RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE RETAIL RESTRICTIVENESS ANALYSIS IN EASTERN EUROPE | Page 6

OECD economies. Furthermore, the values were last updated in 2013 and therefore cannot be used to understand the situation in countries where fast pace of reforms is likely. The adverse effects of the restrictions in the retail have been in focus of attention for both retailers and public authorities in Germany and Spain, countries that are highlighted as highly regulated markets in the studies performed by the European Commission mentioned above. As a result, competent local authorities initiated studies 8 to assess the negative effects of the regulations. Notably, the reports drew attention to the correlation between restrictiveness, level of prices and competitiveness of the economy. THE CONTEXT WITHIN THE EMERGING EUROPE AND THE FOCUS OF OUR STUDY Moreover, whereas the authorities of the EU countries are liberalizing regulation, some Eastern Europe countries are moving in the opposite direction. Particularly, some have imposed additional restrictions on the retail sector, while others intend to do it shortly. Taking into account such context, we established the objectives of our study as follows: • Research of the level of regulation across the eastern border states based on the established methodologies. • Compare the results against selected EU countries on different ends of the regulation spectrum. • Draw conclusions on the comparative level of restrictiveness across the eastern border states. As compared to earlier research, the current study aims to extend the scope to include non-EU countries across the Eastern Europe and the Balkans. The analysis seeks to accommodate a wider dialogue on whether the regulatory frameworks are proportionate and useful for the public policy objectives and do not unduly restrict the development of the retail sector. 8 Germany "Strengthening Competition in Retailing and Services", The Nineteenth Biennial Report 2010/2011of the Monopolies Commission, Chapter VI,Spain: "Effects of restrictive trading rules on the competitiveness of the Catalan economy (1997-2012", Autoritat Catalana de la Competencia, December 2012. 6