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Europe Daily Bulletin No. 10252
A LOOK BEHIND THE NEWS / A look behind the news, by ferdinando riccardi

Significance of single market relaunch, divergences on how to achieve it

Invitation to debate. The relaunch and deepening of the European single market is a complex and gradual undertaking. The European Commission has presented its document as a means to open a European public debate, which will last for four months. Michel Barnier has explained that the 50 operational measures announced in this document are binding but he also asks whether they are appropriate and sufficient. The definitive list of initiatives that the Commission intends to launch will be decided next February, in light of the different responses and suggestions made (EUROPE 10245). This is the document's primary characteristic: it is an invitation to debate, before it is granted draft status that will fully determine the commitment from this institution, which has the right of initiative. It is obvious that the main objectives and broad direction will remain; but for several aspects, the modalities and level of ambition will have a fundamental importance and still partly need to be defined.

Fifty proposals in two years. The second crucial characteristic is represented by the number and breadth of the different areas covered. The free movement of goods is just one aspect: the single market, in fact, at the same time covers public procurement, intellectual property, technological progress, transport, social policy and to a large extent, industrial policy and a number of other factors as well. The 50 proposals (or more?) which will result from it will fall under the remit of several different commissioners. In practice, at least 13 commissioners have taken responsibility for the preparatory document, as indicated by Barnier, the coordinator and person responsible for the general orientation. He has also explained that each commissioner involved will at some stage also be responsible for preparing different texts on his/her area of competence and for presenting these documents over the course of 2011 and 2012.

Forgotten advantages, battle for popularity. The scale of this involvement explains and justifies the sometimes conflicting way in which the preparatory work has taken place (see this column in ERUOPE 10228), as well as the scope and sharpness of the discussions on 26 and 27 October at the Commission, where certain very different points of view were expressed. Even the title of the document that was put together became more cumbersome. The definition, Single Market Act, which everyone was beginning to get used to, was made more complicated with different subtitles, “Towards a Single Market Act for a highly competitive social market economy - 50 proposals for improving our work, business and exchanges with one another”. The references to the social objective correspond to the situation - the extensive market without borders from the very beginning sought to bring consumers advantages and promote job creation - but they also attempt to respond to the observation made in the Monti report: “The single market has never been so unpopular but it has never been so necessary either”. The concrete demonstration of the positive effects of the single market should help win back the support of public opinion, which has largely forgotten the huge advantages created by getting rid of the borders. This now forms part of our daily lives and is considered as normal, but countries that still do not benefit from these advantages are focusing all their efforts on becoming part of this system. According to Michel Barnier, the objective is to “give a human and social dimension back to the common market as a common living area”.

The challenge according to Philippe Herzog. The transition, however, from principles to their practical application is not easy and often opinions do not converge. Philippe Herzog, the special adviser to Michel Barnier in this undertaking, has spoken out on a number of occasions in the Confrontation Europe publication of which he is the founder, and in a number of other interviews. Whilst remaining faithful to his convictions, he understands that the objective cannot be reached by imposing the totality of one or another vision of the single market. He has explained that it is now important to overcome dissent and make some mutual concessions, inspired by a common determination to achieve reform”. He has thus described the adventure which is now beginning as “a far reaching public debate that will be opening up. Several months of intense confrontation are proposed. The Commission has not made such an offer in the direction of civil society and citizens for a long time. Participation is imperative. What is at stake? New industrial policies, a reorientation of finance toward long-term investment, tax coordination, European level infrastructure development, re-evaluation of the role of public services, planning for restructuring and enhanced conditions for workers' mobility in Europe. On this multifaceted front, there is a need for commitment from entrepreneurs, trade unionists and from those we elect. Obtaining agreement from all member states will be difficult and it will be necessary for Europeans to push them in this direction”.

Tomorrow, this column will examine a number of differences and interests involved in this connection.

(F.R./transl.fl)

Contents

A LOOK BEHIND THE NEWS
THE DAY IN POLITICS
GENERAL NEWS
ECONOMIC INTERPENETRATION
WEEKLY SUPPLEMENT