RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE

REQUIREMENT FOR ECONOMIC DATA As a part of the establishment procedure, a retailer could be obliged to provide a regulator with the data on the economic impact of the planned outlet. However, such requirements are not common among the countries covered except for Italy and Germany where the rules are rather extensive, while in Belarus and Russia some limited requirements for economic data provision are set in the national laws. In Italy 20 and Germany 21 , the requirements for the provision of economic data are set at the regional level and, therefore, significantly vary on a region-to-region basis. In some German states (Länder), to establish a large outlet (800 m 2 or more), a retailer must provide an assessment of the potential catchment area. As a result, if more than 30% of the planned outlet’s turnover would be generated by customers living outside the city and its surroundings, its opening is prohibited. In Italy, all applications for the establishment of a medium-sized or large retail outlet (1700 m 2 and more) must be accompanied by a report on the outlet’s impact on the environment, local employment, traffic flows and local commercial activity. In Belarus 22 and Russia, retailers are duty-bound to provide specific kind economic data. In Belarus, each retail chain or large outlet (whose area exceeds 3000 m 2 ) must submit information on the turnover in the previous fiscal year to the local authorities. LEVEL OF DETAIL IN SPATIAL PLANS Competent authorities (at the regional level, as a rule) could also place planning limits on locating shops in some city areas. Eventually, it could influence the type and the size of companies, location strategy and the types of store formats that those companies operate, such as hypermarkets, supermarkets, discounters, convenience stores, small independent shops, etc. In most of the countries covered – Lithuania 23 , Latvia, Estonia, Poland 24 , Germany 25 , Spain 26 , Ukraine 27 , Serbia 28 , Italy, Russia and Romania 29 – the required level of detail in spatial plans usually refer to "retail use" or designate areas for larger shops. Belarus and Moldova are exceptions to the rules. In Belarus, no specific regulations for spatial plans exist. Meanwhile, in Moldova competent municipal authorities 30 are also authorised to set restrictions based on the types of products that can be sold (for instance, the sale of alcohol is prohibited in some city areas). NUMBER OF PERMITS In the establishment process, retailers often need to obtain several permits to establish a new outlet. The most common are planning, building an environmental permit. The procedure of acquiring permits usually requires significant investment by the applicant. Belarus is distinguished by the highest number of permits required for the establishment of an outlet. Spain, Moldova and Germany can be considered the least regulated countries with only a single permit required. Moreover, Latvia, Spain, Moldova have introduced a one-stop system enabling retailers to 20 Set at the the regional level, example: Piemonte Regional Decree 43-29533/2000 amended by Regional Decree 66-13719/2010, http://www.regione.piemonte.it/commercio/dwd/confServizi/allegatoA_confServizi.pdf 21 This threshold was decided by the Federal Administrative Court on 24 November 2005 (Case nr. 4 C 2/08 – NVwZ 2010, 590). Available on: http://www.bverwg.de/entscheidungen/pdf/17 1209U4C2.08.0.pdf 22 Resolution of Council of Ministers of the Republic of Belarus of December 23, 2014 No. 1227 "About approval of the Regulations on the Trade register of the Republic of Belarus and Regulations on determination of method of calculation of share of subjects of trade of the retail turnover of food products in borders of Minsk, the cities of regional subordination, areas, recognition voided resolutions of Council of Ministers of the Republic of Belarus and their structural elements" 23 Lithuania: https://e-seimas.lrs.lt/portal/legalAct/lt/TAD/TAIS.23069/RopBrkScvw 24 The Spatial Planning Act of Poland, http://commin.org/upload/Poland/PL_Planning_System_in_English.pdf 25 Germany: Section 11 (3) sentence 4 of the Federal Land Utilisation Ordinance. 26 Spain: Article 6. Opening, transfer or expansion of commercial establishments, Act 7 /1996 on retail commerce, amended by Act 1/2010 and by Royal Decree Law 8/2014 27 Ukraine: the Law of Ukraine "On Regulation of Town Planning Activity" 28 Serbia: https://www.paragraf.rs/propisi_download/pravilnik_o_opstim_pravilima_za_parcelaciju_regulaciju_i_izgradnju.pdf, https://www.mgsi.gov.rs/sites/default/files/ZAKON%20O%20PROSTORNOM%20PLANU%20RS%20OD%202010%20DO%202020.pdf, http://gradjevinskedozvole.rs/Files/00913/The-guide-to- construction-permits-From-idea-to-usage.pdf 29 http://www.mdrap.ro/_documente/dezvoltare_teritoriala/amenajarea_teritoriului/legi/hg_525.pdf 30 https://mei.gov.md/sites/default/files/ghid_notificarea_activitatii_de_comert-ru.docx#_Ref452640147 13

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