The 50 sweeping proposals in the Single Market Act have to be pushed forward with more conviction, argued participants at a forum hosted in Brussels by Confrontations Europe, a think-tank.
The proposal, put forward in October by EU Internal Market Commissioner Michel Barnier, is "a unique opportunity to relaunch Europe in a context of crisis where perils are considerable," said Philippe Herzog, founder of Confrontations Europe.
Herzog, who helped Barnier draft the act, said the single market required "commitment" and a social dimension to engage citizens.
Current failings
The Single Market currently fails to address issues such as climate change or finance for long-term projects, panellists agreed at the forum, which gathered more than 300 policymakers.
"I don’t think the single market has the urgency or impetus it deserves. The lack of enthusiasm has made the Single Market Act, in many ways, yesterday's business," said Maltese MEP Louis Grech, (Socialists & Democrats), author of a Parliament report on the single market.
"What is the single market? Many people don't know and plenty of small entrepreneurs think it works against them," said Grech, recounting conversations he'd had with people in his home country of Malta.
Simply put, the single market is the framework of rules that help goods, services, money and people move across borders. The single market means fewer hassles, taxes and paperwork at custom and immigration crossings. It's the reason mobile phone bills have declined 70% and airfares by 40% since 1992, according to the Commission.
But too many European citizens and businesses don't see the benefits, and Lord Leon Brittan, a UK government trade advisor, said that's because the market has not fully delivered on its promises: "You can't buy goods online in other member states and small and medium-sized enterprises can't access other markets because of onerous requirements."
Sense of urgency lacking
The new Single Market Act was unveiled three weeks ago with the grand goal of reviving European faith in the economic and social potential of the 27-nation trading bloc. It contains proposals ranging from combating piracy and helping small businesses get financing, to creating a single market for mortgages and better protections for passenger rights on all modes of transport.
The proposals will be subjected to four months of public debate, with new rules proposed over the next two years.
But for some advocates, the debate is an unnecessary delay at a time of crisis. The economic recession followed by turmoil surrounding the euro and government debts have sparked a surge in nationalism and protectionism. Countries are fighting to shelter or support local industries.
Spain and Italy last week blocked another attempt to create an EU-wide patent to protect intellectual property and product designs. They want the patent to be translated into their local languages in addition to English and French or German.
An EU patent is the No. 1 proposal in the Single Market Act, and the turf war highlights the challenges facing Michel Barnier, the French commissioner for the internal market and services.
In the current environment, "there is a risk of going backward on some aspects," Barnier conceded.
However, he defended President Barroso's commitment to the project, saying, "he's been a staunch supporter of me [...] He has helped me more than I can say". Barroso's press office said he was travelling abroad and unable to comment.
But the seven panelists all said Barroso needs to step up to the plate.
"We need more involvement from the Commission president," said Othmar Karas, an Austrian and vice- chairman of the European People's Party group in the Parliament.
There was quick agreement from Franco Bassanini, president of Italian public investment company Cassa Depositi e Prestiti. "Personal involvement is always one of the conditions for a strategy to be successful," he said.
He also criticised the Single Market Act for failing to tackle issues regarding financing for long-term projects like transportation, especially since the euro crisis has forced many governments to slash spending.
"Where are the concrete proposals?" he asked.
Indeed, many of the 50 seem to lack punch, including:
- No. 7: Next year, the Commission will adopt a white paper on transport policy, which will propose a series of measures intended in particular to remove the remaining obstacles identified between national systems of transport.
- No. 10: Before 2012, the Commission will look into the feasibility of an initiative on the ecological footprint of products to address the issue of the environmental impact of products, including carbon emissions. The initiative will explore possibilities for establishing a common methodology to assess and label them.
- No. 32: The Commission will launch a consultation with the social partners (key labour and business representatives) in order to create a European framework for the advance planning of industrial restructuring.
And Pascal Canfin, a French Green MEP, pointed out that the deadline for action on a proposal to regulate services of general interest had already been pushed back a year, to 2012.
But Barnier defended the plan and pledged to move quickly. "Come February or March we will be ready."
