Starting in 2008, the OECD and the European Commission have worked together to assess the capacities for effective regulatory management within the EU and across Member States. Since then, challenges have escalated, making trusted, evidence-based, internationally co-ordinated, and well-implemented and administered regulation all the more urgent.

The 2022 Better Regulation Practices across the European Union report, the second in the series, analyses current and developing practices for improving the quality of laws and regulations across all 27 EU Member States and the European Union. The report systematically assesses the use of evidence-based tools and stakeholder participation to improve the design and review of both domestic and EU laws and regulations, and identifies current and future trends in regulatory policy. It is based on empirical evidence, research and data, including the OECD 2021 Indicators of Regulatory Policy and Governance and complemented by information collected during a series of interviews with four EU Member States – namely Denmark, Estonia, Germany, and Cyprus. Reflecting practical experiences, discussions and lessons learned from EU Member States and OECD countries, the report offers many examples of how to benefit from sound regulatory policy and effect positive change. It also presents good regulatory practices and highlights areas that should receive further attention and investment.

EU Member States could better pursue regulatory co-operation beyond the borders of the European Union. The second edition of the Better Regulation Practices across the European Union report highlights that the European Union is the world’s most integrated form of international regulatory co-operation (IRC). Outside of EU integration, however, nearly 90% of Member States have only partial IRC policies in place. The European institutions – the European Commission, the European Parliament and the Council of the European Union –all need to work together and with Member States to tackle current and future challenges. Co‑operative rule making and policy coherence are becoming an increasingly important part of the global regulatory system.

The data presented in this report, including the composite indicators, are the results of the 2014, 2017 and 2021 Indicators of Regulatory Policy and Governance (iREG) surveys, and their extension to the five EU Member States that are not OECD member countries: Bulgaria, Croatia, Cyprus, Malta, and Romania. This Reader’s guide aims to help readers understand the scope of the data collected through these surveys and some of the limitations related to the use of indicators. Please note that this Report also features results of new survey questions that were designed in conjunction with the Measuring Regulatory Performance (MRP) Steering Group on ex post evaluation, reflecting the developed normative thinking from the published Best Practice Principles (OECD, 2020[1]). The Secretariat updated the ex post evaluation composite indicator prior to the launch of the survey in 2020. In order to maintain an accurate time series, a limited number of answers from 2014 and 2017 relating to new questions needed to be completed that formed part of the composite indicator for ex post evaluation. The Secretariat reviewed the questions regarding the EU legislation making process, and extended the survey to cover ex post evaluations.

The European Commission has invested heavily in improving its better regulation agenda and has steadily refined its approach to regulatory policy. This chapter summarises the European Union’s legislative procedure and explores some of the general trends of regulatory policy across the EU and its Member States. It also presents an overview of the use of key regulatory management tools by EU Member States in the development and transposition of EU legislation. This chapter discusses the EU Member States’ engagement in multiple layers of international regulatory co‑operation and, finally, reviews the institutional settings of regulatory oversight across EU Member States.

It is important for policy makers to engage and discuss with those affected by regulations. This not only improves the quality of regulations, it also promotes transparency and strengthens both trust in the government and compliance with any resultant rule. Using the results of the OECD 2021 Indicators of Regulatory Policy and Governance, this chapter reviews stakeholder engagement practices in all 27 EU Member States and in the European Union. It assesses the timing and content of stakeholder engagement at various stages of policy development as well as how governments use input received from interested parties. In addition, it further discusses the use of stakeholder engagement when EU Member States negotiate or adopt regulatory proposals of the European Commission.

Regulatory impact assessment (RIA) provides crucial information to policy makers on whether and how to regulate to achieve public policy goals. RIA examines the impacts and consequences of a range of alternative options and assists policy makers in identifying the most efficient and effective policy before making a decision. This chapter analyses the European Union and the Member States’ requirements and use of RIA for both domestic regulations and proposed EU laws. It provides analysis of the application of the proportionality principle of EU Member States’ RIA practices in relation to expected impacts, including detailed information collected during a series of interviews with four EU Member States – namely Denmark, Estonia, Germany, and Cyprus.

The actual impacts of laws and regulations are only known after they have entered into force. Such effects may also change over time so regulations that at one time were appropriate may become outdated. It is crucial for governments to regularly review their stock of existing regulations so as to ensure that they continue to deliver for citizens. This chapter assesses the use of ex post evaluations across EU Member States. It discusses the types of evaluations commonly conducted, the general approaches taken by EU Member States to regulatory stock management, the role of regulatory oversight in ex post evaluation, and the engagement of stakeholders when undertaking evaluations. Finally, it also reviews the use of ex post evaluation by EU Member States in the EU legislative process.