Future potential of economic impact assessment

How do laws and regulations affect competitiveness

“…The guideline developed by the Czech Republic follows the methodology outlined in the EC's Better Regulation Toolbox. A noticeable difference is that the Metodika (2015 [35]) includes a section on applying the EU-wide guidelines to the appraisal of competitiveness of an EU Member State. Especially when developing RIAs for a European Directive, regulators should consider whether the regulation will affect a sector homogenously across the EU or will have different impacts across the Member States.…”

“…Using the EC's "Competitiveness Proofing" Toolkit (2012 [14]), the Czech Government has developed the Metodika Hodnocení Dopadů Regulace Na Konkurenceschopnost (i.e. the Competitiveness Impact Assessment Methodology) (2015 [35]), a guidance document dedicated to regulatory impacts on competitiveness, which regulators can follow when competitiveness is expected to change as a result of new regulations.…”

“…The Metodika (2015 [35]) focuses on the impacts of regulations on the Czech Republic's competitive position amongst global economies. It recognises that competitiveness is sourced from individual companies, which do not operate homogenously given that they face different legal, social, political, and economic constraints, which can affect their ability to be competitive.…”

“…It recognises that competitiveness is sourced from individual companies, which do not operate homogenously given that they face different legal, social, political, and economic constraints, which can affect their ability to be competitive. Whilst the methodology followed is highly aligned with the EC's Toolkit (2012 [14]), the Metodika (2015 [35]) provides interesting insights on the concept of competitiveness and how it ought to be appraised as part of RIA. It alludes to a more holistic interpretation of competitiveness, iterating that problems of low competitiveness as such cannot be resolved by regulation: it is rather the issues associated with competitiveness' various components that need to be addressed.…”

“…Such components can be grouped into either "price" or "non-price" competitiveness. The Metodika (2015 [35]) clearly states that indicators, such as market shares and comparative advantage, are consequences but not causes of competitiveness and can be influenced by non-market factors. Given the subtle nature of the concept, the Czech guidance calls for cautious appraisals of competitiveness in RIA, as improvements in consequences of competitiveness do not necessarily translate in improvements of competitiveness per se.…”