Brussels, 21/02/2007 (Agence Europe) - Defining a vision of the internal market in the 21st century on the basis of the experience acquired since its creation, and anticipating the profound socio-economic changes to come at European and national levels. This is the ambition of the European Commission, which adopted an interim report on Wednesday 21 February, on the future of the internal market, ahead of the European Council of 8 - 9 March. This document lists the various successes and shortcomings of the internal market and the instruments which will help to improve its functioning. It will lead, this autumn, to a global strategy, together with specific legislative proposals, if these are felt to be necessary.
In order to continue with the integration of the single market, the Commission is searching for an equilibrium between competition, openness to the rest of the world, solidarity and a guarantee of high social and environmental standards: “The internal market is a means and not an end in itself. It is a way of allowing everybody in the EU - people, consumers and businesses - to derive the greatest possible benefit from the opportunities offered to them by a more open and more integrated Union. It is a means of moving forward the interests of the European citizens in the era of globalisation, by giving Europe greater strength and more influence on the international stage. It is the means of stimulating economic growth and making Europe competitive and open, a Europe with flourishing markets and healthy commercial relationships, a Europe which is capable of guaranteeing solidarity, full employment, universal access to services of general interest, high social and environmental standards, and high levels of investment in research and education, in order to pave the way for the future”.
According to the Commission, an increase in choice and a reduction of prices for goods and services constitute the principal benefits resulting from the creation of the single market. This is true of air transport, telecommunications and cross-border payments. “More must be done”, however, in order to “boost the confidence” of the consumers towards the internal market. The emerging sectors such as “health services” are a particular target. And with the impetus of electronic trade and cross-border trade, more priority must be granted to fighting against the fragmentation of consumer protection rules. As the economy will now be increasingly based on knowledge, the Commission lays emphasis on markets with high levels of technological intensity. Currently, however, the telecommunications markets are “too fragmented”, the Commission notes, describing a reduction in costs and an improvement in quality and legal certainty related to the “intellectual property rights system” as “essential”. The European institution is also aiming for “fair and efficient” competition within the internal market, in order to provide motivation for businesses to become increasingly involved in cross-border activities. It believes that the “distribution of the euro - which will, over time, become the currency of most of the member states - will be essential”, as the single currency increases the “transparency” of prices for consumers and costs for businesses. Lastly, the improvement of the internal market cannot ignore the fears of the European citizens on any unfortunate effects born of globalisation. “Anticipating and accompanying change for people and economic sectors directly affected by the opening-up of the market is essential: this is a question of social justice”, the Commission observes, going on to refer to the newly created globalisation adjustment fund. It must also be ensured that these improvements do not come at the cost of lower environmental standards, because it is these that allow the EU to lead the field and to have such influence over the definition of standards at international level.
Which instruments will be used to achieve these objectives? “Traditionally, the internal market policy had the aim of removing cross-border obstacles, particularly by dint of regulatory measures” put in place at European level to replace national rules, the Commission points out. In future, it will act “when the markets do not produce the hoped-for effects and wherever the impact will be greatest”. This procedure will call for better analysis of the needs of those involved, market functioning and the “social impact” of increased integration or more openness to competition. As “guardian of the treaties”, the Commission warns that it will use “all the instruments at its disposal”. It sees the matter as a question of “finding the right balance between harmonisation and the mutual recognition of roles and recourse to directives or regulations”; developing “tools to add to and complete legislation” (European agencies, guidelines, exchange of best practice, self-regulation); simplifying the existing rules, including new assessment mechanisms for national legislation, as laid down in the “services directive”; reinforcing competition rules; managing infringement proceedings more effectively; promoting mechanisms for resolving conflicts amicably (e.g. SOLVIT). The Commission also hopes to give a greater role to the national regulators in implementing the legislation and stepping up cooperation in networks of national legal and regulatory authorities. It believes that “a great deal could be done to improve communication” on the opportunities which the internal market has to offer. (mb)