EN Official Journal of the European Union L 176/17

COMMISSION RECOMMENDATION

of 29 June 2009

on measures to improve the functioning of the single market

(Text with EEA relevance)

(2009/524/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community, and in particular Article 211 thereof,

Whereas:

(1) A well functioning single market is essential for creating employment and growth, and for promoting economic stability. The more effective the single market is, the more it will improve the business environment, thereby encouraging firms to invest and create jobs, and the more it will increase consumer confidence and demand. A well functioning single market is therefore crucial in the context of economic recession to facilitate the recovery of the European economy.

(2) It is essential for a well functioning single market to have correctly transposed, applied, enforced, monitored and satisfactorily harmonised Community rules affecting the functioning of the single market (hereafter single market rules).

(3) Consultation and analysis carried out to prepare the Communication ‘A single market for 21st century Europe’ (hereafter the Single Market Review) (1) have identified a number of shortcomings which show that the single market does not yet function as efficiently as it should. In many areas and sectors, further work is still necessary. Citizens and businesses are often unable to seize the many single market opportunities because rules are not properly applied and enforced.

(4) In the Single Market Review, the Commission therefore suggested a set of concrete measures, to ensure that citizens and businesses continue to benefit from the economic advantages created by the single market (2).

(5) The measures taken by the Member States and those taken by the Commission should complement each other. A coordinated and cooperative approach — in partnership between the Commission and Member States — with a common objective of improved transposition, application and enforcement of single market rules, is vital to ensure the proper functioning of the single market. The partnership approach in the context of this Recommendation goes beyond the already established cooperation in a number of single market policy areas. It requires establishing and maintaining closer cooperation within and between the Member States, and with the Commission, in all areas that are relevant for the single market. It also implies that Member States assume shared responsibility for and therefore a more proactive role in managing the single market.

(6) The Single Market Review, and in particular subsequent discussions with Member States, identified some areas as crucial to achieve a well functioning single market, namely: ensuring coordination on single market issues; improving cooperation within and between Member States as well as with the Commission; improving the transposition of single market rules; monitoring markets and sectors in order to identify potential market malfunctioning; improving the application of single market rules; strengthening the enforcement of single market rules and promoting problem-solving; promoting regular assessment of national legislation; and informing citizens and businesses about their single market rights.

(7) This Recommendation draws closely on solutions already introduced in certain Member States, which have proven to work in practice in the Member States concerned. It is for each Member State to choose the practices best designed to ensure the implementation of this Recommendation, having regard to what would be most effective in the context of that Member State, since procedures and practices that are effective in one Member State may not be as effective in another.

(8) Research shows that Member States need to improve internal coordination on single market issues, as competences are currently dispersed among different national authorities (3). As applying single market rules may involve a wide variety of national, regional and local authorities in each Member State, efficient cooperation among them should be enhanced. Therefore, Member States should ensure and strengthen a single market coordination function within their national administrations, which may vary according to specific national administrative structures and traditions. The authorities responsible for this function should have the overall responsibility to plan, oversee and evaluate the implementation of this Recommendation.

(9) Close cross-border cooperation between Member State authorities competent for single market issues allows the building of mutual trust and is of vital importance for the correct application of single market rules. Member States should take the necessary measures to ensure that the cross-border networks or electronic information systems established by the Commission (e.g. such as the Internal Market Information system (IMI), RAPEX (4), RASFF (5) or Consumer Protection Cooperation network) are operational, by putting in place appropriate arrangements, including allocation of resources.

(10) Internal Market Scoreboards have shown that there is still a need to improve timeliness and quality in the transposition of single market Directives. While Commission Recommendation of 12 July 2004 on the transposition into national law of Directives affecting the internal market (6) (hereafter the 2004 Commission Recommendation) has broadly been applied, and while this has resulted in a significant improvement of the transposition rate, parts of that Recommendation still remain to be applied more effectively. This Recommendation recalls as still necessary and further develops actions recommended in the 2004 Commission Recommendation, which remains a reference for Member State administrations dealing with transposition. This Recommendation also builds on the Communication from the Commission — A Europe of Results — Applying Community Law (7) and on the Communication from the Commission — Review of the Lamfalussy process — Strengthening supervisory convergence (8).

(11) Market monitoring is necessary to identify the sectors where markets do not function properly for consumers and businesses, and to focus single market policies on those areas. Therefore, it should become an integral element in designing and monitoring single market policies (e.g. through the Consumer Markets Scoreboard). Cooperation between the Commission and Member State authorities on market monitoring and data collection work will enhance the quality of data and analysis for use at national and Community level, and help build consensus on single market issues. Member States are encouraged to participate in market monitoring exercises carried out by the Commission, and to carry out similar exercises at the national level, adapted to specific national needs.

(12) Various national studies have underlined the importance of training to assist officials, including judges, at national, regional and local levels of administration in correctly transposing, applying and enforcing single market rules. In this context, it is important to ensure that those rules, and the impact on the Community’s external competitiveness in general, are always taken into consideration when drafting national legislation. The importance of training was further confirmed by a recent study and resolution on the role of the national judges conducted by the European Parliament and its 2005 resolution on competition law (9), as well as by a recent Council Resolution (10). Officials should also be given guidance on Community law in general and on single market rules in particular.

