COMMISSION STAFF WORKING DOCUMENT Overview of the Union's Efforts to Simplify and to Reduce Regulatory Burdens Accompanying the document Communication Completing the Better Regulation Agenda: Better solutions for better results
Date: 2017-10-24
Institutions: European Commission, Secretariat-General
Subjects: EU act, EU programme, application of EU law, approximation of laws, drafting of EU law, institutional cooperation, interinstitutional agreement, transparency in decision-making

EN 

   EN 

   EUROPEAN COMMISSION  Strasbourg, 24.10.2017  SWD(2017) 675 final   COMMISSION STAFF WORKING DOCUMENT Overview of the Union's Efforts to Simplify and to Reduce Regulatory Burdens Accompanying the document Communication Completing the Better Regulation Agenda: Better solutions for better results {COM(2017) 651 final}  
 
 
1. 

INTRODUCTION 

The  report  responds  to  the  commitment  the  Commission  made  in  the  Interinsitutional 
Agreement on Better Law-Making to present annually an overview, including an annual 
burden  survey,  of  the  results  of  the  Union's  efforts  to  simplify  legislation  and  to  avoid 
overregulation and reduce adminstrative burdens. It consists of: 

  a set of summary fiches which present key results of activities carried out under 
its  Regulatory  Fitness  and  Perforamnce  Programme  (REFIT).  These  fiches 
present the benefits and savings to industry, citizens and public authorities, and 
show what REFIT initiatives can deliver if confirmed by the legislator and fully 
implemented by Member States;  
the results of a Eurobarometer survey on perceptions of regulation by business, 
carried out as a specific and targeted exercise in March 2017;  

 

  and  finally  the  Commission's  assessment  of  the  feasiblity  of  introducing 

objectives for burden reduction in specific sectors.  

The report is complemented by the full REFIT scoreboard which includes details on all 
REFIT  initiatives  and  is  published  online1.  Feedback  on  the  REFIT  Scoreboard  and  on 
any initiative included in it can be provided at the following website: Lighten the Load – 
Have your Say. 

1   https://ec.europa.eu/info/law/law-making-process/overview-law-making-process/evaluating-and-

improving-existing-laws/reducing-burdens-and-simplifying-law/refit-making-eu-law-simpler-and-less-
costly_en  

2 

 
 
 
 
 
 
                                                 
2.  SUMMARY OF THE REFIT SCOREBOARD 

The Commission is committed to making rules that deliver clear benefits to society while 
minimizing  the  regulatory  costs  necessary  to  achieve  the  desired  policy  goal.  Certain 
costs  are  necessary  to  achieving  politically  defined  policy  goals  and  are  intrinsically 
linked  to  the  benefits  that  legislation  produces;  other  costs  may  turn  out  to  be 
unnecessary because implementation shows that activities imposed by legislation are not 
needed  or  can  be  done  in  smarter  and  simpler  ways.  They  can  be  removed  without 
undermining  what  the  legislation  seeks  to  achieve.  The  Commission  systematically 
identifies and reduces unnecessary regulatory costs through the REFIT programme. This 
programme looks at existing legislation to ensure that it is fit for purpose and to identify 
future areas where gains in efficiency and effectiveness can be reached. The Commission 
applies  an  'evaluate  first'  policy  and  quantifies  regulatory  costs,  benefits  and  savings 
where data is available before proposals are made.  

As from 2017, all envisaged modifications of existing legislation automatically look for 
opportunities  to  simplify  and  reduce  unnecessary  regulatory  costs.  Reducing  regulatory 
burdens  and  simplifying  regulatory  requirements  has  consequently  been  mainstreamed 
into the Commission's general legislative work and the resulting proposals are included 
each year in the Commission's work programme for the 10 priorities of this Commission. 
The  work  programme  for  2018  adds  17  new  simplification  initiatives  to  the  REFIT 
portfolio. This includes for example initiatives for simplification and burden reduction in 
areas  such  as  on  reporting  requirements  in  the  area  of  environment  (Priority  1),  EU 
Fisheries Control System (Priority 3), the Single Maritime Window and Trans-European 
Transport Networks (Priority 4), consumer law (Priority 7) and ID Cards and emergency 
travel documents (Priority 8). 

REFIT  focuses  on  unnecessary  costs  and  burdens  and  therefore  does  not  affect  the 
possibility  to  have  in  place  the  EU  legislation  which  is  necessary  to  protect  citizens, 
consumers  or  the  environment  and  does  not  lead  to  deregulation.  On  the  contrary,  by 
streamlining  regulatory  requirements  and  reducing  costs  where  this  is  possible,  REFIT 
promotes greater compliance and a more effective and efficient achievement of societal 
objectives for the benefits of all stakeholders, including SME.  

To  focus  the  Commission's  REFIT  work  on  what  matters  most  for  business  and  other 
stakeholders, the Commission created an online portal and takes advice from a high-level 
expert group, the REFIT Platform. Since its creation, the REFIT Platform has adopted 58 
opinions drawing on over 280 public suggestions on how to make EU law more effective 
and  efficient.  The  Commission  is  committed  to  explaining  how  it  follows  up  on  these 
opinions  and  has  provided  feedback  on  the  first  set  of  22  opinions  in  the  2017 
Commission  Work  Programme.  The  present  document  includes  the  follow-up  to  an 
additional  36  opinions  which  have  been  adopted  since  then.  Action  taken  or  planned 
further  to  these  opinions  notably  includes  strengthening  ePrivacy  and  the  European 
Citizen Initiative, an action plan to improve the European Standardisation System and a 

3 

 
 
 
 
 
 
Communication on the future of the Common Agricultural Policy including the results of 
a comprehensive public consultation attracting over 300.000 replies2. 

REFIT can show results: In the first three years of the Juncker Commission, more than 
130  new  initiatives  to  simplify  and  reduce  regulatory  burdens  have  been  proposed  to 
Council and Parliament. More than 80% of all REFIT initiatives include a quantification 
of  regulatory  costs  and  more  than  60%  include a  quantification  of  regulatory  benefits.3 
Important  savings  to  citizens,  business  and  public  administration  can  be  achieved  once 
REFIT initiatives proposed by the Commission are confirmed by the legislator and fully 
implemented  by  Member  States.  Examples  include  waste  where  clear  and  more 
ambitious  targets  for  waste  prevention  and  recycling  could  bring  savings  of  1.3  billion 
per  year,  VAT  where  a  proposal  to  extend  a  One-Stop-Shop  to  online  sales  and  allow 
business  to  declare  VAT  in  the  Member  State  it  is  established  is  expected  to  reduce 
compliance costs for businesses €2.3 billion a year, derivative rules in the financial sector 
which are expected to save business € 9.56 billion, the Single Digital Gateway that could 
help  companies  save  more  than  €  11  billion  per  year  or  a  revised  legislation  on 
Veterinary medicines cutting costs by an estimated € 145 million. 

2   An information brochure on REFIT Platform opinions and follow-up will be available in an updated 
version  by  December  at:  https://ec.europa.eu/info/law/law-making-process/overview-law-making-
process/evaluating-and-improving-existing-laws/reducing-burdens-and-simplifying-law/refit-
platform/follow-platform-recommendations-opinions_en 

3   Regulatory Scrutiny Board: Annual Report 2016. 

4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
2.1. 

Simplification and Burden Reduction for Jobs, Growth and Investment 
(Priority 1) 

"..My experience as Commissioner to date has led me to conclude that we need a serious 
debate in relation to how to keep the Common Agricultural Policy truly fit for purpose in 
the  21st  Century.  The  simplification  of  the  Common  Agricultural  Policy  involves  an 
improvement 
in  governance;  a  reduction  of  administrative  burden  using  new 
technologies;  and  the  implementation  of  cost-efficient  tools  to  strengthen  the  focus  on 
results."Phil Hogan, Commissioner for Agriculture and Rural Development 

Boosting  jobs,  growth  and  investment  in  a  sustainable  manner  is  key  to  increase  the 
welfare  of  Europe's  citizens  and  the  competitiveness  of  its  business.  In  order  to  ensure 
that  unnecessary  costs  are  removed  and  rules  are  as  effective  and  efficient  as  possible, 
since 2015 the Commission has made 7 proposals under REFIT, 4 of which are pending 
adoption by the legislator, plans 4 further initiatives for 2018 and is evaluating 11 areas. 

REFIT initiatives 

3 initiatives 
adopted  

11 areas  are being 
evaluated 

22 

4 initiatives 
proposed by the 
Commission and 
pending in 
legislative 
procedure 

4 new initiatives 
planned by the 
Commission 

Results and Achievements – Examples: 

  Waste – setting more ambitious targets for recycling and landfilling will bring net 
savings of € 1.3 billion annually. For the period up to 2035, savings could reach € 
25 billion, 160 000 jobs could be created and greenhouse gas emissions could be 
reduced by 550 million tonnes.4 

  Agriculture  -  Common  Market  Organisation  –  rationalising  regulations  in  this 
area  will  cut  administrative  burden  for  economic  operators  and  national 
administrations by reducing more than 200 existing Commission Regulations into 
40 implementing and delegated acts. 22 of these acts have already been adopted. 

4   Data of savings and benefits are included in the impact assessment of the respective initiative. 

5 

 
 
 
 
 
 
                                                 
Work under Way – Examples: 

The  Commission  will  shortly  present  a  Communication  on  the  modernisation  and 
simplification  of  the  Common  Agricultural  Policy  (CAP),  which  will  feed  into  the 
Commission  proposal  on  the  CAP  post-2020.  Based  on  its  evaluation  of  the  Fisheries 
Control Regulation the Commission will propose to simplify the fisheries control system. 
The legal framework on marketing standards will be evaluated to make sure it remains fit 
for purpose: 

  The review of the Common Agricultural Policy for the post-2020 period will aim 
at  simplification  and  increased  efficiency  and  maximise  the  contribution  of  the 
CAP  to  the  Commission's  priorities  and  the  Sustainable  Development  Goals.  – 
Overall, 9 opinions5 of the REFIT Platform were adopted during the course of 
2016 and 2017 and are providing input to this process. 

  A  review  of  the  EU  fisheries  control  system  will  reduce  administrative  burden, 
for  example  by  streamlining  reporting  requirements,  promoting  the  use  of 
harmonised IT tools and by harmonising the catalogue of serious infringements. 
The REFIT Platform recognised that certain provisions of the current legislative 
framework can create regulatory burden for businesses and public administration 
and recommended a proportional application of the Control regulation. 

  An  evaluation  of  EU  marketing  standards  will  help  to  assess  the  coherence  of 
the  legislative  framework  in  this  area  as  well  as  to  identify  simplification 
potential.  The  evaluation  is  supported  by  the  REFIT  Platform,  which 
recommended  that  different  options  should  be  examined  to  ensure  the 
effectiveness  and  efficiency  of  the  EU  regulatory  framework  on  marketing 
standards for fresh fruit and vegetables. 

  A  proposal  on  the  use  of  hazardous  substances  in  electrical  and  electronic 
equipment would reduce costs and administrative burden for business and public 
authorities,  create  additional  market  opportunities  for  repair  industries  and 
secondary selling, have positive social impact, including for EU hospitals, which 
would  save  about  €170  million  after  2019,  from  maintaining  the  possibility  to 
resell  and  buy  used  medical  devices.  The  exclusion  of  pipe  organs  from  the 
Directive’s scope would also help avoid the loss of up to 90% of jobs in the sector 
and the annual loss of up to € 65 million by 2025. 

