Legal and budget method

Mandatory consultations and transition costs: the method before reform

Credible reform does not begin with an announced saving. It begins with legal obligations, required consultations and the costs of moving from the old system to the new one.

Mandatory consultations and transition costs: the method before reform
Legal and budget method

Two questions before any reform

Who must be consulted? and what will the transition cost? A reform may be sound in substance but legally weakened by the omission of a mandatory opinion. It may also advertise gross savings without including the cost of transferring staff, systems, contracts and premises.

Initial consultation map

ConsultationWhen it may applyRisk if omitted
Conseil d’ÉtatGovernment bills, ordinances and decrees requiring its opinionProcedural irregularity or inability to adopt the text
Social dialogueService organisation, employment and working conditionsLitigation, social conflict and unworkable implementation
CNILPersonal data, algorithms, files and data interconnectionsNon-compliance with data-protection law
Local-government consultationRules with a material impact on local authoritiesWeak legal design and unassessed local cost
Independent authoritiesDepending on the field: media, competition, health or energyMissing expertise or a legally required opinion
European UnionState aid, competition, procurement, data or environmental lawIncompatibility with European Union law

There is no universal list valid for every reform. Requirements depend on the exact text, subject and effects.

Transition-cost calculation method

Annual net saving A = G − R

Cumulative gain over H years = max(0, H − D/12) × A − C₀

SymbolMeaning
AAnnual net saving after transferred recurring costs.
GAnnual gross saving before transferred costs.
RRecurring costs that continue elsewhere: retained missions, staff, systems and contracts.
HCalculation horizon in years.
DDelay before savings begin, in months.
C₀One-off transition cost: IT migration, compensation, training, relocation and legal advice.

Educational calculator

Calculating…

This calculator is educational. It does not replace a full budget estimate, discounted-cash-flow analysis or risk assessment.

Downloadable data