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European Added Value Assessment accompanying the European Parliament's legislative own-initiative report (Rapporteur: Michal Šimečka)

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European Parliament legislative-initiative reports are automatically accompanied by a European Added Value Assessment (EAVA). Such assessments are aimed at evaluating the potential impacts, and identifying the advantages, of proposals made in legislative-initiative reports. This EAVA accompanies the legislativeinitiative report prepared by the Parliament's Committee on Civil Liberties, Justice and Home Affairs (LIBE), presenting a proposal for an EU mechanism on democracy, the rule of law and fundamental rights (DRF), on the basis of an interinstitutional agreement in accordance with Article 295 TFEU. The EAVA assesses the impacts of the status quo in which EU common values are violated due to (lack of) Member State action. The EU's response to DRF violations has so far not tackled the problem comprehensively. The status quo results in impunity for criminal activities, undermines human dignity and violates fundamental rights. Furthermore it erodes the basis for mutual trust among Member States. Moreover, the status quo denies opportunities for individuals to live out their human potential. There is evidence of a positive correlation between respect of DRF and countries' economic performance. Despite the inherent difficulty in monetising DRF violations precisely, and adopting a broad perspective on the analysis of the status quo, the costs of such violations are estimated at around €1.1 trillion per year, corresponding to 9 % of the EU's gross domestic product (GDP). This EAVA assesses the potential added value of an EU pact on DRF covering all Member States, comparing it to the European Commission's approach, which only covers the rule of law, and to further integration requiring Treaty change. It concludes that the pact proposed by the European Parliament would lead to significant benefits in terms of more effective monitoring and enforcement of EU values. An estimate of its potential positive effects on the EU economy indicates annual gains of €413 billion corresponding to 3.3 % of EU GDP, far outweighing the costs of its development.
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ISBN 978-92-846-7159-5
DOI 10.2861/376199
Luettelonumero QA-02-20-761-EN-N
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ISSN ISBN 978-92-846-7159-5 DOI 10.2861/376199 Luettelonumero QA-02-20-761-EN-N
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