Opinion of the Committee of the Regions on Better Lawmaking 2004 and Better Regulation for Growth and Jobs in the European Union
Date: 2005-10-12
Institutions: European Committee of the Regions
Subjects: European Committee of the Regions, European Constitution, dissemination of EU information, drafting of EU law, impact study, interinstitutional relations (EU), powers of the institutions (EU), principle of proportionality, principle of subsidiarity, region-EU relationship, simplification of legislation

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Official Journal of the European Union

4.4.2006

Opinion of the Committee of the Regions on Better Lawmaking 2004 and Better Regulation for
Growth and Jobs in the European Union

(2006/C 81/02)

THE COMMITTEE OF THE REGIONS,

Having regard to the European Commission report of 21 March 2005 on Better Lawmaking 2004
COM(2005) 98 final and its annex SEC(2005) 364;

Having regard to the Communication from the European Commission of 16 March 2005 on Better Regu-
lation for Growth and Jobs in the European Union COM(2005) 97 final and its annex SEC(2005) 175;

Having regard to the decision of the European Commission on 21 March 2005 to consult it on this
subject, under the first paragraph of Article 265 of the Treaty establishing the European Community;

Having regard to the decision of its President of 20 January 2005 to instruct the Commission for Consti-
tutional Affairs and European Governance to draw up an opinion on this subject;

Having regard to the Protocol governing arrangements for cooperation between the European Commission and the
Committee of the Regions signed by their respective presidents on 20 September 2001 (DI CdR 81/2001 rev.
1);

Having regard to the White Paper on European governance of 25 July 2001 COM(2001) 428 final;

Having regard to its global opinion of 2 July 2003 on the Follow-up to the White Paper on European Govern-
ance (CdR 19/2003 fin (1));

Having regard to its opinion of 20 November 2003 on Better lawmaking 2002 and Updating and simplifying
the Community acquis (CdR 62/2003 fin (2));

Having regard to the draft opinion of its Commission for Constitutional Affairs and European Governance
on The application and monitoring of the principles of subsidiarity and proportionality (CdR 220/2004);

Having regard to its draft opinion (CdR 121/2005 rev. 1) adopted on 14 June 2005 by its Commission
for Constitutional Affairs and European Governance (rapporteur: Mr Delebarre, former Minister of State
— Mayor of Dunkirk (FR/PES);

1)

2)

3)

Whereas it is important to take more account of the principles of subsidiarity, proportionality and
proximity in order to develop simple and clear European legislation that can be readily understood
by European citizens;

Whereas regional and local authorities, if appropriately involved in the preparation of legislative
acts, can play a key role in transposing and implementing them in their own areas;

Whereas new methods of European governance, such as extended impact assessments and the part-
nership approach of target-based tripartite contracts and agreements — to the success of which the
Committee can make an active contribution — can bring added value;

adopted the following opinion unanimously at its 61st plenary session, held on 12 and 13 October
2005 (meeting of 12 October):

(1) OJ C 256 of 24.10.2003, p. 24.
(2) OJ C 73 of 23.3.2004, p. 38.

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1. The Committee of the Regions' views

— application of the subsidiarity principle;

1.1 Applying the principles of subsidiarity and proportionality

The Committee of the Regions

— follow-up of the White Paper of the European Commission —
particularly on tripartite contracts or agreements and dialogue
with local and regional associations;

1.1.1 wishes to expand upon the various opinions (3) on
process, which
European governance
enshrines these principles, as well as upon its draft opinion on
applying the principles of subsidiarity and proportionality (4);

constitutional

and the

notes the progress described in the European Commis-
1.1.2
sion's 12th annual review on Better lawmaking and emphasises
the importance that should be attached to a more in-depth
analysis of
the methods of consultation and interinstitutional
dialogue, prospective studies and impact assessments;