The  REFIT  Platform  adopted  a  total  of  14  opinions  under  priority  area  1  in  2017. 
Further to the follow-up indicated above, the Platform also adopted 2 opinions in the area 
of Regional Policy and 1 on its interlinkage with competition policy. The results of the 

5   3 opinions adopted in 2016 and 6 adopted in 2017 

6 

 
 
 
 
 
 
                                                 
Platform's work in this area are shared with the High Level Group on Simplification of 
the European Structural and Investment Funds. In the field of environment, the REFIT 
Platform  adopted  2  opinions  on  hydraulic  fracturing  and  Best  Available  Techniques  in 
the  chemicals  industry  (BREF)  and  the  REACH  authorisation  process.  With  regard  to 
hydraulic fracturing, an assessment of the effectiveness of the current policy approach on 
unconventional  fossil  fuels  will  be  undertaken  at  the  latest  in  2019.  Regarding  BREFs, 
work  is  ongoing  via  the  Seville  process  to  ensure  that  the  BREF  review  process  is 
effective and efficient.  

Overview of Priority 1 REFIT Initiatives taken by the present Commission: 

Initiatives adopted: 

1.  Simplification  of  Commission-level  regulations  linked  to  the  Regulation  on  a 
Common Organisation of the Markets in agricultural products (CMO Regulation)  - 
22 acts already adopted 
2.  Adjustment  of  secondary  legislation  related  to  greening  (Commission  Delegated 
Regulation  (EU)  2017/1155  of  15  February  2017  amending  Delegated  Regulation 
(EU) No 639/2014) 
3. Implementing Regulation on REACH adopted in 2016 

Initiatives proposed by the Commission and pending in Legislative Procedure: 

1. Circular Economy Package (revised legislative proposals on waste) 
2.  New  simplified  technical  measures  framework  for  the  Protection  of  Marine 
Organisms  
3. Sustainable management of external fishing fleets (revision of the current Fishing 
Authorisation Regulation) 
4.  Proposal  to  amend  restrictions  on  the  use  of  hazardous  substances  in  electrical 
and electronic equipment. 

Initiatives Planned by the Commission: 

1. CAP post-2020 
2. Revision of the Drinking Water Directive  
3. Review of the Fisheries Control System  
4. Implementing act on a standard format and frequency of reporting in the area of 
Waste electrical and electronic equipment  

Areas being evaluated: 

1.  Greening  (payment  for  agricultural  practices  beneficial  for  the  climate  and  the 
environment under the CAP)  
2. Marketing Standards – for food products  
3. CAP measures applicable to the wine sector 
4.  State  aid  rules  in  agriculture  -  instruments  applicable  to  state  aid  in  the 
agricultural and forestry sectors and in rural areas 
5. POSEI programme (agricultural measures carried out for the outermost regions) 
6. REACH Regulation 1907/2006/EC  
7. European Pollutant Release and Transfer Register- Regulation 166/2006/EC 

7 

 
 
 
 
 
 
 
 
 
  
 
8. Strategic Environmental Assessment Directive 
9. Keeping of wild animals in zoos - Directive 1999/22/EC 
10. Urban Waste Water Treatment 
11.  Policy  framework  for  bilateral  Sustainable  Fisheries  Partnership  Agreements 
with third countries 

8 

 
 
 
2.2. 

Simplification  and  Burden  Reduction  in  the  Digital  Single  Market 
(Priority 2) 

"I want online platforms and the audiovisual and creative sectors to be powerhouses in 
the  digital  economy,  not  weigh  them  down  with  unnecessary  rules.  They  need  the 
certainty of a modern and fair legal environment: that is what we are providing today." 
Andrus Ansip, Vice-President for the Digital Single Market 

Making the EU's Single Market fit for the digital age could contribute EUR 415 billion 
per year to the EU economy6 and create hundreds of thousands of new jobs.  

In  order  to  ensure  that  unnecessary  costs  are  removed  and  rules  are  as  effective  and 
efficient as possible, since 2015 the Commission has made 7 proposals under REFIT, all 
of which are pending adoption by the legislator. 2 initiatives are planned for 2018 and 1 
area is being evaluated. 

REFIT initiatives 

1 area is being 
evaluated  

2 initiatives planned 
by the Commission 

10 

7 initiatives 
proposed by the 
Commission and 
pending in 
legislative 
procedure 

Results and Achievements – Examples: 

  Simplification  of  VAT  for  cross-border  e-commerce  will  extend  a  One-Stop-
Shop  to  online  sales  to  consumers  and  allows  business  to  fulfil  their  EU  wide 
VAT obligations for these sales in the Member State established. The proposal is 
expected to reduce VAT compliance costs for businesses and particularly SMEs 
by  €2.3  billion  a  year  and  increase  VAT  revenues  for  Member  States  by  €7 
billion per year. 

  The revised Audio-visual Media Services Directive (AVMSD) will create a single 
European  market  for  audio-visual  media  services  and  make  current  rules  more 
flexible and simple. Savings will result from the simplification of the country of 
origin principle in the area of commercial communications and amount to  € 5.3 

6   Mid-Term Review of the Digital Single Market Strategy: 

https://ec.europa.eu/commission/priorities/digital-single-market_en  

9 

 
 
 
 
 
                                                 
million  per  year  for  EU  regulators.  Economic  benefits  resulting  from  the 
flexibility  of  the  12  minutes  rule  could  reach  €  122  million  for  one  TV 
broadcasters, economic benefits related to product placement can go up to  € 1.2 
million  per  year  for  the  EU  and  for  sponsorships  (promotional  references  to 
goods or services) up to EUR 441 million for the EU per year. 

  The  Telecoms  regulatory  framework  has  been  reviewed  to  keep  up  with 
technological progress such as 5G. Administrative costs of market reviews could 
be reduced by 10-15% and more consistent spectrum assignment  is estimated to 
generate total benefits of €146.5 billion a year. 

  ePrivacy:  The  Commission  provided  follow-up  to  the  recommendations  of 
REFIT Platform in  its  proposal on a revision of  ePrivacy of  10 January 2017.  - 
The  REFIT  Platform  recommended  strengthening  the  protection  of  privacy 
through an alignment with the General Data Protection Regulation, to ensure that 
exceptions to the ‘consent’ rule for cookies are possible provided that they do not 
create  any  privacy  risk,  to  address  national  implementation  problems  and 
facilitate the exchange of best practice. 

follow-up 

  Free  Flow  of  Data:  The  Commission  provided 

the 
recommendations of the REFIT Platform in its proposal on the free flow of non-
personal  data  in  the  digital  single  market,  adopted  on  13  September  2017.  The 
REFIT  Platform  noted  that  localisation  requirements  on  data  are  often  legacy 
requirements  and  no  longer  in  line  with  the  digital  evolution.  The  Stakeholder 
group  therefore  recommended  the  Commission  to  issue  a  Regulation  which 
ensures the free flow of data in the EU and bans data localisation measures with 
few clear exceptions, such as national security interests.  

to 

"It is essential to review the rules applying to cookies and similar techniques to ensure 
futureproof  measures  to  protect  users,  promote  privacy-friendly  technologies,  simplify 
rules for SMEs and allow greater flexibility for those tools that do not pose any privacy 
risks whatsoever". The REFIT Platform Stakeholder Group on e-privacy 

Work under Way – Examples: 

In the coming months, the Commission will propose to simplify rules on the .eu top-level 
domain and on the re-use of public sector information. Rules on the legal protection of 
databases will be evaluated to ensure it remains fit for purpose: 

  A  review  of  legislation  on  the  re-use  of  public  sector  information  will  create 
opportunities  to  open  up  government  data  for  the  benefit  of  society,  reduce 
regulatory costs and simplify the existing legislation.  

  A  review  of  the  eu.  top  level  domain  will  reduce  administrative  burden  and 
simplify  the  management  of  the  .eu  domain  in  order  to  offer  better  and  more 
efficient services to citizens and businesses.  

10 

 
 
 
 
 
 
  An evaluation on the legal protection of databases will analyse the functioning 
of  the  Database  Directive,  with  a  special  focus  on  the  sui  generis  protection  of 
databases.  It  will  also  examine  whether  the  Directive  is  still  fit-for-purpose  in 
view  of  recent  technological,  economic  and  legal  developments,  in  particular  in 
an increasingly data-driven economy. 

Overview of Priority 2 REFIT Initiatives taken by the present Commission: 

Initiatives adopted by the Legislator: 

./. 

Initiatives proposed by the Commission and pending in Legislative Procedure: 

1. ENISA (European Union Agency for Network and Information Security) 
2. Revised Audiovisual Media Services Directive 
3. Satellite and Cable Directive 93/83/ECC 
4.  Regulatory  framework  for  electronic  communications  networks  and  services 
(Telecoms regulatory framework) 
5. Directive on Privacy and Electronic Communications 
6. Free Flow of Data – initiative on the free flow of non-personal data in the digital 
single market 
7. VAT for cross-border e-commerce (extension of the VAT Mini One Stop shop) 

Initiatives Planned by the Commission: 

1. eu" Domain Name Regulation 
2. Review of Public Sector Information  

Areas being evaluated: 

1. Legal protection of databases 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.3. 

Simplification  and  Burden  Reduction  for  the  Energy  Union  and  for 
Climate Change Policy (Priority 3) 

"The EU has a unique opportunity to not only lead the modernisation of road transport 
at home, but also globally. Our reforms will set the foundation for standardised, digital 
road  solutions,  fairer  social  conditions  and  enforceable  market  rules.  They  will  help 
decrease  the  socio-economic  costs  of  transport,  like  time  lost  in  traffic,  road  fatalities 
and  serious  injuries,  health  risks  from  pollution  and  noise,  whilst  serving  the  needs  of 
citizens, businesses and nature." Violeta Bulc, Commissioner for Transport 

A  European  Energy  Union  will  ensure  that  Europe  has  secure,  affordable  and  climate-
friendly  energy.  Wiser  use  of  energy  reduces  our  ecological  footprint  and  at  the  same 
time is 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, climate and transport legislation can fully deliver on its ambitious objectives 
and  benefits.  To  that  end,  the  Commission  has  made  6  proposals  under  REFIT  since 
2015, all of which are pending adoption by the legislator. 4 new initiatives are planned 
for 2018 and 2 areas are being evaluated.  

REFIT initiatives 

2 areas are being 
evaluated 

4 new initiatives 
planned by the 
Commission 

12 

6 initiatives 
proposed by the 
Commission and 
pending in 
legislative 
procedure 

Results and Achievements – Examples: 

  Energy  performance  of  buildings  -  the  removal  of  the  obligation  to  conduct 
studies on the feasibility of high efficiency alternative systems for new buildings 
is  expected  to  lead  to  costs  savings  of  app.  200  million  €/year.  Furthermore, 
additional  measures  proposed  are  expected  to  reduce  the  administrative  burden  of 
the Directive by 98.1 million €/year 

  By streamlining reporting obligations across Energy Union policy areas, savings 
of  340.000 € annually could be achieved to Member States (€ 3.4 million over 
the period 2020-2030) 

  The  changes  proposed  for  the  Eurovignette  have  the  potential  to  reduce 
congestion costs by € 1.5 billion annually (€ 9 billion by 2030), improve public 
12 

 
 
 
 
 
health and reduce costs of air pollution and accidents by € 60 million annually (€ 
0.37 billion by 2030) and generate up to 208 000 new jobs and additional benefits 
of 0.19% GDP. 

