The European Union has for years boasted a comprehensive toolkit for "better regulation": impact assessments, public consultations, and the "one-in-one-out"- principle are intended to ensure that new regulations are targeted and proportionate, without leading to duplication and unnecessary reporting requirements.

From the perspective of German businesses, however, this system insufficiently fulfills its objectives. This is highlighted by the latest DIHK ideas paper, "Better Regulation in the EU – What Should Change from a Business Perspective." Regulatory burdens remain high; many requirements are challenging to implement in practice, and increasingly complex laws must soon after their adoption undergo extensive omnibus amendments—resulting in significant uncertainty for businesses.

Rather than advocating for entirely new procedures, the DIHK argues for a more consistent and practical application of existing tools—from early-stage impact assessments to legislative evaluations and expanded implementation dialogues.

Effective Instruments, Weak Application

Since 2015, the EU has significantly expanded its better regulation architecture. Despite this, businesses continue to report—according to the DIHK Business Barometer 2024—that regulatory burdens and impractical regulations remain prevalent. The consequences include rising bureaucracy costs, investment uncertainty, and increasing risks of fragmentation within the European Single Market due to diverse national implementations, ultimately creating competitive disadvantages on a global scale. Examples like the twice-postponed application of the EU Deforestation Regulation (EUDR) due to severely delayed IT infrastructure illustrate legislative shortcomings.

Against this backdrop, the DIHK ideas paper examines all essential phases of the EU legislative process and the holistic use of tools dedicated to better regulation.

Downloads

DIHK Ideas Paper Better Regulation (PDF, 1 MB) (only available in German)

DIHK Policy Paper on Better Regulation (PDF, 509 KB)