# IMMC.EESC-2019-05359-AC.ENG.xhtml.EESC-2019-05359-00-00-AC-TRA-EN.docx

EN
INT/892 A single market for all Opinion
of the European Economic and Social Committee on
A single market for all
(exploratory opinion) Rapporteur-general: Antonio LONGO Referral
Letter from the Croatian presidency of the Council,
10/09/2019 Legal basis
Article 304 of the Treaty on the Functioning of the European Union Section responsible
Single Market, Production and Consumption Bureau decision
24/09/2019 Adopted in plenary
10/06/2020 Plenary session No
552 Outcome of vote
(for/against/abstentions)
224/1/2 1. Conclusions and recommendations 1 1.1 For the European Economic and Social Committee (EESC), the European single market (SM) in all its dimensions – economic, social and environmental – is one of the cornerstones of the social market economy. It represents the key element in a harmonious and balanced European integration with a view to restoring public trust in the EU, creating new jobs, bringing about a more competitive economy and increasing Europe's influence in the world.
1.2 The EESC considers that achieving the European Green Deal's (EGD) objectives could make a crucial contribution to developing the future SM. 1.3 The EESC is convinced that the future single market can only be based on marrying a sound economic basis with a strong social dimension. It emphasises the need for upward convergence and a more effective social policy at both EU and Member State level. 1.4 The EESC believes that a new, integrated and forward-looking approach to the SM in all relevant policies and to removing the remaining unjustifiable obstacles – without creating new ones – must necessarily focus on citizens, consumers, workers and enterprises, as key players in framing, verifying and monitoring the entire process. 1.5 The EESC considers that major efforts need to be made to raise the level of digital literacy and increase understanding of the risks and opportunities of data management, enabling citizens to take part in forward-looking decision-making processes, understanding the potential and the limits involved. 1.6 Goldplating should be avoided and the lack of transposition and implementation of EU directives in key areas of business regulation should be addressed, as they prevent small and micro-enterprises, in particular, from fully reaping the benefits of the SM, particularly in the light of the Small Business Act. 1.7 The EESC considers that SM governance infrastructures must be reinforced with the proactive inclusion of organised bodies representing citizens, consumers and enterprises – with a particular focus on citizens who are vulnerable or at risk of discrimination, the social economy and micro and small enterprises – with a view to developing streamlined, user-friendly approaches and timely, transparent and efficient implementation and applications. 1.8 In the EESC's view, the international dimension of the SM needs to be strengthened in the context of the EGD. Market surveillance needs to be stepped up, to prevent entry onto the European market of products that are illegal or counterfeit, or do not meet environmental, social and safety standards, coming from third countries via increasing e-commerce, in order to curb unfair competition. 1.9 The EESC strongly urges that the European technical standardisation system be strengthened, as this is essential for the single market and particularly for technical, social, environmental and safety standards, providing citizens, consumers and enterprises, especially small and micro enterprises, with a clear view of the rules and procedures and guaranteeing them balanced and effective participation in the standardisation process. 1.10 The EESC calls for consumers' interests to be upheld in the REFIT process, in the digital world and in the safety of goods and services, and for measures to reduce energy poverty and consumption poverty to be stepped up, ensuring access to food products, medicines and essential services for everyone in Europe. The new paradigms of the SDGs must be backed by incentives – at European, national and local level. 1.11 The EESC underlines the importance of launching a robust, grassroots European campaign of publication and interactive information, with a network of high-profile dissemination hubs.