  Electronic  road  toll  systems:  the  Commission  proposal  is  expected  to  bring 
cumulated  net  savings  in  regulatory  burden  of  €  31  million  annually  (€  254 
million over the period 2018-2025).  

  Binding annual greenhouse gas emission reductions – the revised Regulation is 
expected to reduce costs associated with compliance monitoring and reporting by 
approx.€ 0.57 million per year over a 10 year period 

Work under Way – Examples: 

In the coming months the Commission will assess rules on energy taxation to ensure they 
remain fit for purpose: 

  Combined Transport: Further to an evaluation in 2016 the Commission plans to 
improve  the  effectiveness  and  efficiency  of  rules  on  combined  transport  and 
simplify eligibility criteria for support in order to encourage the use of non-road 
transport modes on long distance freight transport.   

  An  evaluation  of  the  Energy  Taxation  directive  will  assess  whether  legislation 
remains fit for purpose and identify opportunities to reduce regulatory costs and 
simplify procedures. 

Overview of Priority 3 REFIT Initiatives taken by the present Commission: 

Initiatives adopted by the Legislator: 

./. 

Initiatives proposed by the Commission and pending in Legislative Procedure: 

1. Effort Sharing Regulation 
2.Renewable Energy  
3. Energy performance of buildings  
4. Energy Union Governance – Streamlining of Planning and Reporting obligations  
5. Revision of the Eurovignette Directive  
6. European Electronic Toll Service  

Initiatives Planned by the Commission: 

1. CO2 emissions from cars 
2. CO2 emissions from vans 
3. Combined Transport 
4. Promotion of Clean and Energy-efficient Road Transport Vehicles 

Areas being evaluated: 

1. Ozone regulation 
2. EU legal framework for energy taxation (Energy Taxation Directive) 

13 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.4. 

Simplification  and  Burden  Reduction  For  a  deeper  and  fairer  Internal 
Market (Priority 4) 

"The  new  rules  on  official  controls  aim  at  modernising  and  simplifying  the  European 
control system to ensure that food in the European Union is safe along the entire agri-
food chain. The regulation is part of the body of EU legislation covering the food chain 
package that cuts down almost 70 pieces of EU legislation to 5 and reduces the red-tape 
on  processes  and  procedures  for  farmers,  breeders  and  food  business  operators 
(producers,  processors  and  distributors)  to  make  it  easier  for  them  to  carry  out  their 
profession." Vytenis Andriukaitis, Commissioner in charge of health and food safety 

Net  of  one-off  adjustment  costs,  Single  Market  legislation  generates  direct  savings  for 
companies to the extent that it replaces national regulatory regimes with an EU-wide one. 
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 combatting 
tax  evasion  and  tax  fraud  will  ensure  that  all  contribute  their  fair  share.  Regulatory 
Fitness  initiatives  contribute  to  these  objectives  by  making  sure  existing  legislation  on 
the Single Market is fit for purpose and can fully deliver on its objectives and benefits in 
a way as simple as possible and without undue burdens.  

In  order  to  ensure  that  unnecessary  costs  are  removed  and  rules  are  as  effective  and 
efficient  as possible,  since  2015  the  Commission  has  made  24  proposals  under  REFIT, 
14  of  which  are  pending  adoption  by  the  legislator.  17  new  initiatives  are  planned  for 
2018 and 31 areas are being evaluated. 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  and  taxation  and 
customs. 

REFIT Initiatives 

10 initiatives 
adopted by the 
legislator 

14 initiatives 
proposed by the 
Commission and 
pending in 
legislative 
procedure 

17 new initiatives 
planned by the 
Commission 

31 areas are being 
evaluated 

72 

14 

 
 
 
 
Results and Achievements – Examples: 

  Veterinary  medicines  and  medicated  feed:  Simplification  of  the  legislation 
would  cut  costs  by  at  least  €  145  million  per  year  and  €  12  million  per  year 
respectively. 

  Derivative Rules (EMIR): Simpler and more proportionnate rules are expected to 
save up to €2.6 billion in operational costs and up to €6.9 billion in one-off costs 
to market participants. 

"Our  aim  is  to  simplify  rules  on  financial  derivatives  as  well  as  to  eliminate 
disproportionate  costs  and  burdens  to  small  companies  in  the  financial  sector, 
corporates  and  pension  funds.  The  targeted  changes  to  the  European  Market 
infrastructure  regulation  (EMIR)  will  deliver  real  benefits  for  the  industry,  without 
endangering  financial  stability.  Building  on  consultations  with  stakeholders,  this  is  a 
prime  example  of  better  regulation."  Jyrki  Katainen,  Vice-President  for  Jobs, 
Growth, Investment and Competitiveness  

  European  Venture  Capital  and  European  Social  Entrepreneurship  Fund 
Regulations: The update is expected to lead to a total cost saving for cross-border 
marketing  business of up to  €  32 million e  over the next  5 years (€  6.4  million 
annually). 

  Prospectus Directive: The review proposes a new alleviated disclosure regime for 
secondary issuances which could translate into savings of approx. € 130 million 
per  year.  In  parallel,  the  development  of  the  new  EU  Growth  prospectus  is 
estimated to result in SMEs saving collectively around € 45 million per year. 

  Common  Consolidated  Corporate  Tax  Base  (CCCTB):  The  relaunch  aims  at 
reforming corporate taxation in the EU could lead to one-off savings of up to € 1 
billion  annually    if  5%  of  medium-sized  enterprises  companies  would  expand 
abroad.  If  all  mutinational  entities  would  apply  CCCTB,  a  decrease  of  €  0.8 
billion annually in compliance cost could be observed. 

  Definitive VAT system (1st step): the new system proposed should reduce cross-
border  fraud  by  about  €40  billion  (80%)  annually  in  the  EU,  enabling  tax 
administrations  to  concentrate  resources  on  other  challenges.  Collectively, 
businesses could save an average of around €1 billion annually. 

  Single  Digital  Gateway  -  Through  a  single  entry  point,  the  Single  Digital 
Gateway  will  make  it  easier  for  anyone  interested  in  living,  working  or  doing 
business  in  another  EU  country  to  find  not  only  information  about  rules  and 
procedures, but also assistance services and access to national procedures through 
one user-friendly interface in a language they can understand. The Single Digital 
Gateway  could  help  companies  save  more  than  €  11  billion  per  year,  and  EU 
citizens up to 855 000 hours of their time annually. – This initiative was taken in 
follow-up to two REFIT Platform opinions. 

15 

 
 
 
 
 
 
.. to create a true online business portal for both goods and services to focus on business 
needs, further administrative simplification sharing best practices between countries and 
incorporating  and  fully  exploiting  digital  tools.  –  extract  from  the  REFIT  Platform 
Stakeholder Group opinion on the Single Digital Gateway. 

  The European Services Card aims to introduce a EU-level harmonised procedure 
for service providers to expand operations across borders, completely electronic, 
multilingual, data-based (not document based), under a once-only approach and, 
to  some  extent,  a  one-stop-shop  approach,  relying  on  structured  administrative 
cooperation  between  Member  States.  It  is  expected  to  reduce  cross  border 
administrative complexity for services providers by up to 50%.  

  The simplified state aid rule for public investment in ports and airports, culture 
and  the  outermost  regions  (General  Block  Exemption  Regulation)  is  expected 
to reduce administrative and regulatory burden annually by up to € 27 million for 
companies and public authorities.  

  Clearer,  simplified  and  modernized  market  access  legislation  in  road  freight 
transport are expected to save between € 346 million and € 460 million annually 
(€ 5.2 and 6.9 billion over the period 2020-2035) for the benefit of businesses and 
public administrations. 

  Clearer administrative procedures and rules in the area of training, qualification 
and  licensing  in  road  transport  would  produce  cost  savings  for  businesses  and 
drivers accounting for respectively up to € 191.000 and € 558.000 annually (up 
to € 2.3 million and € 6.7 million respectively over the period 2018-2030). 

  Removing  overlaps  and  simplifying  the  existing  EU  passenger  ship  safety 

regulatory framework will save up to € 1 million a year.  

  Updated rules, lower administrative burdens and streamlined control requirements 
in  the  area  of  social  legislation  in  road  transport  will  decrease  administrative 
costs for transport operators by € 785 million per year 

  The  modernisation  of  the  legislative  framework  for  the  use  of  hired  vehicles  is 
expected  to  same  approx.  €  12.8  million  a  year  to  operators,  with  the  vehicle 
fleet in 2030. 

Work under Way – Examples: 

  Internal market for goods - The Commission will propose a set of measures in 
the coming months related to market surveillance and mutual recognition aiming 
at improving the Internal market for goods.  

  Transport:  Initiatives  on  training  and  certification  for  seafarers,  passenger  ship 
safety,  road  infrastructure  and  tunnel  safety,  port  reception  facilities,  airport 
16 

 
 
 
 
 
 
 
 
 
charges, air services and in the area of bus and coach transport following up on an 
opinion  by  the  REFIT  Platform  will  make  sure  that  the  legislative  framework 
remains fit for purpose and that regulatory and administrative burden are kept to a 
minimum. 

  Construction  Products:  The  Commission  is  reviewing  rules  ensuring  their 
effectiveness and efficiency as a follow up to two7 REFIT Platform opinions. 

  SME Definition: A revision will ensure that the definition is fit for purpose and 

adapted to current economic conditions. 

  VAT: The remaining measures announced in the VAT Action Plan such the SME 
VAT simplification package and the reform of VAT rates will be proposed by end 
of  2017,  following  up  also  on  an  the  opinion  of  the  REFIT  Platform.  The 
Platform opinion on composite supplies will be followed up in the context of the 
work of the EU VAT Forum. The proposal on the definitive VAT system/2d step, 
implementing the one on adopted in October, will be adopted in 2018. 

  Excise Duties: Updated rules will be proposed to improve legal certainty of the 
Alchohol  Structures  Directive,  contributing  thus  to  reducing  administrative 
burden and following up on the  REFIT Platform  opinion on EU laws on wine 
and spirits.  

  Standardisation  Policy:  An  action  plan  will  improve  the  efficiency  of  the 
standardisation  system  and  reduce  backlogs  and  improve  practices  in  the 
publication  of  references  to  standards  in  the  Official  Journal  of  the  EU.  This 
initiative was taken in follow-up to a REFIT Platform opinion. 

The REFIT Plaform adopted 15 opinions under this priority in 2017 which are followed 
up  by  both  legislative  and  non-legislative  measures.  In  addition  to  the  follow  up 
referenced  to  above,  this  includes  the  following  actions.  On  the  Single  Market 
Transparency  Directive  the  Platform  called  for  more  clarification  of  the  notification 
procedure,  which  the  Commission  will  follow-up  in    co-operation  with  the  Member 
States. On the Internal Market Information System and the Single Market Center, the 
Platforms  recommendations  to  further  expand  IMI,  strenghten  SOLVIT  and  allocate 
sufficient human and financial resources to them so they can operate efficiently and have 
enough visibility as well as calls upon Member States to set up single market centres will 
be  considered  in  the  context  of  the  continous  improvement  of  those  systems;  Late 
Payments  -  building  on  the  results  of  a  recent  evaluation,  the  opinion    which  aims  at 
creating  better  synergies  with  the  existing  public  procurement  framework,  to  ensure 
prompt payment of sub-contractors, feeds ongoing work to improve the implementation 
of  the  Directive;  European  Single  Procurement  Document  –  the  opinion  feeds  the 
efforts  in  improving  the  implementation  of  this  tool;  on  plugs  and  sockets  the 
Commission will increase its co-ordination efforts with Member States to ensure that the 
Single  Market  is  preserved  and  strengthened  to  the  benefit  of  both  consumers  and 
responsible  manufacturers.  In  the  field  of  health  and  food  safety,  the  Platform  adopted  3 
opinions:  Pesticides residues and on traditional herbal medicines – the opinions will be 
followed up through the ongoing evaluations on the pesticides legislative framework and 
on the health claims regulation; Labelling of Vegan and Vegetarian food – the opinion 

7   One adopted in 2016 and one adopted in 2017 

17 

 
 
                                                 
will  feed  into  an  implementing  act  for  which  preparatory  work  will  start  in  2019.  The 
final opinion under this heading concerns Diploma recognition which was addressed by 
the recently amended Professional Qualification Directive. 

