Some Results from the Germany’s Program for Better Regulation
What is RIA?
"Regulatory Impact Assessment (RIA) is an information-based analytical approach to assess probable costs, consequences, and side effects of planned policy instruments (laws, regulations, etc.). It can also be used to evaluate the real costs and consequences of policy instruments after they have been implemented"[1].
The methodology could also be used to assess the effects and costs related to already existing normative acts. In both cases the results are used to improve the quality of the political decisions and instruments – regulation, public programs and investments. All of the above is achieved through assessment of the expected costs and benefits of alternative decisions for achieving the same goal.
What are the results from RIA in Germany?
At the end of 2007 the German Government published officially the report: "Administrative cost: an effort to identify measure and reduce". The report was prepared on the basis of the methodology which the EU accepts as leading in analyzing and measuring the existing regulations burden – the model of the standard costs.
The results from the study showed that by the end of 2007 in Germany the regulations burden is assessed to approximately 27 billion EUR. The actions and obligations costing most for the businesses and the people to respect them are the so called informational obligations, where the scope of the study covers only 2 100 from a total of 11 000.
Based on the analysis and the subsequent identification of the worst areas in the regulations' environment, a plan to reduce the administrative and regulations burden on the people and businesses was developed. The positive effects of that, up until now, are assessed at 2.5 billion EUR. During the coming months the analysis of 50 information requirements would be assessed, which according to the annalists represents about 80% of all cost of adherence to the business.
What is the situation in Bulgaria?
During the years, we at IME spoke continuously about the importance and usefulness of introducing in practice the assessment of policies effects. Quite a bit of time has passed since a decision in principal was taken and a bill was passed[2] to apply the principles of assessing the effects, however, up until now we have not seen a practical realization of these. The question is what happened to the written and passed by the Government plan for a practical start up in preparing assessments of the effects of regulations? In the program of the Council of Ministers for better regulations 2008-2010[3] the start up date to begin assessment of the regulations was April 2008.
Unfortunately, accept for published ambitious program there are no indications that the work on preparing analysis and recommendations has began. We sincerely hope that already working groups have been created and they are working hard and successfully and are effectively interacting with each other.
In any event, if we have to return to reality, for us (the people which would like to have greater freedom and to be easier to do business) could do nothing else but hope that the people who form the schedule of the Bulgarian administration are farsighted and wise.
[1] Manuel for RIA on a local level, IME, 2008
[2] In the bill for normative acts is written explicitly the requirement to use similar analysis
[3] Program for better regulations 2008-2010
