also  recommends  reducing  the  number  of 
updates to ensure stability. 

COLLECTION SYSTEM FRAMEWORKS 

The  SLIM  Team  did  not  see  much  advantage  in  introducing  sector  or  branch  defined 
thresholds, and pointed out that a single EU threshold would cause problems because of 
the different economic conditions and business structures in Member States. Some refine 
ment might be envisaged, however, for example, by allowing firms just over the threshold 
to report less frequently. 
A two-tier system could be envisaged under which only aggregated data needed for bal 
ance of payments  and key  indicators  on trade  balance would  be collected  on a monthly 
basis, while  more detailed data would be collected only quarterly  or even less frequently. 
The SLIM  Team  recommends  studying the  implications  of  such  a system  for  alleviating 
burdens on firms and its technical feasibility. 
Sampling could be used as a basis for collecting aggregated trade figures  and could be 
used in conjunction with the other frameworks described. 
A one flow system, based only on export data, could reduce the number of firms having to 
report  from the  present  430.000  to  between  200.000  and  300.000. This  radical  solution 
would result in a significant reduction in burdens while making it possible to retain the pre 
sent data elements, an advantage for users of the statistics. The one flow system could be 
combined e.g., with the two-tier system, and limited to the detailed figures, the aggregated 
figures still being collected  in a two-flow environment.  It could be envisaged, if confirmed 
by studies, that EU legislation should be adapted to offer the possibility  of such a system 
being applied by only a group of Member States. 

SUPPORT  MEASURES 

The  increased  use  of  electronic  declarations  systems  should  be  actively  promoted 
(adoption of the proposal to continue the EDICOM proposal would be a major contribution). 
Administration  should  provide  as  much  help  and  guidance  as  possible  for  declarants. 
Statistical  information  based  on  their  declarations  should  be  returned  to  declarants  to 
strengthen their interest in the exercise and improve the motivation of enterprises regarding 
compliance with statistical requirements. 

-9 

ANNEX  1B -  CONSTRUCTION  PRODUCTS -
Summary  of SLIM Team  recommendations 

IMPROVEMENT OF WORKING PROCEDURES 

The  improvements  envisaged  include  the  simplification  of  standardisation  mandates 
issued  by the  Commission  to  the  standardisation  bodies.  One  solution  could  consist  in 
structuring the mandates in such a way that detailed technical elements which are at the 
moment contained in some mandates could be provided by standardisation experts. Such 
simplification is only possible if the capacity of CEN to coordinate its work and technical 
issues  is  reinforced. Acceleration  of  procedures  for  producing  mandates  and stan 
dards would result from the simplification of mandates, by making for quicker  consultation 
of the relevant Committees. High priority  should also be given to the completion of Euro 
pean test method standards. The interim publication for information of European stan 
dards on test methods adopted and part of future Harmonised Standards on the one hand 
gives  greater  visibility  of  progress  made  in  European  standardisation  and, on  the  other 
hand, gives industry the possibility to start to use the results of the efforts they have made 
in participating in the work of standardisation. 

ALIGNMENT OF THE CPD  WITH THE CRITERIA OF "NEW APPROACH" DIRECTIVES 

To achieve this  objective the  Directive would  need two  specific  modifications  in  its  main 
requirements: one changing the status  of Technical Specifications, which would  lose 
their role as the unique means of fixing the CE marking and another giving the Interpre 
tative Documents, and possibly other technical elements retained in mandate which cover 
some characteristics given in standardisation mandates, the equivalent status of essen 
tial  requirements.  Under this  option, industry  would  have the  possibility  of  putting  their 
products on the market with the CE marking, declaring conformity to standards or to parts 
of standards already published and, for characteristics not yet covered by standardisation, 
directly to the essential requirements. 
This option would entail the eventual necessity to add new elements with regard to some 
aspects of the Interpretative Documents: a global decision on attestation  of conformity 
covering the intended use of all the 40 families of products covered by the CPD and adop 
tion and publication as Harmonised Standards of the parts of standards  requested by 
mandates available from CEN. Such publication permits manufacture tc make use of CE 
marking, combining conformity to European standards and direct compliance with essential 
requirements for characteristics not yet covered by standards. 
Finally, the adoption of this option would allow, at the same time, a re-examination of the 
field of application of the CPD, to see whether it was possible to exclude certain products 
already mainly covered by other Directives 

