Study supporting the interim evaluation of the innovation principle. Final Report November 2019

The European Commission has recognised the importance of a more innovation- oriented EU acquis, gradually exploring the ways in which EU rules can support innovation. The ‘innovation principle’ was introduced to ensure that whenever policy is developed, the impact on innovation is fully assessed. However, as further discussed in this Study, the exact contours of the innovation principle have been shaped very gradually within the context of the EU better regulation agenda: originally advocated by industry in the context of the precautionary principle, the innovation principle has gradually been given a more articulate and consistent role, which aims at complementing the precautionary principle by increasing the salience of impacts on innovation during all phases of the policy cycle. This Study presents an evaluation of the current implementation of the innovation principle, limited to two of its three components, i.e. the Research and Innovation Tool included in the Better Regulation Toolbox, and the innovation deals. As a preliminary caveat, it is important to recall that the implementation of the innovation principle is still in its infancy, and thus the Study only represents a very early assessment of the extent to which the innovation principle is being correctly implemented, and whether changes would be required to make the principle more effective and useful in the context of the EU better regulation agenda. The main finding is that the innovation principle has the potential to contribute to the quality and future-proof nature of EU policy, but that significant changes and effort will be needed for this potential to fully materialise. The most evident areas for improvement are related to the lack of a clear legal basis, the lack of a widely acknowledged definition, the lack of awareness among EU officials and stakeholders, and the lack of adequate skills among those that are called to implement the innovation principle. As a result of these problems, the impact of the innovation principle on the innovation-friendliness of the EU acquis has been limited so far. The Commission should clarify in official documents that the Innovation principle does not entail a de- regulatory approach, and is not incompatible with the precautionary principle: this would also help to have the principle fully recognised and endorsed by all EU institutions, as well as by civil society, often concerned with the possible anti-regulatory narrative around the innovation principle in stakeholder discussions. Apart from clarifications, and further dissemination and training, major improvements are possible in the near future, especially if the innovation principle is brought fully in line with the evolving data-driven nature of digital innovation and provides more guidance to the Commission on how to design experimental regulation, including inter alia so-called ‘regulatory sandboxes’. Finally, the Commission should ensure that the innovation principle is given prominence with the transition to the Horizon Europe programme, in particular due to the anticipated launch of ‘missions’ in key domains

Combating consumer discrimination in the Digital Single Market: preventing geo-blocking and other forms of geo-discrimination. CEPS Special Report September 2016

The paper conducts a stocktaking exercise of the state of play in the DSM and offers a critical assessment of the most relevant initiatives to combat consumer discrimination. It gives an overview of discriminatory practices in the online environment and assesses the magnitude of the problem. Differences between justified and unjustified geo-blocking are discussed. An in-depth analysis of the EC proposals on geo-blocking, portability and parcel delivery and the DG COMP investigation into the distribution of audiovisual content is then performed. This document was prepared by Policy Department A at the request of the Committee on Internal Market and Consumer Protection

Is Horizon 2020 really more SME-friendly? A look at the figures. CEPS Commentary, 17 February 2016

Small- and medium-sized enterprises (SMEs) play a key role in the EU economy.[1] According to the latest “SME performance review” published by the European Commission,[2] in 2014 there were 22 million SMEs active in the non-financial business sectors, generating more than €3.7 trillion in added value and employing approximately 90 million people. SMEs’ contribution to the European economy becomes even more apparent if one considers that 99 out of every 100 enterprises active in the EU non-financial economy are SMEs, and that these firms account for about 67% of the total employment and some 60% of the overall added value produced in Europe. Against this background, enhancing the competitiveness of European SMEs is essential in order to foster the competitiveness of the EU economy as a whole. And since the competitiveness of European SMEs in the global arena largely depends on their ability to innovate,[3] unlocking the innovation potential of SMEs becomes pivotal to fostering growth and jobs in Europe

Selected Topics in Regulation and Competition

Opportunit\ue0 di pre-funding delle infrastrutture aeroportuali italiane alla luce di un\u2019analisi di benchmarking delle tariffe dei servizi aeroportuali internazionali. The role of the discount rate in cost-benefit analysis between theory and practice: a comparative survey. The harmonization of market entry regulation for the operation of air services in the European Union: a comparative survey of the implementation of Regulation (EC) no. 1008/2008 by member states' authorities. The "dark side" of code-sharing - The anticompetitive effects of code-sharing agreements among airlines

Low-Cost Airlines: Bringing the EU closer together. CEPS Research Report, 15 May 2018

European air travel has witnessed a tremendous evolution since the late 1990s following the liberalisation process, with many new entrants to the market. Several of these new entrants are low-cost carriers (LCCs), offering lower fares and thereby making air transport accessible to a larger number of people. This broader access and increased connectivity have the potential to bring people and regions closer together in Europe. Against this background, the objective of the current report is to understand to what extent, and through which channels, LCCs have contributed and can contribute to European integration. Relying on a mixed set of approaches including desk research and data analysis based on quantitative and qualitative data sources, the study initially sets out the evolution of the air travel market in terms of the regulatory framework and economic principles. It then moves on to a mapping exercise showing the sharp increase in the number of air passengers carried over the last few decades and the large, yet still uneven, increases in seat capacity across Europe. The network of routes, thanks to point-to-point connections as the main focus of LCCs, has also expanded over time. Overall, the evidence from the literature and data analysis points to the enhancement of connectivity resulting from the entry of LCCs into the market. As regards the channels through which LCCs can foster European integration, the study examines the significant increase in labour mobility, business travel, international student mobility and leisure tourism and their close links with corresponding developments in air travel and affordable fares in an expanded network of routes throughout Europe. Qualitative data analysis based on LCC passenger interviews also reveals interesting travel patterns, reflecting a combination of personal preferences, family circumstances and career decisions. These results largely confirm the quantitative analysis and findings from the literature highlighting the contribution of LCCs to European integration through various channels, e.g. labour mobility, business commuting, international student commuting and leisure/tourism travel, as identified and analysed in the study

Study on up- and re-skilling in micro and small enterprises. CEPS Project Report 26 JUN 2020.