Overview of Priority 4 REFIT Initiatives taken by the present Commission:  

Initiatives adopted by the Legislator: 

1. European Long Term Investment Funds (ELTIF) 
2. Insurance Distribution 
3. Review of the Prospectus Directive 
4. Standard Procurement Document 
5. Standard forms for public procurement 
6. Animal health law 
7. Official controls on the agri-food chain 
8. Plant health 
9. Zootechnical legislation 
10..  General  Block  Exemption  Regulation:  extension  to  ports  and  airports  and  culture  and 
outermosts regions 

Initiatives proposed by the Commission and pending in Legislative Procedure: 

(EuVECA)  and  European  Social 

1. EMIR - European Market Infrastructure Regulation 
the  European  Venture  Capital 
2.  Review  of 
Entrepreneurship (EuSEF) Fund regulations 
3. Digital Single Gateway 
4. Services e-card 
5. Market access rules in road freight transport 
6. Passenger Ship Safety 
7. Training, Qualification, Licensing in Road Transport 
8. Enhancement of the social legislation in road transport 
9. Use of hired goods vehicles 
10. Union certification system for aviation security screening equipment 
11.Veterinary medicines 
12. Medicated feed 
13. Common Consolidated Corporate Tax Base (CCCTB) 
14 Towards a definitive VAT system for cross border trade (1st step) 

Initiatives Planned by the Commission: 

1. Prudential treatment of investment firms 
2. Mutual Recognition for goods 
3. Enforcement and compliance - Single Market for goods 
4. Outdoor noise directive 
5. SME definition 
6.  Small  Passenger  Ship  -  Council  Recommendation  providing  a  common  non-binding 
benchmark at EU level for the safety of passenger ships below 24 meters in length  
7. Road Infrastructure and Tunnel Safety 
8. Port Reception Facilities 
9. Better functioning of the market for bus and coach transport 
10. European Maritime Single Window environment 
11..  Food information  - Commission  assistance for implementation  and application of food 
information rules set out in Regulation (EU) No 1169/2011   
12. General arrangements for excise duty 

18 

 
 
 
 
 
 
 
 
13. Excise duties on alcohol and alcoholic beverages 
14. Tobacco Excise  - structure and rates of excise duty applied to manufactured tobacco 
15. VAT rates 
16. SME VAT Package 
17.Cross-border distribution of alternative investment funds and UCITS  

Areas being evaluated: 

1. Simplified procedure for Merger Control  
2. Procedural and jurisdictional aspects of EU merger control  
3. Simplified Procedure Notice for State Aid  
4. Fitness Check on reporting requirementsin the area of Finance 
5. Motor insurance directive 
6. Directive 2014/92/EU on payment accounts 
7. Evaluation of Directive 2014/95/EU on disclosure of non financial information 
8. Construction Products Regulation 
9. Enforcement of Intellectual Property Rights 
10. European Observatory on Infringements of Intellectual Property 
11. Lifts Directive 
12. Machinery Directive 
13. Chemicals legislation (other than REACH) 
14. Design System - Directive 98/71/EC on the legal protection of designs 
15. Aerosol Dispensers - Directive 75/324/EEC on aerosol dispensers 
16. Liability for defective products 
17. Detergents - Detergents Regulation - (EC) No 648/2004. 
18. Low voltage directive 
19. EMC directive 
20. Drug precursors Regulation 
21. Maritime acquis 
22. Nutrition and Health Claims made on Food 
23.  Pesticides  -  placing  on  the  market  of  plant  protection  products  and  maximum  residue 
limits setting 
24. General Food Law 
25. Feed additive legislation 
26. Food contact materials 
27. Fee system of the European Medicines Agency 
28. Blood and tissues & cells - policy framework for blood and tissues & cells - Directives 
2002/98/EC  and 2004/23/EC 
29.  Food  Irradiation  -  Directive  1999/2/EC  concerning  foods  and  food  ingredients  treated 
with ionising radiation. 
30. VAT Invoicing directive 
31. Training and certification of seafarers 

19 

 
 
 
 
 
 
 
2.5. 

Simplification and Burden Reduction for a deeper and fairer Economic 
and Monetary Union (Priority 5) 

"  ..Of  the  six  Sustainable  Development  Goals  (SDGs)  related  to  agriculture  and 
nutrition,  data  for  four  of  them  are  provided  by  Eurostat,  based  among  others  on 
European  agricultural  statistics.  Modernising  and  improving  these  data  will  allow  for 
more  targeted,  efficient  and  effective  interventions  to  meet  important  goals  such  as 
mitigating  climate  change  and  providing  environmental  services."  Marianne  Thyssen, 
Commissioner for Employment, Social Affairs, Skills and Labour Mobility 

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  that  legislation  in  the  areas  of  financial  stability  and  financial 
services, social affairs and employment statistics remain fit for purpose, are as simple as 
possible and do not create undue burdens.  

In  order  to  ensure  that  unnecessary  costs  are  removed  and  rules  are  as  effective  and 
efficient  as  possible,  the  Commission  has  made  3  proposals  under  REFIT  since  2015, 
which are pending adoption by the legislator. Four new proposals are planned for 2018 
and 2 areas are under evaluation 

REFIT initiatives 

2 areas are being 
evaluated  

9 

3 initiatives 
proposed by the 
Commission and 
pending in 
legislative 
procedure 

4 new initiatives 
planned by the 
Commission 

Results and Achievements – Examples: 

  The  Commission  provided  follow-up  to  the  recommendations  of  the  REFIT 
Platform  with  its  Framework  Regulation  Integrating  Business  Statistics 
(FRIBS) – FRIBS integrates 10 legislative acts on EU business statistics into one 
legal  framework  to  facilitate  the  modernisation  of  statistical  production  at 
national level and reduce burdens to businesses – savings have been estimated at 
up to € 93 million per year.  

  Integrated  Farm  Statistics  -  the  Regulation  replaces  2  legislative  acts  by  one, 
modernising and simplifying the current statistical system. Savings are estimated 
at up to € 56 million per survey year. 

20 

 
 
 
 
 
  Integrated Social Statistics - the initiative will repeal 2 legislative acts and it is 
likely to deliver costs savings between € 3.1 million and 34 million per year for 
businesses  and  public  administrations  depending  on  the  implementation  at 
national level.  

Work under Way – Examples: 

  Cross-border payments – the scope of the Regulation will be extended to all non-
euro currencies in the EU. This is expected to improve disclosure and reduce fees 
in  cross-border  transactions  in  particular  with  respect  to  and  from  non-euro 
Member states. 

  Occupational  Health  and  Safety  -  following  the  results  of  an  evaluation,  the 
Commission has launched a two year programme aiming at removing or updating 
outdated provisions in several Directives, starting with 6 directives in the area of 
workplaces, display screen equipment, health and safety signs, biological agents, 
medical  asssistance  and  on  personal  protective  equipment.  This  will  ensure 
clearer,  more  coherent  and  more  relevant  rules,  simplifying  and  reducing 
unnecessary  administrative  burdens  where  possible,  while  maintaining  or 
improving workers' protection. 

  Written  Statements  Directive  –  the  Commission  will  present  a  proposal  to 

improve the transparency and legal predictability of employment contracts 

  European Social Security Number: In the context of social security coordination 
and  related  to  a  REFIT  Platform  opinion  on  the  subject,  the  Commission  is 
planning  an  initiative  on  introducing  a  European  Social  Security  Number.  This 
will aim at facilitating the identification of persons across borders, and the quick 
and accurate verification of their social security insurance coverage. Benefits will 
include  simplifying  the  interactions  with  administrations  and  helping  citizens  to 
exercise  their  EU  social  security  rights.  It  could  lead  to  a  reduction  of 
administrative  burden  for  national  administrations  and  help  in  combating  fraud 
and abuse. 

Overview of Priority 5 REFIT Initiatives taken by the present Commission: 

Initiatives adopted by the Legislator: 

./. 

Initiatives proposed by the Commission and pending in Legislative Procedure: 

1. Framework Regulation Integrating Business Statistics (FRIBS) 
2.  Framework  regulation  for  the  production  of  European  statistics  on  persons  and 
households (Integrated European Social Statistics 
3. Framework Regulations in Agricultural Statistics 

Initiatives Planned by the Commission: 

1. Occupational Health and Safety(technical updates) 
2. Written Statement Directive 
3. European Social Security Number 
4. Regulation (EC) N°924/2009 on cross-border payments 

21 

 
 
 
 
 
 
 
Areas being evaluated: 

1. European Works Council 
2. Evaluation of the Part-Time and Fixed-Term Work Directives 

22 

 
 
 
 
 
 
 
2.6. 

Simplification  and  Burden  Reduction  for  a  balanced  and  progressive 
trade policy to harness globalisation (Priority 6) 

"We are living in turbulent times. Preserving peace and protecting human rights are core 
objectives  of  the  EU  and  our  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". Cecilia Malmström, Commissioner 
for Trade on the recast of export controls for dual use items 

EU trade policy is working to create a global system for fair and open trade. By lowering 
barriers  to  market  access,  it  reduces  compliance  costs  for  exporting  firms.  Trade  also 
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  order  to  ensure  that  unnecessary  costs  are  removed  and  rules  are  as  effective  and 
efficient as possible, the Commission has made 3 proposals under REFIT in this area, 2 
of which are pending adoption by the legislator, one area is being evaluated. 

REFIT initiatives 

1 area is being 
evaluated  

1 initiative adopted 
by the legislator 

4 

2 initiatives 
proposed by the 
Commission and 
pending in 
legislative 
procedure 

Results and Achievements – Examples: 

  Dual-Use Export Controls: The Commission proposal for a modernisation of EU 
export  controls  adopted  in  September  2016  simplifies  control  processes  and 
reduce  administrative  burdens  for  business  and  public  administrations  (approx. 
four times less costly for companies and up to 11 times less costly for licensing 
authorities). The overall cost-reduction may amount to 40% due to the reduction 
of  the  number  of  products  subject  to  control  on  transfers  within  the  EU.  The 
proposal also contains  amendments to  certain key control provisions in order  to 
improve  legal  clarity  and  reduce  compliance  costs  due  to  complex  and  unclear 
control provisions. 

23 

 
 
 
 
  Trade  Defence  -  anti-dumping,  anti-subsidy:  The  proposals  improves  the 
effectiveness and efficiency of the anti-dumping and anti-subsidy regulations by 
increasing transparency, predictability and legal certainty, improving enforcement 
and facilitating  the cooperation of  all  stakeholders concerned.  – It is  pending  in 
legislative  procedure  since  2013,  and  is  currently  being  discussed  in  trilogue 
meetings between the Commission, the Council and the European Parliament. 