AN  OPTION IN TWO STAGES 

Through the development of Eurocodes and common regulations on fire issues, there is a 
good chance that  in the future the  legal framework  for construction works  could, to a 
certain  extent,  be  harmonised  for  Member  States.  This  would  rely  on  the  possibility  of 
transforming the Eurocodes which are experimental standards (ENV) into European stan 
dards (EN). It also relies on the possibility of using, in practice, the Eurocodes as they are 
now,  for  construction  works  and  civil  engineering  works.  The  adoption  of  the  European 
systems of classification of products vis-à-vis the risks of reaction to fire and resistance to 
fire could also serve as the basis for common rules for buildings and support for common 
standards for products. However, these developments will both need time and the elabora 
tion  of  test  standards  to  support  them. There  is, therefore, the  possibility  that  the  basic 
rules for buildings could have a common basis between Member, which could permit the 
two-stage option described at the third bullet point in para. 3.2.3. 

-10 

ANNEX  1C -  RECOGNITION  OF DIPLOMAS -
Summary  of SLIM Team  recommendations 

GENERAL 

The sectoral directives examined by the Team should be retained but the operation of 
the Advisory Committees linked to the Directives should be improved and simplified. 

RECOGNITION ISSUES 

The sectoral directives offer greater legal security to migrants than the general system and 
are  easier  for  Member  State  administrations  to  operate.  However,  the  general  system, 
although  implying  more  work  for  national  administrations  on  individual  cases,  operates 
effectively once administrations have built up some experience in dealing with requests for 
recognition. A majority of the Team considered that the Commission should re-examine 
the  question  of  a transfer  of the  professions  into the  general  system  following  the 
review in 1999 of Directive 92/51. 
The team emphasised its concern that the simple procedures for recognition provided for in 
the  sectoral  directives  are  frequently  complicated  by  additional  administrative  and  legal 
requirements at national level, which are time-consuming, expensive and confusing for the 
migrant. These should be reviewed with a view to their removal or simplification and clarifi 
cation. 

EDUCATION AND TRAINING 

While  the  directives  have  made  a  positive  contribution  to  education  and  training,  the 
approach of setting out minimum requirements in the form of detailed lists of subjects was 
considered outdated by some members of the Team. The Team considered that the formu 
lation of the education and training provisions of the sectoral directives should be re-exam 
ined with a view to moving to competency  based criteria which place more emphasis on 
the outcome of the education and training than on rigid rules governing contents. 

THE WORKING OF THE ADVISORY COMMITTEES 

The method of appointing Advisory  Committees should be simplified: instead of the 
appointments  being  made  by the  Council, they  should  be  made  by  each  Member  State 
notifying their  choice to the Commission. The current three year term of office should 
be extended to  improve continuity. The composition  of the Advisory  Committees  (45 
members at present, which could become 75 after the next accession) should be re-exam 
ined. Finally, the Team puts forwards suggestions for,improving the working methods of 
the Committees. 

-11 

ANNEX  1D -  ORNAMENTAL  PLANTS -
Summary  of SLIM Team  recommendations 

THE  NEED FOR THE DIRECTIVE 

The views of the Team were sharply divided on the need for the directive. Some Mem 
bers of the Team felt that there was a need for the directive to secure free movement and 
ensure  minimum quality  standards throughout the  Union. Others felt  strongly  that  market 
forces  and general  consumer  protection  or  private  contract  law were  sufficient.  At  most 
these Members would favour an optional regime which would give producers choosing to 
subject  themselves  to  it the  right to  use  an  EC quality  label  on their  material.  However, 
there was general agreement that, assuming retention of the Directive, the administrative 
burden should be reduced on the lines indicated below. 

WHO  SHOULD BE CONTROLLED BY THE LEGISLATION? 

There should be differing forms and degrees of control at different stages of the pro 
duction/distribution process, depending on the likely potential of the supplier to influence 
the quality of the material. If this approach were followed, the definition of "supplier" would 
have to be amended. 

LIST OF SPECIES 

The list of species should be determined  by reference to their economic  importance 
with the  possibility for  Member States to  be released by way of a Community  procedure 
from setting up a control infrastructure for species not normally produced on their territory. 
For  seeds, the  schedule  under  Article  4  of the  directive  should  be  reconsidered  to  take 
account  of the  declaration  in the  Council  minutes  at the time  of  its  adoption  that  seeds 
would only  be included  if there was a meaningful connection  between their  quality 
and that of the other propagating materials deriving from them. 

