Brussels, 25/10/2010 (Agence Europe) - Strengthening the social market economy by putting enterprise and Europeans at the heart of the single market in an effort to relocate confidence and develop market policies that promote sustainable growth - this is the objective of the European Commission in its strategy to relaunch the internal market. This will be unveiled on Wednesday 27 October (EUROPE 10233 for the Commission's presentation of this strategy to the Competitiveness Council).
EUROPE has obtained a draft of the communication from Commissioner Michel Barnier's services, “Towards a pact for the single market - for the social market economy”. It includes 50 proposals that benefit both enterprise and citizens. In an effort to enhance the relaunch of European competitiveness and include a social dimension within it, the previous version has been revised (details in EUROPE 10207).
The publication of this communication will launch a public debate lasting four months. The Commission would like all European institutions to be involved, at the beginning of 2011, in making this pact a definitive political action plan for 2011-2012, for which simplified procedure will be applied. According to the draft communication, “its accomplishment will help mark the 20th anniversary of the single market at the end of 2012 in a dynamic manner”.
Sustainable and equitable growth with enterprise
The draft communication states that the single market should provide the 20 million companies in the EU with “an appropriate environment and encourage them to develop, purchase, sell and freely invest within Europe as a whole and beyond”. “Fragmentation of the single market” is often highlighted by companies as a barrier to their competitiveness. It is therefore necessary “to better integrate the markets and remove the obstacles, by clearly identifying the areas where there is a lack of coordination and harmonisation, which damages the effective functioning of the single market”.
Since the beginning of the crisis, the EU has taken urgent measures to re-establish stability in the financial markets and get them working again. The Commission, however, considers that “additional measures should be taken to guarantee that the financial system is not only more stable but that it also operates in favour of the real economy and encourages sustainable economic growth”. In order to respond to the imperative of global competitiveness, the single market really must constitute a “base camp” for European companies, from which they can trade with the whole world.
Encouraging and protecting creativity. The Commission is proposing that the European Parliament and the Council take the action necessary for adopting proposals for the European Union patent, its linguistic regime and a uniform system for settling litigation. The aim is to award the first EU patent in 2014. In addition, the Commission: - is committed to presenting a framework directive on managing copyright- in order to open up access to online content and improve governance, transparency and electronic management of copyright; - plans to adopt by the end of the year, an action plan against counterfeiting and piracy, which includes legislative and non-legislative measures.
New trajectories for the sustainable economy. The Commission and member states will cooperate in the development of the internal market to services, on the basis of a “mutual assessment” of the services directive, currently being implemented by the member states and the Commission. In 2011, the Commission will also propose an amendment to the regulatory framework for standardisation, in an effort to make standardisation procedures more efficient and extend the scope of these procedures to services. Other initiatives also include: - a communication on unfair business practices; - the adoption in 2012 of a document on ecological product imprinting.
SMEs. In 2011, the Commission will adopt an action plan to improve SME access to the capital markets. It will contain measures to improve SME visibility among investors and develop an efficient stock market network where regulated markets will be specifically dedicated to SMEs, as well as making registration and advertising requirements more adapted to the needs of SMEs. By the end of 2010, it will also assess the Small Business Act and propose a review of accounting standards in 2011.
Financing innovation and long-term investment. The Commission will explore measures for encouraging private investment (particularly long-term) and citizens' savings, in an effort to actively contribute towards attaining the EUROPE 2020 strategy objectives. These measures could be linked to reform of corporate governance, incentives for long-term, sustainable and ethical investments and help increase private savings for funding major investments that require smart, green and inclusive growth. In 2012, the Commission will produce legislative proposals to simplify and modernise Community rules for streamlining market allocation and to facilitate better use of public procurement in support of other policies.
Creating an enterprise-friendly legal and tax environment. The Commission will take initiatives to improve the coordination of national tax policies, particularly by way of a draft directive to establish a Common Consolidated Corporate Tax Base (CCCTB) in 2011. The Commission will also publish in 2011 a new VAT strategy on the basis of a Green Paper (expected at the end of the year) for a far-reaching re-examination of the VAT system.
Being competitive on the international markets. The Commission will continue to develop its regulatory cooperation with major trade partners, with the twofold objective of promoting regulatory convergence (by encouraging equivalent systems in third countries) and promoting broader adoption of international standards. The Commission will enhance its external strategy in the domain of public procurement, “in an effort to promote greater openness in public markets and the rest of the world, in a spirit of fair reciprocity and fighting discriminatory practices”.