  Work under Way – Examples: 

The  Commission  currently  carries  out  an  evaluation  of  the  General  Systems  of 
Preferences  which  should  be  concluded  at  the  end  of  2017.  The  Commission  will  also 
finalise  Free  Trade  Agreements  with  Japan,  Singapore  and  Vietnam  and  pursue 
negotiations with Mexico and the Mercosur. 

Overview of Priority 6 REFIT Initiatives taken by the present Commission: 

Initiatives adopted by the Legislator: 

1. Common rules for imports of textile products 

Initiatives proposed by the Commission and pending in Legislative Procedure: 

1. Reform of the Trade Defence Instruments 
2. Review of dual use export controls 

Initiatives Planned by the Commission: 

./. 

Areas being evaluated: 

1. General Systems of Preferences  

24 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.7. 

Simplification  and  Burden  Reduction  for  Upholding  the  Rule  of  Law 
and linking Up Europe's Justice Systems (Priority 7) 

"European  consumers  are  amongst  the  best  protected  in  the  world.  They  benefit  from 
strong consumer rights whether they buy in their own country or cross-border. We need 
to make sure that these rights can also be properly enforced and are brought up-to-speed 
with the digital age. With the upcoming proposals we will make sure these rights become 
a  reality  online  and  offline.”  Věra  Jourová,  Commissioner  for  Justice  and 
Consumers 

A borderless and seamless European justice area will ensure that citizens can rely on a set 
of rights all across the continent while upholding the rule of law. The EU strives to make 
life  easier  for  Europeans  so  that  citizens  feel  at  ease  and  trust  that  their  rights  are 
protected and their security guaranteed, no matter where they are in the European Union.  

In  order  to  ensure  that  unnecessary  costs  are  removed  and  rules  are  as  effective  and 
efficient as possible, since 2015 the Commission has made 3 proposals under REFIT, 2 
of  which  are  pending  adoption  by  the  legislator.  Seven  new  initiatives  are  planned  for 
2018 and 2 areas are being evaluated. 

REFIT initiatives 
1 initiative 
adopted by the 
legislator 

2 areas are being 
evaluated  

12 

7 new initiatives 
planned by the 
Commission 

2 initiatives 
proposed by the 
Commission and 
pending in 
legislative 
procedure 

Results and Achievements – Examples: 

  Consumer  Protection  Cooperation:  A  review  of  rules  on  the  cooperation 
between  national  consumer  protection  authorities  is  expected  to  deliver 
simplification  and  burden  reduction  benefits  for  national  authorities  and 
businesses of up to € 299 million per year. 

  Recognition  and  enforcement  of  judgements  in  matrimonial  matters  and 
parental  responsibility  (Brussels  IIa  Regulation):  Procedures  for  the  return  of 
abducted  children,  on  custody  and  access,  on  the  cross-border  placement  of 
children  and  on  child  protection  measures  in  cross-border  cases  will  be 
simplified.  Abolishing  certain  requirements  could  cut  costs  of  about  €  347 

25 

 
 
 
  
 
million  per  year  for  specialised  legal  advice  or  for  obtaining  the  specific 
authorisation for the enforcement of a judgement. 

  Work under Way – Examples: 

In the coming months, the Commission will propose to simplify rules to reduce burden 
on  businesses,  helping  consumers,  faciliting  the  free  movement,  increasing  internal 
security and enhancing modernization taking into account new technologies.  

  The  EU  Company  Law  package  will  simplify  company  law  related  procedures 
and reduce the administrative burden for companies and public authorities by use 
of digital procedures. With more than 2 million new companies registering in the 
EU each year, there could be a significant economic impact in both cross-border 
and domestic registrations. The cost for online registration is significantly cheaper 
than the paper-based registration. Further streamlining of the rules would increase 
cross-border mergers and other cross-border operations could also be facilitated, 
opening up a bottleneck in economic activity across the EU. 

  A  new  deal  for  consumers:  The  'New  Deal  for  Consumers'  announced  by  the 
Commission  in  September  2017  includes  a  review  of  the  substantive  and 
procedural  consumer  protection  rules  under  the  REFIT  programme  that  was 
kicked-off with the Fitness Check evaluation published in May 2017. The review 
of  the  substantive  rules  includes  reduction  of  the  overlapping  information 
requirements, enabling the use of modern means of distance communication with 
consumers  and  simplifying  some  of  the  rules  on  the  right  of  withdrawal.  These 
simplifications  could  generate  cost  reductions  and  alleviate  administrative 
burdens  for  traders.  Savings  for  traders  could  also  arise  thanks  to  further 
harmonising the injunctions procedure.  

  Identity and residence documents: A possible legislative proposal would aim at 
enhancing the security and common features of identity and residence documents 
and  facilitate  their  acceptance  by  public  authorities  and  businesses.  This  would 
promote  the  exercise  of  free  movement,  contribute  to  an  increased  internal 
security  and  reduce  the  costs  to  private  and  public  service  providers  and 
authorities  now  due  to  administrative  delays  and  processing  times.  –  This 
proposal follows-up on an opinion of the REFIT Platform. 

"The  REFIT  Platform  encourages  the  Commission  to  analyse  the  feasibility  of 
harmonising identity and residence documents, or any of their key features, with a view 
to  facilitating  free  movement  and  tackling  the  challenges  encountered  by  EU  mobile 
citizens  in  their  host  countries."  REFIT  Platform  opinion  on  Identity  and  residence 
documents 

  Regulation  on  service  of  documents:  The  revision  envisages  modernizing 
services taking into account new technologies, to promote the use of more direct 
and  cheaper  methods  of  judicial  assistance  (such  as  the  service  by  post)  and 

26 

 
 
 
 
 
reinforce  the  right  of  the  defence  for  parties  with  residence  in  another  Member 
State. It is estimated that the revision could generate savings of about 306 million 
per year for citizens alone. 

  Regulation  on  marketing  and  use  of  explosives  precursors:  A  revision  of  the 
regulation  will  strengthen  the  protection  against  the  illicit  use  of  explosives 
precursors  by  improving  the  effectiveness  and  efficiency  of  the  EU  restrictions 
and  controls.  The  Regulation  will  be  evaluated  at  the  same  time  and  various 
policy options will be assessed. An opinion of the REFIT Platform recommends 
that  the  Commission  should  explore  opportunities  for  facilitating  a  unified 
application  of  the  Regulation  in  the  Member  States  and  clarify  requirements  on 
supply chain actors.  

  Regulation on taking of evidence: The Regulation will be modernized to address 
issues of keeping up with digitalization, using of the method of "direct taking of 
evidence", which ensures that the courts take evidence directly in the territory of 
another Member State, ensuring legal certainty for courts, parties and lawyers and 
clarify the grounds for refusing the execution of cooperation requests. 

  Emergency  travel  documents:  This  proposal aims  at  simplifying  formalities  for 
unrepresented EU citizens in third countries, whose passport or travel document 
have been lost, stolen or destroyed, in order to ensure that they are provided with 
an Emergency Travel Document (ETD) by other Member States, allowing them 
to travel back home. The initiative aims to contribute to allow unrepresented EU 
citizens  to  exercise  their  right  to  consular  protection  in  an  easier  and  more 
effective way. 

  Consumer  Credit  Directive:  Taking-up  a  recommendation  of  the  REFIT 
Platform,  the  Commission  will  carry  out  a  fully-fledged  evaluation  of  the 
Directive in 2019 going beyond the reporting obligation set in law. 

  Equal  Pay:  The  Commission  will  evaluate  Directive  2006/54/EC  on  the 
implementation of the principle of equal opportunities and equal treatment of men 
and women in matters of employment and occupation (recast) 

Overview of Priority 7 REFIT Initiatives taken by the present Commission: 

Initiatives adopted by the Legislator: 

1. Company law – codification 

Initiatives proposed by the Commission and pending in Legislative Procedure: 

1. Consumer Protection Cooperation 
2. Recognition and enforcement of judgements in matrimonial matters and parental 
responsibility (Brussels IIa Regulation) 

27 

 
 
 
 
 
 
 
 
 
 
 
 
Initiatives Planned by the Commission: 

1. EU Company Law package 
2. A new deal for consumers (two proposals) 
3. Identity and residence documents 
4. Service of documents 
5. Marketing and use of explosives precursors 
6. Taking of evidence 
7. Emergency travel documents 

Areas being evaluated: 

1. Equal treatment in social security 
2. Regulation 258/2012 on export of firearms 

28 

 
 
 
 
 
 
 
 
 
2.8. 

Simplification  and  Burden  Reduction  for  a  New  Policy  for  Migration 
(Priority 8) 

"The  Schengen  Information  System  is  central  to  Europe's  internal  security.  Today's 
measures will deliver important technical and operational improvements so it's easier to 
detect  and  identify  those  who  wish  us  harm.  It  will  also  improve  cooperation  and 
information sharing between Member States and with relevant EU agencies. Much more 
remains to be done though: SIS is only as good as the data inputted into it." Julian King, 
Commissioner for the Security Union 

The  European  Commission's  agenda  on  migration  sets  out  a  European  response, 
combining internal and external policies, making best use of EU agencies and tools, and 
involving  all  actors:  EU  countries  and  institutions,  international  organisations,  civil 
society, local authorities and national partners outside the EU. 

In  order  to  ensure  that  unnecessary  costs  are  removed  and  rules  are  as  effective  and 
efficient as possible, since 2015, the Commission has made 12 proposals under REFIT, 
10 of which are pending adoption by the legislator. One initiative is planned for 2018 and 
one area is being evaluated. 

REFIT Initiatives 

1 initiative 
adopted by the 
legislator 

1 area being 
evaluated  

1 initiatives 
planned by the 
Commission 

13 

10 initiatives 
proposed by the 
Commission and 
pending in 
legislative 
procedure 

Results and Achievements – Examples: 

  The  Schengen  Information  System:  Following-up  to  an  evaluation,  the 
Commission  proposed  in  2016  to  strengthen  the  operational  effectiveness  and 
efficiency of the system (3 individual proposals). Improved information exchange 
between  Member  States  will  lead  to  reducing  administrative  burdens  on  law 
enforcement officers and border guards across the participating countries. 

  Common European Asylum System: In 2016, the Commission proposed to make 
the  European  asylum  system  more  solid,  coherent  and  integrated  European 
asylum system based on common, harmonised rules, which are fully in line with 
the  international  protection  standards  under  the  Geneva  Convention  and 
fundamental  rights  instruments  (7  individual  proposals).  The  package  aims 
29 

 
 
 
 
 
 
notably  at  making  asylum  procedures  faster,  simpler  and  more  effective.  It  is 
expected  to  benefit  the  applicants  and  the  Member  States  leading  to  savings  in 
reception and administrative costs. 

Work under Way – Examples: 

  Visa  Information  System  (VIS):  In  the  coming  months,  the  Commission  will 
propose  improvements  to  the  Visa  Information  System  (VIS)  to  respond  to 
evolving  policy,  legal  or  factual  developments  in  the  field  of  visa  and  border 
crossing and enable proper implementation of the objectives of VIS.   

  Legal  Migration:  The  Commission  is  currently  evaluating  how  the  existing 
Directives  on  legal  migration  have  contributed  to  the  attainment  of  legal 
migration  policy  objectives,  and  is  identifying  possible  overlaps,  gaps  or 
inconsistencies as well as possible obsolete measures. The results of this Fitness 
check  will  be  presented  in  2018  and  will  provide  a  basis  for  simplifying  and 
streamlining the current EU framework in this area. 

