EC issued a communication that sets out the changes it intends to introduce to the EU policy making process to focus its limited resources on a smaller number of activities and deliver on its political priorities more efficiently. The communication on how to strengthen the principles of proportionality and subsidiarity in EU decision-making also seeks to address the recommendations of the Task Force on subsidiarity, proportionality, and doing less, more efficiently.
The July 2018 report of the Task Force on subsidiarity, proportionality, and doing less, more efficiently had made nine recommendations, which covered the policy preparation processes of EC, the role of national Parliaments in scrutinizing EC proposals, and the legislative procedure. The report had found that a new way of working is needed to make better laws based on a common understanding of subsidiarity and proportionality across the policy cycle. Subsidiarity and proportionality are core elements of the EC better regulation agenda, which underpins how EC prepares its policy proposals.
EC, in its communication, is setting out how the principles of subsidiarity and proportionality will guide its future work and how they can further strengthen the EU policy making. EC will, for example, integrate the "subsidiarity grid" proposed by the Task Force into all its impact assessments and explanatory memoranda; the grid is a tool to guide the analysis of subsidiarity and proportionality in a structured way. This will also make it easier for national Parliaments to respect the timelines for submitting their opinions on draft proposals and will examine how to better collect and report on local and regional authorities' views in its public consultations. The REFIT Platform, which assesses the regulatory burden of existing EU laws, should also be reshaped to increase the presence of local and regional authorities and should widen its focus to look at subsidiarity and proportionality, in addition to its current focus on regulatory burden. EC will also ensure that relevant delegated and implementing acts are addressed systematically in its evaluations.
- Press Release
- Communication on Subsidiarity and Proportionality
- Report of Task Force
- Task Force Overview
Keywords: Europe, EU, Banking, Insurance, Securities, Proportionality, Subsidiarity, Better Regulation, REFIT, EC
Previous ArticleYves Mersch of ECB Speaks About Regulating Virtual Currencies
FSB published the annual report that examines to-date progress toward implementation of climate-related disclosure recommendations of the industry-led Task Force on Climate-related Financial Disclosures (TCFD).
PRA launched a consultation (CP18/20) setting out proposals for the "Contractual Recognition of Bail-in" and "Stay in Resolution" Rules.
APRA is consulting on the reporting standard for credit risk management (ARS 220.0).
EC published draft of a delegated regulation amending liquidity coverage rules for covered bond issuers.
ESMA published an update to its March 2019 statement on the endorsement of credit ratings from UK.
FASB is consulting on the XBRL US Data Quality Committee (DQC) Rules Taxonomy (DQCRT) along with two technical guides.
PRA published Version 2 of the questions and answers (Q&A) on the Branch Return form.
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
ISDA launched the IBOR Fallbacks Supplement and the IBOR Fallbacks Protocol, with both becoming effective on January 25, 2021.
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.