à te 
•à -it COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 15.06 1995 
COM(95) 238 final 
REPORT FROM THE COMMISSION TO THE COUNCIL 
AND THE EUROPEAN PARLIAMENT 
THE SINGLE MARKET IN 1994 

A 
NOTE 
References in the body of the report to Council or Commission legislation and to Treaty articles 
are followed by an asterisk* without a footnote. Full titles and references of legislation and the 
text of Treaty articles are given in Annex 2 to the report. 
Annexes to the 1993 Report have been replaced by an independent publication "State of 
Community law conceming the Internal Man\et\ which is updated twice yeariy and which is 
available from DG XV. 
Byl 
Outline of contents 
Introduction 1 
Part One - General Review 3 
Part Two - Detailed Review 23 
Part Three - Future Priorities 99 
Annexes 101 
ft V 
Contents 
INTRODUCTION 1 
PART ONE - GENERAL REVIEW 3 
Section 1 -Overall assessment of the operation of the single market 3 
Section 2 - Progress in implementing the Strategic Programme 5 
§1- Completion of the basic legal framework 6 
A. Free movement of people and Union citizenship 6 
B. Taxation 7 
C. Other areas 7 
§ 2 - Managing the Single Market 8 
A. Implementation of Community law: transposition 9 
B. Enforcement of Community law 10 
a) A framework for administrative cooperation 10 
b) Support for administrative cooperation 14 
c) Penalties for infringements of Community law 15 
C. Access to justice and judicial cooperation 15 
a) Training and information provided for the legal professions in the 16 
field of Community law 
b) Access to justice for consumers 16 
c) Free movement of judgments 16 
D. Evaluation of the effectiveness of the legislation 17 
a) Objectives and scope of the report 17 
b) Launching of background research 18 
E. Statistics 19 
a) Assessment of the impact of the single market 19 
b) Intrastat 19 
§ 3 - Developing the Single Market 19 
A. Introduction 19 
B. Regulatory policy 20 
C. Deregulation/simplification of legislation 20 
D. Legislative and declaratory consolidation 20 
E. Communication and information policy 29 
§ 4 - External aspects 21 
THE SINGLE MARKET IN 1994 
CONTENTS 
PART TWO - DETAILED REVIEW 23 
Introduction 23 
Section 1 - Free movement of persons 23 
§ 1 - Abolition of controls at internal frontiers 23 
§ 2 - Free movement of persons in the Community 24 
A. Right of residence 24 
B. Recognition of qualifications 24 
Section 2 - Free movement of goods 26 
§ 1-Instruments provided for by Community law for ensuring free 26 
movement of goods 
V Articles 30 to 36 of the EC Treaty 26 
A. Introduction 26 
B. The main fields in which the Commission acted to eliminate 27 
obstacles to trade in 1994 
a) Foodstuffs 27 
b) Pharmaceutical and medical products 28 
c) Road vehicles 29 
d) Other fields and sectors 29 
• construction 28 
• Chemicals 29 
• Energy 30 
C. The main judgments of the Court of Justice 30 
a) Name under which a cosmetic product is sold 30 
b) Approval procedure laid down for the marketing of radiocom- 30 
munication transmitters/receivers 
c) Ban on carrying out certain commercial activities on Sundays 31 
d) Systematic frontier checks on exports of skimmed-milk powder 31 
e) Free movement of articles made of precious metal - compulsdty 31 
hallmarking 
2C Technical harmonization and standardization 31 
A. Adoption and implementation of legislation in the various sectors 31 
a) Agricultural products 32 
• Veterinary legislation 32 
. Plant health 33 
• Complaints 36 
b) Foodstuffs 36 
c) Mechanical and electrical engineering, pressure vessels, 38 
medical equipment and measuring instruments 
d) Construction products 39 
e) Motor vehicles 39 
0 Pharmaceuticals 40 
g) Narcotic drugs and psychotropic substances 40 
h) Chemical products 41 
i) Explosives 42 
j) Toys 43 
k) Footwear 43 
I) Cosmetics 44 
m) Cableway installations 44 
n) Recreational craft 44 
THE SINGLE MARKET IN 1994 
CONTENTS 
§2; 
Section 
§1-
§2-B. Standardization policy 
C. Quality, certification, and conformity marking policy 
3' Prevention and control instruments 
A. Prevention of new obstacles - Procedure 83/189/EEC* 
.) Information procedure in the field of technical standards and 
rules 
B. Control procedures 
a) General product safety 
b) Enforcement of the mutual recognition principle 
Special free movement arrangements applicable to the new 
member countries in the agricultural sphere 
3 - Freedom to provide services and right of establishment 
Introduction 
Regulated areas 
A. Financial services 
a) Credit institutions 
b) Insurance services and pension funds 
c) Stock exchanges and securities 
6. Transport 
a) Airtransport 
b) Road transport 
c) River transport 
d) Railways 
4 - Free movement of capital 
5 - The business environment 
Competition policy 
Cross-border payments 
Intellectual and industrial property 
A. Intellectual property 
B. Industrial property 
C. Measures against counterfeiting 
D. Case-law of the Court of Justice 
Company law and financial information 
Taxation 
A. Indirect taxation 
B. Direct taxation 
Small and medium-sized enterprises 
A. Information 
B. Cooperation 
C. Support measures 
D. Commerce 
E. Access to finance 
F. Transfer of businesses 
§ 7 - Commercial communication 
§ 8 - Media 
A. Media ownership 
B. Legal protection for coded radio signals Section 
Section 
§1-
§2-
§3-
§4-
§5-
§6 45 
46 
47 
47 
47 
48 
48 
49 
49 
50 
50 
51 
51 
52 
53 
54 
55 
55 
56 
56 
57 
57 
58 
58 
60 
sf 
61 
62 
64 
64 
64 
66 
67 
67 
69 
70 
70 
70 
70 
71 
71 
72 
72 
72 
73 
THE SINGLE MARKET IN 1994 
CONTENTS 
C. Audiovisual policy 73 
§ 9 - Protection of personal data 74 
Section 6 - Public procurement 75 
§ 1 - Development and application of the new legislative framework 75 
A. Application of the Community rules 75 
a) Action by the Commission 76 
b) Decisions by the Court of Justice 77 
§ 2- Community financing 78 
§ 3 - Advisory Committees 79 
§ 4 - Information systems for public procurement (SIMAP) 80 
§ 5 - Other activities 81 
Section 7 - Building the internal market in the regulated sectors 82 
§ 1 - Energy 82 
A. Legislative developments 82 
a) Exploration and production of hydrocarbons 82 
b) Gas and electricity markets 82 
B. Implementation and enforcement of the legislation 83 
a) State aid 83 
b) Free movement of goods 83 
c) Competition rules 83 
d) Standardization 84 
e) Specific energy legisaltion 84 
0 Transport of and traffic in nuclear products 84 
§ 2 - Telecommunications 85 
Section 8 -Trans-European Networks 87 
§ 1 - Introduction 87 
§ 2 - Telecommunications and the information society 87 
§ 3 - Transport and energy 88 
§ 4 - Financing 89 
Section 9 - The Internal Market and other Community policies 89 
§ 1 - Social dimension of the internal market 89 
§ 2 - Consumer policy 90 
§ 3 - Education and training 91 
§ 4 - Research 92 
Section 10 - External aspects 92 
§ 1 - Implementation of the European Economic Area 92 
§ 2 - Common Commercial Policy 93 
A. Import Regime 93 
B. Commercial Defence instruments 93 
C. Mutual Recognition Agreements 93 
D. Export Regime 94 
E. Export Credit Insurance 94 
F. Transport 94 
G. Development of the Community legal framework for public 94 
procurement following the conclusion of the G A TT agreement 
THE SINGLE MARKET IN 1994 
CONTENTS 
H. Development of the Community legal framework for financial 95 
services following the conclusion of the GATT agreement 
I. External aspects of intellectual property 95 
§ 3 - Customs Union 96 
A. Administrative cooperation between customs authorities in general 96 
B. Mutual assistance on customs and agriculture 98 
C. Customs penalties 98 
PART THREE - FUTURE PRIORITIES 99 
ANNEXES 101 
1 - Abbreviations and acronyms ••-''-. 
2 - Community provisions cited 
A. EC Treaty 
B. Official Journal - references 
3 - Judgements of the Court of Justice cited 
4 - Recent reports, studies and surveys on the single market 
5 - Organizations which provided contributions 
THE SINGLE MARKET IN 1994 

^1 
Introduction 
For our citizens and European business the completion of the single market and the steady 
improvement of its operating effectiveness are crucial to the competitiveness and political 
credibility of the Union. The single market remains at the heart of our efforts to safeguard the 
competitiveness of our industry, to create jobs and to stimulate economic growth. Its creation 
and consolidation is a continual and dynamic process which constitutes a cornerstone of the 
achievement of the convergent economic environment essential to the creation of EMU. 
The key message from the Commission in this, its second Annua! Report on the Community 
Single Market, is that, taken as a whole, the single market is working, but there are still 
problems in several areas. It is therefore necessary to improve and reinforce the legal and 
administrative framework both at Community and at national level in the interests of citizens 
and business. The removal of border controls on the movement of goods is being reflected in 
greater efficiency and lower costs for European business, capital is moving freely between 
Member States, service providers are operating in new markets and more firms are competing 
for public contracts. Individuals, too, are availing themselves of the opportunities offered by the 
single market for working in other Member States. Where barriers persist, administrative 
machinery is being developed to resolve problems quickly without the need for infringement 
proceedings. 
The central importance of the single market has been reflected in repeated political endorse­
ments from successive European Councils. However, such expressions of political 
commitment now need to be matched by action. During 1994, little progress was made in 
adopting the few (but important) legislative measures needed; in particular, no progress was 
made on the elimination of border controls on people, in some areas, adopted measures are 
not being implemented in national legislation in accordance with the agreed timetables; a 
further crucial issue is how the measures which have already been transposed are actually 
applied. Business and consumer interests have confirmed that, for a number of key sectors, 
delays in implementation and the inadequate enforcement of Community law remain the great­
est threat to the single market. 
Consolidation of the internal market requires the Commission and the Member States to ensure 
strict observance of the existing rules. This should involve stricter monitoring of Community 
regulations to ensure that national implementing legislation is fully effective and that citizens 
have the necessary means of action to assert their rights. The completion of the internal market 
can be pursued, on the one hand, by ensuring that the principle of mutual recognition is applied 
as broadly as possible, and, on the other hand, by adopting measures, in keeping with the 
principle of proportionality, designed to eliminate any obstacles that prevent citizens from fully 
benefiting from the new economic and legal environment. 
The single market is one of the most important achievements of the Community, which has led 
individuals and businesses to expect tangible benefits from Community action. The necessary 
political effort of the past needs to be renewed to reap the economic and political rewards. 
Faster and more substantial progress in making the single market work is needed to match 
expectations. 
THE SINGLE MARKET IN 1994 
CONTENTS 
The Commission continues to work to ensure that the rules of the game are not only in 
place but also applied in practice. It is pressing on with the Strategic Programme "Making 
the Most of the Internal Market' (1), which it adopted in December 1993 and which was 
endorsed by the Council. In particular, the Commission has been vigorously pursuing legal 
proceedings against any Member State which has fallen behind in implementing single market 
legislation. A lot of progress has been made in identifying and tackling outstanding trade barri­
ers by the development of contact-point networks between the Member State administrations 
and the Commission for the rapid solution of practical problems as they arise. 
The European Council decided at its Brussels meeting in 1993 that the Annual Report on the 
Internal Market should be considered as part of the follow up to the action plan for employment. 
A summary report was therefore forwarded to the European Council for its Essen meeting in 
December 1994. In its conclusions the presidency of the European Council stressed the impor­
tance of the internal market arid the need for uniform and effective application of the rules. 
The Commission intends this Annual Report to be an increasingly useful tool for individuals and 
businesses. It is intended not only to keep them informed of legislative and other developments 
designed to enhance the operation of the single market, but to provide a basis for discussion 
and debate on its practical advantages and remaining problems. This was a particular concern 
of the European Parliament arid of the Economic and Social Committee in their reactions to the 
1993 report. The Commission has included more concrete information on outstanding prob­
lems, although it has not been possible to respond in full to these requests. Representative 
organizations have also been encouraged to contribute their views on the operation of the 
single market in the course of the preparation of this report, and contributions from interested 
parties will continue to be welcome for future reports. The Commission intends to incorporate 
more economic analysis of the single market in future reports, as the instruments which will 
facilitate such analysis are developed and data from the major study to be published in 1996 
become available (see paras 39 to 42). 
The analysis of the state of the single market in this report shows that much still remains to be 
done to make a really open area in which persons, goods, services and capital move freely and 
effectively. Existing Community rules must be enforced, the application of the principle of 
mutual recognition of national legislation must be strengthened, the adoption of the relatively 
limited number of legislative measures still required must be speeded up. 
Among the key issues where progress will have to be made over the next few years, as 
mentioned in the Commission's annual programme for 1995, are the following: 
• completing the single market for citizens, so that they will see the advantages of 
European integration in their daily lives; 
• achieving full freedom of movement of people, through the elimination of border 
controls within the Union; 
• further harmonising tax legislation; 
• promoting a more effective single market for business, in particular in the field of 
company law and intellectual property rights; 
• ensuring equivalent enforcement of Community law, including access to justice and 
effective penalties in the case of infringements; 
• preparing the appropriate basic regulatory framework for services relating to the 
infonnation society; 
• liberalizing public utilities; 
• assisting the Central and Eastern European countries to adapt to single market 
requirements, giving priority to the preparation of the White Paper on the subject. 
(1) COM(93) 632 final or 22 December 1993. 
HIE SINGLE MARKET IN 1994 
3 
PART ONE 
General Review 
Section 1 - Overall assessment of the operation of the single 
market 
1. The Commission has drawn on various sources for this secc;;d assessment of the 
operation of the single market. 
It increased its own information-gathering activity during 1994. It commissioned enquiries 
among small and medium-sized enterprises in cooperation with a number of Euro Info Centres 
in February and November, and a public opinion survey in each Member State in October. 
During the second half of the year it organized "Internal Market Weeks" in every Member State, 
in which teams of Commission officials presented policy to audiences in various locations and 
invited comments, complaints and questions; in most countries widely-advertised telephone 
hot-lines or radio programmes also provided an opportunity for comment from a wider public. 
Public hearings were also organized on such subjects as the future development of the value 
added tax system or intellectual and industrial property protection.The Commission aiso 
received a substantial number of formal complaints from national authorities and individual 
businesses or citizens. 
Other institutions and organizations have also helped to shape the Commission's assessment 
of how the single market is working. The Economic and Social Committee, for example, organ­
ized its own hearing on the operation of the internal market in June 1994, for which over forty 
organizations prepared written submissions. Some fifty organizations responded to the 
Commission's invitation to contribute their own assessments in time for the drafting of this 
report. In addition some national administrations have commissioned studies on particular 
subjects relating to the single market, such as the Danish Ministry of Industry survey on techni­
cal barriers to trade and the report of the Spanish Ministry of Commerce and Tourism on prob­
lems experienced by Spanish business, or have submitted reports from the departments which 
have particular responsibility for dealing with complaints conceming the operation of the inter­
nal market. The Advisory Committee for coordination on internal market affairs has also 
provided a forum for regular assessment of the operation of the market. 
Although these information flows are incomplete they provide a useful basis for a provisional 
evaluation of the state of the single market. A more complete view will be obtained from the 
studies which the Commission is currently launching as part of its preparation of a report on the 
effectiveness and impact of single market legislation to be sent to the Council in 1996, in 
accordance with Council resolution 92/1218/EEC* of 7 December 1992 on making the internal 
market work. 
2. There is now clear evidence that many benefits of the 1992 legislative programme 
are already being widely felt as the practical effects of legislative measures feed through to 
the marketplace, although surveys tend to focus on remaining problems rather than on benefits 
already being enjoyed. 
THE SINGLE MARKET IN 1994 
PART ONE - GENERAL REVIEW 
For example: 
• the elimination of border controls for goods has considerably improved the efficiency 
of transport services and reduced costs and delivery times for the distribution of 
goods within the Community. The Euro Info Centre surveys of small and 
medium-sized companies (2) and the report of the Committee of Enquiry on road 
freight transport (3), for example, offer plentiful evidence of significant savings in 
international journey times and greater flexibility in distribution as a result of these 
measures. This view receives wide support from business sources; 
• as regards the opening-up of public procurement, many companies are winning new 
contracts following the entry into force of the Community legislation but delays in 
transposition and inadequate enforcement of the legislation by the Member States are 
still causing major difficulties in some cases; 
• the removal of tax barriers: most companies trading across frontiers find the current 
system for value added tax has brought them considerable savings in terms of reduc­
tion of transport costs, abolition of the pre-payment of VAT on intra-Community 
imports and elimination of charges related to the accomplishment of customs formali­
ties. Smaller firms in particular, however, have found that the system imposed extra 
accounting costs when it was introduced, and other implementation problems have 
also arisen (see paras.226 to 230); 
• the operation of mutual recognition in the field of the professions: the number of offi­
cial complaints to the authorities is low, although experience of direct contacts with 
the interests concerned reveals that some individual problems can be difficult to 
resolve. 
3. In other areas there is a consensus that much more has to be done before the single 
market can be said to be a reality. 
First, there are the serious problems that stem from the Member States' failure to implement 
existing Community law on time or to implement it correctly, or from difficulties in obtaining 
redress quickly when a problem is encountered. Among the subjects which have aroused 
greatest concern in the past year are: 
• the uncertainty in law which results from any significant delays in national transposi­
tion of Community rules and from differences of interpretation of those rules at 
national level. In some cases, over-bureaucratic implementation of Community rules 
at national level can appear to maintain the barriers that Community legislation was 
intended to remove. Significant differences in the severity of application of the law 
and of sanctions are also widely perceived to be a problem. Among the areas where 
there are significant delays in transposition are public procurement, intellectual prop­
erty and new technologies and services. The fact that the General Product Safety 
Directive also falls into this category shows that individual citizens, as well as busi­
nesses, are potentially affected; 
• the apparent persistence of technical barriers to trade, in particular those which result 
from the lack of implementation of the principle of mutual recognition of legislation by 
national authorities in areas which have not been the subject of harmonized legisla­
tion. Many traders and manufacturers are concerned that mutual recognition, a 
central principle of the internal market much publicized before 1992, is proving to be 
difficult to apply in practice. Problems have been noted in particular with regard to 
road vehicles, foodstuffs and pharmaceuticals. Further, the adoption of excessive or 
unnecessary legislation by Member States serves to aggravate this problem. Delay in 
the preparation of European standards to make existing Community rules work effec­
tively has also been cited as a problem for business in the single market; 
(2) 1994. Copies available from European Commission, Directorate-General for the Internal Market and Financial 
Services, rue de la Loi 200. B-1049 Brussels. 
(3) July 1994. Copies available from European Commission. Directorate-General for Transport, rue de la Loi, 200, 
B-1049 Brussels. 
THE SINGLE MARKET IN 1994 
PART ONE - GENERAL REVIEW 
• the difficulty in resolving problems which have been brought to the attention of 
national authorities or the Commission. The informal means of redress, through rele­
vant national authorities, are not sufficiently well known in many cases; only a few 
Member States have instituted a central point for enquiries and complaints on single 
market issues. Formal procedures for redress are apparently not often used by poten­
tial complainants because they are seen as cumbersome and ineffective. 
A second category of problems derives from gaps in Community law which inhibit the devel­
opment of a truly single market. These include: 
• the failure to complete the single market by adopting the measures necessary to 
remove border controls on people; 
• the absence of tax harmonization in some fields, particularly in the tax treatment of 
. businesses operating in more.than one. Member State;.. ....... 
• delays in adapting company law to single market requirements; 
• insufficient liberalization of certain sectors, particularly energy and telecommunica­
tions, which are perceived as serious distortions of competition and a barrier to Euro­
pean and international competitiveness. The European Council at Corfu emphasized 
the importance of these two sectors, but while progress has been made in setting a 
timetable for liberalization in the area of telecommunications, progress in the Council 
on gas and electricity liberalization has been minimal; 
• consumers believe that further action is called for if they are to reap the full benefits 
of the single market. These include the question of access to justice and guarantees 
and after-sales service; 
• business surveys also continue to show that the absence of European monetary union 
is perceived as a significant limitation on the benefits of a single market, particularly 
for smaller businesses; 
• difficulties of gaining access to the market, particularly for SMEs. 
4. Thus while a few areas of the internal market programme can already be said to have 
yielded their fruit and others have made important progress, in most a considerable amount 
of work remains to be done before the impact of already-agreed rules is widely 
perceived in the market. We do not yet have a European market within which business can 
operate in the same conditions as within a national market, as UNICE has rightly commented. 
This must remain our goal. Hence the Commission's insistence on the need to follow a clear 
and widely publicized programme of work to ensure that implementation of the internal market 
becomes a reality. The 1993 Strategic Programme (4) forms a basis for action: additional 
elements may be needed to meet the challenge. 
Section 2 - Progress in implementing the Strategic Programme 
5. The Strategic Programme presented by the Commission in December 1993 identified 
four main priorities for action to ensure the success of the internal market, namely: 
• completion of the basic legal framework 
• managing the single market 
• developing the single market and 
• a dynamic and open external policy. 
