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DRAFT REPORT (2025/2015(INI))

On the European Union regulatory fitness and subsidiarity and proportionality – report on Better Law-Making covering 2023 and 2024

JURI-PR-776862

Committee on Legal Affairs · Rapporteur: Jörgen Warborn

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This draft report reviews EU better law-making in 2023 and 2024, stressing shared responsibility between institutions and Member States. It calls for a 30% cut in regulatory costs, 35% for SMEs, stronger evaluations and impact assessments, and less gold-plating. It urges upgrading 'one-in, one-out' to 'one-in, two-out', reinforcing subsidiarity, and strengthening the role of the Regulatory Scrutiny Board.

Committee position. The rapporteur proposes a resolution reviewing better law-making in 2023-2024, calling for reduced regulatory burdens, improved impact assessments, and stronger subsidiarity mechanisms.

Key points

  1. Recalls that the EU must legislate only where necessary under subsidiarity and proportionality, as close as possible to citizens.
  2. Notes that in 2023 national parliaments submitted 22 reasoned opinions, a third less than in 2022, and increased participation in political dialogue by over 10%.
  3. Notes that in 2024, a national parliament chamber brought the first action before the Court of Justice on subsidiarity grounds, and the Court annulled a provision for lack of proportionality evidence.
  4. Calls for improved impact assessments and cost-benefit analyses for all major legislative initiatives, with a later analysis if none is drafted initially.
  5. Calls for a 'one in, two out' approach with clear methodology and independent monitoring to achieve net reduction in regulatory costs, strengthening the Regulatory Scrutiny Board.
  6. Stresses that Parliament should be informed if the Regulatory Scrutiny Board issues a negative opinion on an impact assessment, especially on competitiveness concerns.
  7. Calls for greater transparency in the annual burden survey methodology and for assessing financial compensation for companies' mandatory reporting obligations.
  8. Welcomes the SME and competitiveness check and the 'Think Small First' principle, but stresses the need for action.
  9. Calls for a more ambitious 30% reduction in all regulatory costs and 35% for SMEs and scaleups, building on the Commission's 25% reporting reduction pledge.
  10. Urges Member States to refrain from gold-plating and calls on the Commission to identify and publish instances in annual implementation reports.

Who is affected

  • EU institutions and Member States, sharing responsibility for better law-making.
  • National parliaments, as guardians of subsidiarity, with increased dialogue and scrutiny.
  • Businesses, especially SMEs, facing regulatory burdens and reporting costs.
  • The Commission, called to reduce burdens, improve impact assessments, and monitor gold-plating.

Figures and deadlines

  • 22 reasoned opinions submitted by national parliaments in 2023, a third less than in 2022.
  • 402 opinions submitted in 2023 under the political dialogue.
  • 252 opinions, of which 14 reasoned, submitted by national parliaments in 2024.
  • 25% reduction in reporting obligations pledged by the Commission.
  • 35% reduction in administrative costs and reporting for SMEs.
  • 30% reduction in all regulatory costs called for.
  • 35% reduction in regulatory costs for SMEs and scaleups called for.

Legal basis: Article 5 of the Treaty on European Union