Transcript How to use the acquis communautaire?

How to use
the acquis communautaire?
Patrick A. Messerlin
Groupe d’Economie Mondiale at Sciences Po
Video-conference
The World Bank
Paris, France
February 5, 2010
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Overview
 Acquis communautaire (“acquis”):
 its growth and stock
 its two main goals
 Acquis: far to be the key
 Regulatory assessment
 Performances of the “New Member States”
 How to use the acquis?
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Acquis: its growth & stock


Rapid growth: GDP growth+1% (1990s), GDP growth+3% (2000)
=> Stock of 1600+ texts.
Covers complex issues: from industrial standards to services.
Freedom of workers
Right of establishment, freedom to provide services
Free movement of capital
Financial services
Banking and financial conglomerates
Insurance and occupational pensions
Securities markets and investment services
Others
Information society and media
Audiovisual Policy
Electronic communications
Information Society Directive
Transport Policy
Land transport: road
Land transport: rail
Inalnd waterways
Maritime transport
Air transport
State aid
Energy
Electricity
Gas
Hydrocarbons
Coal
New and renewable sources of energy
Nuclear energy
TransEuropean networks
Transport
Energy
Acquis communautaire in services
in percent of total
1958
1985
4
5
1
10
1
1986
1990
1
2
1
5
2
2
6
1
5
5
3
5
4
6
1
2
Number of texts
1991
1996
1995
2000
1
3
1
5
2001
2005
8
1
4
All
13
10
13
All
(shares)
(%)
2,2
1,7
2,2
5
4
2
1
2
11
9
10
10
37
13
11
1,7
6,3
2,2
1,9
2
3
7
4
3
39
2
8
50
6
1,4
8,6
1,0
16
3
10
8
17
10
25
6
9
20
21
4
27
25
4
50
49
4
79
35
32
89
88
23
13,6
6,0
5,5
15,3
15,1
3,9
3
3
0,5
0,5
1,2
0,3
2,6
3,6
1,4
1,2
100,0
2
7
1
4
2
1
1
2
4
2
4
2
6
2
10
5
3
3
7
2
15
21
35
6,0
1
1
87
14,9
2
3
134
23,0
5
3
279
47,9
8
7
583
100,0
48
8,2
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Acquis: its two main goals


Setting pro-competitive rules raise few problems: positive impact

when generates complex procedures => then should look for “simplification”.



Norms are often function of the income level.
Norms tend to raise (immediate) costs.
Hence, the richer the people are, the more often they consider norms as
desirable and the more they can afford cost-increasing regulations.
Challenge for the EU neighbors, and increasingly internal EU challenge because
the EU is increasingly heterogeneous.
Setting norms raises (much) more serious questions:

Richest
Poorest
Ratio
EC
M em ber
States
70014
9353
7,5
EFTA
Turkey
47551
7786
6,1
EC neighbours
W est M editerranean EastEurope
Balkans G ulfcountries CentralAsia
13232
68696
11861
2362
1691
1413
5,6
40,6
8,4
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U.S.
States
Chinese
Provinces
67048
27290
2,5
13735
1349
10,2
Acquis: far to be the key (1)
Doing Business indicators [a]
registering
dealing
Non
ease of
property
with
tariff
doing
licences
barriers
business
4
3
2
1
A. The EC and the cohorts of ECMS [c]
68,2
52,6
32,2
35,0
EC27 (all ECMS)
87,8
40,2
27,8
36,3
EC1958
28,2
54,4
25,3
6,0
EC1973
59,3
60,2
52,4
56,5
EC1981
22,5
34,0
10,5
20,2
EC1995
65,0
111,2
50,9
60,8
EC2004
30,7
58,2
21,2
27,0
Baltics
100,0
95,4
55,8
46,5
EC2007
B. The EC neighbours
11,0
45,8
25,8
16,3
EFTA
34,0
131,0
59,0
59,0
Turkey
93,3
163,9
97,0
101,7
Balkans
7,0
107,3
151,2
31,8
Caucasus
62,6
175,1
154,9
122,7
East Europe
140,0
179,0
131,0
145,0
Ukraine
51,3
151,1
165,6
86,6
Central Asia
13,2
56,0
31,6
28,1
Gulf countries
114,9
126,1
57,1
104,7
Mediterraneans
protecting
investors
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5
Market size
at [b]
PPP
current
USD
USD
7
6
62,8
72,4
9,9
91,5
81,0
64,6
69,8
38,0
32,5
18,4
6,4
3,7
2,1
1,7
0,1
0,3
22,6
12,0
4,0
2,8
1,3
2,1
0,2
0,5
102,2
53,0
101,3
34,8
97,6
142,0
67,1
45,3
83,0
1,7
1,0
0,3
0,1
2,7
0,3
0,3
1,5
1,2
0,9
1,2
0,2
0,2
3,8
0,6
0,4
1,1
2,0
Acquis: far to be the key (2)
Regulatory performances [a]
1989
1992
1996
2002
1991
1995
2001
2007
1
2
3
4
EC Member States
1,5
Central Europe
1,1
Baltics
1,0
Bulgaria, Romania
Eastern Europe and Central Asia
1,0
Russia
1,0
Ukraine
1,0
Belarus
1,0
Caucasus
1,0
Central Asia
West Balkans
1,9
Croatia
1,6
Others
1989
1991
5
Economic performances [b]
1992
1996
2002
1995
2001
2007
6
7
8
1997
2010
9
3,4
3,1
2,4
3,6
3,4
3,1
3,7
3,8
3,5
-5,2
-2,4
-7,5
1,8
-9,5
0,0
3,7
5,8
0,0
4,8
8,7
6,0
3,4
4,7
3,0
2,8
2,1
2,1
2,0
2,2
3,0
2,9
1,7
2,8
2,6
3,1
3,1
1,9
3,1
2,7
-2,1
-3,5
1,3
-6,6
-3,3
-10,1
-14,8
-9,8
-16,2
-9,4
2,3
0,0
6,1
6,5
4,6
6,8
7,4
8,5
13,4
8,3
4,2
3,3
6,6
8,8
6,9
2,7
2,0
3,2
2,4
3,4
3,0
-9,9
-6,7
-1,8
-9,7
3,6
6,3
5,0
5,1
3,0
4,3
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How to use the acquis?
(i) Areas with little work beyond WTO/ENP, (ii) areas where
deep integration is in the ENP best interests, (iii) areas with
significant regulatory costs and (iv) areas to be excluded.

