Abstract
Improving public administration requires taking into account both the positive and negative consequences of government interference in all spheres of public relations. Systematic, structural, comparative and historical methods were applied to find out the place of the legal regulation of social relations in the formation of a new type of state — the regulatory one. The EU is a prime example of this form of state, which combines neoliberalism, a constant desire for innovation, and a refusal to intervene in the economic sphere, to introduce liberal social security reforms. The main features of the regulatory state are the deregulation of markets and the decentralization of administrative capacity, the emergence of new network capabilities, and multi-level governance. There was also a clear upward trend in integrated regulation and strategic planning policies at all levels: European, national and regional. In a regulatory state, the concept of regulation as authoritarian rule and concerted action requires a clear distinction between «hard» and «soft» regulation. «Hard» regulation requires legislative action and coercive mechanisms to enforce and impose sanctions in case of non-compliance. On the other hand, the use of «soft’ regulation is sometimes seen as regulation through conviction and deliberation aimed at reaching agreement as the most desirable outcome. So modern regulatory state must combine «hard» and «soft» regulation to guarantee economic development and protect society from external risks (globalization, climate change, etc. ). The evolution of a regulatory state on the European continent demonstrates the need to combine deregulation and re-regulation at different levels of public administration and spheres of public activity to maximize the effective use of the power of concentration by public authorities and special knowledge and long-term prospects for the development of semi-governmental organizations. Deregulation enables the state to respond adequately to changes in public relations under the influence of external factors, primarily globalization, and regulation to minimize the negative effects of market failures and protect the humanitarian, social and environmental spheres.
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