1.1.3
believes that ‘better legislation’ and ‘better implemen-
tation’ of the EU's legislative acts — produced as a result of
these consultations — are key objectives for both the European
Commission and itself, and emphasises the role which its
Bureau, at its meeting of 19 March 2004, decided it should
play in coordinating this dialogue;

points out that its recommendations have led to the
1.1.4
adoption of an approach which ensures the closer involvement
of local and regional authorities in implementing Community
legislation (5), and appreciates
the European Commission's
mention of this fact in its report entitled Better lawmaking 2004;

1.1.5
regrets, however, that the European Commission has
not given sufficient weight to its previous recommendations on
the importance of consulting local and regional government in the
early stages of drafting legislation (6), and hopes that the European
Commission will in the future carry out reasonable assessments
of the impact that certain measures could have on the financial
requirements of local and regional authorities;

appreciates the fact that the European Commission is
1.1.6
following up the interinstitutional agreement adopted by the
European Parliament, the Council of the European Union and the
European Commission in December 2003 (7),
in line with the
action plan of June 2002;

1.1.7 welcomes the European Commission's plans to imple-
ment a framework programme for simplifying the acquis 2005-
2009, as from October 2005, which takes on board the
following recommendations made at The Hague (8), by the
high-level meeting on Governance and the EU, which are crucial
for regional and local authorities:

(3) Opinion CdR 50/99 fin (Better lawmaking 1998) - Opinion CdR
18/2000 fin (Better lawmaking 1999) - Opinion CdR 62/2003 fin
(Better lawmaking 2002).

(4) Draft opinion of

its Commission for Constitutional Affairs and
European Governance of 5 February 2005 on The application and
monitoring of
the principles of subsidiarity and proportionality
(CdR 220/2004).

(5) See, for example, COM(2003) 811 final, Dialogue with associations
of regional and local authorities on the formulation of European
Union policy of 19 December 2003.

(6) See opinion CdR 62/2003 fin.
(7) Communication from the European Parliament, the Council and the
Commission on the interinstitutional agreement on Better lawmaking
- OJ 2003/C 321/01 of 31 December 2003.

(8) Conclusions and recommendations of

the High-level Group on
Governance and the EU, The Hague - 9 and 10 December 2004.

— application of EU law at regional and local level and the search

for better regulation.

1.2 Structured dialogue, consultation processes and contract-based

partnerships

The Committee of the Regions

welcomes the fact that the European Commission has
1.2.1
long (9) advocated developing strong ‘interaction with regional and
local government and civil society’, at an early stage of policy
framing, by introducing ongoing and systematic dialogue (10), with
the added impetus of extensive consultation with regional authori-
ties on areas for which they are responsible for transposition or
implementation, including both itself and the relevant associa-
tions;

the

that

is pleased to note

1.2.2
European
Council (11) has recently stated that ‘Alongside the governments,
all the other players concerned — parliaments, regional and
local bodies, social partners and civil society — should be
stakeholders in the (Lisbon) Strategy and take an active part in
attaining its objectives’;

Spring

1.2.3 welcomes the signing of the first target-based tripartite
agreement on urban transport mobility between the European
Union, Italy and the region of Lombardy;

1.2.4
believes that by implementing the partnership principle,
the weaknesses of the current system could be overcome and
so provide real added value, promoting rapid realisation of well-
defined joint objectives, without affecting the partners' institu-
tional remits;

1.2.5
hopes, firstly, that this type of contract will become
an effective instrument for involving regional and local authorities in
a national strategic reference framework which leaves the regions
sufficient room for manoeuvre to define their specific objec-
tives and, secondly, that it is the signatories of a contract or
agreement with the European Commission that will hold these
powers, be they legislative or executive;

(9) Communication from the European Commission on Dialogue with
associations of regional and local authorities on the formulation of Euro-
pean Union policy, COM(2003) 811 final of 23 November 2003.
(10) White Paper on European governance COM(2001) 428 final of 25

July 2001.