Detailed targets, with an indicative timetable, were proposed under each of these headings. 
(4) COM(93) 632 final of 22 December 1993. 
THE SINGLE MARKET IN 1994 
PART ONE GENERAL REVIEW 
§ 1 -Completion of the basic legal framework 
6. Overall, progress during 1994 has been disappointing, despite the Commission's call 
in the Strategic Programme for the Council to make a particular effort to complete the out­
standing proposals from the 1985 White Paper (s). In fact, only two of the remaining proposals 
were adopted, namely the Seventh VAT Directive on secondhand goods, antiques and works 
of art (94/5/EC*) and Regulation (EC) No 2100/94* on plant variety rights. Eleven proposals 
from the original White Paper remain on the Council table. 
Little or no progress was made in key areas such as free movement of people, company law 
and company taxation. 
The main features of 1994 are summarized below. 
A. Free movement of people and Union citizenship 
7. The failure to remove border controls on persons means that a major component of 
the single market (as defined in Article 3* of the EC Treaty) is missing. The Commission 
followed up its two 1993 proposals -on controls at the external frontier and the list of countries 
whose citizens require a visa (6)- with a proposal in July 1994 for a uniform model of visa (7). 
These proposals form part of a coherent approach, outlined in the 1993 Annual Report on the 
Internal Market (8), designed to bring about freedom of movement for people, as required 
under Article 7a* of the Treaty. AH remain under discussion in the Council, although Parliament 
has given a favourable opinion, subject to some amendments. 
In 1993 the European Parliament brought an action before the Court of Justice under Article 
175* of the EC Treaty against the Commission for alleged failure to act to eliminate controls on 
persons at internal frontiers. The Court will probably deliver its judgment in the course of 1995. 
Progress has nevertheless been achieved within the context of the Schengen Agreement; the 
Executive Committee of the Schengen group decided on 22 December 1994 to apply the 
Schengen Convention irreversibly as from 26 March 1995 for seven of the nine signatory coun­
tries which meet all the preconditions. 
8. In the report on citizenship of the Union which it published in December 1993 (9), the 
Commission stressed the role played in European integration by Article 8b* of the EC Treaty, 
which confers on citizens of the Union the right to vote and to stand as candidates in municipal 
and European elections in the Member State where they live. 
An initial Directive (93/109/EËC*), on the right to vote and stand as a candidate in elections to 
the European Parliament for citizens of the Union residing in a Member State of which they are 
not nationals, has been implemented and enabled Community nationals living in another 
Member State to take part in elections to the European Parliament for the first time in 
June 1994. 
Participation by non-nationals in their Member State of residence varied between 2% and 24% 
of the non-national electorate. A single non-national candidate was elected in her Member 
State of residence. There appear to be a number of reasons for the low turnout by non-national 
voters in comparison with national voters: these include the fact that the right to vote was a 
fairly recent innovation, that insufficient information was provided on the topic and that many 
voters preferred to vote for candidates in their Member State of origin rather than for candi-
(5) COM(85) 310 final of 14 June 1985 
(6) COM(93) 684 final of 10 December 1993 (OJ C 11, 15.1.1994). 
(7) COM(94) 287 final of 13 July 1994 (OJ C 238, 26.8.1994). 
(8) COM(94) 55 final of 14 March 1994. 
(9) COM(93) 702 final of 21 December 1993 
THE SINGLE MARKET IN 1994 
PART ONE • GENERAL REVIEW 
dates in their Member State of residence. In the course of 1995 the Commission will present a 
report on application of the Directive during the 1994 elections. 
A second Directive, laying down detailed arrangements for the exercise of the right to vote and 
to stand as a candidate in municipal elections by citizens of the Union residing in a Member 
State of which they are not nationals, was proposed in February 1994 and adopted by the 
Council on 19 December 1994 (Directive 94/80/EC*). 
B. Taxation 
9. Business operations in the single market continue to be inhibited by the lack of progress 
on key issues in the field of company taxation. The Council has failed after four years to reach 
an agreement on the proposal designed to avoid double taxation of interest and royalty 
payments between parent companies and subsidiaries (10), and the Commission has therefore 
withdrawn the proposal. 
As mentioned above, the Seventh VAT Directive on secondhand goods, antiques and works of 
art (94/5/EC*) (which was one of the original White Paper measures) was adopted in February 
1994. 
C. Other areas 
10. Regulation (EC) No 2100/94* on plant variety rights provides for a new intellectual 
property right with effect throughout the Union, to be administered by a future Community Plant 
Variety Office. However, the last remaining White Paper proposal in the intellectual property 
field, on the legal protection of biotechnological inventions (n), has been rejected by the 
European Parliament. 
There has been no real progress in the field of company law, where the proposal for a Euro­
pean Company Statute (12) is still blocked. However, the adoption of Directive 94/45/EC* of 22 
September 1994, which provides for the establishment of European Works Councils or proce­
dures in Community-scale undertakings and groups of undertakings, represents a positive 
contribution in this area. 
The proposal for a Directive on freedom of management and investment for pension funds 
was withdrawn in December 1994. The Commission decided instead to publish a communica­
tion setting out its interpretation of the applicability to institutions for retirement provision of the 
EC Treaty rules on freedom to provide services and free movement of capital. The Commis­
sion will now undertake a comprehensive review of the proposal taking account of the discus­
sions held in the Council of Ministers and the Treaty rules. 
11. As regards other legislative proposals (not in the 1985 White Paper), a number of 
proposals in the area of technical harmonization, in particular with regard to food additives, 
dangerous substances and preparations, the maximum speed of two- and three-wheel motor 
vehicles, footwear labelling and recreational craft, were adopted. The extension of the scope of 
Directive 83/189/EEC* on notification procedures for draft national technical standards 
and regulations represents an important contribution to preventing the emergence of new 
technical barriers to trade. 
(10) COM(90) 571 final of 28 November 1990 (OJ C 53,28.2.1991 ), as amended by COM(93) 196 final of 10 June 1993 
(OJC 178, 30.6.1993). 
(11) COM(88) 496 final of 28 September 1988 (OJ C 10,13.1.1989), as amended by COM(92) 589 final of 16 December 
1992 (OJ C 44.16.2.1993) and COM(94) 245 final of 9 June 1994. 
(12) COM(89) 268 final of 24 August 1989 (OJ C 263.16.10.1989). as amended by COM(91) 174 final of 6 May 1991 
(OJ C 138. 29.5.1991 and C 176. 8.7.1991). 
THE SINGLE MARKET IN 1994 
PART ONE - GENERAL REVIEW 
12. Significant progress was made in the area of financial services with the adoption of 
Directive 94/19/EC* on deposit guarantee schemes and of Directive 94/18/EC* modifying 
Directive 80/390/EEC* on admission prospectuses for stock-exchange listings. A common 
position was reached on a Directive on the prudential supervision of financial institu­
tions (13) and an amended proposal for a Directive on investor compensation schemes (14) 
was presented following the opinions of the Parliament and the Economic and Social Commit­
tee. An important milestone was reached with the entry into force on 1 July 1994 of the Third 
Directives on life and non-life insurance (Directives 92/96/EEC* and 92/49/EEC*), thereby 
completing the legislative framework for a single market in insurance. 
The adoption in February 1995 of a common position on the Directive on the protection of 
personal data (15) is an important step towards the removal of obstacles to the exchange of 
data given the increase in the flows of personal data in the private and public sector as a 
consequence of the operation of the single market. 
13. With regard to accompanying measures for the elimination of frontier controls impor­
tant instruments were adopted. Council Regulation (EC) No 3295/94* of 22 December 1994 
lays down measures to prohibit the release for free circulation, export or transit of counterfeit 
and pirated goods in the single market. This Regulation replaces Council Regulation (EEC) 
No 3842/86* laying down measures to prohibit the release for free circulation of counterfeit 
goods. An integrated system of controls on the export of dual use goods, to be introduced with 
effect from July 1995, was established by the adoption of Council Regulation (EC) No 3381/94* 
of 19 December 1994 and Council Decision 94/942/CFSP*. Council Decision 94/445/EC* of 11 
July 1994 on the data communications network between administrations (Comedi system) 
takes account of the need to collect statistical data after the elimination of physical frontiers. 
14. Energy and telecommunications are perhaps the areas in which the Union is furthest 
from achieving a single market. Progress in the energy sector has been particularly slow. With 
regard to telecommunications, the Council resolution of 17 November 1994 on the liberalization 
of infrastructure on 1 January 1998 means that there is now agreement on the principle of 
liberalization of the whole sector. This provides a clear signal to industry, as well as to the 
Commission, which must now address the regulatory issues in order to achieve effective 
competition. In December 1994 the Council adopted common positions concerning a Decision 
on a series of guidelines for the development of ISDN as a trans-European network (16) and a 
Directive on the use of standards for the transmission of television signals (17). 
15. The Commission's proposal for a Directive on access to the market in the field of ground 
handling facilities at airports (18), presented in December 1994, represents a step towards 
greater liberalization of the air transport sector. 
§ 2 - Managing the Single Market 
16. Now that the major legislative programme under the 1985 White Paper has been 
substantially completed, the Strategic Programme underlines the importance of ensuring the 
(13) COM(93) 363 final of 28 July 1993 (OJ C 229. 25.8.1993) as amended by COM(94) 170 final of 2 May 1994 and 
COM(94) 549 of 29 November 1994. 
(14) COM(93) 381 finalof 22 September 1993 (OJ C 321, 27.11.1993) as amended by COM(94) 585 final of 13 Decem­
ber 1994 (OJ C 382. 31.12.1994). 
(15) COM(9Q) 314 final of 18 July 1990 (OJ C 277. 5.11.1990) as amended by COM(92) 422 final of 15 October 1992 
(OJC 311. 27.11.1992). 
(16) COM(93) 347 final of 1 September 1993 (OJ C 259.23.9.1993) as amended by COM(94) 483 final of 17 November 
1994 (OJ C 353, 13.12.1994). 
(17) COM(93) 556 final of 15 November 1993 (OJ C 341.18.12.1993) as amended by COM(94) 455 final of 25 October 
1994 (OJC 321,18.11.1994) 
(18) COM(94) 590 final of 13 December 1994. 
THE SINGLE MARKET IN 1994 
PART ONE - GENERAL REVIEW 
practical operation of the internal market This emphasis continues to receive strong support 
from business and consumer Interests. "Management of the internal market" covers such key 
issues as: 
• implementation of Community legislation (transposition of directives into national 
law); i 
• application and enforcement - principally the responsibility of the Member States, with 
the Commission in a monitoring role. The key issues for effective enforcement are 
administrative cooperation between the responsible authorities in each Member State 
and provision for penalties for infringements; 
• ensuring effective means of redress for citizens and companies, by easier access to 
justice and judicial cooperation; 
• . evaluating the legislation in terms of whether it is actually working as intended. 
A. Implementation of Community law: transposition 
17. For the Internal Market Council in December 1994 the Commission prepared a report 
that gives an indication of the state of play in national transposition of the White Paper 
measures and other legislation that is critical for the functioning of the internal market (19). This 
report was the first of a series intended to ensure that Member State transposition becomes 
fully effective as soon as ppssible. 
Taken as a whole, the Member States had by the end of November 1994 adopted 89.9% of the 
national measures required in order to implement internal market legislation. The performance 
of the Member States ranges from substantially higher than average (Denmark: 96.3%; France, 
the Netherlands and Luxemtjoufç: 93,6%) to significantly below it (Germany: 85.4%; Greece: 
80.4%). Table I summarizes thte situation. 
18. Most infringements are the result of failure to incorporate Community directives into 
national law in time. Procedural problems related to the national decision-making process or 
the technical complexity of the texts are often the reason for the delays. The Commission 
carries out a systematic examination of the state of national implementation of each directive 
once it has entered into force. In addition it assesses the national legislation notified to it, within" 
the limits of its resources, and vigorously pursues infringements through both consultation with 
the Member States concerned and. when necessary, formal infringement proceedings. 
19. The level of national transposition varies considerably from sector to sector (see 
Table II). In some sectors the process of transposition has been completed. In others, however, 
the delays in transposition in a number of Member States are giving cause for concern: 
• In the area of public procurement (51% of national measures correctly adopted), 
where there are nine Directives already in force, there are still 26 cases where there 
has been no communication of national transposition measures although the deadline 
passed several months ago. This is in particular the case for the Service Contracts 
Directive (92/50/EEC*). the Supplies Directive (93/36/EEC*) and the Utilities Directive 
(93/38/EEC*) (20). There are numerous infringement procedures for incorrect trans­
position and noncommunication of the national transposition measures (altogether 21 
cases). In very few cases is transposition fully in conformity with the requirements of 
(19) It should be noted that tht basis for statistical calculation of the implementation of White Paper measures was 
modified by the report. Changes hiwe occurred in the course of the years to the original 282 White Paper measures; 
some became obsolete and were abandoned or replaced. Furthermore, each measure proposed did not necessarily 
lead to the adoption of one legislative text. If this was true in the majority of cases, in others several legislative texts 
were required to implement a single White Paper proposal, or. conversely, one legislative text allowed the adoption of 
several White Paper measures at once. The total number of legislative texts related to the White Paper Programme is 
now 271. The re-establishment of a more accurate reference point does not markedly change the level of 
performance of transposition among the Member States. 
(20) Spain has a derogation until 1 January 1997, Greece and Portugal until 1 January 1998. 
THE SINGLE MARKET IN 1994 
10 PART ONE - GENERAL REVIEW 
Community law; only three Member States (Denmark. Luxembourg and the Nether­
lands) have, with the exception of some small points of minor importance, completely 
fulfilled their transposition obligations. 
In the insurance sector, too, there are considerable delays in transposition (76% of 
measures adopted). This is the case for the second life assurance Directive 
(90/619/EEC*) as well as the so-called "third generation Directives", the non-life 
insurance (92/49/EEC*) and the life assurance Directives (92/96/EEC*), which should 
have been applied from 1 July 1994. Infringement proceedings have been started 
against the Member States concerned. The Commission is still examining the 
conformity of Member State measures concerning the two principal directives on 
insurance against civil liability in respect of the use of motor vehicles (72/166/EEC* 
and 84/5/EEC*) as well as the second non-life insurance Directive (88/357*). 
Concerning intellectual and industrial property <67% of measures adopted) the 
Member States have tended to transpose the directives in this sector after long delays 
and often only after infringement proceedings have been initiated. In the case of 
Directive 89/104/EEC* on trade marks, which entered into force on 31 December 
1992, so far five Member States (Belgium, Germany, Ireland, Luxembourg, the Neth­
erlands and Portugal) have not communicated any national implementing measures. 
Considerable progress has been achieved in transposing the Directives relating to 
pharmaceutical products (85% of measures adopted), although technical difficulties 
are causing serious delays in the fields of veterinary pharmaceuticals and homeo­
pathic medicines. 
In the field of veterinary and plant-health checks the Member States have transposed 
most of the directives into national legislation. The average transposition level is 
91.5%; although this is satisfactory the performance of Member States varies consid­
erably (whereas Belgium and Spain have communicated transposition of every direc­
tive except one, Greece has still to do so in 18 cases, Ireland in 13 and Germany in 
10). Most non-communications concern the Directives on marketing of plant protec­
tion products (91/414/EEC*), poultrymeat (92/110/EEC*). and veterinary derogations 
(92/120/EEC*). 
B. Enforcement of Community law 
a) A framework for administrative cooperation 
20. The internal market cannot be said to be truly complete unless application and 
enforcement of the rules in the Member States (and not merely transposition into national 
legislation) are reasonably homogeneous and seen to be so. If Member States' enforce­
ment authorities do not have confidence in their opposite numbers elsewhere in the Commu­
nity, they are likely to take measures which create technical barriers to the free movement of 
goods. 
Effective enforcement depends to a large extent on the development of administrative coop­
eration between the enforcement authorities in each Member State. The aim of such coopera­
tion should be to minimize bureaucratic obstacles which create barriers to the free movement 
of goods, services, persons and capital by applying and enforcing internal market legislation 
evenly throughout the Union. 
In some areas, such as customs. VAT and agriculture, the Council has adopted legislation 
which requires coordination of enforcement. For foodstuffs this goes as far as setting up a 
Community foodstuffs inspectorate within the Commission, which will be coming into operation 
in 1995. However, the Council has been reluctant to pass further legislation requiring particular 
forms of cooperation, and in view of this the Commission has been conducting a campaign to 
promote more informal types of cooperation between administrations in the Member States for 
enforcement purposes. Substantial progress towards this goal was made during 1994. 
THE SINGLE MARKET IN 1994 
PART ONE - GENERAL REVIEW 11 
TABLE I 
State of Iniplementation of the White Paper Measures 
Breakdown of Situation by Member State 
(31 December 1994) 
OK 
F •• 
NL 
L 
UK 
B 
P 
E 
1 
IRL 
0 
EL Measures 
notified 
209 
, . -205 
204 
201 
202 
194 
188 
190 
190 
190 
184 
169 Not 
applicable 
2 
. 0- .. 
1 
4 
1 
1 
4 
1 
4 
3 
3 
4 Derogations 
0 
• JO 
0 
0 
0 
0 
3 
3 
0 
0 
0 
3 Measures not 
notified 
5 
-. .9-
11 
14 
12 
14 
18 
21 
22 
23 
23 
39 partial 
notification 
2 
. ;. 4 
2 
0 
3 
8 
2 
1 
1 
2 
5 
1 Infringement for 
non-conformity 
1 
1 
1 
0 
1 
2 
4 
3 
-2 
1 
4 
3 
273 provisions in force / 219 requiring national implernenting measures 
C3 Derogations 
• Not applicable 
• Measures notified 
OK 
F 
NL 
L 
UK 
B 96.3% 
93.6% 
93.6% 
93.6% 
92,7% 
89.0% P 
E 
I 
IRL 
D 
EL 89.0% 
88.6% 
88.6% 
88.1% 
85.4% 
80.4% 
0 EU 89.9% 220-il 
2004 
180 
160 
OK F M. L UK B I IRL D EL 
O Infringement for non-conformity 
• partiel notification 
•Measures not notified 
DKFNLLUK6PEIIRLOEL Eu 
THF SINGLE MARKET IN 1994 
12 PART ONE - GENERAL REVIEW 
TABLE II 
State of Implementation of the White Paper Measures 
Situation by sector 
(31 December 1994) 
physical barriers 
veterinary controls 
enytosanttary oontrote 
controls on MMduals 
apecKc controls (fuel tanks, «vaste) 
technical barriers 
tax harriers 
10% 20% 30% 40% 50% €0% 70% 80% 90% 100% 
THE SINGLE MARKET IN 1994 
PART ONE-GENERAL REVIEW 13 
21. The Commission communication of 16 February 1994 (21) and the Council resolution of 
16 June 1994(22) on the development of administrative cooperation for the implementation 
and enforcement of Community legislation on the internal market provide a framework for 
development in this area. The resolution endorsed the Commission's approach, stressing the 
need to avoid any increase in red tape, and specifically calling for Member States to notify to 
the Commission a series of sectoral contact points for communication among national admini­
strations, and between them and the Commission, on enforcement questions. It also called on 
the Commission to continue the programme of sectoral discussions between the Commission 
and the Member States on administrative cooperation, which was begun in 1993, then restarted 
in 1994. 
The objectives of the programme of discussions are fourfold: 
•. .:to identify the need for mutual, assistance .in .each sector or area of activities 
Onformation requirements, means for satisfying them); 
• to determine how far these needs have already been satisfied; 
• where necessary, to encourage participants in the discussions to introduce or extend 
administrative cooperation; 
• where this has not been done already, to compile lists of contact points for enforce­
ment purposes and information on enforcement structures in the different Member 
States and ensure that these lists are available to all the administrations concerned. 
22. These issues are raised in meetings of committees and working groups organized by 
the Commission and involving representatives of the Member States' administrations with 
responsibilities in the area concerned. In parallel, the Advisory Committee for Coordination in 
the Internal Market Field has been asked to notify contact points in areas where no sectoral 
committee exists, or where it is difficult to obtain this information for other reasons. 
The specialist committees or other bodies consulted fall into three categories: 
• those whose sole purpose is to conduct administrative cooperation, (e.g., the Stand­
ing Committee in the field of Indirect Taxation) 
• those with a regulatory or advisory role, but which spend part of their time on adminis­
trative cooperation <(e.g., the Standing Veterinary Committee) and 
• those which only deal with policy issues rather than enforcement, but which may 
provisionally act as a channel of information between national enforcement authori­
ties, and between them and the Commission (e.g., the Advisory Committee for Public 
Procurement). 
A minimum requirement is for all administrations involved to have the particulars of their coun­
terparts in each Member State who can quickly relay their messages to the enforcement official 
concerned. Another means of communication which is used in some areas is computerized 
networks, and the lessons learnt from those which already exist should be applied to future 
projects. 
The Member States' permanent representatives were asked at the end of 1994 to confirm the 
provisional lists of contact points received so far and to complete them for all areas of internal 
market legislation. 
23. Both national and Community officials in most of these areas are keenly aware of the 
need for administrative cooperation, but in many cases have more pressing needs. This is 
especially true for the technical harmonization directives based on the new approach, some of 
which are not yet fully in forqe,>3s transitional periods have not yet expired. For many of them 
discussion has been centred on finding common interpretations of the legislation, not allowing 
much scope for other enforcement questions. A lack of resources has also delayed progress in 
some areas. 