Reconciling Europeans with the single market to relocate growth
Regaining the trust of European citizens in the single market is a prerequisite for relaunching growth. “Poverty, unemployment and fears about the future are also economic costs and handicaps to society”, while a good social system, high-performance vocational training, quality jobs and a high-standard health policy for employees are advantageous to growth and contribute to EU competitiveness. This is why recovery in the economy within the great market presupposes that the people within it feel good and that they become genuine actors who are conscious of the advantages that this market brings them in their daily lives. To this end, it is necessary to put their concerns at the heart of this great market and reinvest in the social market economy. It is on this basis that around 30 proposals have been developed in the document more specifically aimed at citizens. These proposals are focused around different priorities.
Improving public services and general interest infrastructures. By 2011, the Commission is expected to adopt a communication on a renewed legislative framework for the definition, organisation, funding and access for all to the services of general economic interest. At the same time, in 2010, the Commission will present a communication on the energy infrastructure priorities up to 2020-2030, with tools for their implementation, including a new instrument for the security of this infrastructure. It will also adopt a revision of the orientations for developing the Trans-European Transport Network, together with a proposal for a global funding framework for this infrastructure. Finally, a decision is planned for the European Radio Electric Spectrum.
Strengthening solidarity in the single market. A social clause guaranteeing the right to strike and carry out collective action will be included in legislation on the single market, in 2011. Another initiative: still in 2011, a legislative proposal seeking to clarify and improve implementation of fundamental social rights in the application of the directive on the posting of workers. Other proposals include consultation of social partners in the development of a European framework for the anticipation of industrial restructuring, as well as a new 2010-2020 strategy for people with disabilities (access and consumption of goods and services).
Access to employment and lifelong training. In the goal of facilitating the mobility of workers and adapting training, the Commission is expected to propose in 2012, a legislative initiative for reforming systems for recognising professional qualifications, based on an evaluation in 2011 of the acquis in this area. In this connection, for young people there will be a “Youth in Movement Card” in 2012 to facilitate student mobility. Information about distance learning and training opportunities in Europe will also be included on the “Youth in Movement” website. Finally, there will be a recommendation in 2011 that seeks to promote and validate “on-the-job” training and the creation of a “European skills passport” listing the different skills acquired through life.
New tools for the social market economy. A social entrepreneurial initiative is planned for 2011, to help develop innovative enterprise projects and respond to important socio-economic problems (access to housing, health care, work and finance, etc) by using social notation and ethical labels. The initiative would make use of a public tender and foresee the establishment of a new system of investment funds and use of dormant savings through various channels. In 2011-12, the Commission will introduce measures to support potentially innovative companies by improving the quality of the legal structure of companies in the social economy, unveiling a draft format for a European Foundation and a Green Paper on implementing the statute of European cooperatives, commissioning research into the situation of mutual social insurance companies (“mutuelles”) and their cross-border activity. The Commission will also hold a public consultation exercise in 2012 on corporate governance, along with measures to increase social responsibility (transparency with regard to human rights, the environment, etc).
A single market in the interests of consumers. Key proposals in this domain include: - guidelines for the member states (by the end of 2011) on tackling discrimination against consumers in cross-border sales on the Internet; - a multiannual action plan in 2011 to develop European market surveillance, and guidelines on customs control of product safety. The Commission will suggest a review of the directive on general product safety in order to introduce a coherent, effective framework for safe consumer goods within the EU. On access to financial services, a proposal will be unveiled by February 2011 for a directive on responsible mortgage lending and borrowing in order to create an integrated single market for mortgage lending with high levels of consumer protection. Early next year, a new draft legislative initiative will be unveiled on access to basic banking services, and later this year, there will be a communication identifying tax obstacles to be phased out for individuals. Two further areas of draft legislation will change the regulation on air passenger rights and introduce guidelines for farm and food price comparison websites.
Other proposals that could impact on Europeans include: - setting up a genuine European administration Facebook ; - possible draft legislation on effective class action mechanisms; - wider consultation with civil society when preparing legislation; - promoting a one-stop shop using various means to provide companies and individuals with information about their rights under the single market; and reinforcing out-of-court dispute settlement mechanisms (the SOLVIT network). (L.C./F.G./fl)