1.12 The EESC considers that fair conditions must be put in place for workers to exercise real freedom to move, establish themselves and work throughout the SM, especially in border regions. It is necessary to better implement the Directive on recognition of professional qualifications 2 and make a major joint effort in terms of financial and structural resources at European level for lifelong learning and training of human resources in new skills and qualifications. 2. Background to the present opinion 2.1 The SM in all its dimensions (economic, social and environmental) lies at the heart of European integration and is one of the cornerstones of Europe's social market economy and of the new sustainable growth strategy under the new EGD 3 . 2.2 Constant efforts are therefore required to ensure the further reinforcement of the SM. Only if it is fully completed will it be capable of restoring people's trust in the European venture, and create new jobs, bring about a more competitive economy and maintain and secure a more significant role for Europe in the world. 2.3 The process of completing the SM requires an integrated approach that can manage a process that connects all relevant policies and dimensions within a coherent long-term vision to address the current and emerging global, technological, security and sustainability challenges 4 . To this end, the European Green Deal Investment Plan will be decisive 5 . 2.4 Enterprises (small and micro-enterprises in particular) and citizens must be at the core of this process, actively involved in building a future-proof SM, with a more user-focused approach largely based on an in-depth analysis of the situation and of needs. For some essential goods and supplies of medicines there is currently a reliance on third countries that has to be overcome. 3. Obstacles to completion of the SM 3.1 The overt problems still facing the process of achieving the SM pose the following pre-requisites and barriers. 3.2 Pre-requisites The following pre-requisites must be met to ensure that the SM is accessible and usable under equal conditions for all:
a) full and timely transposition of SM legislation and elimination of transposition backlogs, and uniform and consistent application of EU rules together with easy, transparent and user-friendly access to them for all, without goldplating; b) effective implementation of the gas, electricity, digital infrastructure and transport SMs; c) full SM accessibility for all, providing accessible services and goods to all vulnerable or disadvantaged citizens, such as people with disabilities and at risk of poverty; d) harmonised market surveillance mechanisms (e.g. for the safety of chemical products, energy efficiency and product environmental performances); full operation of mutual recognition mechanisms; e) a smoothly functioning and harmonised market for secondary raw materials and circular products, facilitating the movement of end-of-life products; f) a fully implemented framework of high technical and regulatory standards, especially for environmental and social standards. Training is needed for public purchasers and the companies concerned on the application of the new rules under the SM Programme and awareness-raising work is needed on buying locally ("zero kilometres") in order to stabilise regional economies and reduce the environmental impact; g) common standards for public procurement with consistent purchasing criteria throughout the EU for green and socially inclusive procurement; h) an integrated EU-level digital ecosystem with new business, distribution and consumption models and new e-government relations; i) integrated and developed capital markets with financial services readily accessible to all; j) a fair data economy capable of ensuring the availability, accessibility and mobility of data within the SM, at the same time safeguarding the security and privacy of citizens, consumers and enterprises; k) a European science cloud, harnessing data from public and private research centres receiving support from European funds; l) a fully-integrated services market, including logistics and network services; m) effective safeguards against social and fiscal dumping; n) the need for the EU institutions to carefully consider and examine the impact of business regulations together with those directly concerned before amending existing or proposing new ones; o) promotion of all types of entrepreneurship by EU policy and legislation in order to boost the Member States' economies, including protection for small and micro-enterprises and social economy enterprises. 3.3 Barriers 6 3.3.1 Significant obstacles to the operation of the current SM, as seen by citizens, consumers and enterprises, have been highlighted in terms of:
a) complex administrative procedures: SM legislation often includes rules and procedures that are difficult for end-users to understand or follow; b) differing national technical standards: there is a growing body of national technical regulations, as shown by the growing number of regulatory notifications – some 700 each year concerning goods; c) difficulty in accessing information on standards and requirements: the Single Digital Gateway is a step in the right direction in helping enterprises, especially micro and small and medium-sized enterprises, to access the right information, but there are multiple contact points. A one-stop-shop in each Member State could provide better guidance on the rules, procedures and documents required, and on the authorities to be contacted; d) lack of coordination between levels of market surveillance: since surveillance is the responsibility of the Member States and of the regions, this may produce different levels of surveillance, with possible distortions between products on the SM and those entering the market; e) goldplating and lack of transposition and implementation of EU directives in key areas of business regulation, creating a complex regulatory patchwork in the SM, preventing principally micro and SMEs from fully reaping the benefits of the entire SM; f) lack of training and cooperation mechanisms to ensure sound and consistent knowledge of the standards that are (potentially) applicable, by the relevant public authorities, individuals, consumers and the companies concerned; g) failures in ensuring market unity in key sectors, e.g. gas and electricity, and in digital infrastructure and transport. 4. The SM as a key item on the EU's new strategic agenda 4.1 The EESC is convinced that an SM that serves all is a key element in European integration with a view to restoring public trust in the EU, creating jobs, bringing about a competitive economy and maintaining Europe's influence in the world. 4.2 The EESC considers that achieving the EGD's objectives, including e.g. the new Circular Economy Action Plan 7 and the zero pollution strategy, could make a crucial contribution to developing the future SM. 4.3 The EESC welcomes the fact that this process is one of the four main priorities of the 2019-2024 strategic agenda 8 and has been "integrated into the Semester cycle for the first time" 9 . 4.4 The EESC considers not only that a new, integrated and forward-looking approach to the SM in all relevant policies must necessarily focus on citizens, consumers, workers and enterprises as beneficiaries of the objectives, but also that they must be key players in the framing, verification and monitoring of the process. This process must in turn be based on the real needs that these players have voiced, be streamlined, easily accessible and easy to use. 4.5 The EESC points to the need for radical administrative simplification and highlights the problem of proportionality. SMEs and micro-enterprises in particular have high costs without the guarantee that they are acting in compliance with the legislation. The Small Business Act and the Think Small First principle should be a priority and be put – through the Strategy for SMEs and micro enterprises – on the policy agenda in the short term. Examining the combined impact of several regulations on enterprises should become a reality in the law-making process.