(21 ) COM(94) 29 final of 16 February 1994. 
(22) OJ C 179 of 1 July 1994. 
THE SINGLE MARKET IN 1994 
14 PART ONE-GENERAL REVIEW 
Those areas where administrative cooperation is well established are almost exclusively those 
where it is provided for by legislation. The Commission will persist with efforts to facilitate 
effective and equivalent enforcement in other areas by promoting mutual assistance between 
administrations, establishing contact points and continuing its support measures such as 
exchange programmes and seminars. However, the effectiveness of this approach ultimately 
relies upon Member States' readiness to use the instruments which the Commission is trying to 
place at their disposal, if, after a period, there is still a feeling that unacceptable differences in 
enforcement remain, other measures could be envisaged, such as infringement proceedings or 
further legislation. 
24. Discussions will continue in 1995, and the arrangements for mutual assistance between 
administrations will be kept under review as a permanent feature of enforcement of single 
market Ailes. Tne Commission will keep the Council and Parliament informed, of progress. . 
b) Support for administrative cooperation 
25. Mutual trust between national administrations is being developed by Community-level 
cooperation, in particular through exchange programmes for officials concerned with 
implementation of single market legislation. The Karolus programme is one of the foun­
dations of administrative cooperation. Launched in 1993 for a five-year period, it organizes 
exchanges of officials between Member-State administrations involved in managing the single 
market, enabling participants to work for around two months alongside their counterparts in 
another Member State. The aim of the programme is to arrive at more uniform interpretation 
and application of Community legislation. 
26. Out of over two hundred applications accepted so far, 124 exchanges have taken place, 
as well as a number of induction and assessment seminars (23 in 1993 and 101 in 1994). The 
programme has made for better understanding between officials in different Member States 
working in the same field, fruitful exchanges of experience and the creation of networks of 
contacts for effective, practical cooperation. 
Of the priority areas selected for the programme, public procurement, foodstuffs, conformity 
assessment and market surveillance, pharmaceutical products, banking and insurance, 
plant-health products and road transport have accounted for the largest number of exchanges. 
27. All Member States have taken part in the Karolus programme as home and/or host coun­
tries. Participants mostly come from the national administrations, although local administrations 
are also well represented, particularly in the case of Spain (autonomous communities) and 
Germany (Lender). The number of exchanges is, however, lower than expected. There are 
several reasons for the programme's slow startup: language problems, payment by the home 
Member State of 50% of the. participant's subsistence expenses, difficulty for an administration 
to part with a skilled member of staff for some two months. Given the importance of this 
method of improving administrative cooperation, every effort should be made to facilitate these 
exchanges. 
28. Other exchange programmes in specific areas - Matthaeus, Matthaeus-Tax and the 
exchange programme for veterinary officials - are dealt wfth in Part two, paragraphs 94, 228 
and 340. 
29. The communication from the Commission to the European Parliament and the Council 
on trans-European data communications networks between administrations (23) and the 
accompanying proposals for Council Decisions gave rise to lengthy discussions within the 
Council. In November 1994 the Council (telecommunications) reached agreement on a Deci­
sion conceming the networks for the interchange of data between administrations (IDA). This 
Council Decision, which will probably be formally adopted in 1995, fixes the Community's 
contribution to certain priority projects aimed at facilitating cooperation between administrations 
(23) COM(93) 69 final of 12 March 1993. 
THE SINGLE MARKET IN 1994 
PART ONE-GENERAL REVIEW 15 
through data interchange. Budget funding was pre-allocated in 1994 to meet the most pressing 
requirements and avoid any interruption of work under projects already in hand. 
By way of example, the information system for public procurement (SIMAP) and several appli­
cations in support of administrative cooperation in customs and agriculture received Commu­
nity funding under IDA in 1994. 
The first phase of the project to establish an electronic mail network linking the administrations 
involved in managing the single market was completed, using existing communications 
networks. This involved setting in place a support structure with a view to introducing the use of 
electronic mail within several committees, including the Internal Market Advisory Committee. 
30. The bodies involved in the application and enforcement of legislation are not necessarily 
• public administrations,.but also include private bodies such as the notified bodies which provide 
type approval and certification services under the new approach directives. A symposium of 
notified bodies was held as part of efforts to improve coordination between these bodies. 
Another symposium, which brought together representatives of the industry and other bodies, 
was held on the type approval of motor vehicles in November 1994. 
c) Penalties for infringements of Community law 
31. The Commission pursued its work on the role of penalties in the implementation of 
Community legislation in the context of the internal market. In particular, the Commission and 
the Member States continued their informal discussions on penalties in the customs field (see 
para. 342). 
In accordance with the Strategic Programme, the Commission considered how to improve the 
transparency of national sanctions, for example by the inclusion in its future proposals for 
regulations and directives of a clause providing explicitly for the notification of the system of 
penalties applicable to breaches of the provisions regarding the single market. This has been 
the subject of a Communication to the Council and the European Parliament (24). 
C. Access to justice and judicial cooperation 
32. If businesses and individuals are to operate confidently in the single market, they need to 
know that there are adequate means of redress available to them should they run into prob­
lems. In a single Community market covering different national jurisdictions, this cannot be 
taken for granted. Hence the importance given in the Strategic Programme to improving 
access to justice and judicial cooperation within the single market. 
33. The Commission launched a number of measures in 1994 to: 
• improve the training and information provided for members of the legal professions 
(chiefly judges and practising lawyers) in the field of Community law; 
• afford consumers easier access to justice; 
• speed up the conclusion of conventions aimed at overcoming the fragmentation of 
the European legal area. 
(24) COM(95) 162 final, 3.5.95 
THE SINGLE MARKET IN 1994 
16 PART ONE-GENERAL REVIEW 
a) Training and information provided for the legal professions in the field of Com­
munity law 
34. The Strategic Programme for the internal market assigns a key role to judges, practising 
lawyers and, in general, all members of the legal professions in the application of Commu­
nity law and the smooth operation of the single market. 
The Commission's aim is thus to present the Council at the end of 1995 with a joint programme 
for providing the legal professions with training and information in the field of Community law. 
35. With this in mind, the following measures were set in train in 1994: 
• a survey was commissioned in all Member States to pinpoint the difficulties and 
needs experienced by lawyers as regards training and information-in the field of 
Community law; 
• a tripartite expert group (composed of one judge, one lawyer and one academic 
involved in the training of future judges or lawyers from each Member State) was set 
up inter alia to help the Commission determine the possible scope for Community 
action to improve training and information for the legal professions in the field of 
Community law and to assist it in drawing up specific proposals for action; 
• the Commission intends to send the Council in late 1995 a proposal for a recommen­
dation on generalizing the obligation to undergo training in Community law before 
entering certain legal professions. 
b) Access to justice for consumers 
36. The Commission has embarked on wide-ranging discussions on ways and means of 
affording consumers better access to justice in the single market. 
The Green Paper on access to justice for consumers and the settling of consumer disputes in 
the single market (25), adopted in November 1993, was commented on by Parliament, the 
Council, the Economic and Social Committee and the Committee of the Regions. Above all, it 
prompted a large number of written submissions (more than 100) from interested parties which 
were developed at a public hearing held in Brussels on 22 July 1994. 
37. During the consultation, a fairly broad consensus emerged on three of the conclusions 
set out in the Green Paper, namely the need to: 
• harmonize the proceedings that can be brought in Member States to put a stop to 
certain unlawful commercial practices, and ensure the mutual recognition of the 
parties entitled to initiate such proceedings; 
• promote methods of out-of-court settlement for individual disputes, which should be 
made more effective by setting minimum criteria at European level; 
• create machinery for following up cross-border complaints, in conjunction with 
cross-border cooperation between consumer associations. 
The Commission intends to propose during 1995 the necessary measures for putting these 
ideas into practice. 
c) Free movement of judgments 
38. The Brussels Convention on jurisdiction and enforcement of judgments in civil and 
commercial matters is a fundamental feature of the European law-enforcement area. Several 
projects aimed at consolidating the law-enforcement area are being developed in the context of 
the Convention: 
(25) COM(93) 576 final of 16 November 1993. 
THE SINGLE MARKET IN 1994 
PART ONE - GENERAL REVIEW 17 
headway was thus made during the year towards adoption of a European convention 
on insolvency proceedings, which will lay down rules on jurisdiction for the 
purposes of the intra-Community effects of insolvency proceedings, establish uniform 
rules on the conflict of laws for such proceedings and ensure that decisions taken in 
this area are recognized and enforced; 
discussions are continuing on a draft protocol extending the Brussels Convention to 
family law; 
work is already well in hand on drawing up a new legal instrument to simplify the 
international transmission of judicial and other documents in civil and commercial 
matters within the European Union. 
D. Evaluation of the effectiveness of the legislation 
39. Although the single market is still in its infancy, much attention has already focused on 
the extent to which this initiative has delivered on its promise. In a resolution adopted in 
December 1992(26) the Member States called on the Commission to prepare a thorough 
evaluation of these issues, by providing, during 1996, 
"an overall analysis of the effectiveness of measures taken in creating the 
single market, taking particular account of promoting throughout the Community 
a harmonious and balanced development of economic activities, sustainable 
and non-inflationary growth respecting the environment, a high degree of 
convergence of economic performance, a high level of employment and of 
social protection, the raising of the standard of living and quality of life, and 
economic and social cohesion, and solidarity among Member States. This 
analysis could, in addition, consider the impact on improving the competitive­
ness of European business in world markets. " 
This analysis must take into account the fact that the single market is still not fully in place. 
Nevertheless, as a first overall assessment, it should serve as a navigational aid to help steer 
Community action in this field. 
a) Objectives and scope of the report 
40. The scientific and theoretical difficulties of the exercise are considerable. The 
analysis must come to grips with the problem of disentangling the impact of the single market 
from other driving-forces for change which have been operating simultaneously on the 
Community economy - notably globalization and multilateral trade liberalization, technological 
change, the opening-up of Central and Eastern Europe, the global economic climate, the 
economic consequences of German unification, and developments specific to individual 
Member States. 
41. The Commission's analysis will have a twin focus: 
• the effectiveness of legislation - It is hoped that extensive field research will shed light 
on the strengths and weaknesses of the legislative and administrative framework, and 
identify areas where further fine-tuning is required to eradicate non-tariff barriers and 
other obstacles to free circulation. 
This analysis constitutes a "bottom-up" quest for problems and solutions. Detailed 
research in about twenty sectors, supplemented by business surveys (and by addi­
tional research on specific issues such as public procurement, technical barriers or 
monetary integration) is designed to deliver a "grass-roots" perspective on progress to 
date and remaining shortfalls. The findings from this analysis can then be drawn upon 
(26) Resolution 92/C 334/01 of 7 December 1992 (OJ C 334/1, 18.12.1992). 
THE SINGLE MARKET IN 1994 
!8 PARI ONE - GENERAL REVIEW 
to adjust and develop the legislative and administrative framework with a view to 
delivering the full benefits of a single market. 
The study is intended to focus primarily on the consequences of measures taken to 
liberalize the four freedoms. However, it will inevitably address other Community and 
national policies which influence the business dynamics and adjustment mechanisms 
unleashed by the single market. Foremost amongst these policies will be progress 
towards monetary integration and national and Community measures which affect 
competition 
me impact of the single market ~ As required by the Council resolution, the report will 
attempt to determine whether market integration has made the expected contribution 
to overcoming the Community's perceived competitiveness problems, fostering job 
creation and promoting regionally balanced economic growth. 
The analysis will at best only be "able to deliver partial and largely qualitative 
responses to these broad macroeconomic questions, as many of these issues do not 
lend themselves to the formulation of testable hypotheses. 
Studies will tend to concentrate on changes at the level of individual economic opera­
tors and markets - trying to ascertain whether market integration has resulted in 
access to wider marketplaces and increased competition, and whether and how "it has 
shaped corporate strategies and behaviour. From the information gathered at 
microeconomic level, the study will attempt to build up a picture of the broader effects 
of the internal market programme. 
b) Launching of background research 
42. Market studies are under way on the following sectors: food and drink processing 
machinery, pharmaceuticals, textiles and clothing, telecommunications value-added services, 
construction site equipment, road freight transport, airtransport, banking, insurance and distri­
bution. 
Additional market studies are envisaged for the following sectors: telecommunications equip­
ment, boilers and metal containers, advertising services, chemicals, motor vehicles, processed 
foodstuffs, audio-visual services and a single information market. 
A series of studies is also under way on wider issues, including the abolition of tax and customs 
formalities at internal frontiers, the dismantling of technical trade barriers, the evolution of 
pan-European markets, the achievement of economies of scale, capital market liberalization, 
trends in foreign direct investment and trade flows, the costs of multi-currency management, 
the liberalization of public procurement, and competition policy. 
Other issues that may be considered include: protection of industrial property rights, the exter­
nal dimension of the single market, trans-European transport networks, the regional conse­
quences of market integration and a quantaîive analysis of the implications for the labour 
market. 
A wide-ranging survey of business perceptions of the impact of single market measures and 
corporate strategies within the single market will also be undertaken. This will be supplemented 
by a review of representative bodies and industry opinion leaders 
Results from these studies will become available in early 1996 and will provide the input for the 
Commission report which will be finalized in mid-1996. 
"THE SINGLE MARKET IN 1994 
PART ONE-GENERAL REVIEW 19 
E. Statistics 
a) Assessment of the impact of the single market 
43. In the light of the demands being made on the statistical system to provide reliable and 
up-to-date statistics for an assessment of the impact of the single market programme, Eurostat 
has responded by proposing an approach which distinguishes between what can be provided in 
the short term and in the long term. 
In the short term, work has begun on the provision of data which will be used as input for the 
1996 study. This data collection is based on three pillars: 
• thé exploitation of existing information af the level of Eurostat and at the level of the 
national statistical institutes; 
• the use of longitudinal analysis, especially in evaluating enterprise performance and 
behaviour in response to the single market; 
• specific studies for the remaining data needs which cannot be satisfied either by exist­
ing data or by the longitudinal study. 
These three exercises are being organized in close cooperation with the Member States. 
44. In the longer term, appropriate measures are being taken to adapt the existing statistical 
programme to satisfy the statistical requirements of the internal market. An examination is 
taking place into areas where current data collection is weak and could be profitably extended. 
For example there is a significant imbalance between the availability of manufacturing and 
services statistics, an imbalance which needs to be rectified over the coming years. Similarly 
there is a recognition that statistics on public procurement are inadequate. 
b) Intrastat 
45. Intrastat, the system for collecting statistics on intra-Community trade in goods, entered 
its third year of operation. There were many signs of improvement in most Member States, in 
terms of not only the availability of data (a Commission Regulation laying down time-limits for 
transmission was adopted), but also their quality, essentially when aggregated. Further 
progress is expected, particularly through the Edicom (electronic data interchange in 
commerce) project, which was given strong legal backing and allocated considerable financial 
resources by a Council decision, and through the development of checks carried out by the 
national administrations. 
In the short term, Eurostat will focus its efforts chiefly on improving the rate of response from 
businesses and seeking further simplifications (a new threshold per transaction, enabling 
results for low-value operations to be grouped together, has already been introduced). It will 
begin looking into the options for intrastat II by sending out a questionnaire and organizing a 
seminar to be attended by both suppliers and users of statistics. 
§ 3 -Developing the Single Market 
A. Introduction 
46. The section of the Strategic Programme on "Developing the single market" announced a 
number of actions designed to improve the quality of single market legislation and public 
awareness of it. These are described below. Part Two deals with other actions announced in 
the same section of the Strategic Programme, designed, in particular, to improve the environ­
ment for business and consumers in the single market 
THE SINGLE MARKET IN 1994 
20 PART ONE-GENERAL REVIEW 
B. Regulatory policy 
47. In line with the undertakings it gave in the Strategic Programme and to fulfil its obliga­
tions under the Treaty on European Union, the Commission is endeavouring to define a new 
approach to its future legislative and regulatory activity. Rather than devising new procedures, 
the aim here is to follow a strictly orthodox regulatory approach at each stage in the 
Community decision-making procedure. These new policy lines should be adopted by the 
Commission in 1995. 
48. Draft general regulatory policy guidelines are currently being drawn up by Commission 
staff in order to codify the procedures to be followed to achieve this objective. 
C. Deregulation/simplification of legislation 
49. Community legislation completing the single market is by nature a deregulation exercise, 
since it is aimed at eliminating national measures that create barriers to trade. In the "new 
approach" directives in particular, the choice offered to businesses between compliance with 
essential requirements or voluntary use of harmonized standards, or the possibility open to 
manufacturers of choosing between several certification procedures, bears witness to a 
long-standing concern for simplification. The Commission's commitment to simplification can 
also be seen in legislative proposals designed to streamline existing Community rules, e.g. in 
the foodstuffs sector. 
The Commission has voiced its concern to the Member States at the growing number of regu­
latory initiatives taken by national authorities, either centrally or at local level, as reflected in 
the statistics produced by information-exchange procedures such as the one operating under 
Directive 83/189/EEC*. It has called upon Member States to apply to their own legislative 
activities the same principles of caution and restraint which the Community legislator has to 
observe; it hopes that they will thereby refrain from adopting unnecessary national rules and 
regulations that are superimposed on Community rules during transposai. 
50. The Commission has asked a group of independent experts chaired by Mr Bemhard 
Molitor (the "Molitor Group") to look into the scope for simplifying legislative and administrative 
provisions at both national and Community level. This exercise includes some areas of the 
single market. The Group is to report to the Commission by June 1995. 
A Committee on the simplification of the business environment has also been established, with 
the objective of focusing, on a longer term basis, on the possibilities for easing the burden on 
business, especially small and medium-sized enterprises, through legislative and administrative 
simplification. 
D. Legislative and declaratory consolidation 
51. in the interests of transparency and simplification of the Community rules, legislative and 
declaratory consolidation work was speeded up and diversified. The adoption on 20 December 
1994 of an interinstitutional agreement on an accelerated procedure for the consolidation of 
legislation marked a major step forward: the agreement streamlines the decision-making 
machinery for legislative consolidation. Consolidation work in progress on legislation relating to 
credit institutions, life and non-life insurance, and stock exchanges and transferable securities 
should be completed in 1995. As far as declaratory consolidation is concerned, compendiums 
of coordinated legislation on pharmaceuticals and company Jaw have been produced. 
THE SINGLE MARKET IN 1994 
PART ONE - GENERAL REVIEW 21 
E. Communication and information policy 
52. The Strategic Programme emphasized the importance of communication and informa­
tion policy for the further development of the single market. Businesses and individuals need 
to know about their rights and about the possibilities open to them in a frontier-free Union. But 
information needs to flow also from businesses and citizens to the Community and national 
authorities, if they are to know how the single market is working out in practice. 
53. For this reason, the Commission, in conjunction with Member States, and in many cases 
with the active participation of Euro Info Centres, held during 1994 a series of "Internal Market 
weeks" in all Member States. The exact form of the events varied, to take account of local 
circumstances and special areas.of. interest. Generally, a telephone "hotline" or a series of 
radio "phone-ins" was set up, to allow callers to express their views or make enquiries regard­
ing the single market. Business people and other interests were invited to participate in semi­
nars and discussions around each country, attended by Commission officials. The overall 
outcome of the initiative was satisfactory, both quantitatively (use of freephone lines and atten­
dance at meetings) and qualitatively (feedback received on the operation of the single market). 
Most of those attending the 106 conferences that took place were representatives of the busi­
ness community. Some 3 000 people used the freephone lines set up during the Weeks: these 
were mainly members of the public, who preferred, and greatly appreciated, this method of 
obtaining information and expressing their views. 
54. In addition to the programme of Internal Market Weeks, single-market information policy 
focused on the following activities in 1994: 
• a conference held in March 1994 and attended by over 250 representatives of trade 
associations, at which Mr Vanni d'Archirafi, then Member of the Commission with 
special responsibility for the single market, took stock of how the single market was 
working and presented the Strategic Programme; 
• publication and distribution of the first annual report on the internal market; 
• sectoral conferences, notably on intellectual property and public procurement; 
• sectoral publications. 
55. A survey was conducted of users of the INFO 92 database to find out who was using it, 
and what their information needs were. The 341 respondents, divided approximately equally 
between the EU institutions (mostly the Commission) and outside users, included a high 
proportion of intermediaries - information officers, Euro Info Centres, consultants and the like. 
The completed questionnaires received showed that INFO 92 provided a useful contribution to 
meeting the needs of this group of users, although much of the information they require can 
also be obtained from other databases, such as CELEX. The very simple search procedure 
used in INFO 92 clearly contributes to this. However, very few SMEs or individuals other than 
in-house users answered, indicating a gap in the provision of on-line services on the single 
market. It was decided to concentrate the scarce resources available for this type of informa­
tion on this more general user group in future. 
§ 4 - External aspects 
56. The Strategic Programme for the internal market stressed that if firms were to reap the 
full benefits of the single market, it was necessary to ensure both a dynamic commercial policy 
and the effective management of external borders. 1994 saw a number of important develop­
ments in both these areas, a detailed account of which may be found in Part Two, Section 10. 
