Brussels, 24/10/2007 (Agence Europe) - On Tuesday 13 November, the Commission is to present a new strategy for the internal market in the 21st century, in which: - it will indicate the political vision which will guide its future action in this field; - it will list the sectors in which the internal market remains fragmented, requiring targeted initiatives (see EUROPE 9371). According to the draft, of which EUROPE has obtained a copy, the European institution will focus its attention on the advantages which the citizens and small and medium-sized enterprises (SMEs) may rightfully expect when the internal market is functioning without obstacles, and on the completion of a genuine European area of services. As it hopes to adapt this new strategy to the realities of international trade, it suggests that the internal market be made into a springboard for European companies in economic globalisation, and that the rules which govern it be held up as examples for its partners to follow. Another strong area of commitment for the Commission is the requirement for all interested parties to approve the internal market, in order to guarantee its effective implementation and full respect of its rules. This new strategy is to be accompanied by a communication to be published shortly on a political approach to the services of general interest (SGI), and which does not provide for a joint legislative initiative. If it does not initiate a public consultation phase, it will feed into the discussions of the European Spring Council on the revised Lisbon strategy.
Citizens and SMEs. In review of the Commission, the internal market policy should focus its attention on the factors which affect the everyday lives of consumers and businesses, such as “telecommunications, energy and retail financial services”. In these sectors, the fragmentation of the markets must be overcome whilst keeping high quality and security standards in place. The European executive takes the view that “increased European integration in the retail financial services (current bank accounts, payments, individual mortgages, savings, pensions, loans, and investment and insurance products) should produce greater benefits in terms of price, choice and confidence in the products and services on offer”. The Commission is to present a “White Paper on mortgage loans” and a “communication on how to improve the financial education of consumers”. At the moment, it is still considering a legislative initiative to facilitate the opening and closing of the accounts free of charge. Referring to the revision of the Community acquis as regards consumer protection, it has announced new initiatives for 2008, which will relate to “contractual rights” and “collective recourse procedures”. The Commission is currently putting together a “package of measures” which will aim to “reinforce and rationalise market monitoring mechanisms and medical products” and to guarantee “better access to information on pharmaceutical products”. In the field of food safety, it is to present an “initiative on food and nutrition labels” and will review the “legislation on new foods” (GMO).
If the EU hopes to win the confidence of the European citizens, it must include the social and environmental dimensions in its internal market policy. The Commission takes the view that “new approaches” are necessary if the citizens are to be armed against the major changes which are sweeping across European companies (transition towards a low-carbon economy, ageing population, equal opportunities). This means that everybody must have access to life-long education and training and be assured that professional mobility will not prevent them from enjoying their social rights. Early in 2008, the Commission will present “an examination of the European rules on information for and consultation of employees”, “a follow-up communication on the Green Paper on employment law” and “a communication on trans-national collective agreements”.
Although it notes that large businesses have benefited from the opportunities opened up by European integration, the Commission acknowledges that “small businesses often find that the internal market is fragmented and difficult to penetrate”. This statement did not appear to have been accepted at first glance, according to an expert close to the dossier. The European institution is examining “a range of initiatives to support SMEs”, including a “Small Business Act for Europe”, to be drafted in 2008. The stated objective is to reduce administrative burdens weighing down on SMEs, to increase their participation in European programmes and in public procurement and to improve standardisation of their products and services. It also points out that it will propose “a European private company status” (see EUROPE 9516).
