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Commission lists 50 ideas to reignite Single Market

Published 28 October 2010 - Updated 02 November 2010
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In an effort to rekindle European faith in the social and economic power of the 27-nation bloc, the European Commission on Wednesday (27 October) laid down plans for a new Single Market Act, offering a list of 50 proposals that could be put into action in the next two years.

The proposals range from making it easier to register a car in another country to creating an EU professional ID card to help people do business across borders.

The list will be subjected to a four-month public debate in the hope that more European citizens will get involved and voice their opinions.

European leaders must combat the "fatigue" the average person feels about the single market. "’The single market is more and more necessary and less and less popular. How can you accept that?" said Michel Barnier, the EU's internal market commissioner.

Confidence in European integration has been eroded by the financial crisis, the Commission says. Much of the economic growth and millions of jobs created between 1992 and 2006 have been wiped out. Production has been reset to 1990 levels, and the unemployment rate is hovering stubbornly at around 10%.

Moreover, in recent months, the sovereign debt crisis has fuelled the spread of nationalism and raised questions about the future of the euro.

"The Single Market Act is a crucial test case for the Commission to deliver tangible benefits to consumers," said Monique Goyens, director-general of the European Consumers' Organisation (BEUC).

The 50 ideas include:

  • Updated rules to protect holidaymakers if their travel provider goes bust.
  • New e-commerce rules so creators and artists can sell their work throughout Europe with a one-stop shop for authorisation.
  • Mediation or arbitration to resolve cross-border disputes.
  • A new system for the electronic exchange of information to help workers transfer their social security benefits if they move.
  • For small- and medium-size businesses, simpler accounting rules, better access to public contracts, and maybe even a common tax base for businesses operating cross-border.

"This market, if it functions well, is a chance to reconstruct and rediscover competitiveness and growth," Barnier said.

But the proposals drew harsh criticism from some business advocates.

The European Association of Craft, Small and Medium-Sized Enterprises (UEAPME) called the list a "mixed bag of old news and half-baked proposals, with some occasional good ideas thrown in," rather than a "strategy capable of inspiring the relaunch of the internal market".

The Single Market Act emerged from a report by former Italian Commissioner Mario Monti, published in May. In it, he argued, "there is now a window of opportunity to bring back the political focus of the single market".

Monti was travelling in the United States on Wednesday and was not immediately available for comment.

The list of proposals has been translated into 23 languages for distribution to member states. On 9 November, the European Parliament will host a public forum on the Single Market.

Positions: 

BusinessEurope, the European association of industries and employers, believes the Single Market Act is a good foundation for revitalising the EU's internal market but called for a strong political commitment to ensure it is properly implemented across the member states.

The association's director-general, Philippe de Buck, stated: ''European business is fully committed to the single market. The Single Market Act is taking up the challenges the single market is facing. It is a solid foundation for its relaunch, but it will need a coherent and comprehensive approach from the Commission.''

The European Consumers' Organisation (BEUC) stressed that in the debate "priority must be given to concrete measures that can add value to consumers’ everyday lives [including] a collective redress mechanism which gives them access to compensation when traders violate their rights or when they are victims of uncompetitive behaviour".

"Online users would also benefit from initiatives which enshrine consumers' digital rights and facilitate the development of new business models for legal content across Europe," BEUC said.

The European Association of Craft, Small and Medium-Sized Enterprises (UEAPME) was disappointed, and said the "Single Market Act unveiled by the European Commission lacks the vision, ambition and coherence needed to bring Europe's internal market to the next level".

Poul Nyrup Rasmussen, president of the Party of European Socialists, stated: "I welcome the fact that the European Commission is finally taking steps to promote the completion of the Single Market, but I am concerned by the gaps between the interests of the economy and the interests of the people," citing the absence of any commitment to revise the Posting of Workers Directive and a failure to put forward a legislative proposal to ensure high-quality, accessible and affordable public services.

Next steps: 
  • Nov.: Single Market Forum at the European Parliament.
  • 30 Nov.: Single Market Act Conference at the Committee of the Regions.
  • 8 Feb. 2011: Single Market Conference organised by the European Commission in Brussels.
Background: 

The Single Market and its four freedoms for circulation of goods, services, people and capital is one of Europe's main competitive advantages. However, progress on the single market has stalled in recent times and business leaders have pressed for its completion in order to tap into the EU's full potential.

In October 2009, José Manuel Barroso, president of the European Commission, tasked Mario Monti, a former European commissioner, with preparing a report on the future of the single market.

Giving the mandate to Monti, Barroso said that the recent crisis had revealed a strong temptation - particularly when times are hard - to roll back the single market and seek refuge in forms of economic nationalism.

The single market report needs to be seen in the context of the EU's new strategy for sustainable growth and jobs, dubbed 'Europe 2020' (EurActiv 24/02/10). That strategy, presented in February, puts innovation and green growth at the heart of its blueprint for competitiveness, but will have to include tighter monitoring if it is to succeed where the Lisbon Agenda failed.

The Monti report was published in May and urged the EU to put the single market "back on track" (EurActiv 11/05/10).

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