But there is less satisfaction with the regulatory framework and the way that Internal Market rules are applied. Businesses give their highest marks to buying and selling products and services and their lowest marks to the application of rules in the Member States. . Business people questioned in the survey identify a wide range of obstacles to doing business effectively in the Internal Market and the ranking has been consistent over the last two years. Barriers related to high additional costs for rendering goods and services compatible with differing national specifications and unusual testing, certification or approval procedures continue to head the list. Other frequently encountered obstacles relate to distortions of competition due to state aids favouring competitors, problems encountered with VAT obligations and inadequate mechanisms to deal with breaches of contract across borders.
Obstacles affect businesses differently.
Big firms, employing more than 250 people, perceive more strongly obstacles related to state aid and market restrictions due to access rights or licences. The survey shows that there is still significant scope for improving the business environment. When asked what needed to improve, there was a remarkable degree of consensus. The perspective of enlargement For the first time, businesses were asked their views on enlargement of the Union. There are already considerable businesses ties with the 13 accession candidate countries.