EU Governments Propose Deregulation to Boost Productivity and Economic Growth

Strategic Insights -

European Union governments led by the UK have proposed a comprehensive programme of deregulation to improve the union's productivity performance and economic growth. The initiative aims to reduce regulatory burdens and create a more business-friendly environment. According to the International Monetary Fund, this regulatory reform could add up to 7 per cent to the EU's gross domestic product and raise productivity by 3 per cent.

Key Takeaways:

  • The UK, Ireland, the Netherlands, and Luxembourg proposed a programme of deregulation to improve the EU's productivity performance.
  • The European Commission's regulatory impact assessments will be used for "competitiveness-proofing" new proposals.
  • The initiative calls for the activation of the EU's planned Better Regulation Working Group and development of indicators to measure progress on regulatory reform.
  • A vice-president of the European Commission will be given explicit responsibility for economic reform.
  • Regulatory reform could add up to 7 per cent to the EU's gross domestic product and raise productivity by 3 per cent, according to the International Monetary Fund.

Statistics:

  • 7 per cent: Potential increase in the EU's gross domestic product due to regulatory reform.
  • 3 per cent: Potential increase in productivity due to regulatory reform, according to the International Monetary Fund.
  • 4: Number of governments proposing deregulation programme (UK, Ireland, Netherlands, and Luxembourg).

Sources:

  • Gordon Brown's speech at his party conference.
  • A separate paper issued by the UK, France, and Germany.
  • International Monetary Fund's estimate of the impact of regulatory reform on the EU's economy.