(11) Presidency Conclusions, Brussels European Council of 22-23

March, 7619/05.

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1.2.6
firmly trusts that more flexible arrangements for
vertical decentralisation, and cooperation between different tiers
of territorial authority, will be appropriately supplemented by
interregional cooperation and a
new mechanisms for horizontal
partnership based on contractual ties of varying degrees with
other local authorities or with the representatives of civil society,
and possibly recourse to the expertise of existing interregional
organisations.

1.3 Extended impact assessment and expertise

The Committee of the Regions

1.3.1 welcomes the introduction in 2004 of a new method
of impact analysis for the European Commission's major initia-
tives and the use of an instrument which enables the study of
the economic, environmental and regulatory effects of a proposal
and provides for consultation with interested parties and relevant
experts;

1.3.2
impact of
progressively greater account
Community action;

nevertheless, considers it vital to take the regional
the European Commission's key initiatives into
in order to better coordinate

1.3.3
Commission, is particularly sensitive to:

in connection the measures proposed by the European

— the impact that certain measures may have on the finances

of regional and local authorities

— better impact assessments with due regard to the costs for

companies

— a review of pending proposals, possible changes made to

them or their withdrawal

— stepping up the simplification procedure to increase compe-

titiveness

— pilot projects which focus on reducing the administrative

workload

— considering alternatives to legislation (co-regulation and

self-regulation)

— the use of external experts

— wider consultation of citizens, businesses and NGOs via the

internet.

2. Recommendations of the Committee of the Regions

2.1 Recommendations on the entire Better Lawmaking package

The Committee of the Regions

itself

the
2.1.1 welcomes the priority strategic objective that
European Commission has set
for its five-year term
concerning the ‘Better lawmaking’ action and the inter-institu-
tional cooperation initiated on the issue; regrets, however, that
the local and regional dimension has not been adequately
recognised in this initiative and strongly urges the presiden-
cies of the Council, the European Parliament and the Commis-
sion to involve it more closely;

2.1.2
recalls that under the Protocol on the application of
the principles of subsidiarity and proportionality, included in
the Constitutional Treaty, account can be taken of the Euro-
pean Union's regional and local dimension through extensive
consultations prior to the adoption of all legislative acts and
that, for every European framework law, a ‘subsidiarity state-
ment’ must be drawn up in which the European Commission is
to assess the regulatory and financial consequences of
the
framework law for regional and local authorities; and urges the
Commission to take account of this forthwith with regard to
existing European legislation, regardless of developments in the
ratification process;

2.1.3 wishes to exploit the space opened up by the Protocol
on the application of the subsidiarity and proportionality prin-
ciples in order to play a vital role between local and regional
in
authorities and the European institutions for consultations,
line with the Protocol of cooperation with the European Commis-
sion (12);

2.1.4
intends to strengthen its action during the pre-legisla-
tive phase which will become crucial with respect to the need
for greater efficiency and transparency and stronger democratic
legitimacy of the EU, and therefore repeats its wish to be able
to be involved in ‘consultation 'upstream' of decision-making’ and
in the implementation of
instruments which
ought to be ‘an effective way of achieving EU objectives’;

‘co-regulation’

recalls that

the Constitutional Treaty confers

joint
2.1.5
responsibility upon it to apply and monitor the principles of
subsidiarity and proportionality, by granting it new rights and
duties as regards the development and implementation of Com-
impact
munity legislation,
within the EU;

thus enhancing its institutional

2.1.6
intends to exercise this new responsibility to the full
and take up the role of guardian of subsidiarity, which the
Constitutional Treaty entrusts to it, and,
if circumstances so
require, to use its right of appeal to the Court of Justice of the
European Union not only to defend its own prerogatives but
also in cases of infringement of the principle of subsidiarity. In
this latter case, it will do once an opinion has been adopted,
fulfilling its consultative function under the Treaty, and without
necessarily having carried out a critical assessment of compli-
ance with the principle of subsidiarity;