THE SINGLE MARKET IN 1994 

PART TWO 
Detailed Review 
Introduction 
57. Part Two of the Report reviews the year 1994 in each major area of the single market, 
starting with the "four freedoms". It describes developments on the legislative front as well as 
other initiatives designed to improve the operation of the internal market, such as administra­
tive cooperation. As far as possible, it indicates how the single market is functioning in practice 
in the area concerned and responds to major preoccupations which have been brought to the 
Commission's attention. 
Section 1 - Free movement of persons 
§ 1 -Abolition of controls at internal frontiers 
58. The accompanying measures necessary for abolishing controls on individuals at internal 
frontiers have not yet been implemented. The Member States have not officially abolished 
such controls at Union level, although seven of them have agreed to do so at Schengen Group 
level (Belgium, Germany, France, Spain, Luxembourg, the Netherlands and Portugal). 
However, systematic checks on individuals have been abandoned at most frontier posts, 
particularly at land frontiers, and controls have actually been entirely eliminated at some 
border-crossing points. 
At airports and ports, by contrast, systematic checks have been maintained almost everywhere 
on passengers on intra-Community flights and sea-crossings. 
As almost all Member States have also introduced legislation on carrier liability, checks made 
by carriers on travel documents have been stepped up, even in respect of intra-Community 
travellers. 
THE SINGLE MARKET IN 1994 
24 PART TWO-DETAILED REVIEW 
§ 2 - Free movement of persons in the Community 
A. Right of residence 
59. Member States' transposai of the last three directives on the residence of 
non-economically active Community nationals (27) does not seem to the Commission to be 
satisfactory. Although these directives have now been transposed into national law by all the 
Member States, except Germany, the Commission's examination of the transposai measures 
has led it to initiate infringement proceedings against nine Member States. In most cases, the 
incorrect transposai relates.tq the .condition regarding students', resources and to the period, of 
validity of the first residence permit issued to beneficiaries of Directives 90/364/EEC* and 
90/365/EEC*. 
60. The application of Community law in this field also gives some cause for concern. The 
administrative difficulties encountered by Community nationals exercising their right to freedom 
of movement which have given rise to complaints to the Commission relate mainly to two 
points: 
• possession of a residence permit - Even though the residence permit issued to indi­
viduals setting up residence under the right to freedom of movement on the territory 
of a Member State other than their own is simply a material expression of the rights 
directly conferred on Community nationals by the Treaty and the legislation adopted 
pursuant to it, Member States are continuing to subject the granting of certain benefits 
(in particular social assistance or services) to presentation of that permit. Further­
more, obtaining the residence permit in the first place sometimes constitutes a real 
obstacle course for Community nationals. 
• proof of sufficient resources - Although the resources condition is laid down only in 
the two Council directives on retired persons, pensioners or other non-economically 
active persons, proof of sufficient resources is sometimes required of Community 
nationals carrying out a self-employed activity and their families and of members of 
the families of Community wage- and salary-earners. 
61. A final point should be emphasized regarding the effects on Community nationals of 
expulsion measures (deportation, entry ban, etc.). As some Member States do not provide for 
a subsequent review of measures taken - and this contrary to Community case-law) (28) - the 
individuals concerned are permanently denied access to those States. 
B. Recognition of qualifications 
62. In order to simplify the updating of the specializations in Council Directive 93/16/EEC* 
facilitating the free movement of doctors and the mutual recognition of their qualifications, 
the Commission proposed (29) in December 1994 that it be given the power to carry out this 
updating through a committee procedure involving the Committee of Senior Officials on Public 
Health set up by Council Decision 75/365/EEC*. 
(27) Directives on the right of residence for persons Who have ceased their occupational activity (90/365/EEC* and 
93/96/EEC*) and for persons not covered by other provisions of Community law (90/364/EEC*). 
(28) See in particular joined Cases 115/81 (Adoui) and 116/81 (Comauille) - judgment of 18 May 1982 (1982] ECR 
1665-1713. 
(29) COM(94) 626 final of 16 December 1994. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 25 
63. A proposal for a Directive to facilitate practice of the profession of lawyer on a perma­
nent basis in a Member State other than that in which the qualification was obtained (30) was 
presented to the European Parliament and the Council. The proposal seeks to permit practice 
of the profession under the home-country professional title for a given period with a view to 
eliminating or possibly simplifying the aptitude test required by Member States for access to the 
profession in the host Member State under the general system for the recognition of qualifica­
tions (Directive 89/48/EEC*). The proposal also aims to facilitate practice of the profession of 
lawyer on a joint basis. The main difference compared with the text proposed by the Consulta­
tive Committee of the Bars and Law Societies of the European Community (CCBE) is that 
establishment under the home-country title is conceived not as an unlimited means of practis­
ing the profession but as a period designed to facilitate full integration into the profession in the 
host Member State. 
64. A Vade mecum has been produced to facilitate application of the general system for 
the recognition of qualifications (Directives 89/48/EEC* and 92/51/EEC*), thereby helping to 
solve the problems of interpretation referred to in the 1993 annual report (point 63). It is 
accompanied by a small guide for migrant workers. In addition, some training courses have 
been classified at a higher level: that of the diploma within the meaning of Directive 
92/51/EEC*, at the request of Germany and Italy through Directive 94/38/EC*. 
65. With regard to the state of progress in transposing legislation in this field, two Member 
States (Greece and Belgium) have still not notified the Commission of national measures 
transposing Directive 89/48/EEC* into national law, and the matter has been referred to the 
Court of Justice. As to transposais already carried out, difficulties have arisen in particular 
conceming the recognition of teachers' qualifications, especially in the State sector. However, 
there has been an improvement in the situation for paramedics. With regard to Directive 
92/51/EEC*. which came into force on 18 June 1994, only three Member States have notified 
the Commission of transposai measures (Luxembourg, Italy and the Netherlands). 
66. As regards training acquired in third countries, the Court has confirmed (31) that a 
Member State's recognition of qualifications awarded by a third country does not commit the 
other Member States in respect of Directives 78/686/EEC* and 78/687/EEC* concerning 
dentists. This case-law may also apply to other similar directives (doctors, nurses, etc.). The 
Court also stressed the obligation on the host Member State to take account of the professional 
experience which Mr Haïm, the applicant, had acquired in another Member State. 
67. Many obstacles still have to be overcome regarding access to non-regulated activities 
and employment. 
In December 1994 the Commission presented a communication on the recognition of qualifica­
tions for academic and professional purposes (32). This communication analyses differences, 
similarities and complementarity between the various types of recognition. While continuing to 
respect their specific characteristics, it should be possible to develop a series of synergies to 
further a real European area for the professions and for training. Four main areas for action are 
identified in the communication: information, the creation of academic and professional 
networks, jointly agreed adaptation of training, and quality assessment. The communication 
aims to promote discussion on appropriate measures within the Community institutions and at 
all levels in the Member States (competent authorities, academic and professional circles). 
68. In April 1994 the Commission invited proposals for promoting initiatives relating to the 
mutual recognition of professional and vocational qualifications. 
The Commission's aim was to encourage model cross-border cooperation initiatives relating to 
the comparison of professional and vocational qualifications and their mutual recognition by 
market operators. To do that, it asked market operators - public bodies, employers, trade 
(30) COM(94) 572 of 21 December 1994. 
(31 ) Judgments given on 9 February 1994 in Cases C-319/92 (Haim) and C-154/903 (Tawil) (1994] ECR I-0425 and 
1-0451 . 
(32) COM(94) 596 of 13 December 1994. 
THE SINGLE MARKET IN 1994 
26 PART TWO - DETAILED REVIEW 
unions, trade associations, professional organizations, training establishments - to inform it of 
agreements concluded and of cooperation projects in progress or envisaged in the fields in 
question. It provided for grants to be made for the launching or carrying out of cross-border 
cooperation projects which it considered to be particularly worthwhile. 
Of the 171 proposals received, 29 were finally adopted. These figures provide proof - if there is 
need of such proof - of the multiplicity and variety of initiatives taken by market operators in 
connection with the mutual recognition of qualifications. 
Section 2 - Free movement of goods 
§ 1 - Instalments provided by Community law for ensuring free 
movement of goods 
1° Articles 30 à 36 du Traité CE 
Introduction 
69. Articles 30 et seq.* of the EC Treaty prohibit quantitative restrictions on imports and 
exports and measures having equivalent effect (33). 
In 1994 the Commission recorded 232 new cases complained of by economic operators or 
trade associations or detected by it in the course of its work, which proves that non-tariff barri­
ers to trade still exist. This was further emphasized by economic operators at the "Internal 
Market Weeks" organized in Member States and at the Copenhagen conference held in 
September 1994 on technical obstacles to trade. 
During the year: 
• 217 cases were terminated; 
• only two cases were referred to the Court of Justice. 
The difference between these figures shows the Commission's wish to settle cases submitted to 
it through dialogue with Member States rather than through legal proceedings. This partnership 
takes the form of "package" meetings held periodically with the Member States. In 1994 such 
meetings were held with Germany, Spain, Italy, Greece, Portugal and, for the first time, the 
Netherlands. Of the 217 cases terminated, 74 were terminated as a result of "package" meet­
ings. 
70. This approach, which is designed to solve problems through transparency, also underlies 
the proposal for a European Parliament and Council Decision establishing a procedure for the 
exchange of information on national measures derogating from the principle of free movement 
of goods within the Community (34) (see para. 161). 
(33) See the 1993 report on the internal market (points 70 to 85). 
(34)' COM(93)670 final of 15 December 1993 (OJ C 18.21.1.1994). as amended by COM(94) 250 final of 15 June 1994 
(OJC 200, 22.7.1994) 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 27 
B. The main fields in which the Commission acted to eliminate obsta­
cles to trade in 1994 
71. As the statistics relating to the 202 complaints received from economic operators in 1994 
show (see Table III), government measures taken with the aim of, or having the effect of, 
directly or indirectly restricting intra-Community trade, whether actually or potentially, were 
particularly prevalent in the foodstuffs, pharmaceuticals and medical products, and road vehi­
cles sectors. All the Member States are involved, albeit to varying degrees. The kinds of 
obstacles encountered by economic operators and the objectives pursued by Member States 
vary from one field to another but are not substantially different from those outlined by the 
Commission in 1993. 
TABLE HI - COMPLAINTS CONCERNING OBSTACLES TO TRADE RECORDED IN 1994 (ARTICLES 30 ET SEQ.Ï 
Member 
Slate 
B 
DK 
D 
EL 
E 
F 
IRL 
I 
L 
NL 
P 
UK 
TOTAL Food­
stuffs 
2 
0 
11 
5 
1 
9 
0 
2 
1 
4 
0 
0 
35 Road 
vehicles 
5 
0 
1 
4 
4 
11 
0 
3 
1 
0 
3 
1 
33 Pharma­
ceutical and 
medical 
products 
0 
4 
6 
1 
0 
3 
0 
15 
0 
0 
0 
0 
31 Chemicals 
0 
1 
4 
0 
1 
3 
0 
3 
0 
1 
0 
0 
13 Commercial 
legislation 
(advertising, 
sales ban) 
0 
1 
1 
2 
3 
2 
0 
1 
0 
1 
0 
0 
11 Construc­
tion 
0 
0 
1 
1 
1 
3 
0 
4 
0 
0 
0 
0 
10 Public 
procure­
ment 
0 
0 
1 
1 
0 
0 
0 
3 
0 
0 
0 
0 
5 Waste 
0 
0 
3 
0 
0 
1 
0 
0 
0 
0 
0 
0 
A Telecommu­
nications 
0 
0 
0 
0 
0 
1 
0 
1 
0 
0 
1 
0 
3 Other 
7 
1 
14 
5 
1 
20 
1 
4 
0 
0 
1 
3 
57 TOTAL 
14 
7 
44 
19 
11 
53 
1 
36 
2 
6 
5 
4 
202 
a) Foodstuffs 
72. The foodstuffs sector is the main field in which commercial rules are introduced that 
can be assessed in the light of Articles 30 et seq.* of the EC Treaty. The Court of Justice 
has delivered many judgments in this field, notably the Rewe judgment known under the name 
"Cassis de Dijon" (35). 
73. In 1994 the Commission found that the principal obstacle was, the requirement 
conceming national prior authorization procedures, whether or not involving the issuing of 
certificates designed to control the composition of foodstuffs and in particular the presence of 
food supplements (nutrients, vitamins) and/or additives. 
The cases terminated in 1994 included the following: 
• the requirement that an accompanying note be produced when sugar is imported into 
Italy, this in order to control its use in wine; 
e the requirement imposed by the Spanish authorities that an official health certificate 
of the country of origin be produced as evidence that products have been manufac­
tured in accordance with the rules in force in the country of origin and that their 
consumption presents no health risks; 
• the ban in France on the use of sorbic acid in milk chocolate fillings; 
(35) Judgment of the Court of 20 February 1979 in Case 120-78 (1979] ECR 649-665. 
THE SINGLE MARKET IN 1994 
28 PART TWO-DETAILED REVIEW 
• the ban on the importation and marketing in Germany of syrups coloured with 
tartrazine (E 102). 
The Commission pointed out in this connection that a marketing ban or a prior authorization for 
importation or sale constitutes a barrier which can be justified only by such imperatives as the 
need to protect public health. Furthermore, it should be appropriate and proportionate to the 
aim in view. 
74. Some obstacles also stem from legislation governing the names under which food­
stuffs are sold. Cases which were terminated in 1994 included the following: 
• names such as "saucisse", "terrine" and "pâté" could be used in France only if the 
conditions laid down by law as to the composition of such products were fulfilled; 
• - in the Netherlands legislation required lemonades to contain at least 10% fruit juice in 
order to qualify as authentic fruit lemonades. 
The Commission had to remind the Member States concerned that a State may not prohibit 
products from other Member States from being marketed on its territory under the same 
generic name as that used for its domestic products. However, where the characteristics of the 
imported product do not correspond to those of the domestic product, the importer must inform 
the consumer of the nature of the product by means of appropriate labelling. 
75. Finally, the Commission recorded obstacles stemming from government legislation relat­
ing to origin marking or to labelling imposed in the interests of consumer protection (36). 
The origin marking of products is likely to impede trade in that it imposes additional costs or 
may devalue the imported product. Moreover, the Court has ruled that such provisions cannot 
be justified on consumer protection grounds since they are bound to be regarded as being 
clearly applicable to imported products alone (37). 
Though an imperative need protected by Community law, consumer protection by no means 
entails banning the marketing of products on the grounds that they do not satisfy national 
"quality" criteria. Very often, adequate, reasonable and proportionate information for the 
consumer is sufficient. 
In Italy, for example, the use of the Italian language alone is no longer compulsory for the pres­
entation to the final consumer of products from other Member States, as previously laid down 
in Law 126 of 10 April 1991. 
b) Pharmaceutical and medical products 
76. Obstacles to the free movement of pharmaceutical products mainly involve marketing 
authorization procedures. In the case of medical products, the obstacles stem from approval 
procedures. These were regarded either as excessive in relation to the principle of mutual 
recognition or as being carried out in such a way as to present a de facto obstacle to the free 
movement of products. 
Such authorization procedures are legitimate where they aim to check, for example, that a 
product is not harmful. It is the responsibility of Member States to take all necessary measures 
to protect public health. However, those measures should not constitute an indirect means of 
protecting domestic markets. The Commission therefore examines very carefully whether they 
are in fact necessary and proportionate to the aim in view. 
77. Some obstacles stem from the failure of the national authorities to reimburse the 
cost of imported medicinal products, or even from the need for an import licence in the 
case of parallel imports (38). For example, a licence certifying compliance with German rules 
(36) See points 79 and 83 of the 1993 report on the internal market. 
(37) Origin marking of 25 April 1985. 
(38) See point 81 of the 1993 report on the internal market. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 29 
was required for all pharmaceutical products entering German territory. This requirement 
particularly penalized products marketed following reprocessing. 
The Commission had to point out that, while Member States may justifiably prohibit the parallel 
importation of products manufactured in another Member State but without the marketing 
authorization provided for in the legislation in force having been obtained, the situation is 
different where the product in question has already been marketed or where a medicinal prod­
uct with identical therapeutic characteristics exists on the market. 
c) Road vehicles 
78. National registration procedures, which.will continue to exist until 31 December 1995 
alongside the EEC ' type-approval system introduced by 'Council' Directive 92/53/EÉC* of 
18 June 1992, call for a certificate of conformity that is sometimes difficult to obtain where 
vehicles have been imported. These difficulties stem in particular from the non-recognition of 
documents, containing the necessary information, issued in another Member State. Other 
problems arise from the public authorities' delegation of certain functions to manufacturers or 
their representatives without the speed and low cost that should be associated with such 
public-law functions being guaranteed. Difficulties also stem from the non-recognition of tech­
nical checks and national technical standards (e.g. towing hooks). 
Some cases were terminated in 1994: 
• The Spanish authorities now permit vehicles belonging to Union nationals not in 
possession of a Spanish resident's permit to be permanently registered on their terri­
tory. Nevertheless, it is necessary for a reference location in Spain to be notified to 
the authorities so that the responsibilities arising from the use of the vehicle can be 
met. 
• Certain provisions of the new Italian Highway Code (39) laying down mandatory 
dimensions for caravans had the effect of prohibiting the use in Italy of caravans 
legally manufactured or marketed in other Member States which failed to comply with 
those dimensions. 
Following the Commission's intervention, the Italian authorities amended the legisla­
tive decree in question. 
d) Other fields and sectors 
Construction 
79. In the absence of effective measures implementing Community legislation, the problems 
encountered in the construction sector stem from the lack of mutual recognition of 
certification and control procedures and of environmental protection rules. Such 
problems were caused, for example, by a German rule stipulating that materials, components 
and equipment could be used in construction only if they carried a mark attesting to the fact 
that they had been approved. This rule was a particular handicap to imported products. 
Chemicals 
80. The obstacles which the Commission had to assess stemmed from the imposition of 
approval procedures or the banning of manufacturing or importation. Authorization 
procedures sometimes entailed excessive delays or called for a disproportionate amount of 
information to be provided. The Member States in question invoked the need to protect public 
health and the environment in support of their cases. 
(39) Legislative decree No 285/92. 
THE SINGLE MARKET IN 1994 
30 PART TWO - DETAILED REVIEW 
The cases which were terminated in 1994 included the following: 
• any product containing a higher proportion of dioxin than the level laid down by a 
German rule could not be manufactured on, or imported into, German territory. In the 
case of recycled products, however, this strict rule applied differently according to 
whether the products containing the dioxin had been recycled in another Member 
State and then reimported or whether they had been recycled on German territory. 
Energy 
81. This is a sector which is still largely dominated by importation, marketing and network 
management monopolies that are the subject of actions before the Court of Justice. Further­
more, national legislation in some Member States imposes storage obligations on distributors 
which in e.ffect tie them to the national refiners - obligations which they are unable to meet 
owing to insufficient capacity. 
C. The main judgments of the Court of Justice 
82. The Union Treaty does not define the concept of a measure having equivalent effect to a 
quantitative restriction. Articles 30 et seq. of the EC Treaty do no more than prohibit such 
measures. Hence the importance of Court of Justice case-law in this field for uniform and 
effective application of these Articles by national authoities. It also enables the Commission to 
clarify and develop, in interpretative communications, the principles of Community law estab­
lished by it. 
a) Name under which a cosmetic product is sold (40) 
83. The Court held that a German measure prohibiting the importation and marketing of a 
product classified and presented as a cosmetic on the grounds that H bore the name "Clinique" 
was incompatible with Articles 30* and 36* of the EC Treaty and with Council Directive 
76/768/EEC* on the approximation of the laws of the Member States relating to cosmetic prod­
ucts. 
In the Court's view, the ban in question was not a necessary requirement for protecting 
consumers or public health. The products in question were presented as cosmetics and not as 
medicinal products. Furthermore, such products were regularly marketed in the other Member 
States under the name "Clinique" without the use of such a name apparently misleading 
consumers. 
b) Approval procedure laid down for the marketing of radiocommunication transmit­
ters/receivers (41) 
84. In line with its case-law, the Court held that a Belgian approval system applied without 
distinction to all radiocommunication receivers, with the sole exception of sets designed exclu­
sively to receive radio or television broadcasts, was incompatible with Article 30* of the Treaty 
and could not be justified as a mandatory requirement or under Article 36* of the Treaty. 
(40) Judgment of the Court of 2 February 1994 In Case C-315/92 [1 994] ECR 1-0317. 
(41 ) Judgment of the Court of 24 March 1994 in Case C-80/92 (1994] ECR 1-1019. 
THE SINGLE MARKET IN 1994 
PART TWO - DEI AILED REVIEW 31 
c) Ban on carrying out certain commercial activities on Sundays (42) 
85. The Court held that Article 30 of the Treaty had to be interpreted as not applying to 
national legislation governing shop opening hours - in this case in Italy - which covered all 
economic operators carrying out activities on national territory and which affected, de jure and 
de facto, the marketing of domestic products and products from other Member States in the 
same way. 
In so doing, the Court applied the conditions laid down in paragraphs 16 and 17 of the above-
mentioned Keck and Mrthouard judgment (43). 
d) • Systematic frontier checks on exports of skimmed-milk powder (4A) . 
