- European Commission
- Better regulation
Before the European Commission proposes new initiatives it needs to assess the potential economic, social and environmental consequences of these actions.
Impact assessment is designed to help in structuring and developing policies. It identifies and assesses the problem at stake and the objectives pursued. It helps to identify the main options for achieving the objectives and analyses their likely impacts in the economic, environmental and social fields. It outlines advantages and disadvantages of each option and examines possible synergies and trade-offs.
It consists of a set of logical steps to help structure the preparation of Commission proposals. By testing the need for intervention at the EU level and by examining the potential impacts of a range of policy options, it should lead to improvements and simplification of the regulatory environment.
Impact assessment is an aid to political decision-making, not a substitute for it. The impact assessment informs the political decision-makers of the likely impacts of proposed measures to tackle an identified problem, but leaves it to them to decide if and how to proceed.
Integrated approach to impact assessment
The Commission impact assessment follows an integrated approach which was introduced in 2002. It replaces the previous single-sector type assessments and assesses the potential impacts of new legislation or policy proposals in economic (including competitiveness), social, and environmental fields.
It consists of a balanced appraisal of all impacts, and is underpinned by the principle of proportionate analysis, whereby the depth and scope of an impact assessment, and hence the resources allocated to it, are proportionate to the expected nature of the proposal and its likely impacts.
Wide-ranging consultation with stakeholders is an integral part of the impact assessment approach.
Which Commission proposals are concerned?
As a general rule, all major policy initiatives and legislative proposals on the Commission's Annual Legislative and Work Programme (CLWP) are required to undergo an impact assessment. Some other proposals, which do not feature in the CLWP (including implementing measures goin through the "comitology" procedure) but which potentially have significant impacts, may also require an impact assessment. The precise scope of application is decided on an annual basis.
The roadmaps, which are also published at the time the CLWP is adopted, give a first indication of the main areas to be assessed and the planning of subsequent impact analyses. The Roadmaps are available in the Commission Impact Assessment website.
Commission guidelines for carrying out impact assessments
Not all impact assessments look the same. The length of time and the depth of analysis required depend on the significance of the likely impacts, and some elements of the analysis need to be developed more than others. The Guidelines give general guidance to the Commission services and set out the procedures and steps for assessment of potential impacts of different policy options.
In accordance with the 2005 initiative for Growth and jobs, the Commission has, since March 2006, integrated a standard measurement of administrative costs in its impact assessments.
The Commission revised its Guidelines in 2009, based on an external evaluation of the Commission's impact assessment system in 2006/2007, the experience of the independent Impact Assessment Board since it was created in late 2006 and the experiences of the Commission services in preparing impact assessments.
While the Guidelines are intended for the Commission's internal use, stakeholder involvement is essential in ensuring the quality of the final product. The Commission therefore held a public consultation on the Guidelines in June/July 2008.
The final Guidelines were published in January 2009.
Inter-institutional 'common approach'
In late 2005, as an addition to the 2003 Inter-Institutional Agreement on Better Lawmaking, the three EU institutions - the European Parliament, the Council and the Commission - agreed on the ‘Common approach to impact assessment'. The 'common approach' consists of a set of 'traffic rules' that the institutions will follow in relation to the preparation and use of impact assessments in the legislative process. The Commission's initial impact assessment on its proposal will generally be the basis for any subsequent impact assessment work that the other EU institutions may carry out when they make substantive amendments to the Commission's proposal.
The impact assessment system aims at helping the Commission to improve the quality and transparency of its proposals and to identify balanced solutions consistent with Community policy objectives through:
In order to strengthen quality control of impact assessment, the Commission created a new internal quality control function in November 2006. The Impact Assessment Board (IAB) is an independent body, working under the direct authority of the Commission President.
The board members are high-level officials from the Commission departments with the most direct links to the three pillars of the integrated approach to impact assessment – economic, social, and environment.
The board's task is to examine the draft impact assessments carried out by individual Commission departments. The board gives opinions on the quality and advice on any further work that may be required. This quality control will be initial task of the board. Later its tasks will be broadened to advice on methodology and approach at the early stages of impact assessment preparation.
The IAB opinions are published on the Impact Assessment website once the relevant legislative initiative has been adopted by the Commission.
Evaluation of the Commission's impact assessment system
In early 2006, the Commission launched an independent evaluation of its impact assessment system as it has evolved and been implemented since 2002.
The objective was to review the experience with regard to the set-up, implementation and results of the Commission's impact assessment system. The evaluation gives important input into the Commission's review on how to further develop and refine this system. It examined how impact assessments are carried out and used by the Commission services, wether they are of an adequate quality, and what their role is in the policy or legislative process that follows once the Commission has adopted the related legislative proposal. The evaluation had to identify different options for change and discuss the pros and cons of each of those options.
This evaluation study has been financed by the Commission of the European Union. The conclusions, recommendations and opinions presented in this report reflect the opinion of the consultant and do not necessarily reflect the opinion of the Commission.
The final report on the evaluation of the Commission's impact assessment system is available on the Impact Assessment website.
At their April 2007 Summit, the US and the EU leaders committed their governments to strengthening transatlantic economic integration with the goal of improving competitiveness and the lives of their people through a multi-year cooperation programme that emphasizes results and provides accountability.
They agreed on a Framework for Advancing Transatlantic Economic Integration (the 'Framework') and established the Transatlantic Economic Council (TEC) to oversee the efforts outlined in the Framework, with the goal of guiding the work between US-EU Summits.
In the Council's first plenary meeting, the US government and the European Commission examined how the impact assessments could be used to help reduce barriers to transatlantic economic integration.
In November 2007, the US Office of Management and Budget (OMB) and the European Commission issued for public comment a joint draft report by the OMB's Office of Information and Regulatory Affairs (OIRA) and the Commission's Secretariat-general on their respective regulatory impact assessment guidelines. The goal of this is to ensure that assessments of future regulations take due account of their impact on international trade and investment.
The European Commission has received comments from a number of organisations and individuals, that can be accessed below.
Comments received:
The EU-US High-Level Regulatory Cooperation Forum has presented the final Joint Paper of the Commission and the OMB-OIRA, which includes responses to the contributions received, to the Transatlantic Economic Council Meeting of 13 May 2008.