(13) Effective enforcement of single market rules and proper measures to resolve problems encountered by citizens and businesses are of crucial importance to help citizens and businesses to benefit from the freedoms guaranteed by the Treaty. Building on the cooperation already achieved in the area of problem-solving, in particular through SOLVIT (11), Member States, with the support from the Commission, should improve the capacity of problem-solving mechanisms — either in national courts or through non-judicial mechanisms — to provide effective redress. It is important that the circumstances giving rise to the various problems encountered are addressed.

(14) Regular monitoring and evaluation of national legislation is important as it allows verification of how effectively single market rules are applied in practice, and identification of provisions which could prevent citizens and businesses from drawing full advantage from these rules. Such exercises should be carried out more systematically in all Member States.

(15) Recent Eurobarometer surveys (12) and requests addressed to the Commission’s information and problem-solving services show that it is necessary to provide more information to citizens and businesses about their rights in the single market in order for them to be able to exercise those rights in practice. It should furthermore be made possible for citizens and businesses to obtain assistance when they exercise those rights. To that end, Member States, with the support of the Commission and when appropriate in cooperation with the stakeholders, should ensure the provision of practical information and advice on matters that concern citizens and businesses who want to live, study, work, set up companies or provide goods or services in another Member State.

(16) The Annex to this Recommendation sets out measures that Member States could take in order to implement this Recommendation and provides a list of practices of certain Member States, on which those measures are based. It is considered that, while certain measures may initially incur costs, they should allow for savings to be made, for instance by streamlining national administrative practices, and should, in the long term, lead to a better functioning single market and therefore bring benefits to consumers and businesses.

(17) The progress in implementing this Recommendation should be monitored in close cooperation between the Commission and the Member States, including through discussions in the Internal Market Advisory Committee (IMAC) on the basis of benchmarks and indicators. In order for the Commission to be able to carry out an assessment of the effects of this Recommendation four years after the publication of the Recommendation in the Official Journal, Member States should submit reports to the Commission three years after the publication of this Recommendation in the Official Journal on actions taken to implement the Recommendation,

HEREBY RECOMMENDS THAT THE MEMBER STATES:

1. Ensure and strengthen a single market coordination function, to promote efficient coordination within and between authorities responsible for single market issues at national, regional and local level, and to act as a reference point for the single market within the administration.

2. Facilitate active cooperation between administrative authorities responsible for single market issues in different Member States, and with the Commission, through the allocation of sufficient resources.

3. Take all necessary measures to improve the transposition of Directives affecting the single market.

4. Support the Commission’s work on market monitoring and related data collection by actively contributing to the exercise at the Community level, and, if relevant, by considering similar exercises at national level.

5. Ensure that national authorities and officials have sufficient knowledge of Community law in general and of single market rules in particular to efficiently apply single market rules and where relevant, take these rules into account when preparing and introducing new national legislation.

6. Facilitate and encourage a quick and efficient resolution of problems encountered by citizens and businesses in exercising their single market rights by in general, taking measures to improve the enforcement of single market rules, and in particular, by ensuring that the judiciary has sufficient knowledge of Community law including single market rules, and by providing sufficient support to problem-solving mechanisms.

7. Carry out regular evaluation and assessment of national legislation to ensure full compliance with single market rules and in so doing keep under review any use of exemptions or derogations provided for in existing single market rules.

8. Enhance the provision of practical information on single market issues to businesses and citizens.

9. Examine the measures and practices set out in the Annex and, having regard to their national institutional traditions, adopt those practices that will, or can be expected to, lead to an improvement in the functioning of the single market and are best suited to implement this Recommendation.

10. Cooperate with the Commission and other Member States in monitoring the implementation of this Recommendation, inform the Commission of actions taken in implementing this Recommendation on a regular basis and provide a final report to the Commission three years after the publication of this Recommendation in the Official Journal.

Done at Brussels, 29 June 2009. For the Commission Charlie McCREEVY Member of the Commission

(1) COM(2007) 724 final, 20.11.2007.

(2) The GDP of the Community increased by 2,15 % and 2,75 million extra jobs were created over the period 1992-2006, and intra-Community trade rose by 30 % between 1995 and 2005 (SEC(2007) 1521, 20.11.2007).

(3) Commission Staff Working Document on Instruments for a modernised single market policy (SEC(2007) 1518, 20.11.2007).

(4) Rapid alert system for non-food dangerous products.

(5) Rapid alert system for food and feed.

(6) OJ L 98, 16.4.2005, p. 47.

(7) COM(2007) 502 final, 5.9.2007.

(8) COM(2007) 727 final, 20.11.2007.

(9) EP resolution on the role of the national judge in the European judicial system (INI/2007/2027, 9.7.2008); EP resolution on the Commission report on competition policy 2004 (INI/2005/2209, 20.3.2006).

(10) Resolution of the Council and of the Representatives of the Governments of the Member States meeting within the Council 14757 of 28 October 2008.

(11) Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions ‘Effective Problem Solving in the Internal Market (SOLVIT)’ (COM(2001) 702 final, 27.11.2001).

(12) http://ec.europa.eu/internal_market/strategy/index_en.htm#061204