International dimension of the internal market. “The internal market is a major asset if we are to face up to the challenges of globalisation”, stressed the Commission. On the one hand, it provides motivation for companies to be more efficient and innovative in order to conquer markets on other continents, for example. On the other, it makes Europe more attractive to foreign investors and allows the European Union to take a leading role when global standards and rules are being defined (such as environmental, food safety and technological standards, or the anti-trust policy). According to the Commission, the EU must play an active role and get involved nationally in favour of “regulatory cooperation, the convergence of standards and the equivalence of rules”. This exercise should be able to move this convergence upwards, rather than “work to the lowest common denominator”. The European institution will, therefore, make increased use of “regulatory dialogue” with the EU's partners, on the model of the trans-Atlantic dialogue on financial services. The institution, which is in favour of the opening-up of markets in third countries, points out that it has launched negotiations which will hopefully lead to the signature of “bilateral and extensive free-trade agreements”. It will also study the impact of existing agreements in terms of price and may reflect on “accompanying measures”, if it perceives that the benefits are not of advantage to consumers.
Doing more for services. Although it represents 70% of Europe's Gross Domestic Product (68% of its employment and 96% of all new jobs created in the EU), the services sector constitutes just 20% of intra-Community trade, the Commission observes. It is true that many services are produced and consumed locally, but the Commission feels that the potential of the services sector must be released and that the barriers which fragment it must be reduced. In particular, the transposition, before the end of 2009, of the “services” directive and the continuing process of liberalising the network industries such as the “Postal, energy and transport services” will contribute towards the creation of the European services area. Emphasis must also be laid on the promotion of the “free movement of knowledge and innovation”. The Commission announces that it will present “a strategy for standardisation”, with a view to stimulating the commercial use of the results of research, particularly by SMEs, and the growing sector of low-energy technologies. On 13 November, it will propose “a modernised framework for electronic communications” (see EUROPE 9522). This framework will be added to in 2008 by an “initiative on universal service”. A further project will aim to improve the “interoperability and dissemination of electronic and software systems”, not forgetting work under way which may lead to decisions on “a joint Community framework for patent protection” (see EUROPE 9524).
SGI. The protocol on services of general interest which has been annexed to the modifying Treaty is “a significant new stage” in the definition of principles for the provision of these services, the Commission states. Further to the recent agreement on the European Treaty at the Lisbon Summit, the Commission is to present “a package of initiatives providing guidelines for practitioners and, where appropriate, modernising the applicable Community law, including in the field of health care, social services and public-private partnerships”. On 13 November, it is to publish “a communication on the services of general interest” further to its White Paper of 2004. This document will not announce a joint legislative initiative. At this stage, even the idea of proposing an inter-institutional agreement on the principles guiding the European policy on SGI has not been agreed upon (see EUROPE 9381).
Ownership by the actors. The implementation of and respect for the rules are vital elements of any policy targeting the internal market and requiring the involvement and cooperation of “all levels of governance”, be it at local, regional, national or European level. The Commission will annex “an internal working document” to its new strategy, presenting “ways in which the management of the single market can be improved”. It takes the view that it has considerable leeway to improve “cooperation, the creation of networks, the exchange of best practice between the administrative, judicial and regulatory authorities of the Member States, and between the European regulators”. The national coordinators tasked with the implementation of the Lisbon strategy in their country may be called upon to contribute. The Commission points out that it is currently setting up single information points on the opportunities presented by the single market for the citizens and businesses. In terms of infringements of Community law, it undertakes to improve its communication on the number and nature of proceedings under way and notes that in 2008, it will launch a “scoreboard”, measuring the performance of all markets orientated to the end consumer.
In order to improve the effectiveness of the internal market, the Commission has drafted a “methodology” to provide an integrated and more systematic follow-up for the functioning of the markets for goods and services. The first stage of this methodology consists of identifying the sectors with high levels of potential: certain services (financial services, postal services, telecommunications and the liberal professions) and the machine-tools and audiovisual sectors. In its second stage, and in-depth analysis will highlight dysfunctioning specific to these sectors. Lastly, on a regulatory technical level, the Commission commits to appeal “in a more intelligent way” to the range of legislative or non-binding instruments available to it. It notes that “the best results are often achieved via a joint approach combining various policies, those of the internal market and competition, and adding to the legislative instruments by 'lighter' approaches such as (the adoption of) guidelines, self-regulation, training or advice”. (M.B.)