SEV’s position on Independent Regulatory Authorities and Agencies

«Economic growth calls for independent and effective regulatory institutions».

The legitimacy and effectiveness of regulatory authorities or agencies, especially those with the duty of deregulation, regulation and market inspection, is inherently linked to their ability to act independently, free from external influence either from the companies they supervise or from the State. Therefore operational independence and accountability of such bodies is a prerequisite for market liberalization and investments that would lead to competitiveness and growth. Independent regulatory agencies coincide with legal certainty, safeguard competition and provide for the necessary rule of law as a prerequisite to attract investment and support private sector development.

Independent Regulatory Authorities or Agencies, standing by definition within the State and the private sector, bear the burden and obligation of deregulating, regulating and supervising economic activity and markets (such as the case of telecoms under Hellenic Telecommunications & Post Commission or energy under Regulatory Authority for Energy, EETT, e.tc). Therefore they cannot be considered neither as a “division” nor as a “department” of the competent Ministry.

In order to reinforce the independence vis-à-vis the accountability of such authorities in Greece we call for:

1. disentanglement from the authoritative power of the competent Minister compared to a greater interconnection with the Parliamentary institutions not only for the supervision of functions and operations but as well as during selection of members,
2. stronger cooperation and supervision from EU institutions (such as DG Competition and ECN in the case of HCC) and
3. enhancing accountability through stronger cooperation with stakeholders, external audit and reporting.

The deficit of strong independent and effective institutions in Greece deprive from our country investment funds, detach us from the European family and severely harm our international presence. The “de-politicization” of public administration and independent regulatory authorities is a major priority for the restructuring of Greek economy in its quest for growth. The above mentioned principles though have to be widespread and not selectively implemented, throughout the public administration and independent authorities or agencies.

Sadly, we report evidence towards the opposite direction such as:

• the attempt to induce a disciplinary infringement  for the board members and the staff of Hellenic Competition Commission (HCC) on “…non compliance with acts or decisions of competent Minister”, that was hopefully avoided.
• the targeted suspension of board members of Independent Authorities
• the selection of board members through a system lacking objective criteria that would guarantee the scientific knowledge and expertise of the suggested members
  a selective approach to issues of political conflicts

SEV, Hellenic Federation of Enterprises strongly supports that the utmost guarantee of independent, effective and accountable Regulatory Authorities or Agencies derives from the integrity, scientific knowledge and expertise of its board members and staff. It is the institutional capacity deriving from knowledge that enables them to cooperate on equal terms with their peers within the EU institutions and promote the European acquis. Therefore it is our duty and obligation to promote their independent operation away from any political or other interventions.