86. In line with its "Simmenthal" case-law, the Court held that Community legislation (45) on 
arrangements for the payment of aid for skimmed-milk powder intended for animal feeding-
stuffs on the territory of another Member State had to be interpreted as meaning that it did not 
permit the carrying-out of systematic frontier checks - in this case in Germany designed to 
ensure compliance with the conditions regarding the composition and quality of skimmed-milk 
powder to which the granting of export refunds was subject. However, that legislation did not 
prevent sample checks from being carried out 
e) Free movement of articles made of precious metal - compulsory hallmarking (46) 
87. In line with its "Robertson" case-law (47), the Court held that a Member State - in this 
case the Netherlands - could prohibit the sale of metal articles not stamped with a hallmark 
meeting the requirements of the rules it had laid down where such articles had not been 
stamped, in the Member State of exportation, with a hallmark containing information equivalent 
to that provided by the hallmarking prescribed by the rules of the Member State of importation 
and intelligible to consumers of that State. 
Technical harmonization and standardization 
A. Adoption and implementation of legislation in the various sectors 
88. The application of the Treaty provisions and of the principle of mutual recognition consti­
tute the foundation of the single market. However, in many areas, they are not, in themselves, 
sufficient to guarantee the free movement of goods. For this reason, the Community has 
developed a body of secondary legislation designed to eliminate technical barriers and ensure 
free movement. In the course of 1994, certain legislative measures required to ensure the 
proper functioning of the single market or to adapt existing provisions to technical change were 
adopted, while the Commission continued and intensified its activity designed to ensure effec-
(42) Judgment of the Court of 2 June 1994 in joined Cases C-69/93 and C-258/93 (1994] ECR I-2355. 
(43) Judgment of the Court of 24 November 1993 in joined Cases C-267/91 and C-268/91 [1993] ECR I 6097; see 
point 77 of the 1993 report. 
(44) Judgment of the Court of 22 June 1994 in Case C-426/92 [1994J ECR I-2757 
(45) Regulations (EEC) Nos 1624/76*. 1725/79* and 1726/79*. 
(46) Judgment of the Court of 15 September 1994 in Case C-293/93 [1994] ECR I-4249. 
(47) Judgment of the Court of 22 June 1982 in Case 220/81 [1982] 7349-2363 
THE SINGLE MARKET IN 1994 
32 PART TWO - DETAILED REVIEW 
tive implementation and enforcement of the legislation, including the publication of the first 
edition of the "Guide to the new approach directives". 
a) Agricultural products 
89. In the veterinary and zootechnical sector the internal market programme has led to the 
establishment of a significant and coherent set of legislation governing animal health, 
zootechnics and animal welfare questions relating to live animals and animal products. 
Although a number of implementation decisions remain to be adopted, harmonized conditions 
already exist for the internal movement and for the import from third countries of live animals 
and animal products. A number of proposals to update and/or improve existing legislation are 
under examination in the Council. In the field of crop products arid animal nutrHion,<^nrrmunity 
regimes, adapted to the requirements of the internal market, exist for seeds and propagating 
material, plant health, animal nutrition, pesticides, pesticide residues and organic farming. In 
some cases, further measures to refine and update these regimes are under examination in the 
Council or in preparation. 
Veterinary Legislation 
* Legislative developments 
90. Animal health - In June the Council adopted Decision 94/370/EEC* comprising a series 
of amendments to Council Decision 90/424/EEC* on expenditure in the veterinary sector, which 
will permit better strategic planning and utilization of Community funds in combating animal 
diseases. The Council also adopted a Directive amending Council Directive 64/432/EEC* on 
health problems affecting intra-Community trade in bovine animals and swine. 
91. Public health - Harmonized hearth rules on the health requirements for the placing on the 
market and importation of animal products (meat, meat-based products, dairy products and 
fishery products) are in place. In December the Council adopted Directive 94/65/EC* concern­
ing the placing on the market of minced meat and meat preparations and Directive 94/71/EC* 
amending the rules on the production and placing on the market of raw milk, heat-treated milk 
and milk-based products. 
In December the Council adopted Decision 94/936/EC* amending Decision 90/218/EEC* and 
prolonging until 31 December 1999 the moratorium on the administration of bovine somatotro-
phin to dairy cows, while providing the possibility for Member States to organize limited trials to 
obtain further scientific data. 
In February the Council adopted Decision 94/117/EC* conceming certain small establishments 
to ensure the distribution of fisheries products in Greece. 
92. Zootechnics - In June the Council adopted Directive 94/28/EC* fixing the principles for 
the zootechnical and genealogical conditions for the import from third countries of animals, 
their semen, ova and embryos, and amending Directive 77/504/EEC*. 
• Implementation and enforcement of legislation 
93. Transposai - In the veterinary field, the situation regarding directives dealing with the 
abolition of physical inspections at frontiers has improved considerably since only Ireland has 
not yet taken the necessary legislative measures. 
The situation conceming the other veterinary directives varies from Member State to Member 
State and from directive to directive, but, in general, there are many delays which are difficult 
to reduce. 
Thus, delays in the transposai by the Netherlands of directives in the field of artificial insemina­
tion and reproduction were not resolved until the end of 1994, despite the judgment by the 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 33 
Court of Justice of 2 August 1993 (48) censuring that Member State for failure to communicate 
any measures incorporating Directives 87/328/EEC*. 88/661/EEC*. 89/361/EEC*, 90/118/EEC* 
and 90/119/EEC* into national law. 
94. Administrative cooperation - The implementing rules in the veterinary and zootechnical 
sector are applied within the framework of the Standing Veterinary Committee and the Standing 
Committee on Zootechnics. These committees, on which the Member States are represented 
by the appropriate experts, meet for at least five days a month and operate in the same way as 
regulatory committees. They delivered well over two hundred opinions in 1994. In addition 
there are regular technical meetings with representatives of the Member States in legislation or 
expert sub-groups addressing particular issues. 
The programme for the exchange, of. veterinary officers between trje. Member States has 
continued, focusing in particular on harmonizing the inspection techniques used àt the 
Community's external frontier posts. 
95. Enforcement of rules on animal health - The setting-up of the new regulatory framework 
for the veterinary inspection of live animals and the abolition of internal border controls has 
been followed by a significant increase in movements of live animals. The ANIMO system, 
connecting more than two thousand local units in the twelve Member States, now fully meets its 
objectives and provides advance information to the point of destination Of the arrival of animals 
in the Member State of destination. The number of messages transmitted through the ANIMO 
system rose rapidly during 1994, with 125 000 messages during the second half of the year 
from a total of 160 000. 
The Commission has continued to apply measures to restrict trade in and import of live animals 
and products to avoid the spread of disease, especially foot-and-mouth disease, classical swine 
fever and swine vesicular disease. Action was also required to restrict imports from Australia 
following an outbreak of a serious equine disease. 
96. Enforcement of rules on public health - Following an outbreak of trichinae in France, the 
Commission had to take measures to reinforce the testing requirements on horse-meat from 
North America pending the results of scientific study. Following an opinion from the Scientific 
Veterinary Committee, Directive 94/59/EC* was adopted, amending the trichina testing 
arrangements for imported and Community horse-meat. 
97. Scientific Cooperation - Scientific cooperation with experts from the Member States is 
organized by the Commission within the framework of the Scientific Veterinary Commitfee set 
up on 30 July 1981. The Committee comprises three sections: animal health, public health and 
animal welfare. In addition to plenary sessions, numerous sub-groups meet at the Commis­
sion's request. During 1994 the Committee examined, among other subjects, the testing 
requirements for trichinae, and continae, and continued to monitor and advise on the situation 
with regard to bovine spongiform encephalopathy (BSE). 
98. Cooperation with Industry - The Commission consults the profession via the Advisory 
Veterinary Committee, which is made up of representatives of agricultural producers, agricul­
tural cooperatives, industry, commerce, workers' and consumers* organizations and the veteri­
nary profession. Subjects addressed during 1994 included provisions for the placing on the 
market of fresh meat and the rules governing small slaughterhouses. 
Plant Health 
• Legislative developments 
99. The new plant health regime was extended to the Canary Islands from 1 January 1995 
by Council Directive 94/13/EC* amending Directive 77/93/EEC* establishing the piant health 
regime. 
(48) Judgment of the Court of 2 August 1982 in Case C-303/92, ECR I-4739 
THE SINGLE MARKET IN 1994 
34 . PART TWO - DETAILED REVIEW 
This Directive also adapted the same Directive to provide for derogations from certain plant 
health rules in respect of trials, scientific and varietal selection work, the movement of small 
quantities of plants, plant products and other objects for personal use, and the growing, produc­
tion or use of such material in frontier zones between Member and non-Member states. 
Commission Directive 94/3/EC* established a procedure for the notification of interception of a 
consignment or a harmful organism from third countries presenting imminent phytosanitary 
danger. 
Consolidation of Community legislation in this area is due to be completed by the end of 1995. 
100. Seeds and Propagating Material - Despite early harmonization in this area, certain 
aspects of seed quality legislation had to be updated to ensure total compatibility with the inter­
nal market-.The Commission made a proposal to the Council to this end which 'was actively 
discussed during 1994 and is expected to be adopted early in 1995 (49). 
Intensive work has been undertaken throughout the year on the consolidation of the seven 
basic directives on the marketing of agricultural and vegetable seed, which should be 
completed by the end of 1995. 
101. Pesticides - In 1991 the Council adopted Directive 91/414/EEC*. which contains the 
basic rules under which pesticides will circulate in future in the European Community. A 
number of provisions which were necessary to make the regime fully operational were adopted 
in 1994. In particular, in July the Council adopted Directive 94/43/EC* establishing the princi­
ples to be applied by Member States in authorizing plant protection products. 
Work is being undertaken to harmonize the data requirements for acceptance of active 
substances and plant protection products. Proposals are being prepared to include in Directive 
91/414/EEC* a fee scheme to cover the costs of evaluating active substances and to include 
appropriate genetically-modified organisms in the scope of the Directive. 
In June 1994 the Council adopted Directives 94/29/EC* and 94/30/EC*, which provide for the 
establishment of maximum pesticide residue levels in a wide range of agricultural products. 
On 11 November 1994 the Commission made a further proposal to the Council to develop the 
list of pesticide residue levels covered by Community measures (50). 
102. Organic farming - With regard to organic farming, the Commission adopted several 
implementing measures under the basic Regulation (EEC) No 2092/91* and the Council 
continued its examination of the Commission's earlier proposal to improve the regime's func­
tioning in the light of the first year's experience (51). On 20 June the Council adopted Regula­
tion (EC) No 1468/94* delaying for one year the current provisions conceming the labelling of 
products under conversion. 
A proposal to include animal products in the scope of the Community regime is in preparation 
and should be submitted to the Council in 1995. 
103. Plant variety rights - In the field of plant variety rights, the Council adopted Regulation 
(EC) No 2100/94* on Community plant variety rights. This measure was initiated by the 
Commission in the White Paper. 
The Regulation provides for an intellectual property right for a new plant variety with effect 
throughout the territory of the European Union. Such protection will be granted by the future 
Community Plant Variety Office, the location of which has yet to be determined. The Regula­
tion will enter into force on 27 April 1995. 
(49) COM(93) 598 of 26 November 1993 (OJ C 29, 31.12.1994). 
(50) COM(94) 482 of 11 November 1994. 
(51 ) COM(93) 558 of 12 November 1993 (OJ C 326,3.12.1993) as amended by COM(94) 292 of 7 July 1994 (OJ C 222, 
108.1994). 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 35 
104. Animal nutrition - On 22 July the Commission adopted Directive 94/40/EC* adapting the 
guidelines for the evaluation of additives to cover two new categories of additives, enzymes 
and microorganisms, and on 25 July Directive 94/39/EC* establishing a list of intended uses of 
feedingstuffs for particular nutritional purposes (commonly referred to as "dietetic feeding-
stuffs"), to define clearly the intended uses, nutritional characteristics and conditions of use 
permitted. A proposal was submitted to Council during the year fixing specific rules for raw 
materials used in feedingstuffs (52) and the Council for its part continued its examination of the 
Commission's earlier proposals conceming a modified procedure for the admission of certain 
classes of additives (53), the officiai inspection of feedingstuffs (54) and the approval of certain 
categories of establishments operating in the feedingstuffs sector (55). 
The imminent adoption by the Council of three proposals conceming official controls in animal 
nutrition*, the licensing pf certain establishments operating in the animal, feed sector.and the. 
fifth amendment to Directive 70/524/EEC* conceming additives in animal nutrition,' which 
establishes a new procedure for the authorization of additives, will provide a reinforcement of 
the safety conditions and an important contribution to the free circulation of all products 
intended for animal nutrition. 
On 20 July 1994 the Commission submitted a proposal to the Council conceming labelling 
declarations on feed materials (56) with a view to preventing the possible distortion of trade due 
to the lack of harmonized rules. 
A new proposal establishing the rules for authorization and use of particular feed materials 
derived from non-conventional products or technologies is anticipated by July 1995 in order to 
ensure the safety of use of feedingstuffs. 
Discussions are taking place with national experts with a view to submitting a Commission 
proposal during 1995 to reformulate and update Directive 70/524/EEC* conceming additives in 
feedingstuffs as a result of developments in scientific or technical knowledge. 
• Implementation and enforcement of legislation 
105. Transposai - In the plant-health sector, the new Community rules on protection measures 
against the introduction into the Community of organisms harmful to plants and plant products 
and against their propagation within the Community have been in force since 1 June 1993. 
Apart from a number of recent amending directives, all the essential directives in this field have 
been transposed except by Greece. 
On the other hand, as regards seeds and seedlings, delays in transposai have become 
substantial, except in Denmark, Ireland and the Netherlands, and the Commission has had to 
initiate infringement proceedings under Article 169* of the Treaty against the Member States 
concerned. 
106. Administrative and scientific co-operation - Co-operation is ensured through the relevant 
regulatory committees and numerous dependent committees of experts and working groups 
(see p. 71 of 1993 Report). 
Additionally, in the plant health area, committee work is complemented and supplemented by 
the activities of the Community Inspectorate, whose work during 1994 focused on verifying the 
correct application by the Member States of the new plant health regime which came into force 
on 1 June 1993. 
Some difficulties have been encountered in the interpretation of the legislation by a number of 
Member States, resulting in further clarification by the Commission of certain definitions used 
in the area of plant-health controls 
(52) COM(94) 313 of 20 July 1994 (OJC 236, 24.8.1994). 
(53) COM(94) 372 of 3 August 1994 (OJ C 242, 30.8.1994). 
(54) COM(93) 510 of 21 October 1993 (OJ C 313.19.11.1993) as amended by COM(94) 371 of 3 August 1994 (OJ C 
242, 30.8.1994). 
(55) COM(93) 587 of 26 November 1993 (OJ C 348, 28.12.1993) 
(56) COM(94) 313 of 20 July 1994 (OJ C 236, 24.8.1994). 
THE SINGLE MARKET IN 1994 
36 PART TWO - DETAILED REVIEW 
Inspection visits have also been made to various third countries, in particular those known to 
have exported material to the Community that did not comply with Community legislation. 
107. The third phase of the "Europhyt" project was launched in July 1994 and is scheduled to 
end in July 1995. The aim of this project is to: 
• organize and implement a network of mutual notification and exchange of information 
conceming the interception, appearance and/or presence of organisms harmful to 
plants and plant products; 
• establish a database of technical and biological information for national inspectors 
and Community experts. 
The pilot database for managing third-country notifications is already operational and statistics 
.of notifications received can be generated automatically. At. the end of the.third phase it will be 
possible to update and consult the database for managing third-country notifications direct frorh 
the Member States and to update the database automatically with statistics on the notifications 
exchanged. 
Completion of this project will greatly facilitate the joint efforts by national and Community 
authorities to combat harmful organisms, thereby helping to ensure the safety and quality of the 
fiu'rt, vegetables, flowers and plants sold to the European consumer. 
108. Enforcement of plant health rules - Overall the new plant health regime which came into 
force in June 1993 has achieved its main objective - to ensure the free movement of plants and 
plant products whilst at the same time safeguarding plant health. A need has been identified for 
further standardization and clarification of certain implementing measures to ensure uniformity 
of application. Key areas of concern are procedures for notification of interception of harmful 
organisms, charging systems for plant passporting activities, customs procedures for identifica­
tion and initial interception of material of plant-health concern from third countries. 
109. Enforcement of rules on pesticides - With the completion of the arrangements for the 
placing on the market of plant protection products, Member States have started to work on the 
first phase of the programme for the re-evaluation of existing active substances contained in 
such products. 
Remaining differences in Member States' pesticide residue standards, which have not yet been 
harmonized, could result in trade problems. The situation will improve with the gradual 
harmonization of legislation on pesticide residues. Meanwhile, the Commission has proposed a 
conciliation procedure for resolving trade problems which may arise as a result of the absence 
of harmonized maximum pesticide residue levels. 
Complaints 
110. Obstacles to the free movement of agricultural products brought to the Commission's 
attention during 1994 consisted, first, of technical barriers such as the fixing at too low a level 
by the German authorities of maximum permissible concentrations for certain contaminants in 
olive oil, and the fixing by the Italian authorities of limits for pesticide residues for medlars 
below those laid down by Community rules and, second, of the retention of administrative 
requirements abolished by the "White Paper" directives, such as the requirement by the Italian 
authorities for a health certificate for fresh meat, and that for prior authorization for transport on 
French territory of live animals from other Member States intended for export to third countries. 
b) Foodstuffs 
* Legislative Developments 
111. The most significant achievement of 1994 was the adoption by the Council on 30 June 
1994 of Directive 94/35/EC* on sweeteners and Directive 94/36/EC* on colours, and the adop­
tion by the Council on 15 December 1994 of the Directive on additives other than colours and 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 37 
sweeteners. Implementation of these directives will remove barriers to trade within the internal 
market resulting from different national rules conceming the use of additives, which constitute a 
significant proportion of the complaints received by the Commission relating to the free move­
ment of foodstuffs. The Council also adopted in June an amended version of the framework 
Directive 89/107/EEC* on food additives (Directive 94/34/EC*) in order to allow Member States 
to maintain their legislation on the prohibition of use of additives in traditional products subject 
to certain conditions. 
112. In addition, the Council and Parliament adopted Directive 94/52/EC amending Directive 
867344/EC on extraction solvents. 
113. During the course of 1994, the Commission continued its review of the detailed provi­
sions of Community food legislation.requested by the Edinburgh summit with a view to rational­
izing and simplifying the Community rules applicable to coffee.extracts, sugars, preserved 
milks, honey, fruit juices and nectais, chocolate and jams, jellies and marmalades. The 
Commission has decided to cease work on the elaboration of certain specific directives relating 
to foodstuffs for special nutritional purposes and has proposed to delete the references to 
low-sodium foodstuffs, gluten-free foodstuffs, foods for diabetics and high-energy foodstuffs for 
sportspersons from the list of specific directives contained in the annex to Directive 
89/398/EEC*. In addition, the Commission has presented a proposal to update the provisions of 
Directive 80/777/EEC* relating to natural mineral waters. 
114. In April, following Parliament's opinion, the Commission presented a revised proposal for 
the amendment of Directive 79/112/EEC* relating to food labelling. This proposal contains 
several important provisions for the elimination of remaining technical barriers to trade in the 
foodstuffs sector, notably in respect of the quantitative labelling of ingredients, and the inclu­
sion of the list of ingredients on the labelling of alcoholic drinks. 
• Implementation and enforcement of legislation 
115. As in previous years, high priority has been given to the development of administrative 
cooperation between the Member States in the foodstuffs sector. A third coordinated 
programme for the control of foodstuffs was established on 12 January 1995 on the basis of 
Directive 89/397/EEC* on the official control of foodstuffs. Furthermore, the Commission took 
the first steps towards the introduction of a system for monitoring and evaluating the equiva­
lence and effectiveness of the official food control systems operated by the Member States; the 
first missions to individual Member States were scheduled to take place in early 1995. In addi­
tion, it was possible to use the network of contacts established within the framework of the 
Standing Committee for Foodstuffs to resolve several questions relating to the implementation 
and application of Community law, and, as necessary, bilateral meetings were organized 
between Member States to consider specific problems for the functioning of the internal 
market. 
116. In the field of food hygiene, the Commission used for the first time the powers conferred 
by Article 10 of Directive 93/43/EEC* to take measures to protect the Community market from 
serious health risks arising in third countries. Following an outbreak of cholera in Albania, 
temporary measures were taken to prevent the importation of certain foodstuffs which could act 
as a vehicle for transmitting the disease. 
117. In order to prevent the emergence of new barriers to trade within the internal 
market, Directive 79/112/EEC* on food labelling, Directive 93/43/EEC* on food hygiene and 
Regulation (EEC) No 315/93* lay down specific procedures by which Member States are 
required to notify draft legislation to the Commission. During 1994, the Commission decided to 
block the adoption of several such measures in order to allow time for.appropriate provisions to 
be adopted at Community level. 
118. The Commission also drew up the first detailed inventory of tasks to be undertaken in the 
field of scientific cooperation between the Commission and Member States. Scientific institutes 
from the Member States will consequently participate in the examination of questions relating 
THE SINGLE MARKET IN 1994 
38 PARI TWO DETAILED REVIEW 
to flavouring substances and the chemical or microbiological contamination of food, and stud­
ies of dietary intakes in the Member States. 