4.6 A process of support for digitalisation and intensive capacity-building for all stakeholders should be launched, and the SM in services should also be opened up in a fair and transparent way. 4.7 If an SM that looks to the future is to be achieved, major efforts are essential to raise the level of digital literacy and increase understanding of data and its management, enabling citizens and small enterprises to take part in these processes. The uncertainty and complexity of the context must be recognised and the necessary individual and social resilience built up to tackle these challenges and to better understand the potential and the limits of digital platforms and their underlying business models and governance, in order to guard against manipulation. 4.8 There is also a need for SM governance infrastructure that, while being based on existing EU governance tools (e.g. SOLVIT, IMI, Your Europe Advice, SM Scoreboard), is reinforced at EU and national level with the proactive inclusion of organised bodies representing citizens, consumers and enterprises, to develop streamlined, user-friendly approaches. Timely, transparent and efficient implementation and application of single market standards is needed for a successful transition to a digitally-based, efficient, coherent, balanced and sustainable Europe. 4.9 In order to stop unfair competition and to avoid safety and health risks for consumers, market surveillance needs to be strengthened to prevent illegal and counterfeit products entering the European market from third countries via e-commerce. Awareness-raising among consumers should be urgently addressed. 5. The SM and citizens 5.1 Citizens must be at the heart of the entire process of creating the future SM not only as the main beneficiaries of its achievements, but also as proactive players in the process, based on their needs and expectations. 5.2 In a previous opinion 10 , the EESC emphasised the need for "a major plan for digital education and training, providing everyone with the cognitive tools they need to cope with the transition". 5.3 The involvement of all EU citizens should be ensured at every stage, particularly for vulnerable citizens or those at risk of discrimination. People with disabilities or at risk of poverty must be guaranteed access to services and goods, in accordance with Directive (EU) 2019/882 11 and other legal obligations, e.g. the UN Convention on the Rights of Persons with Disabilities. 5.4 The EESC underlines the importance of launching a robust European campaign of publication and interactive information with a network of high-profile dissemination hubs located in central and outlying SM intermodal hubs to foster proactive public involvement taking on board prompts, difficulties and solutions, with the active support of organised civil society. 6. The SM and workers
6.1 The EESC is convinced that the SM of the future can only be based on marrying a sound economic basis with a strong social dimension 12 , and "has consistently advocated upward convergence and a more effective social policy at both EU and Member State levels" 13 , with "a clear and coordinated roadmap setting priorities for the implementation of the Pillar and the enforcement of existing social rights and standards". 6.2 The EESC once again underlines that "a new European Semester process should achieve social objectives in the framework of a social imbalance monitoring and new, measurable indicators should be introduced, together with targeted social Council Specific Recommendations" 14 , and that excessive differences should be avoided: although they reflect specific national situations, they can trigger social dumping and distort the level playing field for the entire European SM. 6.3 The EESC considers that fair conditions must be put in place for workers to exercise real freedom to move throughout the SM, especially in border regions. It is necessary to better implement the Directive on recognition of professional qualifications 15 and make a major joint effort in terms of financial and structural resources at European level for lifelong learning and training of human resources in new skills and qualifications. 6.4 The EESC once again underlines that "[t]he changes to productive processes and to the economy in general brought about by the new technologies, artificial intelligence and big data will also radically change the labour market", and that it is important that "these changes take place in the context of constructive social dialogue and with due respect for workers' rights and quality of life" 16 , avoiding traps causing poverty and precariousness. 6.5 The EESC considers that sustainable development requires a major joint effort in terms of financial and structural resources at European, national and local level for lifelong learning and training of human resources in new green and digital skills and qualifications that match the changing labour markets under the new EGD. 7. The SM and consumers 7.1 Consumer policy is an essential component in the process of completing an SM focused on the interests of the public and capable of shaping people's commitment to the process of EU integration. For the EESC, more needs to be done to ensure effective protection of consumers when operators do not comply with rules, and where the current fragmented application and persistent differences between MS are not reduced. 7.2 The EESC calls for consumers' interests to be upheld in the REFIT process, in the digital world and in the safety of goods and services, and for measures to reduce energy poverty and consumption poverty to be stepped up, improving access to food and pharmaceutical products and essential services for everyone in Europe. 7.3 The problem of differing treatment of consumers between countries in direct purchasing or e-commerce in terms of prices and sales and delivery terms must be tackled. Geoblocking is still a particularly significant problem. 7.4 The EESC welcomes the information provided on consumer protection results through the online dispute resolution platform 17 , but would like to see "out-of-court – especially cross-border – resolution tools made stronger".