Overview of Priority 8 REFIT Initiatives taken by the present Commission: 

Initiatives adopted by the Legislator: 

1. Codification of Schengen borders code 

Initiatives proposed by the Commission and pending in Legislative Procedure: 

1. Schengen Information System - return of illegally staying third-country nationals  

2. Schengen Information System - border checks  

3.  Schengen  Information  System  -  police  cooperation  and  judicial  cooperation  in 
criminal matters 

4.  Proposal  for  a  Regulation  establishing  the  criteria  and  mechanisms  for 
determining  the  Member  State  responsible  for  examining  an  application  for 
international  protection  lodged  in  one  of  the  Member  States  by  a  third-country 
national or a stateless person (recast) – Asylum package 

5. Proposal for a Regulation on the establishment of 'Eurodac' for the comparison of 
fingerprints for  the effective  application of  Regulation (EU)  No 604/2013  – Asylum 
package 

6.  Proposal  for  a  Regulation  on  the  European  Union  Agency  for  Asylum  –  Asylum 
package 

7.  Proposal  for  a  Regulation  establishing  a  common  procedure  in  the  Union  and 
repealing Directive 2013/32/EU – Asylum package 

8.  Proposal  for  a  Regulation  on  standards  for  the  qualification  of  third-country 
nationals  or  stateless  persons  as  beneficiaries  of  international  protection,  for  a 

30 

 
 
 
 
 
 
 
 
 
 
 
 
 
uniform status for refugees or for persons eligible for subsidiary protection   and for 
the content of the protection granted – Asylum package 

9. Proposal for a Directive laying down standards for the reception of applicants for 
international protection (recast) – Asylum package 

10.  Proposal  for  a  Regulation  establishing  a  Union  Resettlement  Framework  – 
Asylum package 

Initiatives Planned by the Commission: 

1. Revision of the Visa Information System (VIS) 

Areas being evaluated: 

1. Legal migration fitness check 

31 

 
 
 
 
 
 
 
 
 
 
 
2.9. 

Simplification  and  Burden  Reduction  for  a  Union  of  Democratic 
Change (Priority 10) 

"This  action  plan  is  about  simplifying  environmental  reporting  and  informing  citizens 
better.  It's  a  good  example  of  how  better  regulation  helps  us  uphold  our  high 
environmental  standards  and  meet  our  evidence-based  policy  objectives."  First  Vice-
President Frans Timmermans on the simplification of reporting requirements in the 
area of environment 

Results and Achievements – Examples: 

In 2017, the Commission completed a major update of the Guidelines and the Toolbox 
for Better Regulation across the entire policy cycle8. While their primary function is to 
support  Commission  better  regulation  work,  they  are  available  to  be  used  by  the 
European Parliament, the Council, Member States and stakeholders. The revision of the 
toolbox  took  into  consideration  2  opinions  by  the  REFIT  Platform  on  stakeholder 
consultation and on standardisation.  

On  13  September,  the  Commission  adopted  a  proposal  on  the  European  Citizen 
Initative,  with  a  view  to  further  improving  its  use.  The  proposal  builds  on  lessons 
learned  in  the  five  years  since  the  Regulation  came  into  force,  drawing  on  a  public 
consultation, feedback from other institutions and the opinion of the  REFIT Platform. 
In  this  area,  the  Commission took  4  initiatives, one  of  which  is  pending  before  the co-
legislator. 

REFIT initiatives 

2 new initiatives 
planned by the 
Commission 

4 

2 initiatives (1 
proposed by the 
Commission and 
pending in 
legislative 
procedure and 1 
published by the 
Commission) 

Work under Way – Examples: 

In  follow-up  to  a  Fitness  Check  on  reporting  in  the  area  of  environment,  the 
Commission has developed an action plan and will streamline requirements in 2018. 

8   https://ec.europa.eu/info/better-regulation-guidelines-and-toolbox_en  

32 

 
 
 
                                                 
In  support  to  environmental  compliance  assurance,  the  Commission  will  propose  an 
action plan by end 2017 in order to support national authorities addressing a number of 
compliance challenges. 

33 

 
 
 
 
3.  RESULTS OF THE EUROBAROMETER SURVEY 

3.1. 

Introduction 

the  Commission  carried  out 

In  the  context  of  its  commitment  in  the  Interinstitutional  Agreement  on  Better  Law-
Making  to  present  annually  an  overview,  including  an  annual  burden  survey,  of  the 
results  of  the  Union's  efforts  to  simplify  legislation  and  to  avoid  overregulation  and 
reduce  administrative  burdens, 
in  2017  a  Flash 
Eurobarometer on business perceptions of regulation. Over 10,000 businesses across the 
28  Member  States  were  interviewed,  mainly  SMEs  and  reflecting  the  distribution  of 
business  in  the  EU.  The  Eurobarometer  reflects  business  attitudes  towards  general 
aspects of legislation such as benefits, drawbacks and obstacles of legislation. Companies 
were also asked to provide specific perceptions on seven policy areas: VAT; health and 
safety  in  the  workplace;  consumer  protection  laws;  safety  laws;  labour  market 
regulations;  laws  on  the  environment;  laws  on  energy  and  climate.  Companies  were 
asked to offer their views on: 

  whether EU legislation is seen as a support or an obstacle 

  whether the legislation that applies to their company is national or EU in origin 

 

legislation in terms of: 

o  benefits:  (i)  the  reduction/  removal  of  Member  State  differences 
benefitting  companies;  (ii)  improving  access  to  suppliers  and  customers; 
(iii)  encouraging  company  investment;  (iv)  helping  competitiveness;  (v) 
helping to create a level playing field for all; and (vi) helping to safeguard 
the quality and safety of products and services 

o  drawbacks:  (i)  being  a  barrier  to  innovation;  (ii)  increasing  the  cost  of 
administrative  processes;  (iii)  increasing  the  amount  of  paperwork;  and 
(iv) hampering growth 

  whether regulatory costs are perceived to have increased, decreased or stayed the 
same,  in  the  last  financial  year,  in  the  areas  of:  VAT;  health  &  safety  in  the 
workplace; consumer protection laws; safety laws; labour market regulations; the 
environment; and energy and climate 

  whether  complying  with  legislation  is  perceived  to  have  become  easier,  more 

complex or stayed the same in the last financial year 

  how time consuming certain tasks are in relation to complying with legislation 

 

if  there  are  any  obstacles  to  voicing  complaints  about  administrative  tasks 
stemming from business legislation 

The full results of the Eurobarometer survey and an additional analysis of the survey are 
available online: 

http://ec.europa.eu/commfrontoffice/publicopinion/index.cfm/Survey/getSurveyDetail/in
struments/FLASH/surveyKy/2129 

The findings are wide-ranging and this current report provides only an overview of the 
three  of  them  which  are  particularly  relevant  to  the  Commission's  work  on  simplifying 
legislation. 

34 

 
 
 
3.2.  Main findings: 

  Businesses have divergent views as regards obstacles and benefits of 

legislation in the EU.  

Companies  perceive  both  the  costs  and  the  benefits  of  legislation  in  the  EU  to  varying 
degrees. In particular companies have divergent views on whether legislation is reducing 
or removing the differences in legal requirements in different Member States (46% agree; 
39%  disagree),  is  creating  a  level  playing  field  for  all  companies  (45%  agree,  48% 
disagree),  is  helping  them  to  be  competitive  (44%  agree,  47%  disagree)  and  is 
encouraging  them  to  invest  (43%  agree,  44%  disagree).  Businesses  consider  more 
positively the benefits of ensuring the quality and safety of products and services (65%) 
and improving access to suppliers and customers (55%). A majority of companies (51% 
and  58%  respectively)  disagrees  with  the  ideas that  legislation  would  be  an  obstacle  to 
innovation  or  hamper  business  growth,  while  36%  and  34%  respectively  consider 
legislation  as  an  obstacle  in  these  respects.  In  general,  EU  legislation  is  considered  by 
44% of companies neither a support nor an obstacle.  

Companies do not have uniform views on burden created by legislation and also see the 
benefits  of  it  when  operating  their  daily  business.  This  suggests  that  their  views  are 
important when identifying on a case by case basis the concrete actions to reduce burden.   

  The views of businesses vary significantly from one Member State to another  

While there is no consensus on whether legislation in EU is a support or an obstacle to 
business, the Eurobarometer shows significant and consistent differences across Member 
States.  An  overview  of  the  results  illustrates  considerable  variation  across  business 
perceptions on six benefits and four drawbacks9, although variations are more marked for 
benefits. The difference in agreeing to benefits can vary from 81% in one country to 19% 
in another one- that is 60 per cent points. For drawbacks, the difference in agreeing with 
drawbacks is up to 37 per cent points.  

As  a  consequence,  the  EU  average  value  differs  significantly  from  the  average 
perceptions of a  number  of Member States. While, on balance  most  of the countries in 
the  EU  have  a  positive  opinion  of  legislation,  there  are  significant  variations  among 
Member  States.  The  percentage  ratio  between  positive  and  negative  answers  across 
Member  States  varies  from  +36  (most  positive  perceptions)  to  -22  (most  negative 
perception). 

Moreover,  there  are  some  consistent  patterns  on  perceptions  on  benefits  and  obstacles 
among Member States. Business in certain Member States tend to particularly agree that 
legislation  brings  benefits  in  the  areas  covered,  while  companies  in  other  countries  are 
usually  at  the  other  end  of  the  scale10.    Companies  in  the  four  Member  States  that  are 
least  likely  to  perceive  benefits  of  legislation  are  also  particularly  likely  to  agree  that 
legislation brings drawbacks. 

9   On benefits questions, Member States variation is between 43 – 62 percentage points, concerning 

drawbacks 28 – 37 percentage points. 

10   FR, IT are consistently among the least positive/most negative, followed by CZ and AT (the latter only 
on drawbacks). EL, IE, CY and RO are repeatedly among the most positive Member States regarding 
the benefits, while DK, EE, and EL are the least negative about drawbacks. 

35 

 
                                                 
The fact that legislation is perceived very differently across Member States suggests that 
local factors which are unrelated to the legislation as such are the main determinants of 
perceptions, for example implementation, enforcement and business environment. These 
differences  suggest  that  the  national  context  is  highly  relevant  in  influencing  the  way 
business perceives regulatory burden stemming from legislation.  

  Companies also find that legislation in the EU increases paperwork. 

Above  all  perceptions  on  the  drawbacks  of  legislation,  most  companies  think11  that 
legislation, in the EU, increases the cost of administrative processes and the amount  of 
paperwork for companies. The results also show that companies do find tasks related to 
complying  with  legislation,  such  as  completing  paperwork,  keeping  up  with  regulatory 
changes and understanding what is required, time consuming12.  

3.3.  Overall conclusions 

The Eurobarometer survey provided useful input to the reflection on how to simplify and 
reduce administrative burden. In general, the findings of the survey show that there is a 
complex interplay of different factors that influences the perceptions of businesses. 

The  fact  that  business  has  divergent  views  on  whether  legislation  is  an  obstacle  or  a 
benefit  would  suggest  that  it  is  only  by  seeking  their  views  on  specific  pieces  of 
legislation  that  concrete  areas  for  simplification  can  be  identified.  The  Commission's 
approach of a case by case evaluation of existing pieces of legislation, or various pieces 
of legislation that apply to a particular sector, to identify concretely, in full consultation 
with stakeholders, what can be simplified, streamlined or eliminated.  

