1. IPSG Meeting, Paris, 25th November Reduction of Administrative Burdens: Presentation of the EU Project & French Position Denis Besnainou, Michael Vychytil, DGME, France 1

2. Contents Global Presentation of the European AB Project
Findings Presented in the Recent Reports
The French Position on the Findings
Outlook

3. 1. Global Presentation of the European AB Project

4. The European AB Project
Launched by the decision of the European Council in March 2007
A part of the broader Better Regulation initiative, which is an element of the Lisbon Strategy
The Commission mandated a consortium of consultancies: Capgemini – Deloitte – Ramboll, to carry out the project

5. The Goals of the European AB Project
Measure the administrative cost of European legislation in order to identify both most burdensome and most irritating information obligations
Identify the most promising simplification suggestions
Achieve a 25% reduction in administrative burden stemming from the examined legislation by 2012

6. The Scope of the European AB Project
43 European Regulations & Directives…
…in 13 “Priority Areas” (PA):
Agriculture
Company Law/Annual Accounts
Working Environment
Tax Law (VAT)‏
Environment
Public Procurement
Fisheries
Cohesion Policy
Pharmaceutical Legislation
Food Safety
Financial Services
Statistics
Transport

7. Project Timeline

8. 2. Findings Presented in the Recent Reports

9. Measurement Results (1/3)
Total approximate administrative cost of Company Law (Annual Accounts) & Financial Services Priority Areas:
€ 24 billion, of which € 23 billion for Company Law
Total administrative cost of the 11 remaining PA:
€ 126 billion, of which € 106 billion for VAT PA

10. Measurement Results (2/3) – Breakdowns
11 PA Included
Source: Capgemini – Deloitte – Ramboll

11. Measurement Results (3/3) – the 11 PAs
Source: Capgemini – Deloitte – Ramboll

12. Administrative costs (€ x1,000)‏
Most Burdensome IOs
2.2%
2,550,533
Tax Law (VAT)‏
Submission of a summarizing annual VAT return 5
2.6%
2,947,910
3,025,599
Transport
Recording of time spent and time spent driving a vehicle 4
9.9%
11,419,412
9.8%
Issuance of an invoice 3
18.6%
21,473,625
18.4%
Submission of a periodical VAT return 2
56.0%
64,506,384
55.2%
VAT bookkeeping in sufficient detail for inspection by tax authorities 1
Share of Total AB
Admin. burdens (€ x1,000)‏
Share of Total AC
Administrative costs (€ x1,000)‏
Priority Area
EU IO
Rank
Source: Capgemini – Deloitte – Ramboll

13. Simplification Proposals
Most simplification suggestions focus on the use of electronic administration: online forms, electronic data sharing, keeping records in electronic instead of material form…
Focus on SMEs: simplified regimes proposed under certain thresholds, with feasibility varying across Pas
Regrouping obligations and reducing necessary steps in the procedures is another frequent point…

14. 3. The French Position on the Findings

15. A Prudent Attitude towards the Measurement
In the national project, France proceeds by “waves” (groups of 200 IO). We have not completed the baseline, but implemented simplification solution at the end of each IO.
For some IO and some countries, the European project uses a method of extrapolation.
This methodology invites to a prudent handling/interpretation of the results in general – with 5 companies involved per measurement and lack of statistical validity
These objections do not compromise the value of the project as such – important to bear in mind that simplification, not measurement, is the goal

16. Supporting Most Simplification Proposals
France is quoted as a model of efficient electronic administration in various PA and we firmly support further development of these tools
Some specific simplification proposals may be problematic due to important legal implications or impact on fraud control (esp. in the VAT PA)‏
Standards in areas like Food Safety or Working Environment should be kept (even by SMEs)‏
Reduction of the frequency of submission or declarations can be inadequate (statistics)‏

17. French Goals in the Next Phases
Adjustment of the measurement’s results and integration of our remarks by the Consortium
Discussion on new domains
Coordination of reactions with other member states
Fast adoption of consensual simplification proposals
Fast development of electronic procedures

18. 4. Outlook

19. Agenda for the Coming Months
Completing the reporting by the Consortium
Integration of Feedback (Member States, DGs, DG Entr)‏
Update of Data (esp. Financial Services & Company Law)‏
Final Reports in December
Long list of recommendations (400 – 500)
Short list of recommendations (100)
detailed recommendations
External Method Manual

20. Beyond the 2009 European Elections…?
Adoption of simplification proposals before the end of the legislature?
What will be the new Commission’s priorities? (Autumn 2009)
How to proceed with the project? (Extension to further areas, further reduction in current PAs, ongoing exercise…)

21. Thank you for your attention!
Denis Besnainou, Michael Vychytil
Chargés de mission
Direction générale de la modernisation de l’État
Bâtiment Sully, 64, allée de Bercy
75572 PARIS CEDEX 12, France
Tél.: 0033.(0)