A considerable proportion of regulations that affect business and public administration originate at an EU level. German federal ministries have an obligation to examine EU requirements in what is known as the EU ex-ante procedure to gain a clearer picture of the cost implications for Germany, and to allow avoidable costs to be addressed in Brussels. There are also efforts at an EU level to reduce bureaucracy alongside these domestic measures. The European Commission in particular and increasingly also the European Parliament conduct impact assessments for their own legislative proposals.

In its Better Regulation Communication of 29 April 2021, the Commission announced a number of measures to improve the existing system. One of the key new features was the official introduction of a “one in, one out” approach at an EU level. The approach was piloted in the second six months of 2021 and applies as of 2022 to all new initiatives based on impact assessments. The new rule only covers the costs of bureaucracy to business and to citizens. It is still too early to assess the rule’s effectiveness; the first review is scheduled for 2023.

Another change is a broadening of the mandate of the Regulatory Scrutiny Board (RSB), which is based at the European Commission. The new areas for scrutiny include the “one in, one out” rule, climate and environmental impact assessments and strategic foresight.

Discussions with EU institutions are primarily through the RegWatchEurope network, which is currently chaired by the NKR’s sister body, the Regulatory Impact Assessment Board.

What is the RegWatchEurope network?

The NKR belongs to the RegWatchEurope network, which currently comprises eight independent oversight and advisory bodies in Europe. Like the NKR, the other bodies are tasked with reviewing impact assessments and providing information and recommendations for better regulation.

The seven members alongside the German NKR are as follows:

• Adviescollege Toetsing Regeldruk (ATR) from the Netherlands,
• Danish Business Regulation Forum (DBRF) from Denmark,
• Finnish Council of Regulatory Impact Analysis (FCRIA) from Finland,
• Swedish Better Regulation Council (SBRC) from Sweden,
• Norwegian Better Regulation Council (NBRC) from Norway,
• Regulatory Impact Assessment Board (RIAB) from the Czech Republic as well
• Regulatory Policy Committee (RPC) from the UK.

RegWatchEurope seeks to share experience and examples of best practice on bureaucracy reduction and better regulation through workshops and regular meetings. At an EU level, the network advocates for members’ common interests, for example.