DG Enterprise and Industry
Directors and Experts of Better Regulation Meeting
Vilnius, 5-7th June 2013
Competitiveness proofing
Konstantin Pashev
DG ENTR Unit A5 'Economic Analysis
and Impact Assessment'
DG Enterprise and Industry
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
2
DG Enterprise and Industry
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 impacts
of 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."
DG Enterprise and Industry
Three - pillar approach
International competitiveness
Impacts on the affected sectors' international sales performance
Impacts on
competitiveness
Cost competitiveness
Capacity to innovate
The cost of doing business, which
includes cost of intermediate inputs
(incl. energy) and of factors of
production (labour and capital)
The capacity of the business to produce
more and/or higher quality products and
services that meet better customers'
preferences
DG Enterprise and Industry
The 12 steps at a glance
I. Getting Started
Step 1: Does your IA
require comp. proofing?
Step 2: How deep should
we go?
II. Qualitative screening
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?
III. Quantifying expected impacts
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
DG Enterprise and Industry
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
•6
DG Enterprise and Industry
•Non-cost and international
competitiveness
Step 6: Capacity to innovate
Questions 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
•7
DG Enterprise and Industry
Results of Part II: Qualitative screening matrix
Competitive
impacts
Affected sectors
Directly
Sizing (timing) Duration of
of impacts
impacts
Risks and
uncertainty
Indirectly
Cost and price
competitiveness
Capacity to
innovate
International
competitiveness
8
•Quantifying the impacts
•Input-output
•analysis
No prescription on
the instruments
•Descriptive
statistics
•Quantification of
impacts on
competitiveness
may require
•Other
•econometric
exercise
•Applied
general
equilibrium
modelling
DG Enterprise and Industry
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
10
competitiveness, SMEs and on micro
enterprises".
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
11
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
12
Thank you
The guidance and good practices are available online at:
http://ec.europa.eu/enterprise/policies/smart-regulation/impactassessment/competitiveness-proofing/index_en.htm
13