Domains
1
MOR
2
Topics
3
Texts
4
Brief description of the objectives, benefits and costs
5
Benefits
6
Costs
7
List A: EC regulations with clear net benefits
ToR 49 Services
ToR 43 Estab.
Article 11
Article 4bis
Air fares and air cargo rates
REG 2409/92
Objectives: allows air carriers to set freely prices (passengers and cargo) and imposes conditions for
High (under
withholding fares approval by the ECMS (consumers' needs, competition level, preventing too high and
condition:
too low prices). Key articles: 3, 5, 6. Benefits: imporves market access. Costs: simplifies vastly the
see text)
situation, but may favor soft competition in the long term.
Licensing for air carriers
REG 2407/92
Objectives: defines conditions for operating licences (EC majority-owned, effectively controlled), air
High (under
operator certificates, and the many associated financial conditions. Certified/licensed aircarriers are
condition:
entitled to operate without having to be designated by a government. Key articles: 3, 4, 7, 8, 9, 10, 11,
see text)
13, 16. Benefits: improves market access. Costs: requires considerable practical work.
High
Small
List B: EC regulations with unclear net benefits
Safety
ToR 39 Labor
P:1-4,An
Airworthiness and
environmental certification of
aircrafts
REG 1702/2003
Objectives: defines the implementation rules for certification purposes following REG 216/2008
(EASA). Key articles: 2, 3, 4. Benefits: aligns to EC norms. Costs: requires very detailed documents.
Moderate/
High
High
P:1-19;21-24,26-29
Organisation of working time
DIR 2003/88
Objectives: expands DIR 89/391 on the working time issue by setting standards for working time, rest,
breaks, leave, etc. Benefits: aligns to EC norms. Costs: high to moderate (depending on
implementation).
Moderate
High/Moder
ate
Working time of mobile
workers in civil aviation
DIR 2000/79
Objectives: may impose flight time limitations (pre-existed before DIR 2003/88) controversial even in
the EC. Key articles: 8, 9. Benefits: aligns to EC norms. Costs: unknown (could be high, depending on
implementation).
Small
Unknown
Mutual acceptance of
personnel licences
DIR 91/670
Objectives: defines conditions imposing an ECMS to accept licences to flight issued by others ECMS
(detailed Annex on mutual acceptance of licences). Key article: 4. Benefits: aligns to EC norms. Costs:
unknown (comparison of qualifications).
Small
Unknown
List C: EC regulations with likely net costs
ToR 39 Labor
P:1-5
ToR 39 Labor
P:1-8;An
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How to use the acquis?
 Looking at alternatives (airlines)
Egypt
Istanbul process
in percent
Air agreement with EC
in percent
Morocco
Istanbul process
in percent
Air agreement with EC
in percent
Initial
traffic
[2005]
Share of
countries
involved [a]
2782,9
78,1
2164,3
60,8
4789,6
90,3
4297,3
81,0
Estimated increase in traffic
[b]
[c]
[d]
254,8
9,2
177,2
6,4
447,9
16,1
310,4
11,2
724,3
26,0
479,9
17,2
410,9
8,6
339,0
7,9
722,3
15,1
594,5
13,8
1194,5
24,9
931,9
21,7
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Thank You for Your Attention
Groupe
A Culture
d'Economie
of Evaluation
Mondiale
in an Open World
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Additional slides (if necessary)
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The EU: Sixteen Treaties plus one?
Annex Table 1. The sixteen Treaties having founded the EU
Dates
City of signature
Usual name of the Treaty
1951
Paris
European Community of Steel and Coal (ECSC)
1957
Rome
European Economic Community (EEC)
1957
Rome
European Community of the Atomic Energy (Euratom)
1965
Brussels
The Merger Treaty
1970
Brussels
The Budgetary Treaty
1972
Brussels
Acts of Accession of Denmark, Ireland and the United Kingdom
1975
Brussels
The Budgetary Treaty
1979
Athens
Act of Accession of Greece
1985
Lisbon, Madrid
Acts of Accession of Portugal and Spain
1986
Luxembourg, The Hague The Single European Act
1992
Maastricht
The Treaty on European Union (TEU)
1994
Corfu
Acts of Accession of Austria, Finland and Sweden
1997
Amsterdam
The Treaty of Amsterdam
2001
Nice
The Treaty of Nice
2003
Athens
The Treaty of Accession [a]
2005
Neumunster Abbey
The Treaty of Accession [b]
Notes:
[a] Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia
and Slovenia.
[b] Bulgaria and Romania.
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Acquis growth
 The acquis
consists in (i)
regulations and
(ii) directives
 Acquis growth:
1990s: 3% pa
(2% GDP)
2000s: 5.4% pa
(2.2% GDP)
Stock of
regulations
2000
1500
Adopted
regulations
1000
500
Abrogated
regulations
Years
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2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
0
1981
 Large turnover of
EU regulations
(bottom curves)
Stock of
directives
2500
1980

