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EU Better Regulation: Creating a playing field for businesses at the expense of social and environmental policies
Södertörn University, School of Social Sciences, Political Science.ORCID iD: 0000-0002-9664-1456
2024 (English)Report (Refereed)
Abstract [en]

This study examines the evolution of the better regulation agenda, particularly under President Ursula von der Leyen. Using Stone’s (1988, 2012) concept of public policy, the analysis identifies two main dimensions in EU official documents: the presentation of a policy problem requiring attention, and the policy solutions proposed to address or resolve it. The analysis relies on primary data, which includes all official EU documents, and secondary data from civil society and media. The documents have been analysed via qualitative, semi-automatic content analysis conducted with Atlas.ti.

The analysis reveals a shift in the Commission’s better regulation agenda and its policies over time. Initially, in the early 1990s, EU law was considered as being too technical and complex, leading to efforts to make EU law clearer and simpler. However, in the late 1990s and early 2000s, EU legislation was increasingly seen as a burden, particularly for businesses. Consequently, the primary policy solution became the simplification of EU legislation, driven by a deregulatory agenda that often compromised societal standards. Under Commission President Jean-Claude Juncker, the same policy problems persisted, but the approach to policy solutions became more diverse and comprehensive. Instruments like REFIT, the REFIT platform, and the Regulatory Scrutiny Board (RSB) were introduced, with a more inclusive language compared to the previous period.

A notable shift took place under Commission President Ursula von der Leyen by framing the policy problem solely as EU legislation being too burdensome and costly for businesses, especially for SMEs. Importantly, the definition of SMEs is so broad that 99.8% of all companies nowadays fall under this category. The overall focus shifted to costs, making them a central issue. As a result, policy solutions have aimed at relieving these burdens and costs, pursuing the ‘One-In, One-Out’ (OIOO) principle, which considers only costs, while leaving out the value of a regulation. Thus, the principle at EU level portrays regulation as a zero-sum game. Despite criticism, von der Leyen has prioritised the OIOO approach and cost reduction, creating favourable conditions for SMEs often exempted from control and reporting obligations. As a result, even substantial enterprises that are part of large groups, like the Austrian Signa Holding, are classified as small and medium-sized enterprises and thus have reduced reporting obligations. The Signa group eventually went bankrupt in 2023, marking the largest insolvency case in the European real estate sector. 

These policies have the potential to undermine social and environmental standards. The overall analysis indicates a more deregulatory focus under von der Leyen, contrasting sharply with the ambitious objectives of the European Green Deal and the European Pillar of Social Rights. For instance, in a 2023 report on administrative burdens, the Commission labelled a new EU law protecting workers from asbestos exposure as a burden for companies, while completely overlooking the benefits of maintaining workers' health, continued employment, and their contributions to taxes and social security. 

Looking ahead, the Commission has announced continued easing of reporting obligations for businesses, with rationalisation plans for 2024 and beyond. The Letta report on the Single Market further highlights the target to reduce regulatory and administrative burdens, benefiting businesses, especially SMEs. However, these policies may lead to a prioritisation of corporate interests over societal rights, endangering welfare systems and a risk of more precarious working conditions across the EU. Furthermore, the EU Strategic Agenda 2024-2029 aligns closely with the direction outlined in the Letta report. Again, the emphasis is on bureaucratic burdens for companies. Surprisingly, socio-political goals like public health are not a significant focus despite the COVID-19 pandemic. The agenda maintains a commitment to better regulation, with the Letta report stressing the need to support European businesses globally by reducing regulatory burdens. These developments indicate a likely continuation of von der Leyen's better regulation policies in the coming years. 

Place, publisher, year, edition, pages
Viena: AK Wien , 2024. , p. 79
Keywords [en]
European Commission, Better Regulation, simplification of EU law, administrative burden, regulatory offsetting, Ursula von der Leyen
National Category
Political Science
Identifiers
URN: urn:nbn:se:sh:diva-54700ISBN: 9783706310772 (electronic)OAI: oai:DiVA.org:sh-54700DiVA, id: diva2:1895125
Available from: 2024-09-04 Created: 2024-09-04 Last updated: 2024-09-16Bibliographically approved

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Pircher, Brigitte

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