Introducing Regulatory Impact Analysis into the Turkish Legal Framework “Training the Trainers” November 2008 RIA in the EU by Lydia Jørgensen, Senior Associate, Jacobs and Associates

RIA saved billions! REACH as an example Cost reduced from €10 to €2 billion Without significantly challenging the benefits

Why is the EU looking at RIA and regulatory reform? Political issue (the lisbon agenda) Governance (modernisation, sustainability etc) Competitiveness (business perspective)

The EU experience with Better Regulation and RIA Lisbon strategy and Manderlkern report (2001) Recommendation on new integrated impact assessments Better regulation actionplan (2002) Integrated impact assessments (IIA) introduced Interinstitutional Agreeement (2004) IIA extended to Council and Parliament New Lisbon strategy New guidelines on IA and Administrative burden measurement

Principles for EU regulation Necessity –This principle demands that, before putting a new policy into effect, the public authorities assess whether or not it is necessary to introduce new regulations in order to do this. Proportionality –Any regulation must strike a balance between the advantages that it provides and the constraints it imposes. It is the responsibility of the Member States and the Commission, when selecting from the regulatory instruments available to them, to identify those which are most proportionate to the aims they wish to achieve. Subsidiarity Accountability –All parties involved should be able to clearly identify the authorities that originated the policies and the regulation applying to them. Where appropriate, they should be able to inform them of difficulties with the implementation of policies or regulation, so that they can be amended. Accessibility Simplicity Transparency –..the drafting of legislation should not be confined within the narrow bounds of the public administration bodies. Participation by and consultation with all parties who are interested or involved prior to the drafting stage is the first requirement of the principle of transparency. –From the Mandelkern report on Better Regulation, 2001

Mandelkern prerequisites for good RIA An integral part of an overall strategy to improve the regulatory environment; High-level political support for the concept of RIA and its practical application; The analytical effort should be proportionate to the likely effects of the proposal being assessed; Preparation of a RIA should, wherever possible, be by the policy officials concerned and should start as soon as possible in the policy development process, continuing as a fundamental part of it; The results of the assessment need to be informed by and subject to both informal and formal consultation of interested parties and others ; This work is most effective when it is overseen by a specific structure dedicated to better regulation and supported by clear advice, guidelines and training; Sufficient resources (in terms both of quantity and quality) must be allocated to policy units and the better regulation structure to make the system work

The objectives of the EU RIA system Improve quality of proposals Provide effective aid to decision-making Serve as a communication tool –Ultimately help to achieve objectives of Lisbon strategy and Sustainable Development strategy

The does the RIA proces look like? Key procedural steps (3 phases) Stakeholder consultation throughout the process (consultation plan) Presentation of findings (summarize, simple language etc.)

The 3 phases in detail.. Phase 1 Planning of the impact assessment integration in the SPP cycle Set-up Interservice Steering group Consult with interested parties and expertise Carry out IA Phase 2 Present the findings in the impact assessment report Interservice consultation Examination by Group of Commissioners Submission to College of Commissioners Phase 3 Transmission of the impact assessment report alongside the proposal to the other institutions Final report normally published on Europa website by the Secretariat-General.

What does the EU RIA include? The report should normally be no more than 30 pages (excluding annexes), incl: –Executive summary –Procedural issues and consultation of interested parties –Problem definition –Objectives –Policy options –Analysis of impacts –Comparing the options –Monitoring and evaluation

The RIA is made public in the end

Evaluation of the EU RIA system Review experience ( ) First time 2007 – report states: –’ IA system is still in an early stage’ –’New tools and processes are not introduced over night, and building up the necessary capacity to use them effectively takes time.’ –’IA system has made progress towards all of its objectives’

What difference did a RIA make? ’INPSIRE’ SEC(2004)980 – analysis and consultation identified another relevant option Citizens for Europe COM(2005)442 – change of substance after consultation + Interconnecting Africa SEC(2006)856 – RIA as a checkbox that lead to no added value CFP SEC(2006)426 – cannot be seen as good practise -

Recommendations for improving the EU RIA Scope and proportionate analysis –E.g. The most significant proposals Timing and approach –Tabula rasa and objectivity Quality control mechanisms –Develop capacities, quality control etc. Support and guidance –Training and coordination