competitiveness proofing directors and experts of better regulation meeting vilnius, 5-7 th june...

Competitiveness proofing

Directors and Experts of Better Regulation Meeting

Vilnius, 5-7th June 2013

Konstantin Pashev

DG ENTR Unit A5 'Economic Analysis and Impact Assessment'

DG Enterprise and Industry

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Outline

1. The Commission's approach to assessing competitiveness impacts

2. Overview of the 12-step operational guidance

3. Streamlining competitiveness proofing in the practice of Impact Assessment


The commitment

Industrial Policy Flagship October 2010

"…a reinforced analysis of the impacts on industrial competitiveness for all important new policy proposals with significant effects on industry as part of the impact assessment process…"

"…assessing and reporting the overall impactsof a proposal on competitiveness, including the investment, cost, price and innovative implications for industry and individual sectors, as well as consumer satisfaction, and taking particular account of the potential interactions between a policy proposal and other existing or planned legislation and regulation."


Impacts on competitiveness

Cost competitiveness Capacity to innovate

International competitiveness

The capacity of the business to produce more and/or higher quality products and services that meet better customers' preferences

Impacts on the affected sectors' international sales performance

The cost of doing business, which includes cost of intermediate inputs (incl. energy) and of factors of production (labour and capital)


Three - pillar approach

I. Getting Started

II. Qualitative screening

III. Quantifying expected impacts

Step 1: Does your IA require comp. proofing?

Step 2: How deep should we go?

Step 3: Which are the affected sectors?

Step 4: What is the effect on SME competitiveness?

Step 5: Effect on cost and price competitiveness

Step 6: Effect on capacity to innovate?

Step 7: International competitiveness?

Step 8: Data on structure and performance of directly affected sectors

Step 9: Data evidence on indirectly affected sector(s)

Step 11: Quantify expected impacts on the capacity to innovate

Step 12: Quantify expected impacts on international competitiveness

Step 10: Quantify expected extra compliance and other operational costs


The 12 steps at a glance

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Cost competitiveness

Step 5: What is the likely effect on cost and price competitiveness of the affected industry? Compliance costs Other economic costs (from price changes of intermediate

goods, including energy and raw materials, capital and labour costs)

effect on consumer choice and prices the need and cost of restructuring


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Step 6: Capacity to innovateQuestions about the capacity of the sector to produce

R&D, product and process innovation, which largely depends on supply of skills, incentives to invest in R&D (e.g. IPR protection), access to risk capital

Step 7: Likely impact on the affected enterprises' international sales performance (market shares, comparative advantages,) and access to markets


•Non-cost and international competitiveness

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Results of Part II: Qualitative screening matrix


Competitive impacts

Affected sectors Sizing (timing)of impacts

Duration ofimpacts

Risks anduncertainty

Directly Indirectly

Cost and pricecompetitiveness

Capacity toinnovate

Internationalcompetitiveness

•Descriptive statistics

•Input-output•analysis

•Quantification of impacts on

competitiveness may require

•Applied general

equilibrium modelling

•Other•econometric

exercise

•Quantifying the impacts

No prescription on the instruments

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Mainstreaming CP in the IA practice


The IAB 2012 Report recommended that "services make better use of the related new operational guidance documents to provide a robust assessment of the impacts of proposals on industrial competitiveness, SMEs and on micro enterprises".

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First good CP practices

• Published

Consumer Product Safety Regulation

Directive concerning the posting of workers

Regulation on reduction of CO2 emissions from new light

commercial vehicles

Revision of the Council Directive 90/314/EEC on Package Travel and

Holiday Tours

Revision of the European Atomic Energy Community (Euratom)

nuclear safety legislative framework

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First good CP practices

• Finalized (publication upcoming)

Unique identifier for medicinal products

Fertilizers Regulation

Legislative amendment of the Directive 89/686/EEC on personal

protective equipment

Revision of the Directive on products burning gaseous fuels

European Tourism Label for Quality Systems

Strategy for reducing Heavy Duty Vehicles' CO2 emissions and fuel

consumption

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Thank you

The guidance and good practices are available online at: http://ec.europa.eu/enterprise/policies/smart-regulation/impact-assessment/competitiveness-proofing/index_en.htm

competitiveness proofing directors and experts of better regulation meeting vilnius, 5-7 th june...

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