2.1.7
considers that the impact of Community intervention
could be reinforced via the avenues opened up by proportionality
insofar as the choice of recommended instruments and the
scope and intensity of the legislative proposal are the key
criteria;

2.1.8 wishes to contribute towards the quality of legisla-
tion by fostering a comprehensive and cooperative approach and
improving collaboration among the three European levels of power:
the European institutions, Member States and local and regional
authorities, and particularly by participating in the organisation
of discussion platforms between the latter and civil society;

(12) Protocol on cooperation between the Committee of the Regions
and the Commission, signed in Brussels on 20 September 2001.

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2.1.9
between the EU institutions and local and regional authorities:

would also wish to enhance its role as intermediary

networks

— by taking an active part in the organisation and running of
cooperation
exchange
between the various levels of local and regional authority,
in particular with regard to the territorialisation of EU policies;
and

to formalise

designed

— by being closely involved in the European political agenda
and in achieving the objectives of better European govern-
ance;

2.1.10
confirms its intention to prepare itself to monitor
compliance with the principle of subsidiarity, by on the one hand,
drawing up a subsidiarity screening system to be appended to its
opinions and, on the other hand, by gradually developing a
network of local and regional authorities in order to monitor subsi-
diarity;

2.1.11
restates its request for local and regional authorities
to be involved in the early stages of drafting legislation, even if
only in the interests of proper application of the Protocol on
the application of the principles of subsidiarity and proportion-
ality in connection with the budgetary consequences for local
and regional authorities and compliance with the principles of
subsidiarity and proportionality.

2.2 Recommendations on the tripartite agreements and contracts

The Committee of the Regions

invites the European Commission to restart the signing
2.2.1
of
tripartite agreements and contracts as a way of bringing
together local and regional authorities, Member States and the
Community as partners, and to extend the use of this instrument
to other Community policy areas, particularly concerning major
European infrastructure projects and the implementation of cohe-
sion policy (13);

recommends

and
the
2.2.2
contracts which have made for a long and positive collabora-
tion between the interested parties be rapidly concluded;

agreements

tripartite

that

the first

believes that

tripartite agreement signed
2.2.3
between the European Union, Italy, and the Lombardy region
together with the experimental pilot
on urban mobility,
projects on environmental
issues, which were drafted with the
public authorities of Birmingham, Lille and Pescara, will enable
to be identified, which will be
results and ‘good practice’
helpful in defining the appropriate methodology for future tripar-
tite contracts;

insists on the fact that tripartite contracts constitute a
2.2.4
governance instrument which aims to ensure that legislation
and programmes with a strong territorial impact can be more flex-
ibly and effectively implemented;

2.2.5
calls upon the European Commission to establish
specific financial provisions ensuring that local and regional
authorities have the means they need to rapidly implement
tripartite agreements and contracts, enabling them to perform their
operational role in the field to the full and free of obstacle;

2.2.6
asks the European Commission to reinforce horizontal
in the management of
coordination by its secretariat-general
this experimental phase and its follow-up and to encourage the
communication and promotion of this instrument;

recommends that the Council of the European Union
2.2.7
provides more explicit support for the continuation of this
initiative which is helping to reform European methods of
governance;

2.2.8
recommends that, in all the arrangements to reinvi-
gorate the Lisbon strategy, the European Commission should give
careful consideration to the contribution that target-based tripar-
tite contracts and agreements could make towards the success of
this strategic process by allowing those regions that so wish to
play a greater part in ensuring this.

