“General RIA Training”

6–8 July 2009EuropeAid/125317/D/SER/TR

Session 10-B

Importance of RIA inthe EU Harmonization Process

Advantages of RIA for EU Harmonization

• Options for revising existing legislation • Understanding impacts of harmonization and identifying best implementation option to mitigate negative impacts• Negotiate technical assistance for implementation of EU legislation• Negotiate transition period and other derogations• After accession, use RIA to lobby interests in future EU legislation with a proper evidence base

Revising Existing Legislation and Identifying Implementation Options

•Identify what changes to existing legislation will be necessary to comply with EU provisions

•Analyze and understand impacts of harmonization and consider how to mitigate negative impacts

•Think about different implementation options, including possible institutional arrangements and enforcement mechanisms

Negotiate Technical Assistance for Implementation of EU Legislation

• The Programme of Community aid to the countries of Central and Eastern Europe (Phare) is the main financial instrument of the pre-accession strategy for Central and Eastern European countries. Its budget was over €10 billion for the period 2000-2006

• Just for implementation of Integrated Administration and Control System for Farmers Support Schemes, Ministry of Agriculture and Rural Affairs of Turkey expects to receive about €90 million

Negotiate Transition Period: Directive 2003/96/EC (taxation of energy products and electricity)

Agreements to apply reductions in levels of taxation of electricity, solid fuels and natural gas for transitional periods: •Czech Republic negotiated reductions until 1 January 2008•Republic of Estonia allowed to apply transitional period until 1 January 2010•Republic of Latvia achieved transitional period until 1 January 2011•Republic of Slovenia negotiated to apply reduction in level of taxation for natural gas until May 2014 or until national share of natural gas in final energy consumption reaches 25%, whichever is sooner

Negotiating Transition Periods and Other Derogations: More Examples

• Latvia initially did not request a transitional arrangement for reduced VAT rate for heating. When it was later realised that this could lead to increased heating expenses for whole population, this was negotiated using evidence base• Most food-processing factories in Hungary were not prepared financially to implement veterinary and phytosanitary norms. Solution: those factories were allowed to produce with existing technology for a few years, but only for the home market• Huge quantities of quality wine in Hungary had previously been bottled into 1-litre bottles, which were not compatible with EU requirements. Impact assessment showed that neither limiting such bottles to the home market nor re-bottling of this wine was an acceptable method. Solution: that wine was allowed to be sold on the market but no new wine could be bottled into 1-litre bottles

• Directive 89/655/EEC on the use of work equipment: Malta requested a transition period until early 2006 for implementing this law to allow: – local industry time to invest in new equipment

compliant with EU safety standards–time for training required both within individual

companies and national enforcement authorities

• The need for this was identified in an impact study commissioned by the Maltese Government.

Negotiating Transition Periods and

Other Derogations: More Examples

• The first EU cotton support regime was set up with the accession of Greece. Cotton is of limited significance to EU as a whole, contributing only 0.15% to the total agricultural output but it has strong regional importance. In 2005:

– Greece accounted for 76% of the EU's total output (about 1.45 million tonnes of raw cotton)

– Cotton was 9% of Greece's total agricultural production

– 380 000 ha devoted to growing cotton

– 79 700 farmers involved

Negotiating Transition Periods and Other Derogations: More Examples

• Requesting further derogations:

COUNCIL DIRECTIVE 2003/96/EC:– the Council may authorise any Member State to introduce

further exemptions– A Member State shall inform the Commission and provide

all relevant and necessary information when requesting further exemptions

• Influence future EU regulations both through domestic RIAs and impact assessments prepared by EU Commission

After Accession – RIA Use in Lobbying on Future EU Legislation

• RIA is necessary to inform Turkish negotiating position

• Use same RIA guidelines as for Turkish domestic legislation (current guidelines will be revised and strengthened this summer)

• Be proportionate

• Use Commission’s impact assessments on existing legislation

• Look for similar RIAs from other countries

RIA for Implementation of EU Legislation

DetermineObjectives

Consultation

ProblemDefinition

ComparingOptions

Analysis

ConsiderPossibleOptions

Implement &Review

Review andDecision

RIAProcess

Proportionality

Recommendations for Turkey, SIGMA 2006:

• Priorities for assessment need to be established using both the nature of the acquis and the experience of member states and countries negotiating membership in the past.

• Detailed impact assessment needs to concentrate on the most important and potentially costly parts of the acquis. Other areas should be considered with a simplified RIA.

Problem Definition

• Start with the problem which was basis for EU regulation

• Research the situation and identify other potential problems for Turkey

• Research the current legislation and changes required to harmonize

Identification of Options

• Consider “Do Nothing” Option” to provide a base line to enable you to differentiate and analyze the consequences of harmonization options

• Consider different options to implement EU legislation, including transitional periods, institutional arrangements, enforcement mechanisms

• Possible Commission’s proceedings before the European Court of Justice; after accession – fines

• Compliance and implementation costs for private and public sector

• Discriminatory treatment on EU market of insufficiently harmonized sectors

• Decrease in exports and outflow of investment because of free market

Possible Costs of Harmonizing with EU Legislation

• Further technical assistance for implementation

• Most legislation results in medium- and long-term benefits (e.g. improvements in health/environment)

• Increase in exports and inflow of investment due to free market

• Share of general (indirect) benefits from integration attributable to proposed option

Benefits in Harmonizing with EU Legislation

• Research stakeholders’ capacity to comply, and what they need to help them (e.g. guidance, training)

• Identify implementation arrangements such as transitional periods, institutional arrangements and enforcement mechanisms, given limitations (time and resources)

• Consider how to evaluate effectiveness of regulation when implemented

Implementation and Follow-Up

• EU Impact Assessment Guidelines: http://ec.europa.eu/governance/impact/docs/key_docs/iag_2009_en.pdf

• Annex to EU Guidance: http://ec.europa.eu/governance/impact/docs/key_docs/iag_2009_annex_en.pdf

• UK Better Regulation Executive: http://www.berr.gov.uk/whatwedo/bre/policy/scrutinising-new-regulations/preparing-impact-assessments/toolkit/page44237.html

• UK Green Book: http://www.hmtreasury.gov.uk/data_greenbook_index.htm

• US Office of Management and Budget: http://www.whitehouse.gov/omb

Links to Impact Assessment Guides

• List of EU Commission impact assessments: http://ec.europa.eu/governance/impact/practice_en.htm

• UK Impacts Assessment Library: http://www.ialibrary.berr.gov.uk/

• European Network for Better Regulation, Database of Scored Impact Assessments (30 European Countries) http://www.enbr.org/diadem.php

Links to Impact Assessment Examples