Let's make sure it isn't just filed away. Mario Monti is currently putting the finishing touches to the formal presentation of his report to the Council and European Commission on the New Strategy for the Single European Market, which he had already presented to the European Parliament and public, during a press conference (see our previous publication). We now need to prevent this text from being simply left to gather dust in the already well-stocked European Commission archives, alongside the avalanche of other documents that are often valuable but rarely read or consulted. Preventing this report from becoming simply a theoretical study on the importance of the single market without borders is imperative. The tone and usefulness of this report can help towards developing a genuine investigation into what the market actually represents. It can help to illustrate the necessity of relaunching and invigorating this market and show us how this might be done. This is an operation that should have its place in the new phase of management of the European economy, as an indispensable complement to the economic governance of the eurozone and the financial management reform, which are now the crux of all concerns.
Misgivings and distrust. Those who are familiar with the period in which Mario Monti was a European commissioner (1995 to mid-2004) will know that a watered-down analysis, rhetoric or comforting words cannot be expected from him. The first observation he makes is that, for the public and part of the political class, the single European market without borders no longer represents the undeniable aspect of European construction or the key and virtual symbol of its success. The borderless market now raises both misgivings and criticism.
I'm not going to summarise a report that is available to everybody but I will look at a few of the declarations made by Mr Monti in a press conference and interview: “The single market is encountering real opposition. Often, consumers do not see the benefits of it. Wage earners in founding member countries are worried about the myth of the “Polish plumber”. Certain states see it as a barrier to their policy for redistributing wealth and a danger to the social system. (…) These different concerns should be taken into account; if they are groundless, this needs to be explained and, if they are not, targeted measures need to be introduced”.
His conclusion is clear: “The single market has never been so unpopular but the need for it has never been so necessary”. Mr Monti highlights the close link between Economic and Monetary Union and the Single Market: “A monetary zone cannot have a stable currency and competitive economy without a market worthy of its name, with high labour mobility and other factors of production”.
Four fundamental points. Mr Monti rejects any outright pessimism and declares that “the current difficulty can be transformed into a great leap forward”. How? Without wishing to presume or resume a substantial report in just a few sentences, I will point out and clarify a few points.
1. The single market is far from complete. The often-expressed feeling of self-satisfaction cannot be justified because the shortcomings are many. Mario Monti outlines a genuine programme for recovery including: the single digital market; the effective freeing up of services; clarity regarding the role played by social services; the genuine but gradual setting up of material and multinational infrastructure, and clearer rules on public procurement. The report provides suggestions for each of these aspects.
2. European support to less favoured regions of the EU will be maintained on the condition that beneficiary member states do not use aid to promote the relocation of business activities.
3. In the same perspective, a section on tax is necessary, which covers corporation and income tax. This column will return to the current imbalance, which is increasingly subject to criticism.
4. An entire chapter focuses on what responses should be provided in an effort to tackle Mr Monti's concerns, which he highlighted during the preliminary consultation process. These responses include: reconciliation between economic freedoms and workers' rights in light of the Viking and Laval rulings at the European Court of Justice; the role of social services in the single market; implementation of the pro-active but “ healthy” industrial process in the field of competition and aid; and “an open but not defenceless” single market at a global level. Everything will obviously depend on what practical interpretation is given to these responses, particularly to the three adjectives quoted above.
This column will soon attempt to draw a number of lessons from Mr Monti's work and the reactions that it has provoked. (F.R./transl.fl)