Policies

INTERNAL MARKET

From the Common Market to the Single Market

The internal market is one of the foundations of the European Union, the result of the Treaty of Rome.

The founding members had drawn up a plan for a customs union in 1957, which was to evolve towards the creation of the European internal market on 31 December, 1992. Most of the reforms needed to establish this market were completed as a result of the implementation of the Single Act of 1 July, 1987, which provided for the increased use of qualified majority voting. A great boost was given to economic growth by the free movement of persons, goods, capital and services. The introduction of the Euro in 2001 put the finishing touches to the new European edifice. On the tenth anniversary of the implementation of the single market, the Commission, heartened by generally positive results, presented a ten-point plan to highlight its success.

A border-free market

The economic advantages of the single market are undeniable, as borne out by the 2.5 million jobs which have been created since 1992 and the 877 billion of created wealth. Trade between the Member States and investments between the 15 and the cross-border regions have grown at a rate higher than that of GDP, illustrating the growing integration of European markets. Exports to non-member states have doubled in ten years. The opening of the markets has encouraged competition and led to lower prices for everyday consumer products, an increase in choice and better quality. The introduction of the Euro should increase convergence, which, at present, exists more for goods than for services.

A Citizens' Europe

The free movement of persons has been a driving force in the implementation of the single market, giving it a concrete dimension in the eyes of Europe's citizens. The right of vote given to EU nationals in their host Member State is a step forward in this regard. The EPP-ED Group has always been in favour of recognising cultural differences, but within the framework of a joint European project. It is perfectly possible for a European identity and a national identity to coexist. This is a challenge to be met in the context of an enlarged Europe.

Enlargement

Europe is at the dawn of a new era. Never before has it been in a similar situation. To meet this challenge, however, it needs to find ways of enabling Community law to be implemented. In this regard, the Commission is about to publish a recommendation describing 'best practices' which should be followed consistently throughout the Union in order to speed up the transposition of directives into national law. It also welcomes the fact that the number of infringements of internal market rules has decreased (currently at 200 cases a year). The increase in the number of Member States will inevitably lead to an increase in the number of cases to be dealt with. This is why the Commission is establishing an amicable settlement procedure, known as the Solvit network.

Priorities for 2003-2006

The Commission has submitted a ten-point plan, the aim of which is to improve the operation of the single market and which, alongside the broad economic policy guidelines and employment guidelines, is part of a more general strategy to co-ordinate EU economic policies with a view to implementing the necessary reforms. The key points are: improving the implementation and application of internal market rules, putting the free movement of services into practice, eliminating any remaining obstacles to trading in goods and drawing up public contracts that are truly European.

For example, the political agreement to establish a Community Patent is a remarkable step forward on the path towards the creation of a more competitive and more dynamic economy.

The EPP-ED Group takes a flexible approach to the implementation of the internal market because of its intrinsic features. A balance needs to be struck between mutual recognition and harmonisation. This should be achieved more on a case-by-case basis than by adhering to a rigid political doctrine.

Progress to be made

One of the main obstacles to the progress of the internal market is the fact that the Member States are taking longer and longer to transpose directives. There are various reasons for this, but it is sometimes due to the political will of the Member States concerned not to apply certain directives. This gives rise to unfair competition vis-à-vis the more diligent EU countries, which can find themselves being penalised. This is one of the reasons why the Commission, fulfilling the wishes of Parliament, has submitted a new strategy in this area (including a compatibility test for new national legislative acts).


Antonio Preto