Essential but incomplete. If there is one achievement of European unity that is generally well recognised it is the single market without national borders. In the beginning, the European Community was simply referred to by terms like “common market” - as a symbol and initial achievement. Yet this market is far from perfect and it is for good reason that it formed the second subject of the conference-debate organised in Brussels on Tuesday by Notre Europe - Jacques Delors Institute. This colloquium was divided into three parts - a new departure for economic and monetary union (EMU), the single market, and improving the social dimension of the EU.
Not wanting to repeat the lessons to be learnt from the part dedicated to EMU, I will give an account of the “single market” section, taking the document signed by Jacques Delors himself as my basis. This document proves to what extent the single market is still imperfect and incomplete, and it points out timely and much needed innovations and improvements. The boost to this aspect of European construction had already been decided in December 1985 by the Single Act - an odd but telling name because it in fact represents the only historical decision of a European summit taken by majority (Mrs Thatcher was opposed to it). This Single Act was revolutionary because it went largely beyond the area of merchandise to cover the four freedoms of movement - of goods, services, capital and people. This revolution was all the more significant as it introduced at the same time the principle of qualified majority voting for the measures to apply these four freedoms. Positive achievements then followed - especially on social dialogue at European level, which was previously non-existent. And Jacques Delors recalls that it is in the spirit of this conception of the common market that the idea of the single currency was developed in order to facilitate the transparency of prices, get rid of exchange costs and eliminate competitive devaluations.
The gaps are expensive. The dimensions of the EU single market are colossal, exceeding those of the United States. European progress was considerable for several years. But Europe is still far from having achieved the task - there are numerous gaps which sometimes affect the very essence of the project.
In the area of energy, the single market is non-existent. That's why a European Energy Community project was launched at the initiative of Jacques Delors, but nothing has yet been accomplished. Other gaps include the delay in remedies for the social effects of the relocation of some activities; the single market sometimes being used as a convenient scapegoat; the example of the controversy in France over the “Polish plumber”. Some instruments have not been used at all - in the area of services, for example. In April 2011 the Commission presented 12 key actions for the single market - 11 of them have still not been approved either by the Parliament or the Council. The trans-European transport and energy networks - identified by the 1993 White Paper - have not materialised due to the lack of European funding and the gaps in cooperation between the member states.
The Commission's calculations indicate that completion of the single market would bring an additional 4% growth to European GDP by 2020.
Forgotten solidarity. Jacques Delors adds to the list of gaps his criticism of the effects of competition between member states on social and fiscal issues - which he considers contrary to the spirit of European solidarity. It is normal that the social models of the member states are not uniform - but the European rules must be strengthened in order to avoid national behaviour leading to a levelling downwards. If convergence of this behaviour is not obtained, in Delors' opinion the instrument of enhanced cooperation should be used between the member states which agree. He believes that the case of the financial transaction tax points the way - the same vigour needs to be used for the taxation of societies. In his opinion, the difficulties are due to technical difficulties and also to a lack of political resolve (Ireland is not explicitly mentioned in his text).
Cornerstone. The conclusion of the Delors document is very clear: “The single market more than ever remains the cornerstone of the European construction. It should be preserved as a valuable asset, including in the context of the progress of integration in the framework of the eurozone.”
This document is a lesson for those who take the accomplishment of the single market for granted without understanding the importance and meaning of the progress that was also needed for this. (FR/transl.fl)