VARIETAL  AUTHENTICITY 

Article 9 of Directive 91/682/EEC envisaged  material being marketed with  a reference to 
either  the variety  or group  of  plants to which  it  belonged. The team  was  divided  as  to 
whether Article 9 should  be retained. Some were strongly in favour of keeping Article 9 
(redrafted to be made more clear) and regarded it as essential in order to protect the con 
sumer and to be used as a basis for labelling. Others were not in favour of retaining  it but 
felt that if it were kept it should be simplified only to oblige the supplier to provide varieties 
which were true to name and true to type. So far as Directive 93/78/EEC (the implementing 
measure under Article 9) was concerned, there was a clear majority in favour of repealing it 
altogether.  It was too prescriptive and the reference in Article 9 to "accepted internationai 
guidelines" was regarded as sufficient. 

INTERRELATIONSHIP WITH DIRECTIVE 77/93/EEC  (PLANT HEALTH) 

Although  there  was  no  incompatibility  between  similar  provisions  in  both  directives  and. 
indeed, considerable  similarity, further efforts should  be made to  ensure  coincidence 
whilst recognising that the aims of the two directives were different. 

THIRD COUNTRY  EQUIVALENCE 

The provisions of the directive on the concept of equivalence as applied to third country 
imports should be reviewed. 

Financial Statement 

1. 

TITLE OF OPERATION 

Simpler  Legislation  for  the  Internal  Market  (SLIM)  Pilot  Project  (implemented  by  the 
establishment  of working groups  known as "SLIM  Teams"). 

2. 

BUDGET HEADING CONCERNED 

A  250: Meetings  and  convocations 

3. 

I E Q AI BASIS 

Articles  3c,  7A,  100A  of the  Treaty 

4. 

DESCRIPTION OF THE OPERATION 

4.1. 

Objectives 

The  Pilot  Project  carried  out  from  June  to  November  1996,  resulted  in  concrete  sug 
gestions  about  ways  in  which  legislation  in  four  areas  could  be  simplified.  These  are 
INTRASTAT,  construction  products,  mutual  recognition  of  diplomas,  and  ornamental 
plants.  It  is  now  proposed  to  continue  the  exercise  in  further  sectors.  The  purpose  of 
this  simplification  is  to  improve  the  competitiveness  of  business  and  its  employment-
creating  potential  by  ensuring  that  over-complicated  regulation  at  Community  or 
national  level does  not  impede  its effective  participation  in the  Single  Market. 

4.2. 

Duration 

The  next  phase  will  be  carried  out  in  1997, with the  possibility  of further  phases  in  later 
years. 

5. 

CLASSIFICATION OF EXPENDITURE/REVENUE 

5.1. 

Non-compulsory  expenditure 

5.2. 

Differentiated  appropriations 

5.3. 

Nature  of  revenues: Not  applicable 

6. 

NATURE EXPENDITURE/REVENUE 

6.1. 

Nature  of  expenditure 

Meeting  expenses  for the  +/- 40  members  of the  SLIM teams  (10 per team):  6  one-day 
meetings  per team  in  Brussels. 

6.2. 

Revenues 

The  pilot  project  is financed  100% by the Community  budget. 

7. 

FINANCIAL IMPACT ON THE OPERATIONAL APPROPRIATIONS 

None. 

Al 

- 2-

8. 

ANTI-FRAUD MEASURES 

Not  applicable  (apart  from  the  verification  of the  expenses  claimed  for  attendance  at 
meetings). 

9. 

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 

9.1. 

Specific quantifiable objectives, target population 

•  The pilot project aimed at making concrete suggestions  about ways  in which 
legislation  in four  areas  could  be simplified. The  recommendations  for  sim 
plification  made  by  the  SLIM  Teams  leads  to  a  positive  evaluation  of  the 
pilot project at this stage. Future SLIM reports will cover not only the sectors 
included  in each  successive  phase  but will evaluate  progress  in  simplifying 
legislation which has been the subject of earlier exercises. 

•  Target  population - The pilot  project  is targeted on the  needs  of  businesses 
and  professional  people  throughout  the  Community  for  clear,  simple  and 
proportionate  regulation  that  allows  them  to  exercise  their  Single  Market 
rights  without  unnecessary  restrictions  or  excessive  expense.  Small  and 
medium-sized enterprises are particularly affected by compliance costs. 

9.2.  Grounds for the operation 

9.2.1.  Need for the budgetary intervention of the Community 

•  SLIM  is designed to  improve the operation  of the single  market  by  simplify 
ing and improving some of the rules which govern it. The economic  benefits 
to  be  expected  from  such  simplification  more  than  justify  the  intervention 
proposed. 

•  This action is to be seen in the light of the Commission's  other activities with 
regard to the  simplification  and  codification  of  legislation  (see  the  report  to 
the European Council of December  1995, "Better Law-Making"). 