119. Finally, the Commission has initiated studies on the implementation of Community food 
legislation. The results should make it possible to identify any specific problems resulting from 
non-transposal or incorrect implementation of the legislation by Member States. 
c) Mechanical and electrical engineering, pressure vessels, medical equipment and 
measuring instruments 
• Legislative developments 
120. Legislative activity was continued and resulted in: 
* the adopiion bv the European Parliament and the Council of: 
- Directive 94/9/EC* conceming equipment and protective systems intended for use 
in potentially explosive atmospheres: this Directive replaces the existing 'old 
approach' directives (i.e. detailed technical rules) requiring continual adaptations 
to technical progress, and extends the scope of Community law beyond electrical 
products to include all equipment and protective systems intended for use in 
potentially explosive atmospheres; 
• the adoption bv the Commission of: 
- Directive 94/26/EC* adapting to technical progress Council Directive 79/196/EEC* 
concerning electrical equipment for use in potentially explosive atmospheres; 
- Directive 94/1/EC* adapting to technical progress Council Directive 75/324/EEC* 
on aerosol dispensers 
• Implementation and enforcement of legislation 
121. In 1994 the Commission stepped up its activities relating to the implementation and 
enforcement of directives covering these different fields, in particular by increasing the number 
of exchanges of experience between the certification bodies designated by the Member States 
for the implementation of the directives, and by continuing its work with the Member States with 
a view to distributing implementation guides for each directive. 
122. It also published lists of notified bodies and harmonized standards in the Official Journal 
of the European Communities. Progress on notifications concerning the certification bodies at 
the end of January 1995 demonstrates that the bodies are now in place to enable the 'new 
approach' directives to be implemented effectively (57). 
Although there has been a delay in the adoption of harmonized standards in some sectors 
(machinery), this is an isolated occurrence (personal protective equipment). The delays are due 
mainly to lack of industry involvement. 
123. In addition, consultations with experts in the Member States have continued in each 
sector with a view to determining the needs and possible procedures for cooperation between 
the authorities responsible for market supervision. Progress has been slow because the 'new 
approach' directives are just beginning to enter into force. Thus, national administrations have 
focused on the difficulties in interpreting the directives. 
(57) Directive 87/404/EEC* - simple pressure vessels 
Directive 89/3367EEC* - electromagnetic compatibility 
Directive 89/392/EEC* - machinery 
Directive 89/686/EEC* - personal protective equipment 
Directive 90/384/EEC* - non-automatic weighing instruments 
Directive 90/385/EEC* - active implantable medical devices 
Directive 90/396/EEC* - gas-burning appliances 
Directive 93/42/EEC* - medical devices 
THE SINGLE MARKET IN 1994 
PART TWO-DETAILED REVIEW 39 
The Commission has also continued its action under Article 169* of the EC Treaty in order to 
ensure that the directives are effectively and correctly transposed and properly enforced. 
d) Construction products 
124. Directive 89/106/EEC* on construction products has been transposed by eleven Member 
States, and Belgium has presented draft legislation which should soon be signed by the Head 
of State. 
As part of the implementation of this Directive, on 30 January 1994 the Commission, after 
obtaining the opinion of the Standing Committee on Construction, adopted a communication 
with' regard to the six interpretative documents (58) setting out in detail the six essential 
requirements in the Directive. 
These documents are neither regulations nor technical specifications. They are information and 
reference documents providing the indispensable link between the essential requirements 
conceming construction works and technical specifications (harmonized standards and Euro­
pean technical approvals) for construction products. The interpretative documents constitute 
the indispensable basis for formulating mandates for standardization and guidelines for Euro­
pean technical approvals. 
In addition, in September 1984 the Commission adopted a decision on the classification of 
products according to their reaction to fire (59). 
These various decisions enabled the Commission to finalize the first mandates for standardiza­
tion for specific product groups, which have been sent to the European Standards Organiza­
tions. 
The effective application of this Directive is based on the adoption of European technical 
specifications. The standardization bodies are carrying out important work to this end. 
e) Motor vehicles 
125. The completion of the internal market in this sector involves the gradual replacement of 
a body of national technical rules on construction requirements to ensure the safety of users 
and third parties and to protect the environment, by a single body of harmonized rules for the 
whole Union. This technical harmonization through specific directives on each vehicle compo­
nent results in the introduction of a single system of type-approval for vehicles, which will even­
tually replace all the existing national systems Thus, it will be possible to sell and register 
within any Member State a vehicle with a valid certificate of conformity issued under this 
system, without any other technical formality. 
126. This technical harmonization was completed for private cars in June 1992. The proce­
dure for Community type-approval entered into force on an optional basis on 1 January 1993 
for private cars and is scheduled to become compulsory by 1 January 1996. It will be extended 
to other categories of vehicle as soon as the last specific directives conceming them are 
adopted, a process which is currently under way. 
127. Following a symposium held in November 1994 on the first applications of the procedure 
for Community type-approval, the Commission will prepare a report and will propose, where 
appropriate, amendments to rectify any problems in the system. 
(58) OJ C 62 of 28 February 1994. 
(59) OJ L 241 of 16 September 1994. 
THE SINGLE MARKET IN 1994 
40 PART TWO-DETAILED REVIEW 
f) Pharmaceuticals 
128. Completion of the internal market in the pharmaceuticals sector involyed substantial 
harmonization of legislation, which was finished at the end of 1992. A major step towards 
increased integration of the market was the adoption by the Council in June and July 1993 of 
the regulation and the directives concerning the new system of authorization for placing on the 
market and the establishment of a European Agency for the Evaluation of Medicinal Products. 
The Agency will have its headquarters in London. The Community procedures for authorization 
for placing on the market came into force on 1 January 1995. Thus, within a period of eighteen 
months, it was necessary to adopt the secondary legislation needed to start the new system 
under favourable conditions, not to mention the tasks involved in setting up any new interna­
tional organization. The Community now has a mechanism providing easier and quicker access 
for medicinal products to the single market while guaranteeing patients assessments of medi­
cines of the highest scientific quality. 
129. In March 1994 the Commission sent to the Council and to Parliament a communication 
on the outlines of an industrial policy for the pharmaceutical sector in the European Commu­
nity. In so doing, the Commission wished to attract attention to the difficulties currently facing 
this industry. The emergence of new technologies, increases in the cost of research and devel­
opment for new medicines, the international trend to greater concentration of financial 
resources and increased global competition are drastically changing this industry's usual 
framework for activity. 
At the same time, the Member States are increasing the reforms of their pricing and reim­
bursement systems with a view to controlling health expenditure. If it is legitimate for the 
Member States to seek to limit public expenditure in this way and make the best use of limited 
financial resources, the question also arises whether these measures are not likely to have a 
serious impact on the future of an industry whose performance is largely determined by 
investment today in research and development. 
A discussion and guideline document, the communication seeks to create a permanent 
dialogue enabling national authorities and their socio-economic partners to engage in a 
substantive debate on the causes of the decline of the European pharmaceutical industry and 
on the measures to be adopted by the Community and by the Member States in order to 
remedy the situation. It calls on the Member States, in the fields for which they have direct 
responsibility, to take the measures capable of guaranteeing both balance in the systems for 
financing pharmaceutical expenditure and the long-term pursuit of therapeutic innovation by 
the European pharmaceutical industry. 
g) Narcotic drugs and psychotropic substances 
130. The aim of Council Directive 92/109/EEC* on the manufacture and placing on the market 
of certain substances used in the illicit manufacture of narcotic drugs and psychotropic 
substances is to set up intra-Community surveillance of these substances in order to prevent 
their being diverted from lawful trade. 
The Directive includes provisions on the monitoring of the placing on the market of classified 
substances, in particular with regard to the documentation accompanying each operation lead­
ing to placing on the market, and labelling of substances. It also contains provisions on admin­
istrative cooperation between the competent authorities in each Member State. 
The deadline for transposing the Directive, and for Directive 93/46/EEC* introducing technical 
amendments, was 1 July 1993. To date, Belgium, Greece, Ireland and the United Kingdom 
have communicated measures incorporating the two Directives into national law, and Denmark 
has notified only the transposai of Directive 92/109/EEC*. The consequences of the delay in 
transposai in most of the Member States may be serious. If Member State A, in accordance 
with the Directive, makes placing on the market subject to authorization, and the delay in 
transposai in Member State B means that these authorizations are not in place, Member State 
A will not be able to accept the placing on the market of products from Member State B. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 41 
h) Chemical products 
131. Large and small firms operating in the chemicals, plastics and rubber sectors perceive 
that the single market is very much a reality. This single market comprises not only the twelve 
Member States but also the EFTA countries so that the effective internal market is the Euro­
pean Economic Area and Switzerland. Some 100 000 substances and several million prepara­
tions move freely within this market. The remaining problems concern: 
• the control exercised by governments over exports of precursors for chemical weap­
ons, an area in which industry is disappointed that the Commission was unable to 
persuade Member States to have a fully harmonized system at Union level; 
• a very limited number of cases where there are scientific uncertainties leading to 
• ^«disagreement among Member States about the danger posed by certain substances. 
• Special anrangements for free movement 
132.. Three amendments to Directive 76/769/EEC* limiting marketing and use of dangerous 
substances and preparations were adopted during 1994. Their purpose is to maintain the single 
market in the goods in question while ensuring a high level of protection for consumers, and, in 
the case of the fourteenth amendment, for workers too. 
• The twelfth amendment limiting nickel lays down harmonized rules for the use of 
nickel in objects coming into contact with the skin, such as jewellery. It provides a 
high level of protection for consumers against nickel allergy whilst maintaining a 
single market in the products concerned. It was adopted in June 1994 and will enter 
into force when CEN has developed the necessary test methods to be used in 
demonstrating the conformity of the products with the Directive. 
• The thirteenth amendment lays down harmonized rules for the use of flammable 
gases in aerosol products likely to be accessible to children such as artificial snow, 
silly string, etc. It provides a high level of protection against fire, at the same time 
maintaining a single market in the products concerned. It was adopted in November 
1994 and will enter into force when test methods are available, towards mid-1996. 
• The fourteenth amendment deals with creosote, substances which are carcinogenic, 
teratogenic and toxic for reproduction (referred to as CMT substances - carcinogenic, 
mutagenic and toxic for reproduction) and certain chlorinated solvents, and lays down 
harmonized rules for the marketing of these products. It provides a high level of 
protection for consumers, workers and the environment against the risk of cancer 
from creosote; by prohibiting the sale to the general public of all chemicals classed as 
CMT (categories 1 and 2) and of seven chlorinated solvents, it makes an important 
contribution to protecting public health. The Directive was adopted in December 1994 
and will enter into force towards mid-1996. 
• A proposed sixteenth amendment would phase out the use of hexachloroethane by 
the non-ferrous metals industries. It is a transposai into Community law of two Deci­
sions of the Paris Commission (PARCOM) which have been adopted by some 
Member States and not by others. By providing for harmonized rules it will preserve 
the single market whilst providing a high level of protection for the environment. The 
proposal was adopted by the Commission in December 1994. 
• Single market problems 
133. There is evidence of problems regarding the single market in toxic and very toxic 
substances, substances containing dioxins and asbestos products. 
• Some Member States prohibit the marketing of toxic and very toxic substances to the 
general public; the question may be examined by experts in 1995 with a view to a 
possible directive. 
THE SINGLE MARKET IN 1994 
42 PART TWO - DETAILED REVIEW 
• Technical barriers have resulted from German limits on dioxins in chemicals 
(Dioxinverbotverordnung) and from bans on asbestos by Germany, Denmark, the 
Netherlands, and Italy. The diversity of national approaches in these areas is likely to 
make progress difficult. 
• In cases of harmonized rules under Article 100a*. newly adopted on the basis of a 
qualified majority, there is an increasing tendency for Member States to seek deroga­
tions from the harmonized rules under Art. 100a(4)*. A precedent for such action was 
recently established by Commission Decision 94/783/EC* allowing Germany to dero­
gate from Council Directive 91/173/EEC* on the restrictions on marketing and use of 
pentachlorophenol. 
i) Explosives' .'"'""• ' - •••'•• 
• Legislative developments 
134. The single market in the field of explosives for civil uses was completed with the entry 
into force on 1 January 1995 of Council Directive 93/15/EEC* on the harmonization of the 
provisions relating to the placing on the market and supervision of explosives for civil uses. 
This Directive contains two types of provision: 
• First, it contains provisions on the placing on the market of explosives, using the 'new 
approach'. Initial work on standardization began in CEN in September 1993 with a 
view to allowing European standards to be drawn up with a presumption of conformity 
with the essential requirements. 
• Second, it introduces a mechanism for monitoring transfers of explosives and 
ammunition within the Community. These checks are no longer carried out as checks 
at internal frontiers but solely as part of the normal checks carried out in a 
non-discriminatory way, throughout the Community. In order to transfer explosives, 
the recipient must obtain an authorization for the transfer from the competent author­
ity in the place of destination. The competent authority ensures that the recipient is 
legally empowered to acquire explosives and that he is in possession of the neces­
sary licences or authorizations. The transit of explosives via the territory of one or 
more Member States must be notified by the persons responsible for the transfer to 
the competent authorities in that (those) Member State(s), whose approval is 
required. The Directive also contains specific instructions for cases where the trans­
fers of explosives must comply with specific safety requirements. 
• Implementation and enforcement of the legislation 
135. Although all the provisions of Directive 93/15/EC* have been in force only since 
1 January 1995, the Member States had to introduce the provisions necessary to comply with 
the rules on the transfer of explosives by 30 September 1993, and the provisions transposing 
the other aspects of the Directive by 30 June 1994. 
So far only Luxembourg, the Netherlands and the United Kingdom have notified the transposai 
of all the provisions of the Directive (Belgium, Germany, Denmark, Italy, and Ireland have noti­
fied partial transposai). However, a detailed examination of the contents of the transposai in 
Luxembourg still has to be carried out. 
136. The effective operation of Directive 93/15/EC* requires cooperation among the public 
authorities involved in its application. The main aspects of this cooperation are: 
• Article 5, which provides that disagreement over whether harmonized standards 
satisfy the essential requirements of the Directive shall be brought before the Direc­
tive 83/189 Committee; 
• Article 9(4), which provides that where a Member State considers that there is a 
problem regarding the verification of the entitlement to acquire explosives, that 
THE SINGLE MARKET IN 1994 
PART TWO-DETAILED REVIEW 43 
Member State shall forward the available information on the subject to the Commis­
sion, which will put the matter before the Explosives Committee. 
Article 12, which sets up an information exchange network on transfers of explosives 
and ammunition. 
J) Toys 
137. The fifteen Member States have incorporated Directive 88/378/EEC* on the safety of 
toys into national law. Its implementation has not given rise to any major problems and it has 
achieved its objective of the free movement of products. But the assessment of. the operation 
of the market-control mechanisms on the conformity of Joys with, essential safety requirements 
must be qualified. The market-control mechanisms were correctly introduced by the Member 
States. However, according to the information available to the Commission, market controls 
are not being carried out in the same way throughout the European Union, and the conse­
quence is variable effectiveness depending on the Member States concerned. 
138. This information comes from two sources. First, the Directive requires the Member 
States to submit to the Commission every three years a report on the application of the Direc­
tive in their country. To date, and despite a reminder from the Commission, only Spain, 
Denmark, Germany, the Netheriands, the United Kingdom and Portugal have submitted such a 
report. Second, the Commission is notified of certain measures to withdraw or restrict the plac­
ing on the market of toys regarded as not complying by the supervisory authorities through 
notifications that it receives on a regular basis from some Member States under the safeguard 
clause in Directive 88/378/EEC*. During the period 1990-1994, the safeguard clause was used 
one hundred times. The Commission considered that ninety-seven times, or almost all cases, 
were justified, and it informed all the Member States immediately. Ninety-five notifications were 
made by the United Kingdom; one notification was made each by Germany and Denmark. 
To these must be added the notifications made under the RAPEX system and dealt with under 
the safeguard clause in Directive 88/378/EEC* since the Commission took the view that the risk 
represented by the toys in question was not serious and immediate. Seven notifications, one 
Danish, two German, two from the United Kingdom and two from Portugal, were also redi­
rected. 
139. The Commission finally received notification from Germany under the safeguard clause 
in Directive 87/357/EEC* conceming products which, appearing to be other than they are, 
endanger the health or safety of consumers ÇDangerous imitations" Directive), which it also 
dealt with under the safeguard clause in Directive 88/378/EEC*. 
Cases of toys notified for failing to conform to safety requirements concern essentially imports 
from third countries, mainly in Asia. 
k) Footwear 
140. Community legislation on footwear labelling was drafted in response to the concerns of 
industry; there had been hundreds of complaints due to the serious obstacle to the free move­
ment of footwear in the EC caused by the existence of divergent national laws in France and 
Spain, and the likelihood that other Member States would enact similar measures. 
After extensive examination and consultation with all parties concerned, it was found that the 
varying national laws and practices were likely to create barriers to trade. Neither the applica­
tion of Articles 30 et seq.* of the Treaty, recognition between Member States of existing legis­
lation, nor voluntary harmonization within the industry (which furthermore would not apply to 
imports from third countries, which account for 46% of consumption) seemed able to eliminate 
the bamers satisfactorily. The consensus was that a Directive to facilitate the free circulation of 
footwear and to provide a high level of consumer protection and information was the most 
effective way of resolving the unsatisfactory situation. 
THE SINGLE MARKET IN 1994 
44 PART TWO - DETAILED REVIEW 
The Commission presented a proposal providing for the presentation of information on the 
constituent materials of footwear by means of agreed pictograms or a series of harmonized 
written indications. The Directive (94/11/EC*) was adopted by the Council on 23 March 1994. It 
enjoys the support of consumers and has been publicly welcomed by the footwear and leather 
industries, and the retail and distribution sectors. It will enter into force on 23 March 1996. 
I) Cosmetics 
141. Although Directive 76/768/EEC* relating to cosmetic products is one of long standing 
which has been regularly amended to take account of technical advances, the situation 
conceming. its inco.rpora.tion into national law is stijl not entirely satisfactory. Some Member 
States' legislation still contains market-control measures which are incompatible with the Direc­
tive. Accordingly, the Commission has initiated several infringement proceedings. 
Commission Directive 93/47/EEC* of 22 June 1993, adapting to technical progress for the 
sixteenth time Directive 76/768/EEC, entered into force on 30 June 1994. The aim of this 
Directive is to either prohibit or allow definitively, or allow temporarily, a number of substances, 
preservatives and ultra-violet filters in the composition of cosmetic products. A Directive 
adapting to technical progress for the seventeenth time Directive 76/768/EEC was adopted in 
1994 (Directive 94/32/EC*). 
In addition, Directive 93/35/EEC*. amending Directive 76/768/EEC* for the sixth time, which is 
not due to enter into force until 14 June 1995, has already been transposed by a number of 
Member States. 
m) Cableway installations 
142. On 31 January 1994 the Commission adopted the proposal for a European Parliament 
and Council Directive relating to cableway installations designed to carry passengers. This 
proposal is currently being examined by the Council's Working Party on economic questions. 
Parliament has not yet delivered its opinion. A mandate for a programme of standardization is 
being earned out by CEN/CENELEC/ETSI. 
n) Recreational craft 
143. Directive 94/25/EC* on the approximation of the laws, regulations and administrative 
provisions of the Member States relating to recreational craft was adopted on 16 June 1994. 
The purpose of the Directive is to abolish the obstacles to trade caused by specific national 
laws, and to lay down the essential safety, health and consumer-protection requirements for the 
construction of recreational craft. It must be incorporated into national law by 16 December 
1995 and the Member States have to apply it with effect from 16 June 1996. 
144. Harmonized European standards and international standards have a very important role 
to play in certifying that products conform to essential requirements. A mandate covering 
thirty-three draft standards was given to the CEN in 1993 and 1994, which, for this sector, is 
referring to work by the ISO in view of the global nature of the market for recreational craft. A 
new package covering some fifteen further draft standards is currently being prepared. 
Initially, the recreational craft construction industry strongly encouraged the preparation of a 
draft Directive and its adoption by Parliament and the Council. It also played an active part in 
technical discussions on standardization. 
During the consultations which preceded the Commission proposal, consumer representatives 
(owners/users of craft) were in favour of the proposal; following their requests, derogations 
were provided for certain traditional' or specific categories of craft, such as house-boats. 
THE SINGLE MARKET IN 1994 
PART TWO-DETAILED REVIEW 45 
B. Standardization policy 
145. The continuing development of European standardization remained of importance for the 
functioning of the single market. In 1994 some twenty additional mandates were issued, some 
completing or revising earlier mandates. 
Significant progress has been achieved in the areas of the new approach and public procure­
ment, though much remains to be done. Mandates continue to be issued for new work in both 
these areas, though to some extent European standardization is approaching a period of 
consolidation here. In information technology and telecommunications a major review of activ­
ity is already underway following the issue of the Bangemann Report on the Global Information 
Society and the Genval Conference on this topic in November. 1994. 
With the development of the single market, European standardization has begun to reach a 
critical mass in relation to national and international standardization. Ten years ago, European 
standardization was a very small proportion of total work; it now constitutes a significant part of 
the activities of the national standards bodies. For instance, ten years ago 80% of new activi­
ties taken up by DIN concerned German initiatives, whereas today 80% concern international 
or European initiatives. Furthermore, European standards are beginning to be issued on a 
substantial scale, with over 300 technical committees working on some 10 000 standardization 
projects. 
