Better Regulation Agreement: A Solution to Promote Efficiency and Transparency

As the world continues to evolve, so does the complexity of regulations governing various industries. While regulatory frameworks are essential in protecting consumers and ensuring fair competition, they can also create challenges for businesses, especially small and medium-sized enterprises (SMEs). To address this issue, the European Union (EU) introduced the Better Regulation Agenda in 2015, aimed at simplifying and streamlining regulations to promote efficiency and transparency. In this article, we will explore what the Better Regulation Agreement entails and how it can benefit businesses.

What is the Better Regulation Agreement?

The Better Regulation Agreement, also known as the Regulatory Scrutiny Board (RSB) Agreement, is a set of guidelines developed by the European Commission to improve the quality of EU legislation. The agreement outlines the procedures for assessing the impact of proposed regulations on businesses, citizens, and the environment. It also provides recommendations, such as testing alternative options, simplifying language, and reducing the administrative burden. The main goal of the agreement is to ensure that regulatory proposals are well-designed and bring the maximum benefits to society, while minimizing the costs and unintended consequences.

The Benefits of the Better Regulation Agreement

The Better Regulation Agreement can benefit businesses in several ways, including:

1. Reduced administrative burden: Regulations can sometimes be overly complex, creating a significant administrative burden for businesses. The Better Regulation Agreement aims to simplify regulations, making compliance less time-consuming and costly for businesses.

2. Increased competitiveness: Simplified regulations can also lead to increased competitiveness, especially for SMEs. A streamlined regulatory framework can create a level playing field for all businesses, allowing them to compete on a fair basis.

3. Improved transparency: The Better Regulation Agreement promotes transparency by requiring that regulatory proposals are subject to public consultation and impact assessment. This approach helps businesses understand the rationale behind regulations and provides an opportunity for them to voice their concerns and suggestions.

4. More effective regulation: The Better Regulation Agreement aims to ensure that regulations achieve their intended goals while minimizing any unintended consequences. By testing alternative options and assessing the impact of proposals, regulators can design more effective regulations that deliver the maximum benefits to society.

5. Increased customer satisfaction: Regulations that are well-designed and easy to comply with can lead to increased customer satisfaction. For example, simplified labeling requirements can help consumers make more informed purchasing decisions.


The Better Regulation Agreement is an important development in regulatory reform, providing a framework for simplifying and streamlining regulations. While regulatory frameworks are essential in protecting consumers and ensuring fair competition, they can also create challenges for businesses. The agreement can help businesses reduce administrative burden, increase competitiveness, and improve transparency. Additionally, it can make regulations more effective and increase customer satisfaction. As more and more countries grapple with regulatory complexity, the Better Regulation Agreement provides an excellent model for achieving better regulation.