Skills development is necessary to face changes in the labour market, led by important transformations such as digitalisation, ageing populations and climate change. Given the importance of micro and small enterprises for the EU economy and employment, the study provides insights into the main challenges faced by those companies, potential opportunities stemming from up-skilling and re-skilling activities as well as policy options

Reflections on the EU objectives in addressing aggressive tax planning and harmful tax practices Final Report. CEPS Report November 2019

This Report analyses the EU’s instruments to tackle aggressive tax planning and harmful tax practices. Based on desk research, interviews with stakeholders and expert assessments, it considers the coherence, relevance, and added value of the EU’s approach. The instruments under analysis are found to be internally coherent and consistent with other EU policies and with the international tax agenda, in particular with the OECD/G20 BEPS framework. The Report also confirms the continued relevance of most of the original needs and problems addressed by the EU’s initiatives in the field of tax avoidance. There is also EU added value in having common EU instruments in the field to bolster coordination and harmonise the implementation of tax measures. One cross-cutting issue identified is the impact of digitalisation on corporate taxation. Against this background, the Report outlines potential improvements to the EU tax strategy such as: making EU tax systems fit for the digital era; leading the international debate on tax avoidance; enabling capacity building in Member States and developing countries; strengthening tax good governance in third countries; ensuring a consistent approach at home and abroad; achieving a level playing field for all companies; and increasing tax certainty and legal certainty

Study on Council Directive 2008/118/EC: The General Arrangements for Excise Duty. Final Report Volume 1 – Main Text. 23 July 2018. CEPS Special Report, July 2018

CEPS was a partner in a major study commissioned by the European Commission on the general arrangements for excise duty. This study includes a baseline assessment of a number of issues that emerged from the previous evaluation of the Council Directive 2008/118/EC concerning the general arrangements for excise duty. It considers how these problems may evolve if no action is taken at EU level. The work covers four main problem areas: customs-excise, duty paid business-to-business (B2B), exceptional situations, and low risk movements. In addition, the study analyses aspects of risk analysis and the movement of excise goods for private use. The study then identifies 13 possible policy options to address the problems detected. It assesses implementation costs and the likely impacts of each option, focusing on the impact on fraud, administrative and compliance costs/benefits, market functioning and SMEs. Finally, it compares alternative policy options, applying a combination of a cost-benefit analysis (CBA) and a multi-criteria analysis (MCA) methodolog

Policy Options for Improving the Functioning and Efficiency of the Digital Single Market in the Field of Copyright. CEPS Special Report No. 121, 19 November 2015

This study explores the existing policy problems and the possible options for reforming the EU copyright framework as provided by EU Directive 29/2001 on Copyright in the Information Society (InfoSoc Directive) and related legislation, with a specific focus on the need to strengthen the Internal Market for creative content. We find two main policy problems: i) the absence of a Digital Single Market for creative works; and ii) the increasing tension between the current system of exceptions and limitations and the legal treatment of emerging uses of copyrighted content in the online environment. Without prejudicing a future impact assessment that might focus on more specific and detailed policy options, our analysis suggests that ‘more Europe’ would be needed in the field of copyright, given the existing sources of productive, allocative and dynamic efficiency associated with the current system. Looking at copyright from an Internal Market perspective would, in this respect, also help to address many of the shortcomings in the current framework, which undermine legal certainty and industrial policy goals

Study on Council Directive 92/83/EEC on the structures of excise duty on alcohol and alcoholic beverages. Final Report Volume 1 – Main Text June

The purpose of this Study is to contribute to the Impact Assessment of a possible revision of Council Directive 1992/83/EEC on the harmonisation of the structure of excise duty on alcohol and alcoholic beverages. The Study includes a baseline assessment of a series of issues emerged from the previous evaluation of the Directive and analyses how these problems may evolve if no EU action is taken. Secondly, the Study formulates a set of possible policy options to address these problems, assesses their likely impacts (legal certainty, market functioning, administrative costs, tax revenues, alcohol control policies, fraud etc.), and compares the outcome with the baseline situation. The main issues analysed in this Study includes: the uncertainties in the excise duty classification of certain new ‘borderline’ products; the functioning of Article 27 concerning the exemptions extended to denatured alcohol; the reduced rates applicable to low-strength alcoholic beverages and to small producers; the exemption for private production and home consumption; and the disparities of methods for measuring the Plato degree of sweetened and flavoured beer. The underlying evidence is based on the triangulation of in-depth interviews with stakeholders from the Member States, the results of an open public consultation online, a quantitative analysis of the market, and the review of other literature and documentary sources