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The Economic Impact of Regulation

The aim of this report is to ensure a constructive contribution by the Architectural profession to the debate on the regulation of the profession. 

The need for this contribution stems from growing discussion, debate and policy formation in recent years. This needs to be as balanced and holistic as possible in considering evidence, as inclusive as possible of both industry and stakeholder perspectives and guided always and everywhere by the public interest. 
“As the leading voice of the Architecture profession in Europe, over the years, the Architects’ Council of Europe has commissioned various studies arguing that defending the importance of certain types of professional regulation in the public interest and disproving suggestions that such regulation does not produces unjustified restrictive effects.Two possibly contradictory developments can be observed at EU level and even within the EU Commission. While the publicly perceived socio-political and environmental importance of planning has never been higher than today thanks to the “NEB” initiative of Commission President von der Leyen, the civil service continues to see planning as almost exclusively internal market-relevant and thus an economic factor that should be deregulated as far as possible.Now, driven by a positive belief that our profession can work together with the EU Commission, the OECD and others – we are shifting focus to developing a set of economic arguments in a professional, cogent analysis that clearly identifies the positive effects that professional regulation contributes to the economic, social, environmental and sanitary well-being of European citizens”. highlighted ACE President, Ruth Schagemann.

Our report finds that there exists a strong public interest justification for regulating architecture. 

This includes the role of regulation in a range of beneficial activities, notably:

Through these activities, the regulation of architecture promotes safe, efficient, desirable, environmentally sustainable and aesthetically pleasing built environments for European citizens. 

Providing, in Chapter 1, a ‘Tour d’Horizon’ of the policy context of this report in terms of recent publications and evidence on the impact of regulating the Architectural Services profession and also recent policy initiatives in the areas of professional services.

Comprehensively, in Chapter 2, examining the clear economic reasons why regulating architecture is in the public interest. Principally, these include the complexity and asymmetry of information between the user and provider of the service and also thelasting and potentially serious social, economic and environment impacts that can arise from a lack of sound regulation.

Providing a robust quantitative assessment, in Chapter 3. This is done in two ways: Firstly, by demonstrating the positive impacts of regulating architecture in terms of beneficial social, economic and environmental outcomes using an econometric model. Secondly, by the development of an innovative index – the ‘Economic Impact of Architecture Regulation Index’ (EIARI) – for future use in tracking the benefits of regulation.

Demonstrating, in Chapter 4, country case studies for Spain, Germany and Finland illustrating both the diversity of regulation as well as common features that protect consumers and citizens across EU. They also show the importance of highlighting the benefits of regulation during current EU policy discussions in the context of the application of public interest tests when applying the Proportionality Directive in the regulation of architecture.

Download the publication here.


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