9.2.2.  Choice of the method of intervention 

•  The  choice  of  the  "SLIM  team"  approach,  which  brings  together  the  Com 
mission,  a  small  number  of  Member  States  and  representatives  of  those 
affected  by the legislation  in small working groups is dictated  by the need to 
bring together the different  perspectives  of those involved with enforcing the 
legislation and those affected by it. The teams are deliberately  small in order 
to  facilitate  a  genuine  exchange  of  views  which  may  be  more  difficult  in 
larger and more formal groups to facilitate rapid progress. 

9.2.3.  Main factors  of uncertainty which could affect  the specific  results  of the opera 

tion 
•  The size of the groups, the choice of members, the sectors  chosen and the 

deadline imposed are all factors that may influence the outcome. 

9.3.  Monitoring and evaluation of the operation 

9.3.1  Performance  indicators 

•  See  9.3.2. 

9.3.2.  Methods and frequency of the evaluation foreseen 

•  For  the  pilot  project,  progress  was  reported  periodically  to  a  Group  of 
Commissioners  and  the  Commission  may  decide  to  continue  this  arrange 
ment. 

à  -

•  Progress  will  also  be  reported  to  the  Internal  Market  Advisory  Committee 

and to the sectoral committees concerned. 

•  Within  the  Commission,  the  services  responsible  for  the  different  SLIM 
teams and other interested services concerned will meet to review  progress 
and compare experiences in the operation of the exercise. 

•  Reports  will  be submitted to the  Internal  Market  Council  and the  European 

Council will also be informed of the results obtained. 

9.3.3.  Assessment of the results obtained 

•  The results obtained are the subject of reports to the Council, as mentioned 
above.  The  key  element  in the  evaluation  of  the  exercise  is the  degree  to 
which  it  is possible to  arrive  at concrete  recommendations  and  subsequent 
action on simplification  by the Community  institutions  on the  basis  of these 
recommendations. 

9.4.  Coherence with financial programming 

SLIM  has  not  been  specifically  included  in  the  Draft  Budget  for  1997  as  it  was  not 
possible to pre-judge the results of the pilot project.  It has proved possible  in the case 
of the pilot project to finance the exercise from the envelope provided for the sectors in 
question. A specific provision for SLIM will be proposed for 1998. 

10. 

ADMINISTRATIVE EXPENDITURE (SECTION III. PART A OF THE BUDGET) 

The  provision  of the  required  administrative  resources  is dependant  upon  the  annual 
decision  of  the  Commission  concerning  the  allocation  of  resources,  taking  particular 
account  of the  extra  personnel  and financial  resources  made available  by the  budget 
authority. 

10.1.  Effect on the number of posts 

Type  of  post 

Staff  to  be assigned  to 
managing  the  operation 
Temporary 
Permanent 
posts 
posts 

Officials or tem 
porary staff 

A 
B 
C 

Other resources 

1 

Source 

Duration 

Existing resources in 
the DG or depart 
ment concerned 
1 

Additional 
resources 

1997 

Total 

1 

1 

10.2.  Overall financial impact of additional human resources 

Amounts 
(ecus) 

Method of calculation 

Officials 
Temporary  staff 
Other resources (indicate budget heading) 
Total | 

| 

The expenses related to human resources required for the completion of this action will 
be made available upon mobilisation of existing resources: 

Officials (titles A1, A2, A4, A5): 100.000 ecus 

4-

10.3. 

Increase in other administrative expenditure as a result of the operaf:on 

Budget heading 

Amounts 
(ecus) 

Method of calculation 

Total I 

| 

The  number  of  SLIM Teams  in any  given year will depend  on future  decisions  of the 
Commission. The following calculations assume 4 Teams per year. 

The total expenses for 4 SLIM teams come to 180.000 ecus. 

All expenses relate to A 250 - Meetings and convocations and will be met by the mobi 
lisation  of  existing  resources.  They  will  be  shared  by  the  responsible  services,  each 
service covering the expenses of the SLIM Team for its area of responsibility. 

The annual cost may be estimated as follows: 

4 SLIM Teams x 6 one-day meetings = 24 meetings 
•  24 x 5 government experts =  24x5x695 ecus (average cost) =  83,400 ecus 
24x5x804 ecus (average cost) =  96,480 ecus 
•  24 x 5 private experts = 

TOTAL: 

179,880 ecus, 
say  180,000 ecus 

ISSN02S4-I47> 

COM(96) 559  final 

DOCUMENTS 

EN 

06  10  01 

Catalogue  number  :  CB-CO-96-568-EN-C 

ISBN 92-78-11413-8 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg