Why better regulation matters
Governments across the OECD are navigating overlapping pressures: geopolitical tensions, fragile growth, rising costs of living, the urgency of the green transition, and disruptive technological change. In such a context, smarter regulation is not a secondary issue but a foundation for effective governance.
The Outlook points to progress in areas such as stakeholder engagement. Many governments now provide minimum consultation periods and increasingly use digital platforms to involve the public. But important gaps remain. Only a third of OECD members systematically provide feedback to stakeholders, which undermines trust and discourages future participation. Moreover, the distributional effects of regulation are rarely assessed in a systematic way, even though rules can deepen inequalities if burdens fall unevenly across society.
Environmental regulation provides another example. While most OECD countries assess environmental impacts within environmental laws, only 21% review the broader environmental consequences of rules across sectors. This leaves overlaps, gaps, and inconsistencies that risk slowing the green transition. Similarly, regulation around new technologies (from AI to quantum computing) lags behind innovation. Without adaptive, forward-looking approaches, governments risk creating frameworks that are fragmented, outdated, or ill-equipped to manage emerging risks.
The report also highlights enforcement as a weak spot. Well-designed rules achieve little without effective implementation, yet more than half of OECD members still do not allow risk-based enforcement. Strengthening regulators’ skills, resources, and capacity will be crucial if regulation is to deliver on its promises.
Why this matters for Europe
For the EU, the OECD’s message could not be clearer: better regulation is not about more or less regulation, but about rules that are effective, efficient, and future-proof.
As Europe seeks to restore competitiveness, accelerate its green transition, and keep pace with global technological change, reducing regulatory complexity and strengthening enforcement will be decisive. Citizens and businesses alike need rules that protect, empower, and enable innovation – without unnecessary costs or uncertainty.
At EECI, we believe that the OECD’s Outlook provides timely evidence that smarter regulation is not simply technical housekeeping. It is a strategic priority for Europe’s future prosperity, autonomy, and trust in public institutions.
You can read the full OECD Regulatory Policy Outlook 2025 here.