Moreover,  the  fact  that  perceptions  vary  significantly  from  Member  State  to  Member 
State suggests  that  concerns of business are not only  influenced by actions at EU level 
but also by variations in implementation and by the national administrative and legal set 
up.  Therefore  efforts  to  reduce  burden  will  have  to  be  carried  out  at  different  levels  to 
ensure that results are felt on the ground. In particular engagement of other Institutions is 
necessary to establish a more systematic approach to monitoring and evaluating existing 
legislation and to assess the impact of any amendments to proposed legislation.   

36 

 
 
                                                 
 
 
Finally, companies are concerned about paperwork and administrative costs, confirming 
that  the  focus  on  cutting  unnecessary  costs  while  preserving  the  benefits  of  legislation 
remains appropriate.  

37 

 
 
 
4.  FEASIBILITY OF ESTABLISHING OBJECTIVES FOR BURDEN REDUCTION IN SPECIFIC 

SECTORS 

 

INTRODUCTION 

The  Commission  is  strongly  committed  to  reducing  unnecessary  burden  for  business, 
citizens and public administrations.  

the  Inter-Institutional  Agreement  for  Better  Law-making  (IIA-BL), 

Within 
the 
to  avoid 
Commission  committed  "…to  update  and  simplify 
overregulation and administrative burdens for citizens, administrations and businesses, 
including SMEs, while ensuring that the objectives of the legislation are met...", present 
within its REFIT programme an  "annual overview, including an annual burden survey, 
of  the  results  of  the  Union's  efforts  to  simplify  legislation  and  to  avoid  overregulation 
and reduce administrative burdens and …assess the feasibility of establishing objectives 
for the reduction of burdens in specific sectors""13. 

legislation  and 

This  document  presents 
consideration: 

the  results  of 

the  feasibility  assessment, 

taking 

into 

- 

- 
- 

- 

the  Administrative  Burden  Reduction 

the  Commission's  experience  with 
Programme (ABR and ABRPlus) between 2007 and 2013; 
the implementation of the REFIT programme since 2012;  
the results of a targeted survey of members of the REFIT Platform carried out in 
July 2017 on their experience and views regarding the implementation of burden 
reduction objectives, the quantification of regulatory burdens at EU level and the 
ways to ensure and monitor impact of burden reduction on the ground; 
the experiences of Member States, the OECD14 and analysis by research 
institutes15.  

The  feasibility  assessment  considered  all  types  of  burden  reduction  objectives  (sectoral 
and global) and it is applicable to all types of regulatory costs. 

While  carrying  out  the  feasibility  assessment,  the  Commission  examined  in  particular 
whether the REFIT programme could be usefully complemented by quantitative burden 
reduction  objectives,  in  the  light  of  acceptance  (legitimacy),  results  and  resources  used 
(effectiveness  and  efficiency)  and  the  capacity  to  drive  further  regulatory  burden 
reduction among EU institutions (cultural change). 

13   http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2016.123.01.0001.01.ENG 

- 

Chapter VIII, point 48. 

14   http://www.oecd.org/gov/regulatory-policy/  

15   See for instance the CEPS study on the feasibility of introducing EU reduction targets on regulatory 
costs commissioned by RegWatchEurope: https://www.ceps.eu/publications/introducing-eu-reduction-
targets-regulatory-costs-feasibility-study  as  well  as  previous  CEPS  study  on  Assessing  the  costs  and 
Benefits of Regulation: https://www.ceps.eu/publication/assessing-costs-and-benefits-regulation. 

38 

 
 
                                                 
 

BURDEN REDUCTION OBJECTIVES FOR THE EU REGULATORY FRAMEWORK 

Regulation,  as  well  as  providing  us  with  necessary  protection  and  safeguarding  our 
rights,  represents  a  cost  for  the  economy.  This  cost  is  borne  by  government,  regulators 
and  those  being  regulated,  including  businesses,  public  sector  organisations,  the 
voluntary sector and ultimately citizens. 

There  is  a  clear  rationale  for  reducing  burden  that  regulations  impose  on  business, 
citizens and public administrations. However, as set out Interinstitutional Agreement on 
Better  Law-Making,  “...the  goals  of  simplifying  Union  legislation  and  reducing  the 
regulatory burden should be pursued without prejudice to the achievement of the policy 
objectives of the Union.”16.  While some regulatory costs are directly attributable to the 
policy  goals,  others  are  not  necessary  to  achieve  them  and  can  be  removed  without 
affecting the ability of regulation to deliver intended benefits. 

One approach to reducing regulatory costs is by fixing ex ante burden reduction targets 
either  for  the  economy  as  a  whole17  or  for  specific  sectors.    To  fix  burden  reduction 
objectives  in  specific  sectors  entails  setting-up  sectoral  quantified  targets  for  the  EU 
regulatory framework. These can be absolute amounts or percentage targets set-up at the 
level of an economic sector or policy area.   

I. Sectoral burden reduction objectives on the basis of a Baseline measurement 

One  option  for  setting  sectoral  burden  reduction  objectives  is  to  base  it  on  a 
comprehensive  baseline  measurement  of  the  stock  of  regulatory  cost.  A  baseline 
calculation means a minimum initial assessment of the overall costs and benefits. Such 
an  approach  provides  for  a  credible  and  effective  starting  point  for  verifiable  cost 
reductions  as  it  allows  the  regulator  to  set  the  target  at  the  appropriate  level.  If  the 
implementation of the burden reduction objectives is then followed-up on the ground, its 
net  impact  would  be  measured  and  related  to  the  implementation  of  the  legislation 
through the EU multi-tier levels (EU, national and regional levels).  

The  Commission  carried  out  such  a  baseline  measurement  in  2007,  as  part  of  its 
Administrative Burden Reduction programmes (ABR).  The goal of the programme was 
to reduce administrative burdens by 25 per cent by 2012 in 12 selected priority areas.  

The work was based on an extensive screening of the acquis, the identification of most 
burdensome legislation, and on calculations and extrapolations resulting in an estimation 
of the baseline. Implementation was carried-out at considerable administrative cost and it 
encountered major obstacles linked to data availability. At the same time it was difficult 
to  achieve  a  consensus  between  Member  States  and  stakeholders  on  the  methodology 
used.  This  triggered  difficulties,  notably  regarding  the  quantification  of  costs,  benefits 
and  savings.    Within  the  ABRPlus  programme,  the  Commission  examined  how  the  12 
measures from the ABR Programme have been implemented on the ground in 5 Member 
States and assessed whether the promised reductions in administrative burdens had been 
realised.  

16 http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32016Q0512(01)&from=EN    

17   This  feasibility  assessment,  in  line  with  the  commitment  taken  in  the  IIA-BL,  will  only  consider 
sectoral  burden  reduction  objectives.  It  is  clear,  however,  that  the  assessment  is  valid  a  fortiori    for 
burden reduction objectives set for the economy as a whole. 

39 

 
 
                                                 
The ABRPlus programme demonstrated that reliable and comparable data to establish a 
more  robust  baseline  than  the  initially  estimated  one  in  the  ABR  was  not  available. 
Despite the fact that the burden reduction objective was based on evidence and extensive 
data  gathering,  it  could  not  clearly  demonstrate  its  benefits  with  businesses  on  the 
ground.  

A Final Report on ABRPlus underlined that: 

-  Very few Member States provided data on current administrative burdens and/or 
savings as a result of the ABRPlus measures; the data provided was limited and 
no methodological basis on which the data was founded could be identified. 
-  The focus and emphasis of the ABR was on the adoption of the measures at the 
EU level, with limited consideration given to implementation by Member States 
or  to  an  agreed  approach  for  the  ongoing  monitoring  and  evaluation  of  the 
impacts of the ABR measures once implemented. 
In  the  absence  of  an  agreed  approach  at  a  European  level  for  monitoring  the 
impacts of the ABR measures on an on-going basis, individual Member States did 
not apply any processes and systems of their own for measuring the impacts on 
the ground. 

- 

-  There  was  limited  knowledge  among  Member  States  on  how  the  estimates  of 
administrative  burden  were  calculated  and  on  the  choices  made  by  different 
Member  States  to  implement  the  adopted  EU  initiatives;  therefore,  the  Member 
States  had  and  provided  little  evidence  on  how  the  target  affected  the  final 
administrative burden reduction achieved. 

-  During  the  programme,  there  was  very  limited  commitment  of  businesses  to 

participate in the exercise. 

This  experience  demonstrates  that  gathering  the  evidence  necessary  to  fix  an  ex  ante 
target is expensive, takes significant time to complete, and does not necessarily produce 
an accurate representation because data is often limited. This conclusion is also supported 
by  many  members  of  the  REFIT  Platform  Government  group,  who  have  experimented 
with baseline measurement and declared that it is costly and often lacks accuracy given 
the required extrapolation. 

Calculating a baseline is a costly and complex exercise due to the data availability, 
transparency and reliability. Quality of  data relies on the  capacity of  the  Member 
States  and  other  stakeholders  to  provide  data  to  the  EU  level,  which  is  often  very 
low  and  on  a  commonly  accepted  methodology.  On  the  part  of  Member  States, 
evidence shows that the national approaches are very diverse as well as the national 
implementation  processes  and  governance  established  for  burden  reduction 
objectives.  Businesses  and  citizens  often  lack  the  capacity  (resources)  and 
willingness (due to commercial secrecy) to provide data to the administrations.  

40 

 
 
 
 
 
II. Sectoral burden reduction objectives set without baseline measurement  

An  alternative  to  setting  a  burden  reduction  objectives  based  on  extensive  data 
collections and baseline measurement, is to set burden reduction objectives 'politically', 
rather than on the basis of an extensive data collections and/or baseline measurement.  

This  approach  would  result  in  a  sort  of  political  declaration,  whereby  ex-ante  burden 
reduction objectives are set with no clear justification on how they are calculated or why 
they should apply to a specific sector. This can be done in different ways, for instance by 
introducing the so-called "one-in one-out" and its variations18 type of targets; an absolute 
amount or a percentage set at sectoral level.   

The majority of  members of the REFIT Platform  Government group  have  suggested to 
introduce  this  approach,  supported  by  data  collected  through  ex  post  evaluations, 
Cumulative  Cost  Assessments,  Fitness  Checks,  surveys  etc.  These  members  also  
reiterated the May 2016 Competitiveness Council19 Conclusions urging the Commission 
to  introduce  reduction  targets  in  2017,  while  taking  into  account  a  high  level  of 
protection of consumers, health, the environment and employees and the importance of a 
fully functioning Single Market. 

Introducing  sectoral  burden  reduction  objectives  without  a  baseline  measurement  is  a 
relatively easy exercise and can be done fairly quickly. However, there are a number of 
concerns related to the introduction of this approach at EU level. 

First,  there  is  a  methodological  challenge  to  ensure  that  all  Commission  proposals  are 
accompanies  with  reliable  quantitative  estimates  of  new  costs  and/or  savings.  This  is 
particularly complex at EU level for reasons that include data availability and the nature 
itself  of  EU  legislative  proposals  (the  cost  of  which  often  depend  on  national 
implementation choices- as when exemptions possibilities are provided for- or follow-up 
acts-  as  when  delegated  and  implementing  measures  fix  the  parameters  determining 
expected  compliance  costs)20.  The  risk  of  building  a  target-based  mechanism  upon 
potentially  costly,  incomplete  and/or  weak  quantitative  estimates  clearly  needs  to  be 
taken into account. 

