The New Restrictiveness Indicator for Professional Services: An Assessment

September 21st, 2017 § 0 comments

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The study, which was prepared at the request of the Internal Market and Consumer Protection Committee of the European Parliament, analyses the Restrictiveness Indicator which was developed by the European Commission as part of the Services Package. It cautions that the use of the new indicator has to be combined with assessments of proportionality, and that more attention should be paid to barriers to free movement.

Executive summary – extracts:

(…) professional services are regulated with the aim to minimize market failures such as (insufficient) consumer protection (…)

(…) whereas with unjustified or disproportionate regulation, ‘less is good’, that is, less restrictiveness is helping the better functioning of markets, this is not the case with regulation dealing with ‘societal risks’ (i.e. market failures). Such risk regulation is in principle justified, although this ought to be carefully verified, and it should be proportionate and effective (target, in EU case law called ‘suitable’), but one cannot a priori go with the motto ‘less is good’. (…)

(…) studies need to be embedded in a policy evaluation where justification of rules, their proportionality and effectiveness (‘suitability’) are included as well. (…)

The study can be downloaded here. For the Services Package, see Blog of 10 January 2017.

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