Brussels, 10/05/2010 (Agence Europe) - After having forwarded his report to the president of the European Commission, José Manuel Barroso, recommending a new internal market strategy, Professor Mario Monti presented his proposals to the members of the European Parliament's internal market committee on Monday 10 May, in the presence of EP President Jerzy Buzek. Monti set out the three challenges facing the internal market: - erosion of political and citizen support for European market integration; - economic developments whose speed supplants the political integration process; - and the existence of a certain complacency leading one to believe that the internal market is already complete. In order to face up to theses challenges, Monti recommended a proactive approach aimed at greater competitiveness in order to provide citizens and SMEs with new opportunities, while bearing in mind the concerns expressed in the social and environmental fields.
Recommending an exhaustive approach, the former European commissioner for competition and the internal market suggests a three-way strategy to: - make the single market stronger; - forge consensus between all stakeholders with a view to meeting the first objective; and - taking action to obtain tangible results. Making the single market stronger means it is necessary to have a guarantee that the single market as consumers and SMEs experience it works better, with investment that promotes transition towards a low-carbon economy, better exploitation of opportunities provided by the free movement of goods and services, and the promotion of worker mobility within the EU. It is Monti's opinion that, in order to build the consensus needed for relaunching internal market recovery, it is absolutely necessary to tackle the “friction” between market operation and labour law (see “Viking” and “Laval” affairs on posted workers), the roles played by social services, tax policies and public procurement. The new member states have an “enormous appetite” for greater integration and competitiveness, while other EU countries consider the single market is a territory open to foreign conquest, he observed.
Link with eurozone crisis. “I see a link between the current problems of the eurozone and the question of the single market” - the crisis affecting single currency is linked to the finances of several member states but can also be explained by “insufficient ownership of the internal market”, which has not allowed factors such as productivity and competitiveness to be sufficiently integrated, the president of the Milan Bocconi university said. He went on to stress that the single market is a fundamental element of the current functioning of the monetary union. It should be noted that, in response to difficulties experienced by some member states for funding the cost of their public debt on the markets, the Monti report recommends exploring the feasibility of creating an “E-Bonds” market of global dimensions. To begin with, a number of member states would take part in this mechanism and would borrow, through a “European entity”, amounts not exceeding a certain percentage of their GDP.
Taxation. Rather than recommend tax harmonisation, Monti goes for strengthening tax coordination, an option which is more in line with national budgetary sovereignty. Three areas are worthy of exploration: company taxation, taxation related to consumption (VAT) and environmental taxation. A high-level working group involving representatives from the Commission and member states may provide a strategic reflection forum on the European policy to be adopted.
Giving her reactions immediately after Monti's presentation, Evelyne Gebhardt (S&D, Germany) said the report did not sufficiently bring out the fact that the economy should be at the service of citizens. She was, however, pleased with the suggestion that the posting of workers directive should be reviewed. Christian Buºoi (ALDE, Romania) congratulated Monti for arguing for joint action in energy (security of supply, investment in renewable energy). Further initiatives must be launched on cross-border health care, he added. Emilie Turunen (Greens/EFA, Denmark) would have liked to see stronger commitments on a truly green internal market. Edvard Kožušník (CRE, Czech Republic) liked the part of the document that was devoted to listening to the Europeans who want less regulation and bureaucratisation. Cornelius de Jong (GUE/NGL, Netherlands) saw nothing in the text which guaranteed “equal pay for equal work”.
Next steps. Louis Grech (S&D, Malta), who wrote a draft own-initiative report on the future of the internal market, said that what concerned him most was the steps which would come after the proposals. Having been invited by Barroso to present his report to the College of Commissioners, Monti said he was sure that the single market would remain high in the list of the Commission's priorities. The Commission will set out its position on the Monti report in a communication before the European Council in June. In 2011, it will bring forward a White Paper which will contain firm proposals on relaunching the single market, 20 years after the target date for its completion, set by the Single European Act. For more information, go to: http: //ec.europa.eu/bepa/expertises/visitor-programs/mario_monti/index/en.htm (M.B./transl.tfl)