The extent to which European standardization has the support of economic players is indicated 
by the fact that, of these 10 000 items, some 3 000 are mandated, the remainder being under­
taken at the initiative of European industry. This scale of work is resulting in the issue of 
approximately 1 000 European standards per year. While significant progress has been made 
on efficiency, and output is impressive, it remains true that issue of standards is still too slow; 
further improvement is needed. 
146. The second amendment to Directive 83/189/EEC* was adopted; it includes an adaptation 
to the information system for national standardization activities that will reduce the administra­
tive burden and improve efficiency. 
The process of recognition of ETSI as a European standards body is approaching completion 
with the listing of the ETSI national standards bodies. The process of designation of these 
bodies by the Member States, and the preparation of the necessary further amendment to the_ 
Annexes to Directive 83/189/EEC*. are under way. 
147. The Commission has commenced discussions on a review of the way in which European 
standardization could be financed over the medium term. This follows up a commitment given 
in the Strategic Programme on the Internal Market (60). The review will aim to determine the 
nature and extent of the standardization infrastructure that will be needed to meet the needs of 
European Union policies, particularly the process of integration of the internal market, and 
needs of industry and society as a whole for an open and transparent system for the elabora­
tion of standards, and the way that such an infrastructure should be financed. 
148. The Commission will shortly issue a communication to the Council and Parliament on the 
broader use of standardization in Community policy. The communication will provide an over­
view of the use of standards in the policies of the European Union, and outline intentions for the 
development of the role of standardization in the immediate future. The Council, in a Resolu­
tion on the role of standardization in the European economy (61), has encouraged the further 
use of standardization as an instrument of European integration and as a technical basis for the 
support of legislation, and has called for reference to standards to be used, where appropriate, 
in European legislation. 
The .Commission has initiated a number of standardization measures outside the main policy 
areas in which the use of standards has become established, particularly in energy saving, 
(60) COM(93) 632 final of 22 December 1993 (OJ C 128, 9.5.1994) 
(61 ) OJ C 173 of 9 July 1992. 
THE SINGLE MARKET IN 1994 
46 PART TWO - DETAILED REVIEW 
protection of the environment, and analysis of foodstuffs. The development of European stan­
dards in these areas will not only advance the European Union's policies in the specific areas 
addressed but will also contribute to the integration of the European market through the estab­
lishment of commonly accepted specifications. 
C. Quality, certification, and conformity marking policy 
149. A certification policy has been put in place alongside the standardization policy as part of 
the process of implementing the Community's technical legislation, in particular the 'new 
approach' directives, and to facilitateAhe free movement of good6 generally. 
This has had the effect of enhancing the overall consistency of conformity assessment, both 
between the various sectoral directives and in those areas where statutory and private systems 
coexist. As a result, operators are beginning to perceive the internal market as a unified 
economic area in which a product can be freely placed on the market under cover of a single 
certificate. 
The Community is thus establishing, within the legislative framework, common principles and 
implementing rules for the certification procedures laid down in the directives, for the choice 
and notification of the bodies appointed by the Member States to implement those procedures. 
On 13 July 1993 the Council adopted Decision 93/465/EEC* laying down certain common rules 
concerning arrangements for notification and operation. 
150. With regard, more specifically, to the problems concerning the affixing of the 
common EC conformity mark, in July 1993 the Council adopted Directive 93/68/EEC* intro­
ducing a common system of affixing the conformity mark for all the 'new approach' directives. 
The Member States had to take the necessary measures to transpose the Directive by 1 July 
1994, which was to enter into force on 1 January 1995. In fact, only one Member State, the 
Netherlands, has notified the transposition measures amending all twelve directives. Spain had 
not notified any measures by 20 January 1995, while Ireland and Greece had each notified a 
measure transposing one directive, Luxembourg and Portugal two and the other Member 
States (of the twelve) three or four. The necessary infringement proceedings have been initi­
ated. 
151. With regard to voluntary certification, Community policy has begun putting into place a 
European infrastructure with the aim of ensuring transparency equivalent to that achieved by 
the directives, in particular by promoting the same technical instruments. In 1994 the European 
Organization for Testing and Certification (EOTC) entered its mature phase. Accordingly, this 
organization is now focusing on the promotion of European certification systems to make it 
easier to have the results of tests and certificates accepted throughout Europe, where operators 
feel that they require such tools to gain access to the market. 
In this connection the structural progress should be noted in particular, with the setting-up of 
sectoral committees for new sectors such as water, fire and safety of buildings, and the accep­
tance of new groups of agreement such as for recreational craft. In addition, the EOTC organ­
izes a large number of forums to facilitate discussion of all problems concerning certification, 
for example, on the role of accreditation, agreements with third countries and on sources of 
information in Europe on testing and certification. 
152. These different elements are enabling the Community to establish a uniform and consis­
tent policy towards third countries during current negotiations (see para 330). 
153. Quality promotion policy - From now on, the Commission is moving towards a more 
ambitious policy, which, while strengthening the cohesion of the internal market, will provide a 
genuine springboard for European businesses, enabling them to develop their activities on a 
stronger competitive base. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 47 
In 1995 the Commission will present a communication, under the White Paper on growth, 
competitiveness and employment, on a quality policy for the Community using a two-pronged 
approach: 
• improving the quality culture of businesses through promotion activities, 
• redirecting the various activities of public authorities and private services in the qual­
ity field towards a common goal under a programme bringing together all the neces­
sary tools (finance, budget, infrastructure, etc.). 
Quality policy for agricultural products and foodstuffs 
154. In 1992 the Council adopted two regulations which introduced a Community procedure 
on recognition of the specific character of agricultural products and foodstuffs. The. first deals 
with products carrying designations or origin or geographical indications (Council Regulation 
(EEC) No 2081/92*) and the second with certificates of specific character (Council Regulation 
(EEC) No 2082/92*). 
Community work in 1994 relating to the application of these two Regulations was mainly 
concerned with examining applications for registration of designations of origin and geographi­
cal indications notified by the Member States (thirteen hundred cases); the Scientific Commit­
tee was consulted about technical and legal questions concerning these cases at its ten meet­
ings and additional information was requested from the Member States. With regard to certifi­
cates of specific character, the Community symbol and indication to be used by producers were 
defined (Commission Regulation (EC) No 2515/94*). 
Prevention and control Instruments 
A. Prevention of new obstacles - Procedure 83/189/EEC* 
Information procedure in the field of technical standards and rules 
155. The information procedure introduced by Directive 83/189/EEC*, in particular with regard 
to notification by the Member States of their technical legislation at the draft stage, continues to 
prove its worth as basic instrument for preventing obstacles to the exchange of mutual infor­
mation. 
TABLE IV 
Year 
1992 
1993 
1994(62) 
1994 (63) Notifications 
362 
385 
389 
442 Comments 
MS 
184 
104 
136 
137 COM 
165 
80 
209 
248 Detailed opinions 
MS 
66 
64 
78 
79 COM 
121 
88 
85 
99 Intention to propose 
Art. 9(2) 
19 
4 
2 
2 Art. 9(2)a 
25 
5 
-
-
The statistics in the above table show a steady increase in national notifications over the period 
since 1992. This sizeable volume of technical legislation is surprising given the activities linked 
to the completion of the internal market, with harmonized approaches in strategic areas of the 
market. The level of national legislation remains very high. The logical effect of the primacy of 
the political objective of the internal market is not evident since Member States are not reduc­
ing the number of measures likely to delay or jeopardize the realization of that objective. 
(62) Provisional figures calculated on 1 March 1995 
(63) Figures for the 15 Member States. 
THE SINGLE MARKET IN 1994 
48 PART TWO - DETAILED REVIEW 
156. In 1994 the Commission's departments continued to ask the national authorities in the 
Member States to include mutual recognition clauses in their draft technical legislation affecting 
non-harmonized sectors and notified under Directive 83/189/EEC*. 
Those requests, which were the subject of detailed opinions under the procedure provided for in 
Article 9(1) of the Directive, lead to: 
• clauses on the mutual recognition of national standards, rules and technical specifica­
tions; 
• clauses on the mutual recognition of tests and certification stemming from registered 
laboratories. 
157. On 23 March 1994 the Council and the European Parliament adopted Directive 
^/l0/EC* amending for the second time Directive 83/189/EEC*.'It will come info force on 
1 July 1995. The amendments are designed to make the instrument more effective by extend­
ing the scope of the definition of technical regulations (inclusion of other requirements imposed 
on a product after it has been placed on the market, voluntary agreements, tax incentives and 
financial measures in the definition of de facto technical regulations), by clarifying certain 
procedures (request for application of the emergency procedure) and by extending the duration 
of the status quo deadlines (18-month suspension of national measures once the Council has 
adopted a common position). 
158. In the agricultural sector, 42 draft technical regulations were notified by Member States 
and by EFTA countries. The analysis of the draft legislation notified led the Commission to 
request in most cases that amendments be made to ensure that its adoption did not create new 
obstacles to the free movement of goods. In two cases, a standstill was imposed for 12 months 
with effect from the notification, either because of the Commission's intention to present a 
proposal to the Council or because the measures proposed were covered by a proposal already 
presented. 
159. The Commission is continuing to detect, through national publications, technical rules 
adopted in violation of the prior notification obligations of Directive 83/189/EEC*. Some 700 
items of legislation were analysed to establish whether they should have been notified under 
the Directive. Infringement proceedings were initiated in 31 cases in the industrial sphere in 
1994. In such cases, Member States normally propose the repeal of the legislation in dispute 
and/or notify the Commission, as appropriate, of a new draft However, some refuse to suspend 
the legislation in question; four such cases were referred to the Court of Justice in 1994. 
B. Control procedures 
a) General product safety 
160. Directive 92/59/EEC* on general product safety, which is intended to build up confidence 
on all sides in the smooth operation of the single market, came into force on 29 June 1994. 
Within the framework of the administrative cooperation arrangements, and with a view to 
ensuring optimum transposai of the Directive, bilateral meetings were organized with Member 
States between November 1993 and February 1994. As a result of those meetings, a seminar 
was held on 24 and 25 February, providing an opportunity for experts and representatives from 
the Member States and the Commission to hold an informal discussion on the use of the Direc­
tive's concepts in national law. 
It should be noted, however, that only five Member States (Belgium, Denmark, France, the 
Netherlands and the United Kingdom) have so far notified the Commission formally of the 
legislation transposing the Directive into national law. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 49 
On 9 August 1994 the Court of Justice rejected the action for annulment brought by Germany 
against Article 9 of the Directive under Article 173* of the EC Treaty (64). 
b) Enforcement of the mutual recognition pri c v ' 
161. The Commission considers that the proper operation of the principle of mutual recogni­
tion is a fundamental requirement of the internal market if further legislation is to be avoided. It 
has therefore put forward a proposal for a procedure to ensure transparency of national meas­
ures derogating from the principle of the free movement of goods within the Community (65). 
This would result in a requirement for a Member State to notify the Commission and other 
Member States..of its decisions taken to refuse free movement to goods.legally manufactured 
and/or marketed in another Member State. 
The proposal has received a favourable first reading in Parliament but is still under discussion 
in the Council. Member States have recently agreed to carry out the procedure on a one-month 
trial basis to assess its feasibility in administrative terms. 
§2-Special free movement arrangements applicable to the new 
member countries in the agricultural sphere 
162. In 1993 most of the transitional mechanisms connected with the accession of Spain and 
Portugal were dismantled as part of the completion of the single market. However, supplemen­
tary trade mechanisms were retained for a very limited number of products and subject to a 
system of controls to be carried out other than at frontiers. There is every indication that the 
arrangements established have functioned correctly. No complaint has yet been brought to the 
Commission's attention. 
163. In the case of the accession of Austria, Finland and Sweden, application of the CAP to 
the new Member States was arranged for 1 January 1995 specifically to ensure full compliance 
with the principle of the single market. 
Unlike the systems provided for in the previous Act of Accession, the last Act entails neither a 
gradual alignment of the agricultural prices of the new Member States on common prices nor a 
gradual abolition of customs duties and other import charges and quantitative restrictions and 
equivalent measures in trade between the old and the new Member States. The alignment will 
take place instantaneously on 1 January 1995. 
Similarly, in trade with third countries the new Member States will apply on that date the import 
charge applied by other Member States. 
The only transitional arrangements provided for are degressive national aid schemes and the 
application, without any frontier checks, of the safeguard clauses in the event of market disrup­
tion. These arrangements are to apply for five years for the two countries whose price level 
currently exceeds the level of common prices (Austria, Finland). 
(64) Judgment of the Court of 9 August 1994 in Case C-359/92 [1994] ECR 1-3681. 
(65) COM(93) 670 of 15 December 1993 (OJ C 18. 21.1.1994), as amended by COM(94) 250 of 15 June 1994 (OJ C 
200,22.7.1994). 
THE SINGLE MARKET IN 1994 
50 PART TWO - DETAILED REVIEW 
Section 3 - Freedom to provide services and right of establish­
ment 
§ 1 -Introduction 
164. Services account on average for more than 60% of total GDP (and in some Member 
. States for more than two thirds of the national economy) and they employ altogether some 60% 
of the Union's labour force. The publication of the Commission's interpretative communication 
conceming the free movement of services across frontiers (66) represents both a synthesis of 
the main principles so far established by Court of Justice case-law in this field and a basic 
instrument for contributing to the development of an internal market in services that is 
commensurate with their importance at national economic level, based in particular on Arti­
cles 59 et seq* of the Treaty. 
165. The basic idea underlying the communication is the affirmation of freedom of movement 
throughout Community territory for a service legally provided in the Member State in which the 
supplier is established under the principle of mutual recognition between different but 
non-antithetical national systems and in line with the principle of subsidiarity. This idea has led 
first of all to a steady increase in calls for the Commission to act. It is increasingly requested to 
intervene, particularly by initiating infringement procedures, in order to settle cases of State 
restrictions which are frequently non-discriminatory but still unjustified or excessive in their 
effects on non-national suppliers and therefore inadmissible. 
The communication has also provided an opportunity for ever more frequent and coordinated 
discussions with trade associations and v/ith operators in the services sector generally (for 
example, market, tourist, port, cleaning, rental, security, advisory and public relations services), 
who have also attended specific meetings such as the "Internal Market Weeks". 
166. In addition to general topics, special atention has been paid to certain non-harmonized 
specific fields, including the following: 
• employment agencies: there are major obstacles to the activities of placement-agen­
cies (cross-frontier activity is limited by the existence of monopolies or the need for a 
licence in the country of destination of the service) and to those of temporary 
employment agencies (licence requirement in the host country or even a ban on 
activity in some countries); 
• private security services: some countries still discriminate on grounds of nationality, 
and the cross-frontier supply of services is very often made impossible by regulatory 
obstacles (need for a licence in the country of destination of the service) or technical 
bamers (armour-plating of vehicles); 
• port activities: existence of exclusive rights and restrictions on self-handling; 
• fairs and exhibitions; certain rules or practices may impede the cross-frontier organi­
zation of such events or the access of goods and firms to them. 
167. On the case-law front, the Court of Justice continued in 1994 to favour a dynamic inter­
pretation of the free movement of services, for example in "its "tourist guides" judgment of 
22 March and its Van der Elst judgment of 9 August (67). In the first, it declared the inadmissi­
bility of national legislation requiring a supplier of services to hold a licence issued only on the 
(66) OJC 334 of 9 December 1993 
(67) Judgment of the Court of 22 March 1994 in Case C-375/92 J1994] ECR I-0923 and judgment of the Court of 
9 August 1994 in Case C-43/93 (1994J ECR I-3803. 
THE SINGLE MARKET IN 1994 
PART TWO-DETAILED REVIEW 51 
basis of a given qualification; in the second, it ruled that the requirement that a firm established 
in another Member State should have administrative authorization was restrictive. 
In the Van der Elst judgment, it also confirmed the principle that a Member State could not 
subject the execution of a supply of services to observance of all the conditions required for 
establishment, thereby again emphasizing the different nature of these two fundamental free­
doms. 
In March the Court also delivered an important judgment conceming lotteries, certain aspects 
of which touched on the question of gambling generally. This was the judgment in 
Case C-275/92 ("Schindler") (68) in which it confirmed that even the organization and promotion 
of a lottery was an economic activity and as such was covered by the Treaty, and in particular 
by the provisions relating to freedom to supply services. The possibility of applying especially 
strict national rules in this entirely distinctive economic sector on social and fraud-prevention 
grounds was, whatever the circumstances, subject to the condition that they were riot discrimi-. 
natory. 
§ 2 - Regulated areas 
A. Financial services 
168. It is still too early to draw conclusions about the functioning of the single market in finan­
cial services since the "third generation" insurance Directives have been in force only since 
1 July 1994 and the Directive on investment services will come into force only on 1 January 
1996. 
By contrast, the second banking Directive (89/646/EEC*) has been in force since 1 January 
1993. Its application has not caused any major difficulties for the Member States, except that 
some of its provisions, in particular those on the supply of services and the concept of the 
general good, are giving rise to certain problems of interpretation which the Commission and 
the Member States are trying to clear up in the Working Group on the Interpretation of the 
Banking Directives (GTIAD) and in the Banking Advisory Committee. 
169. The Commission has examined a number of cases of non-compliance either with the 
Treaty (Articles 52* and 59*) or with the directives, the most significant of which is probably the 
"SIM" case which stems from Italy's adoption of a law requiring Community intermediaries in 
securities to establish a company under Italian law prior to carrying on business in Italy, thus 
making it impossible to exercise the freedom to supply services and to set up as a branch. This 
case is currently before the Court of Justice. 
170. The Commission is monitoring the situation itself, as far as its powers and resources 
allow, but it relies considerably on economic agents themselves to draw its attention to any 
cases where the mechanisms introduced are not working. It is also determined to monitor 
actively and systematically the transposai of the directives in the financial sector without, 
however, ruling out the possibility of seeking assistance from outside experts in this task. 
The Commission will be particularly vigilant in monitoring the way in which Member States 
require Community operators to comply with their rules relating to the general good. It will 
ensure in particular that Member States observe the principles established by the Court of 
Justice in this area. 
(68) Judgment of the Court of 24 March 1994 in Case C-275/92 (1994] ECR 1-1039. 
THE SINGLE MARKET IN 1994 
52 PART TWO - DETAILED REVIEW 
a) Credit institutions 
* Legislative developments 
171. On 30 May 1994 the Council and Parliament adopted Directive 94/19/EC* on 
deposit-guarantee schemes. This Directive introduces minimum deposit cover of ECU 
20 000 throughout the Union. This guarantee is intended to cover all deposits held with a credit 
institution on Union territory which has its head office in a Member State, including deposits 
with branches established in other Member States. However, Member States remain free to 
introduce schemes providing greater cover. In that event, branches from a Member State in 
which the cover offered corresponds to the minimum laid down by the Directive or is lower than 
that provided for in the host country are entitled to join the scheme in force in the host Member 
State. For a five-year transitional period, however, branches established in a host country in 
which the level of cover is lower than that provided for in the country of origin will have to limit 
their cover to that provided for in the host country in order to avoid market disturbance in the 
latter country. 
172. On 6 June 1994 the Council adopted a common position on the proposal for a Direc­
tive designed to strengthen prudential supervision in the field of financial institutions, 
including credit institutions (69). This proposal clarifies the concept of groups of financial institu­
tions, requires such groups to have their registered and head offices in the same country, 
extends the arrangements for the exchange of information between supervisory authorities 
belonging to different categories and requires external auditors to notify the supervisory 
authorities of any circumstances likely to undermine the stability of the institutions whose 
accounts they audit. 
173. On 25 April the Commission sent to Parliament and to the Council a proposal for a 
Directive amending Council Directive 89/647/EEC* with respect to the recognition by supervi­
sory authorities of contracts for novation and netting agreements (contractual 
netting) (70). This proposal provides for the possibility of own funds requirements for covering 
certain operations to be calculated on the basis of a net rather than a gross amount. The aim is 
to promote this type of contract and agreement with a view, firstly, to reducing the risks 
incurred by banks in their off-balance-sheet transactions relating to interest rates and exchange 
rates and, secondly, to reinforcing the competitiveness of Union credit institutions vis-à-vis 
those from third countries which are already applying a recommendation of the Committee of 
Governors of the Group of Ten that only the balance of the abovementioned transactions be 
taken into account in calculating the solvency ratio, thereby reducing their own funds require­
ments. 
• Transposai and implementation of legislation 
174. The situation regarding the transposai of directives is satisfactory. Only three directives 
have not been fully transposed by all Member States. These are Directive 91/308/EEC* on 
money laundering, which is only partially transposed into Irish and Greek law, and Directive 
92/30/EEC* on consolidated supervision and Directive 92/121/EEC* on large exposures, which, 
although transposed by Germany, will not apply in that country before 1 January 1996. 
During the course of 1994 the Commission analysed national provisions transposing Directive 
91/308/EEC* on money laundering. A number of Member States were requested to provide 
additional information. 
The Commission issued an invitation to tender for the carrying out of a study on the transposai 
and application of Directive 82/299/EEC* on own funds and Directive 89/647/EEC* on the 
solvency ratio of credit institutions. This study is to be earned out in 1995. 
(69) COM(93) 363 final of 28 July 1993 (OJ C 229. 25.8.1993). as amended by COM(94) 170 final of 2 May 1994 
(OJC 213. 3.8.1994). 