3000
Number of texts

Graph 1. The estimated growth of the 'acquis communautaire'
Acquis: pro-competitive vs. norm
setting
Table 1. EU directives by chapter, 2000 and 2007
Chapter
Competency Dominant goal (%)
comp norm mixed
1 Competition
EU-National 100
0
0
2 Internal Market
EU (National) 44
29
27
3 Transport & Energy
National-EU
19
19
62
4 Enterprises
National-EU
5
93
2
5 Environment
National-EU
3
97
0
6 Health & Consumer Protection National-EU
0
100
0
7 Taxation & Customs Union
National (EU) 7
93
0
8 Employment & Social affairs National (EU) 20
80
0
9 Statistics (Eurostat)
EU (National) 0
0
100
10 Justice & Home Affairs
National
70
30
0
Total
9,1 82,8 8,0
Source: EU Secretariat-General, 30 November 2000 and 3 July 2007.
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2007
nbr
10
169
157
490
129
583
67
62
11
21
1699
Regulatory reform: a process much
more competitive than expected



The EU reality:
EF: loosing ground
with respect WE &
reference countries
WE: loosing ground
with respect the
reference countries
EC: catching up
Beyond averages:
individual Member
States show very
different evolutions
Graph 2. Economic Freedom Indexes, 1970-2005
8,50
Reference
countries
8,00
7,50
Economic freedom indexes


7,00
6,50
6,00
EF
5,50
EW
5,00
4,50
EC
4,00
3,50
1970
1975
1980
1985
1990
1995
2000
2001
2002
2003
2004
Years
EW: Other Western EUMS
EC=Central EUMS
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Reference countries
EF= Founding EUMS
2005
Regulatory reforms: what for?
Economists’ focus on the link between regulatory reforms and
efficiency. But, need to adjust to the European environment: what
about the link between regulatory reforms and ‘happiness’?

Graph 3. Economic Freedom Indexes and GDP per capita
Graph 4. Happiness and regulatory reforms
1,200
4,5
GDP per capita growth rates
4,0
1,000
3,5
0,800
Quailty of life
3,0
2,5
2,0
1,5
0,600
0,400
1,0
0,5
-0,50
0,0
0,00
0,200
0,50
1,00
1,50
2,00
2,50
3,00
3,50
0,000
-
1,00
2,00
Economic freedom indexes growth rates
3,00
4,00
5,00
6,00
7,00
Economic freedom index (the highest, the best)
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8,00
9,00
10,00