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3. The Development of RIA: the European Integrated Impact AssessmentThe first example of Impact Assessment in EU was the Business Impact Assessment, introducedunder the United Kingdom Presidency in 1986. It provided an estimate of the impact of proposedlegislation on business costs, but it did not take into account the social welfare as whole.In particular this kind of tool was considered not able to reach the objective of Better regulation,considered essential by the Commission and the other European institutions to reach the Lisbongoals, in particular a sustainable economic growth . The main limitation of the BIA model lied inthe fact that the procedure did not imply a preliminary identification of the alternative regulatoryoption; the impact analysis was made only in the moment in which the Commission had identifiedthe preferred option. Furthermore the analysis implied only the business compliance cost and didnot considered other costs nor the social impact of the proposed regulation. This features made themethodology of the procedure not very scientific and soundness.To improve the quality of regulation the Commission in 2001 issued a White Paper on EuropeanGovernance and the Lisbon Council established an advisory group, the Mandelkern Group, chargedto draft an action plan for better regulation and to define a new model of impact assessment to beimplemented at European level.The White paper gives a definition of Better Regulation. There are seven dimension that identifiedBetter regulation: proportionality, proximity, legal certainty, coherence, high standards, timelessand enforceability. 54 The BIA was defined as an inadequate tool to analyze the impact of theregulations.A more appropriate model of RIA was designed by the Mandelkern Group in its final report 55 . Thisnew model had to be applied to all the Commission proposals with regulatory effect.54 European Commission, White Paper on European Governance, COM(2001)727, 25 July 200155 In the Final report of Mandelkern Group on Better Regulation regulation was considered as a “good in itself,enhancing the credibility of the governance process and contributing to the welfare of citizens, business and otherstakeholders alike. High quality regulation prevents the imposition of the unnecessary burdens on businesses, citizensand public administrations that cost them time and money. It helps avoid the damage to firms’ competitiveness thatcomes from increased costs and market distortions (particularly for small firms)”. For this reason better regulation isconsidered an essential tool to reach the European goal of becoming the most competitive and dynamic knowledge-60
Regarding the new RIA model the Mandelkern Report foresee a “dual stage RIA”: a preliminaryimpact assessment is necessary for the analysis of the alternative regulatory options, while anextended impact assessment is made for the preferred regulatory option; this second stage of RIAcontained a detailed cost benefit analysis of the impact of the preferred regulatory option.The results of the Mandelkern Report was the launch by the Commission of a new RegulatoryImpact Assessment model in 2003, the Integrated Impact Assessment model, according to whichbecame mandatory to assess the economic, social and environmental impact of the major initiativesincluded in the Annual Policy Strategy or in the Annual Legislative Work Program.3.1. How does the Integrated Impact Assessment Model works in Practice?The new model of RIA was defined in details in one of the Communication following the launch ofthe Action Plan for Better Regulation in 2003. 56According to the Communication the new approach to impact assessment “is intended to integrate,reinforce, streamline and replace all the existing separate impact assessment mechanisms forCommission proposals”.Regarding the coverage, the Communication foresee that the Impact Assessment is applied to allmajor initiatives presented by the Commission. In fact “The principle is that all Commissionlegislative and all other policy proposals proposed for inclusion in the Annual Policy Strategy orthe Commission and Work Program as established in the context of the strategic planning andprogramming cycle1 will be subject to the impact assessment procedure, provided that they have apotential economic, social and/or environmental impact and/or require some regulatory measurefor their implementation. The new model was based on an integrated impact assessment model andit was built on a two stage basis: a preliminary impact assessment was foresee for all thebased economy in the world. Within the better regulation two of the more important key areas are considered Policyimplementation options, according to which “EU and national policymakers should always consider the full range ofpossible options for solving public policy issues and choose the most appropriate for the circumstances” and RIA,defined as “an effective tool for modern, evidence-based policy making, providing a structured framework for handlingpolicy problems. RIA should be an integral part of the policy making process at EU and national levels and not abureaucratic add-on. It does not replace the political decision: rather it allows that decision to be taken with clearknowledge of the evidence”.56 European Commission, Communication on Impact Assessment, COM(2002)276, including internal Guidelines61
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