7.5 The EESC is convinced that the transparency and comparability of information is of vital importance in enabling consumers to make smart choices, not least in terms of environmental impact and sustainability. 8. The SM and enterprises 8.1 The EESC considers the following to be necessary in order to meet the needs of enterprises with regard to the full implementation of the SM: 8.1.1 achieving further opening and integration of the goods and services markets, including logistics and network services, in order to unleash the EU's full economic potential and lay down a solid base for long-term global competition. Diversity and pluralism in the retail sector need to be safeguarded and promoted 18 ; 8.1.2 giving greater impetus to digitalisation as a key factor for European competitiveness, meaning a framework facilitating the introduction of digital technologies. Programmes aimed at SMEs and micro-enterprises need to respect their culture and involve the local representative organisations; 8.1.3 deploying more actions providing small and micro-enterprises with basic and intermediate digital skills, as well as a variety of technological solutions, and framing fair rules on access to data, the free flow of data and responsibilities by means of a comprehensive policy approach; 8.1.4 creating a regulatory and financial framework conducive to investment in infrastructure, so that physical and digital infrastructures are significantly improved and made interoperable – innovation and flexibility for enterprises to bring them into line with a rapidly-changing world, fostering new business models; and technological neutrality by means of SM legislation that facilitates market entry by lowering obstacles; 8.1.5 prioritising the principles of better regulation and practical implementation so that the SM is the best place to do business and to work. 8.2 Special attention must be given to the differences between national tax systems. For the EESC, social and tax dumping in the SM must be tackled, as it distorts competition and triggers otherwise unjustified relocations. 8.3 It is similarly essential to bridge the infrastructure and regulatory gaps in the interconnection of local markets in the SM, particularly in key sectors such as gas, electricity and transport, which present obstacles to fair and transparent competition.
8.4 The EESC points out that the European standardisation system must be strengthened, and particularly for technical, social, environmental and safety standards, providing enterprises, especially small and micro-enterprises, with a clear view of the rules and procedures to be followed and guaranteeing all relevant stakeholders balanced and effective participation in the standardisation process. Brussels, 10 June 2020 Luca Jahier The president of the European Economic and Social Committee _____________
(1) The Commissi on published the Communications on Long-term action plan for better implementation and enforcement of single market rules and Identifying and addressing barriers to the single market on 10 March 2020.
(2) 2005/36/EC.
(3) COM(2019) 640 final.
(4) 9743/19 COMPET 437 MI 487.
(5) EESC-2020-00463 ECO/505 (rapporteur: Mr Trias Pintó).
(6) The Commission published a key Communication on Identifying and addressing barriers to the Single Market (COM (2020) 93 final) on 10 March 2020.
(7) COM(2020) 98 final, published on 11 March 2020.
(8)
https://www.consilium.europa.eu/en/press/press-releases/2019/06/20/a-new-strategic-agenda-2019-2024/
.
(9) IP/19/6770, 17 December 2019.
(10)
OJ C 81, 2.3.2018, p. 102
.
(11)
OJ L 151, 7.6.2019, p. 70
.
(12)
OJ C 353,18.10.2019, p. 23
.
(13)
OJ C 13, 15.1.2016, p. 40
;
OJ C 81, 2.3.2018, p. 145
and
OJ C 440, 6.12.2018, p. 135
.
(14)
OJ C 14, 15.1.2020, p. 1
.
(15) 2005/36/EC.
(16)
OJ C 353,18.10.2019, p. 6
.
(17) According to the Commissioner, Ms Jourová, more than 24 000 disputes were resolved in the first year.
(18)
OJ C 110, 22.3.2019, p. 41
.