Ambition 1: Towards a New Regulatory Approach

Adapting to New Challenges

The twin transition and geopolitical challenges require the EU institutions to adopt new working methods that adapt to evolving roles and competences. European institutions should maximise synergies across policies and legal and financial tools. The Commission, having gained significant regulatory powers in the last mandate, can learn from experienced actors who understand market dynamics. Laws adopted between 2019 and 2024 should be independently evaluated to address flaws and unintended consequences. Regulation should be well-targeted, risk-based, and favor asymmetric approaches that focus on high-risk firms, avoiding unnecessary barriers for small, innovative businesses. Finally, regulation should be simple, enforceable, resilient, and principles-based, fostering adaptability in an unpredictable world.

Integrating Policy Tools for Greater Impact

To maximise synergies and impact, EU policy should integrate laws, standards, finance, and external actions. This holistic approach, as emphasised in the Letta Report, is key to achieving goals like the comprehensive Digital and Energy Unions, which are rooted in the single market.

Smart Enforcement for Credibility

The Commission’s strengthened regulatory role must be exercised independently to maintain credibility. It should collaborate with stakeholders to ensure proportional enforcement and use modern tools like A/B testing, regulatory sandboxes, and AI for effective regulation. Learning from digital platforms’ strategies can also enhance its efficiency.

Robust Evaluations to Improve Regulations

Independent evaluations are essential to assess the effectiveness, efficiency, and relevance of EU laws. To avoid conflicts of interest, evaluations should be conducted by independent bodies like the European Court of Auditors. This process ensures the elimination of negative impacts and improves regulatory frameworks.

Embracing Better Regulation Principles

New regulations should be simple, resilient, and risk-based, promoting innovation and public interest. In an increasingly complex world, regulatory simplicity is key, focusing on long-term perspectives and encouraging experimentation while avoiding unnecessary complexity that stifles smaller firms.