Europe in 2025

 

The model of decisive, reliable and transparent governance

Policy Direction

Promote development of a smart regulatory regime adapted to future challenges, taking into account future investment requirements and changing market situations. This regime should prevent over-regulation and seek to protect consumers through effective competition. Direct regulatory intervention should only be used where market failures exist.

Preference should be given to ensuring effective risk management rather than favouring complete risk avoidance, as this would stifle innovation.

All types of regulation should seek to better serve the interests of society – including the business community. Regulation should aim to maximise societal well-being; eliminate overlaps, duplication and bureaucracy; ensure regular adaptation to global best practice; and ensure transparency and participation throughout the regulatory process. A smart approach to regulation is not necessarily characterised by less regulation, but by better regulation. Smart regulation is well-targeted and takes into account short-run as well as long-run considerations. EU-level regulation should fulfil these criteria and seek to reduce the barriers to economic activity created by divergences of rules within the Single Market, while ensuring that differences in national circumstances are taken into account.