Council Conclusions on Regulatory Sandboxes and Experimentation Clauses
European Union · Framework · Council of the European Union
Our summary
This Council conclusions document promotes regulatory sandboxes and experimentation clauses as mechanisms to foster innovation while maintaining protective standards. The framework applies to EU member states and the Commission in their development of regulation across various sectors including finance, health, transport and energy. It encourages the use of these tools to test new technologies and approaches in controlled settings, support regulatory learning, and reduce unnecessary regulatory burdens while preserving consumer, environmental and worker protections.
Written by the Index in our own words. It is not legal advice; the official text is the authority.
Inside this policy
Every section of this policy in order. Our notes summarise each one in plain language and do not quote the official text, which is the authority.
Drafted by the Index An automated summary of the official text, not yet reviewed by a person.Reviewed Checked by a person against the official text.
4 sections
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Background and policy context
The Council affirms its commitment to ensuring that EU regulation promotes innovation, competitiveness, and growth while protecting citizens and businesses. In response to the COVID-19 crisis and its severe impact on businesses, particularly SMEs and start-ups, the Council calls for the regulatory framework to be competitive, effective, efficient, coherent, predictable, and future-proof without imposing unnecessary burdens.
Use and benefits of regulatory sandboxes
Regulatory sandboxes enable testing of innovative technologies, products, and services in real-world environments for limited periods under regulatory supervision. These tools are already used across various sectors including finance, health, aviation, and energy, and can support regulatory learning, competitiveness, and technological sovereignty while helping address systemic shocks and long-term challenges.
Definitions and protections
Regulatory sandboxes are frameworks allowing experimentation with emerging technologies in controlled environments, while experimentation clauses are legal provisions granting implementing authorities flexibility to test innovations on a case-by-case basis. Both tools must respect subsidiarity, proportionality, and the precautionary principle while maintaining protections for citizens, consumers, health, environment, legal certainty, and fair competition.
Commission and Council actions
The Council calls on the Commission to continue using experimentation clauses in legislation, create an overview of existing experimentation clauses, identify policy areas for additional clauses, and organise an exchange of information and best practices on regulatory sandboxes with Member States. The Commission must present progress reports in early 2021 and final results with recommendations in late 2021.
Controls
What this policy requires, forbids, grants or penalises, one control at a time and in our own words. Each control links to the official text, which is the authority. This is not legal advice.
Drafted by the Index Drafted automatically from the official text, not yet reviewed by a person.Reviewed Checked by a person against the official text.
Themes covered 1 of 35
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Risk and scope 0 of 4
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Definitions and protections 1 control
- ObligationApplies to: Public authorityDrafted by the Index
Regulatory sandboxes and experimentation clauses must respect subsidiarity, proportionality and the precautionary principle while protecting citizens, consumers, health, environment, legal certainty and fair competition.
Commission and Council actions 6 controls
- ObligationApplies to: Public authorityDrafted by the Index
The Commission should continue using experimentation clauses in new legislation.
- ObligationApplies to: Public authorityDrafted by the Index
The Commission should create an overview of existing experimentation clauses across EU laws.
- ObligationApplies to: Public authorityDrafted by the Index
The Commission should identify policy areas where additional experimentation clauses could be introduced.
- ObligationApplies to: Public authorityDrafted by the Index
The Commission should organise exchanges of information and best practices on regulatory sandboxes with Member States.
- ObligationApplies to: Public authorityDeadline was Drafted by the Index
The Commission must report progress on these actions in early 2021.
- ObligationApplies to: Public authorityDeadline was Drafted by the Index
The Commission must present final results and recommendations on regulatory sandboxes and experimentation clauses in late 2021.
Change history
No changes recorded since we began monitoring this policy.