Secondly, and independently from any progress in improving quantifications of costs and 
benefits, the additional absence of a sound methodology to identify what costs should be 
reduced on what sectors and why, makes it very difficult to calibrate the ambition of any ex-
ante objective with the risk that objectives are set at a non-optimal level:  

 

if set too low, the action would result in failure to reach the reduction objective by 
obtaining negligible results; 

18 This means that new costs equal to reduction of costs in countervailing proposals. 

19    The  May  2016  Competitiveness  Council  "  …  URGES  the  Commission  to  rapidly  proceed  on  this  to 
enable the introduction of reduction targets in 2017, whilst always taking into account a high level of 
protection  of  consumers,  health,  the  environment  and  employees  and  the  importance  of  a  fully 
functioning  Single  Market.  UNDERLINES  that  such  targets  should  be  well-defined,  pragmatic  and 
sound,  and  should  focus  on  sectors  or  sets  of  regulation  that  are  particularly  burdensome,  areas 
relevant  for  SMEs  and  with  strong  potential  for  innovation,  and  fitting  within  the  current  REFIT 
priorities" 

20   For an authoritative review of these issues see chapter 4 in https://ceps.eu/publications/assessing-costs-

and-benefits-regulation . 

41 

 
                                                 
 

if  the  level  is  set  too  high  burden  reduction  objectives  are  set  without  a  clear 
identification  of  ‘unnecessary  costs’,  shifting  the  focus  of  the  regulatory  reform 
agenda away from ‘better regulation’ and putting wider policy objectives at risk, 
resulting in undesirable deregulation.  

A  UK  National  Audit  Office  report  highlights  that  national  governments  do  not  know 
exactly  how  much  cost  businesses  incur  due  to  existing  Union  legislation.  The  report 
concludes  that  such  uncertainty  makes  it  very  difficult  to  calibrate  the  ambition  of  any 
ex-ante objective not least because the actual costs experienced at national or local level 
can differ due to how the Member States choose to transpose and apply the legislation.21 

Lacking  a  detailed  methodology  and  assessment  of  a  baseline  (costs  and  benefits),  a 
politically  set  burden  reduction  objective  would  have  to  focus  exclusively  on  cost 
reduction  without  considering  the  benefits  of  legislation.  This  approach  does  not 
differentiate  between  necessary  costs  that  are  those  intrinsically  linked  to  the 
achievement  of  a  policy  goal  and  un-necessary  costs  that  can  be  reduced  without 
preventing the accomplishment of the objectives of legislation. In this circumstance, this 
would result in regulatory trade-off whereby necessary and beneficial Regulation will be 
set  aside  simply  to  meet  the  burden  reduction  objective,  without  consideration  of  its 
merits.  Some  national  experiences  show  that  if  quantitative  reduction  targets  apply, 
administrations  tend  to  focus  on  meeting  the  target  rather  than  seeking  to  maximise 
policy benefits.  

A  consequence  of  such  an  approach  which  focusses  only  on  cost  reduction  is  that  it 
would impair the ability of the Commission to assume its political responsibility to put 
forward legislation where and when it is necessary and risks having a negative impact on 
its policy initiatives.  

The  legitimacy  of  this  approach  which  does  not  actively  involve  stakeholders  when 
identifying  burdens  and  policy  actions  that  matters  to  them  is  also  questionable.  The 
diversity of views on this issue is illustrated by the result of the REFIT Platform survey. 
While the large majority of members of the Government group are in favour of setting ex 
ante  burden  reduction  objectives  at  EU  levels,  the  majority  of  members  of  the 
Stakeholder Group expressed the view that burden reduction objectives chosen politically 
or only approximatively would be likely to lead to undue deregulation as they would not 
focus  only  on  unnecessary  costs  without  prejudice  to  the  pursuit  of  policy  objectives. 
This approach would also risk limiting the scope of political initiatives, in particular in 
the area of social policy. Some members of the Stakeholder group further stressed that a 
sectoral  approach  would  not  guarantee  a  focus  on  areas  of  most  concern  to  businesses 
given that data on most burdensome sectors can be misleading or not reflect reality on the 
ground. Instead of setting arbitrary targets,  members of the REFIT Stakeholders group 
suggested  that  the  Commission  "better  prioritises  the  use  of  existing  evaluation  and 
assessment  tools  and  consultation  processes  designed  to  identify  opportunities  for 
reducing unnecessary regulatory costs, including via the REFIT Platform. “ 

21   The Business Impact Target: cutting the cost of regulation, National Audit Office, 29 June 2016, and 
§6  and  §14  of  the  executive  summary  in  particular.  https://www.nao.org.uk/report/the-business-
impact-target-cutting-the-cost-of-regulation/  

42 

 
                                                 
Given  this,  an  ex-ante  burden  reduction  objective  at  EU  level  would  not  achieve 
sufficient  buy-in  from  stakeholders  and  this  would  reduce  the  opportunity  to  achieve  a 
“change in administrative culture”. 

The same considerations apply to  in the case of "one-in-one out" where the need to find 
cost  savings  to  finance  any  increase  in  costs  due  to  a  new  regulatory  initiative  can 
represents a real impediment for the timely presentation of a new proposal irrespective of 
how useful or necessary it may be. At the EU level, finding consensus with co-legislators 
over which legislation should be withdrawn or modified, would add to that impediment 
and delay even further the process. More generally, at the EU level, there would be no 
guarantees that proposed costs savings would actually finance any proposed new costs as 
proposals  would  be  independently  modified  during  the  legislative  process.  Finally,  it 
should  be  noted  that  the  withdrawal  of  an  existing  EU  piece  of  legislation  would  not 
mean that the associated burden is removed. To the contrary, this often implies that 28 
un-harmonised  laws  will  replace  the  legislation  which  is  withdrawn,  with  the 
consequence that companies, particularly those operating cross-border, would face higher 
costs.  

Finally, several respondents to the REFIT Platform survey highlighted that unnecessary 
regulatory  costs  often  do  not  stem  from  EU  regulation  but  from  inadequate 
implementation at Member State level. Delivering concrete benefits for business in terms 
of  real  burden  reduction  is  therefore  a  challenge  particularly  in  the  EU  policy  set-up, 
which  is  multi-tier  and  characterised  by  the  existence  and  interaction  of  several  EU 
decision  making  and  national  implementation  levels.  Much  EU  legislation  is  minimum 
harmonisation  in  the  form  of  directives.  About  70%  to  80%  of  the  EU  legislation  is 
implemented  and  applied  at  regional  level  by  almost  10.000  different  authorities.  The 
same  applies  for  regulations  and  implementing  and  delegated  acts,  albeit  to  a  lower 
extent.  Hence,  EU  legislation  is  complemented  with  national  implementation  and 
application measures that can add to the EU regulatory requirements. This requires that 
all levels of governance need to be equally committed to and invest in pursuing a burden 
reduction objective that delivers on the ground.  

A  burden  reduction  objective  which  is  fixed  politically  focuses  on  cost  reduction 
without an evidenced-based baseline. Although it is less complex and less costly than 
ex-ante targets based on baseline calculation, this approach creates a significant risk 
of deregulatory pressure and complicates the ability to adopt new legislation that is 
objectively  needed.  This  leads  to  a  lack  of  legitimacy  and  acceptance  by  the 
stakeholders. 

III.  A case  by case analysis of  burdens in all regulatory areas through the  REFIT 
programme.  

Business and stakeholders have a critical role to play in helping governments to identify 
proposals  for  simplification.  It  is  for  this  reason  that  the  Commission  established  the 
Regulatory  Fitness  and  Performance  Programme  ('REFIT')  programme  and  Platform, 
which identify the most problematic areas where efficiency gains can be achieved. 

This    approach  is  evidence-based  and  it  is  built  on  evaluating  existing  legislation  first 
before making changes ("evaluate first" principle) and assessing at the outset the impact 
of  the  changes  on  the  ground  (impact  assessments).  This  approach  creates  legitimacy 

43 

 
 
because it actively involves stakeholders, in an iterative consultation process that helps to 
identify what needs to be changed.  

Contrary to burden reduction objectives set politically or at considerable cost through a 
baseline measurement, REFIT identifies reduction potential at the level of each initiative, 
or at the level of sectors through 'Fitness Checks', in full consultation  with stakeholders 
and taking into account the balance between benefits and costs.  

Under  REFIT,  policy  benefits  are  guaranteed  through  consistent  quantification  of  costs 
and  benefits  for  each  initiative,  which  builds  on  proven  methodology  and  processes, 
embedded  in  the  decision  making.  REFIT  focuses  on  balancing  costs  with  quantified 
benefits  (or  qualified,  when  quantification  is  not  possible)  rather  than  exclusively  on 
reducing costs. The policy objectives are preserved, because benefits of legislation are a 
key element of the assessment.  

Ex-ante  objectives  for  reducing  regulatory  costs  risk  creating  deregulatory  pressures  in 
the  policymaking  process.  The  Commission's  approach  under  REFIT  offers  greater 
assurance of legitimacy and avoidance of undue deregulation... The analysis at the level 
of  each  initiative  makes  it  clear  which  costs,  how  and  why  should  be  reduced  and  this 
increases acceptance by stakeholders. This is in line with the Interinstitutional Agreement 
on  Better  Law-Making  which  links  the  objective  of  simplifying  legislation  to  the 
necessity  of  safeguarding  regulatory  objectives.22  Through  its  extensive  scope,  REFIT 
has the potential to gradually better align the administrative culture across all tiers of the 
EU  set-up  as  its  consideration  to  benefits  ensures  credibility  and  buy-in  from 
stakeholders.  

This  approach  allows  the  merits  of  legislation  to  be  assessed  in  a  comprehensive, 
evidence-based  and  systematic  manner.  It  is  flexible  and  allows  the  Commission, 
supported by the REFIT Platform, to focus on specific acts which stakeholders highlight 
as being particularly problematic.  

  CONCLUSIONS 

In line with its commitment in the Interinstitutional Agreement on Better Law-Making, 
the  Commission  has  examined  the  feasibility  of  setting  burden  reduction  objectives  at 
sectoral  level  under  REFIT.  The  assessment  revealed  that  setting-up  quantified  burden 
reduction  objectives  without  a  detailed  bottom-up  assessment  of  the  sectors  concerned 
and baseline measurement, risks having an impact on policy objectives and is unlikely to 
have the buy-in of stakeholders who are not involved in the process. At the same time, a 
detailed baseline assessment is costly and in the past has not demonstrated a clear impact 
on the ground given limited data availability, the complexity of calculation and lack of 
common  methodology  in  the  EU  multi-tier  system.  In  addition,  burden  reduction 
objectives focus only on cost reduction without consideration of regulatory benefits. This 
may lead to undue deregulation because 'necessary costs' to achieve regulatory benefits 
are not distinguished from 'unnecessary costs'. A burden-reduction policy of this sort will 
not have the necessary legitimacy among stakeholders.  

22   "…to  update  and  simplify  legislation  and  to  avoid  overregulation  and  administrative  burdens  for 
citizens,  administrations  and  businesses,  including  SMEs,  while  ensuring  that  the  objectives  of  the 
legislation are met..." 

44 

 
                                                 
The  REFIT  programme  establishes  burden  reduction  objectives  through  a  solid 
evaluation of individual pieces of legislation or of legislation applied more generally to 
specific  sectors,  and  it  does  so  on  the  basis  of  intense  consultation  of  and  engagement 
with stakeholders who are the best placed to identify what needs to be done, and hence to 
help to ensure that results are delivered on the ground.  

45