Liikanen speaks out on regulation and innovation in Europe
Just as the European Commission has developed the way that it communicates with the public, so it needs to develop its regulation of the business and innovation world. This was the message from Enterprise and information society Commissioner, Erkki Liikanen in a speech delivered to the fair regulation campaign conference in Brussels on 28 November. 'Information technology is forcing companies to behave more dynamically. They in turn require greater speed efficiency and sensitivity from the regulators. The EU must respond. If Europe is too slow to react, its entrepreneurial and innovative potential will be hampered and the challenges of the Internet age will not be met,' said Mr Liikanen. He went on to outline the qualities required in a European regulator like the EU. These include being responsive, such as being able to develop and drop regulation quickly. It also needs to be sensitive to the circumstances of both business and citizens, taking in all arguments over whether regulation is actually required. Finally it should be accountable, before, during and after a regulation has been introduced. The Commissioner went on to summarise three areas where the Commission is focusing its efforts to develop this area. Firstly it has been looking at alternatives to standard regulation, such as self-regulation and co-regulation. This is partly in response to the challenges posed to traditional regulation caused by globalisation, but also due to the positive results that have been obtained through self and co-regulation. Secondly, the Commission wants to ensure the effectiveness of regulatory proposals. This means, among other things, introducing new forms of consultation. This took place recently when the review of telecommunications regulation was conducted by consulting over the Internet. Finally, although changes are being made in the formation of any forthcoming regulation, this is not sufficient - a review of existing regulation is also required. The Commission is therefore monitoring how Member States can simplify their business-related legislation. Measures such as benchmarking can help provide best practice examples in this way. 'If it [the Commission] succeeds in steering Europe towards a system that provides a better match between market operators and regulators, and if it achieves the right balance between those generating business and those affected by business, then it will have given concrete expression to Europe's desire to move closer to its citizens,' said Mr Liikanen.