Mr President, we all agree on the need to allow companies across Europe to run the EU-wide sales promotions. Sales promotions are key tools to marketing goods and services and we need to get rid of restrictions and barriers so as to allow business and consumers to exploit the opportunities of the internal market. In the UK it is commonplace that consumers can and do benefit from sales promotions, for example coupon vouchers. In 2000, for example, 531 million coupons were redeemed in the UK; between 1999 and 2000 there was a 122.5% increase in consumer use of Internet coupons and promotions. So they are popular and we need to regulate and open up this area for consumers and business. It is, however, important that the Commission addresses some of the concerns of Members of the European Parliament and of my political group on the issue of sales below cost in particular. We also tabled the amendment to require the Commission to come forward with a study in this area. There are legitimate concerns, because sometimes sales below cost can be abused to squeeze out competitors by means of predatory pricing; this does not help small business, nor does it help the consumer. That is why, in the spirit of better legislation called for by Commissioner Prodi recently, my group will give the Commission conditional support for the regulation if it agrees to carry out an evaluation study to examine exactly how sales below cost can benefit both small businesses and consumers. This study should also address the need to strengthen competition policy instruments to prevent predatory pricing and its unwanted side effects. The internal market should not be a free-for-all for big business, leading to SMEs being squeezed out of markets with the result that consumers have less choice. We must also make sure that the information requirements in the annex are clear. It is important that business is clear about its obligations to provide information on promotions. It is also important that consumers have sufficient information and legal redress, either through the law courts or through ADR systems. The Group has therefore tabled an amendment asking the Commission to work in consultation with consumer groups and industry to ensure the clear and unambiguous execution of the information requirements. As they are currently drafted, they are misleading and have led both to business lobbying MEPs and complaining about the lack of clarity and to consumers letting us know that there are information gaps. If this regulation is to achieve legal certainty then the requirements must be clear. However, I agree with the Commissioner that the answer is not, as the Group has proposed, to delete those requirements and, like the Commission, we will be voting against those deletions. The Group has taken a strong line to protect minors against harmful promotions relating to alcohol and tobacco. I hope those will be taken on board. Finally, a very brief point on mutual recognition. I personally believe that mutual recognition already works. Every day on the Internet, cross-border sales and business are alive and thriving, using the principle of mutual recognition. We cannot bury our heads in the sand and deny the fact that this is already happening.

Political group: PSE