2.3 Recommendations on the impact assessment

The Committee of the Regions

2.3.1
proposes that the introduction of a new impact assess-
ment method for the European Commission's major initiatives
should lead to the local and regional dimension being taken
into account to the greatest possible extent in the ex ante phase
of the legislative process;

2.3.2
it with
asks the European Commission to entrust
drawing up prospective analyses falling within its remit, and, in
particular, all major initiatives with a territorial impact;

2.3.3
considers that a preliminary assessment on its part
would be particularly important in terms of the application of
non-regulatory instruments (co-regulation and self-regulation) and
all information and coordination activities carried out at local and
regional level;

2.3.4
believes that impact assessments must play a substan-
tial role in reducing the administrative burdens of EU legislation on
local and regional authorities and that, consequently, preliminary
assessments must include an impact assessment of legislative
acts at local and regional level, in financial terms;

2.3.5
recommends that in reviewing the protocol for coop-
eration signed with the European Commission (14), the extended
impact assessments should be used in order to define detailed
evaluation and quality criteria for those who are to carry them
out, and in order to establish a real strategy for consulting the
grass roots at regional and local level;

(13) Opinion of the Committee of the Regions on the Proposal for a
Council Regulation laying down general provisions on the European
Regional Development Fund, the European Social Fund and the Cohesion
Fund - CdR 232/2004 fin of 13 April 2005.

(14) Protocol governing arrangements for cooperation between the
European Commission and the Committee of the Regions, signedby
their respective presidents on 20 September 2001 - DI CdR 81/
2001 rev. 1.

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2.4.2
endorses the European Commission's recommenda-
tion that better regulation should become an integral part of the
national action plans on the Lisbon strategy and calls for the
establishment of a joint work plan on Better regulation;

proposes that

2.4.3
the national action plans include a
regional dimension with a view to ensuring that local administra-
tive procedures are more flexible and effective and that the
national programmes on the simplification of legislation —
such as the ones proposed by the European Commission — pave
the way for consultation with local and regional authorities by
providing more information on the reform at regional and
local level.

2.5 General recommendations

The Committee of the Regions

2.5.1
calls upon the European Commission in particular to
ensure, together with itself, more specific follow-up in connec-
tion with the present proposal, by means of a swifter and more
political response;

lastly,

intends

to regularly evaluate

2.5.2
the actions
outlined in the action plan on Better lawmaking, particularly as
regards its annual consultation on the report of the European
Commission, and hopes that the European Commission will intro-
duce a computerised system to facilitate access to information on
the ongoing legislative process and therefore ensure that local
and regional authorities receive better information on all the
various stages of legislation.

The President

of the Committee of the Regions

Peter STRAUB

2.3.6
invites the European Commission to foster a more
proactive role in the pre-legislative phase of Community action
in the form of outlook opinions on future Community policies,
which would focus on the impact on local and regional authori-
ties, and in the form of reports on the local and regional impact
of certain directives;

2.3.7
renews its recommendation to the European Commis-
sion to create an independent expert advisory group to monitor
impact assessments, assure objectivity and encourage good
practice, and to keep it briefed on its work so it can strengthen
its the political role during later phases of the decision-making
process (15);

2.3.8
asks to be informed of the progress of the working
group on managing and monitoring impact assessments that was
created within the European Parliament, so that it can take part
in the interinstitutional cooperation group which was set up by
the European Parliament and, with the help of the European
Commission and the Council, develop a set of common criteria
to evaluate the quality of impact assessments and quantify the
costs arising from legislative proposals.

2.4 Recommendations on improving the
employment in the European Union

rules on growth and

The Committee of the Regions

notes, with great interest, the Council's concerns about
2.4.1
reinvigorating the Lisbon process and the content of
the
communications (16) submitted by the European Commission with
a view to establishing better regulation to pursue this process, as
it considers that simplification and improvement of the regula-
tory framework are crucial at both national and EU level;

Brussels, 12 October 2005.

(15) Opinion CdR 62/2003 fin.
(16) Communication on Better Regulation for Growth and Jobs in the Euro-
pean Union of 16 March 2005 - COM(2005) 97 final andits annex
SEC(2005) 175 and Better lawmaking 2004 of 21 March 2005 -
COM(2005) 98 final and its annex SEC(2005) 364.