(70) COM (94) 105 final of 27 April! 994 (OJC 142, 25.5.1994). 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 53 
175. The dialogue with Member States, established in particular within the framework of the 
Working Group on the Interpretation of the Banking Directives (GTIAD) and the Banking Advi­
sory Committee (BAC), continued in 1994. It concentrated mainly on the problems raised by 
the interpretation of the concept of the supply of services compared with that of establishment 
and on the conditions for applying national rules on the general good. The uncertainties 
connected with these two topics are frequently cited by credit institutions as a major obstacle 
preventing the mechanisms introduced by the second banking Directive from having full effect. 
The Commission plans to initiate wide-ranging consultations and to publish an interpretative 
communication on these two topics in 1995. 
On 18 April the Commission also convened a meeting of the Committee of Credit Associations, 
which is made up of nine European Federations in the credit sector. This Committee, which 
provides a useful framework for consultations and the exchange of information, will meet again 
in 1995. - ! • • • ' • •••••• 
b) Insurance services and pension funds 
* Legislative developments 
176. On 7 December 1994 the Commission formally withdrew its proposal for a Parliament 
and Council Directive relating to the freedom of management and investment of funds held by 
institutions for retirement provision (71). At the same time, it adopted a communication on an 
internal market for pension funds (72). In this communication the Commission states that the 
basic principles underlying freedom to supply services, freedom of establishment and free 
movement of capital apply to the management and investment of funds held by institutions for 
retirement provision. The Commission will ensure that the restrictions in force in Member 
States are compatible with the prudential and legal considerations set out in the communication 
and that the principle of proportionality is observed. 
* Implementation and enforcement of the legislation 
177. There has been considerable delay in some Member States in the transposai of direc­
tives in the insurance field into national law, including, for example, Directive 90/619/EEC* 
(second life assurance Directive). 
Major delays have also occurred in connection with the "third generation" Directives (the 
non-life insurance Directive 92/49/EEC* and the life assurance Directive 92/96/EEC*). These 
Directives, which have recast the previous main directives and will fully open up the internal 
market in insurance, were to have been transposed into national law by 31 December 1993 in 
order to be effectively applied as from 1 July 1994. On 23 January 1995 Spain, Greece, Italy 
and Luxembourg had still not notified the Commission of their national transposai measures, 
while Belgium and France had partially notified theirs. 
The Commission is continuing infringement proceedings under Article 169* of the Treaty for 
failure to notify national implementing measures. 
178. The Commission is currently examining the conformity of national measures implement­
ing Directives 72/166/EEC* and 84/5/EEC* (the main Directives on civil liability insurance on 
motor vehicles). These Directives have been transposed into national law in all Member States. 
In the light of the findings of these studies, the Commission has contacted three Member 
States in which the transposai of the Directives has been found not to be correct. The problems 
encountered included the incorrect transposai of the obligation on Member States to take any 
measure necessary to ensure that civil liability in respect of the movement of vehicles is 
covered by insurance and of that requiring the body responsible for repairing damage caused 
by an uninsured or unidentified vehicle to justify its action. 
(71 ) COM(93) 237 final of 26 May 1993 (OJ C 171. 22.6.1993). 
(72) Communication 94/C 360/08 (OJ C 360. 17.12.1994) 
THE SINGLE MARKET IN 1994 
54 PART TWO - DETAILED REVIEW 
179. Directive 88/357/EEC* (second non-life Directive) has been transposed by all Member 
States except Greece. On the basis of studies carried out by independent experts, the 
Commission is currently carrying out a detailed analysis of the practical effects on the non-life 
insurance market. 
180. The highly complex nature and fundamental importance of the "third generation" Direc­
tives have led the Commission to seek external technical assistance through an invitation to 
tender for the task of carrying out a comparative law study to facilitate the Commission's 
examination of the conformity of national legislation with these Directives. 
181. With regard to sectoral statistical data, the Commission is finalizing its company statis­
tics instrument. During the course of 1995 Eurostat will be in a position to: 
• submit to Member States a methodology for the compilation of sectoral statistics, 
based on a product nomenclature that is as detailed as possible; 
• publish statistics based on data collected from the relevant national authorities in all 
the Member States and also the EFTA countries. 
c) Stock Exchanges and Securities 
• Legislative developments 
182. In order to facilitate multilisting (simultaneous quotation of the same securities on differ­
ent stock exchanges) in the Community, the Council and Parliament adopted on 30 May 1994 a 
new Directive (94/18/EC*) amending the Listing Particulars Directive (80/390/EEC*). 
The two main aims of the directive are: 
• to simplify the cross-border listing rr uirements for the securities of companies of 
high quality, large size and international standing, listed in the Community for at least 
three years and sh wing a good record of compliance with European Union listing 
directives. These companies will be able to be listed in other Member States without 
publishing a new listing prospectus, a simplified set of documents will be made avail­
able to investors; 
• to facilitate the transition to official listing of those companies on certain junior 
markets when such Dmpanies are subject to disclosure requirements equivalent in 
substance to those imposed on officially listed companies in the same Member State. 
The Directive is expected to bring about a more efficient single market in the securities field. In 
particular, the simplification of the cross-border requirements will facilitate the launching by the 
Federation of European Stock Exchanges of the Eurolist project. This project aims at providing 
deeper and more liquid markets for those European Union companies of large size, high quality 
and international standing by listing their shares simultaneously in a number of Member States. 
183. Work continued in the course of the year on the Commission proposal for a Directive on 
investor compensation schemes (73). The Economic and Social Committee and Parliament 
delivered their opinions in January and April respectively. Both opinions were broadly suppor­
tive of the Commission proposal. 
In December 1994 the Commission tabled its amended proposal. This takes account of most of 
Parliament's amendments and of a number of suggestions made by the Economic and Social 
Committee. The Commission also took the opportunity to align its proposal in a number of 
areas on the parallel Directive on deposit guarantee schemes, which was finally adopted by 
Parliament and the Council in May 
(73) COM(93) 381 final of 22 September 1993 (OJ C 321. 27.11.1993). 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 55 
184. In 1993 the Commission presented a proposal amending Council Directive 85/611/EEC* 
on undertakings for collective investment in transferable securities (UCITS), with the aim of 
extending its scope to include money market funds and funds of funds, investing in a number 
of other UCITS. 
Following the opinion of the European Parliament (74), the Commission adopted on 20 July 
1994 (75) an amended proposal which incorporated some important changes as compared with 
its initial draft. Two new items were the inclusion of Feeder funds which invest 100% of their 
assets in other UCITS (called Master-Feeder funds) and the freedom for European credit insti­
tutions and investment firms to provide depositary services to UCITS on a cross-border basis. 
• Transposition and implementation of the legislation 
185. the Commission notés with satisfaction that all the directives in force have been trans­
posed by all Member States. 
It continued to check the conformity of transposition measures; in particular, it sent the Member 
States a questionnaire on application of the Directive on the admission of securities to stock 
exchange listing (79/279/EEC*) 
It initiated a dialogue with the Member States to prepare for transposai of the Directives on 
investment services (93/22/EEC*) and capital adequacy (93/6/EEC*) and to prevent faulty 
transposai due to differences of interpretation. 
B. Transport 
186. The basic legal framework of the single transport market is in place and the rules are 
being properly incorporated into national legislation. A number of important qualifications must, 
however, be made. Some of the most important parts of the legal framework, though in place, 
are only gradually being phased in; certain transitional periods last up to the end of the century 
and beyond: this is in particular the case in cabotage (transport in another Member State) 
where: 
• full liberalization of road haulage cabotage is scheduled to take effect on 1 July 1998; 
• air transport cabotage will be fully liberalized by 1 April 1997; 
• maritime cabotage has a number of transitional rules taking into account maritime 
specificity (land-to-land; land-to-island; island-to-island). 
The application of single transport market rules will lead to important structural changes and 
new relationships between enterprises. The Commission, in seeking to ensure uniform and reli­
able application of the rules, monitors both their transposai and their practical implementation. 
a) Air transport 
187. Following the adoption of the so-called Third Package measures, the internal aviation 
market has been completed in legislative terms. Cabotage will be liberalized as from 1 April 
1997. The priority now is to ensure proper implementation of the new rules. 
In 1994 two standard-setting decisions conceming the application of the Community's air trans­
port legislation were taken in relation to access to domestic routes in France as well as to the 
airport system of Paris (76). 
(74) OJ C 315 of 22 November 1993, p. 152. 
(75) COM (94) 329 final of 20 July 1994 (OJ C 242. 30.8.1994). 
(76) OJL 127 of 19 May 1994. 
THE SINGLE MARKET IN 1994 
56 PART TWO-DETAILED REVIEW 
These decisions oblige the French civil aviation authorities to grant all Community air carriers 
access to Orly airport on a non-discriminatory basis, and to open up a number of important 
domestic routes to and from that airport. 
In some instances, however, the full use of the new market access opportunities is obstructed 
by infrastructure bottlenecks: thus, at airports such as London-Heathrow and Frankfurt, the 
demand for slots exceeds the available physical capacity. 
188. A major policy effort is required in this area. On the basis of the recommendations of the 
"Committee of Wise Men" for air transport the Commission decided to issue a detailed 
communication announcing a series of initiatives, notably in the area of infrastructure (77). The 
main objective of this action programme is to complement the efforts of the airline industry 
itself to restructure in response to single market conditions by improving efficiency in areas 
beyond the control of the airlines, such as the rules for using air transport infrastructure. 
b) Road transport 
189. To create an internal market in the field of road haulage measures have already been 
taken to liberalize the transport of goods between and within Member States (cabotage will be 
completely liberalized from 1 July 1998), and to harmonize social standards (driving hours), 
technical standards (weights and dimensions) and tax policies (setting minima for fuel and 
vehicle taxes and allowing Member States at the same time to introduce a common user 
charge). 
190. In July 1993 the Commission appointed a "Committee of Wise Men" to investigate the 
economic and social situation in the road haulage sector. One of the reasons for creating the 
Committee were concerns expressed by certain representatives of the road haulage industry 
about the instability and the lack of profit in the sector. The report of the Committee was 
completed in July 1994 and can be seen as a first evaluation of the functioning of the internal 
market in the field of road transport. 
As far as the economic situation is concerned, the Committee concluded that the recent 
general economic crisis strongly affected the sector. Deregulation attenuated these difficulties 
in some recently deregulated markets, but this can be seen as a transitional process, given the 
fact that the long-established liberal markets have shown remarkable stability. The Committee 
supported the policy of liberalization as a means of establishing the single market. 
On the other hand it recognized that competition in the single market is not always fair. This is 
due both to widespread infringement of regulations and to incomplete harmonization of stan­
dards. 
The Committee recommended that enforcement should be improved, for instance by the use of 
information technology. The Committee also recommended further harmonization in the fields 
of access to the profession of road haulage operator, tax policy, technical standards and the 
social framework in which hauliers have to operate. The Commission is preparing proposals in 
several of these fields. 
c) River transport 
191. There is structural overcapacity in inland waterway transport, and despite the environ­
mental and safety advantages it offers in comparison with certain other modes of transport it is 
still not commercially attractive enough. Action is therefore continuing to reduce excess capac­
ity with a view to balancing supply and demand. New measures were taken in this area in 1994 
by the Council and the Commission. On the organization of the market in river transport, the 
Commission advocates in a report to the Council (78) gradually liberalizing the market while 
(77) The Way Forward for Civil Aviation in Europe", COM(94) 218 final of 1 June 1994. 
(78) SEC(94) 921. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 57 
taking action to help operators adjust to a liberal regime and to strengthen the competitiveness 
of the sector. Other work in progress concerns extension of the Community rules on technical 
aspects, vessel crews, ongoing negotiations with third countries with a view to concluding a 
multilateral agreement and the introduction of a European boatmasters' certificate for inland 
waterway navigation. 
d) Railways 
192. The Commission presented two proposals (79) for directives to complement the 
Community's basic railway policy measure, Directive 91/440/EEC*. by defining general princi­
ples and procedures to ensure that access rights under the Directive are implemented effec-
tivelyand fairly. New possibilities "for rights of access to railway infrastructure created by Article 
10 of the Directive constitute a first step towards a more open and integrated market and create 
a new situation for public authorities, which must ensure safety and allocate infrastructure on 
the basis of appropriate charges. 
The first proposal deals with the creation of a licence for railway undertakings and requires that 
they satisfy criteria of professional competence, financial standing and good repute. The 
second concerns the allocation of infrastructure to railway undertakings and the charges 
imposed for its use. The Directive would establish a system for the allocation of train paths to 
railway operators and create a structure for the calculation of access charges. It is hoped that 
the rapid approval of these proposals will help the railways achieve the goals set out in the 
Commission's White Paper on transport policy. 
Section 4 - Free movement of capital 
193. The Treaty on European Union introduced a new regime with regard to capital move­
ments and payments. With effect from 1 January 1994, Articles 73b* to 73g* of the Treaty, 
under Chapter 4, "Capital and Payments", replaced Articles 67 to 73 of the EEC Treaty. Free­
dom of capital and payments is now a directly applicable right under the Treaty: secondary 
legislation is no longer necessary. Also, under the new regime the obligation for liberalization 
was extended, with limited exceptions, to third countries. 
194. The introduction in the Treaty of the principle of complete capital liberalization with direct 
effect was necessary for two reasons: 
• first, in order to align Treaty provisions on the reality of complete liberalization already 
introduced by the capital movements directive of 1988 and raise the freedom to the 
same level as other freedoms in the Treaty; 
• second, to adapt the capital movements provisions of the Treaty to the objective of 
economic and monetary union, for which free movement of capital is an indispensa­
ble condition. 
The last Member State with a derogation from the general obligation to permit free movement 
of capital, Greece, lifted, with effect from 16 May 1994, all remaining restrictions on the move­
ment of capital which that Member State was authorized to maintain until 30 June 1994. 
Consequently, a regime of free movement of capital is now in place throughout the Union. 
(79) COM(93) 678 final of 15 December 1993 (OJ C 24, 28.1.1994), as amended by COM(94) 316 final of 14 July 1994 
(OJ C 225, 13.8.1994) 
THE SINGLE MARKET IN 1994 
58 PART TWO - DETAILED REVIEW 
195. Free mobility of capital has provided the conditions for progress towards integrating 
national financial markets to the benefit of the users of financial services and of the European 
financial industry. There is evidence that economic agents are taking advantage of the elimina­
tion of restrictions on the movement of capital and the increasing openness of Member States' 
financial markets. Cross-border flows of capital within the Union, as well as capital inflow from 
third countries have risen considerably in recent years. These capital movements include direct 
investment, motivated mainly from industrial and commercial considerations of companies in 
the unified European market, as well as portfolio investment, principally attracted by the oppor­
tunities offered by government bond markets. Gross flows of portfolio capital in EU countries 
rose to unprecedented levels in 1993 accounting for around 80% of the industrial countries' 
total compared with 64% in 1992 and 40% in. 1991. With inflows estimated at ECU 370 billion 
and outflows at ECU 235 billion, the net inflow of portfolio capital in the EU was about ECU 135 
billion in 1993. 
196. Direct investment flows in the Union rose sharply in the second half of the eighties and 
peaked in 1989-90. Since then, despite the considerable contraction of foreign direct invest­
ment in the industrial countries, direct investment in the Union remained relatively high. For 
example, cumulative inflows of foreign direct investment during the period 1991-93 amounted 
to ECU 147 billion compared with ECU 48 billion in the United States. Investments originating 
outside the EU are estimated to account for over 40% of total foreign direct investment in the 
Union. 
197. Indirect obstacles to capital movements remain, however, in some areas. Such impedi­
ments can take the form of constraints on investment abroad by institutional investors not justi­
fied by prudential considerations, tax discrimination not compatible with Community law, rules 
conceming the issue of securities, the transfer of means of payments and others. The 
Commission has taken action in order to obtain the elimination of such indirect impediments 
both by consulting with the Member States concerned and by formal letters of notice to national 
authorities where necessary. Where remedial action was not taken, the Commission has 
proceeded to the next stage of infringement proceedings, the issue of a reasoned opinion. 
Section 5 - The business environment 
§ 1 -Competition policyc 
198. To ensure that the single market functions smoothly, a central role is assigned to devel­
oping its interaction with competition policy. Such interactions derive from the fact that these 
common policies serve the same fundamental objective, namely to strengthen the capacity of 
the Community economy to generate wealth through better allocation and more efficient use of 
productive resources. Strict application of the competition rules is an essential counterpart to 
the drive to remove ail legal and administrative barriers to trade across the Union: it will ensure 
that any anti-competitive behaviour by businesses or national authorities does not restrict the 
healthy competition that should provide the driving-force behind the economic benefits 
expected from completion of the single market. A vigorous competition policy will mean that 
firms endeavouring to take advantage of openings created by the single market will not see 
their action fmstrated by anti-competitive practices (8i). The Commission is pursuing these 
aims both by banning restrictive agreements between businesses aimed at walling off markets 
(80) For details see Commission's Competition Report, published annually. 
(81 ) Twenty-third Competition Report, pointe 150 to 154. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 59 
and by preventing the abuse of dominant positions and monitoring mergers, monopolies and 
state aid. 
199. The policy of dismantling monopolies remains one of the Commission's priorities; 
1994 was a milestone in the development of a Community reference framework for telecom­
munications infrastructures. 
In the wake of the Bangemann report (82), the Commission's action plan entitled "Europe's way 
to the information society" (83) identifies infrastructure liberalization as the key to developing 
the information society. 
The first stage will involve lifting restrictions on the use of the infrastructures for mobile and 
satellite communications services. The next phase should see liberalization of the infrastruc­
tures for public voice telephony services (after 1 January 1998). In sensitive areas, such as the. 
guaranteeing of a -Universal service, major safeguard clauses should be adopted; these will be 
drawn up on the basis of the consultation that will follow publication of the Green Paper on 
infrastructures adopted by the Commission on 25 January 1995. 
Following the resolution of 22 July 1993 on reassessment of the situation in the telecommuni­
cations sector and the liberalization of international voice telephony services by 1 January 
1998 (84), in February 1994 the Commission published a Green Paper on mobile and personal 
communications (85). It also took action under the Treaty rules on competition against the three 
Member States (Belgium, Ireland and Italy) that were maintaining exclusive rights for the GSM 
service (standards established by ETSI for pan-European personal mobile communications), 
calling on them to grant licences to at least two operators. 
200. With regard to the control of state aid, it should be stressed that by artificially propping 
up non-viable businesses, aid to ailing firms has a highly distortive effect on competition in an 
integrated market. It unduly delays adjustment by the recipient and shifts the burden of struc­
tural change and social problems onto other firms and other Member States. 
Since more and more of this kind of aid is being granted, against a background of stiffer com­
petition and slower growth, the Commission decided in July 1994 to codify in a notice to the 
Member States its strict stance on state aid for rescuing and restructuring firms in difficulty: aid 
of this kind must be accompanied by a restructuring plan that will make it possible to restore 
the firm's long-term viability within a reasonable period and must be limited to the strict mini­
mum needed to implement the plan, to which the firm must make a sizeable contribution from 
its own resources. Where there is a structural excess of production capacity in the relevant 
market in the Community, the plan must contribute to the restructuring of the sector through 
irreversible plant closures or capacity reductions. 
The successive surveys of state aid in the Community which the Commission has published 
since 1989 have shown that the overall level of aid remains high, particularly in the Commu­
nity's central regions. Although the fourth survey, now being finalized, notes a slight drop 
despite the adverse business conditions prevailing in 1991 and 1992, the overall level of aid is 
still very high. As it announced in its September 1994 communication on an industrial competi­
tiveness policy for the European Union, the Commission will therefore continue its efforts to 
reduce the overall level of state aid. 
201. As regards merger control, Regulation (EEC) No 4064/89* provides a one-stop shop for 
the rapid, uniform vetting of mergers, acquisitions and joint ventures with a Community dimen­
sion. 
To improve the operation of this system of control in the interests of deepening the single 
market, and in line with the undertakings it gave in its report to the Council in 1993, the 
Commission adopted on 21 December 1994 a number of measures aimed at boosting trans-
(82) "Europe and the global information society. Recommendations to the European Council", Brussels, 26 May 1994. 
(83) "Europe's way to the information society: an action plan", COM(94) 347 final of 17 July 1994. 
(84) Resolution 93/C 213 (OJ C of 17 Jury 1994). 
(85) COM(94) 145 final of 27 April 1994. 
THE SINGLE MARKET IN 1994 
60 PART TWO - DETAILED REVIEW 
parency and efficiency in application of the Merger Control Regulation (86). These cover certain 
technicalities or legal aspects, such as questions of competence, the calculation of turnover 
and the definition of what constitutes a merger. 
202. As far as rules applicable to undertakings are concerned, Articles 85* et 86* of the EC 
Treaty have for a long time been used as powerful instruments for opening and unifying 
markets. In this context the Commission embarked in 1994 on a revision of Regulation (EEC) 
No 123/85* on motor-vehicle distribution and of Regulations (EEC) Nos 2349/84 and 556/89 on 
patent and know-how licensing. The aim of these revisions is to prevent certain obstacles being 
put in the way of parallel imports between Member States, thereby facilitating the penetration of 
national markets, and to help the dissemination of technologies within the common market. 
At the same time, the. Commission continues to combat vigorously all price-fixing or 
market-sharing agreements,- imposing fines commensurate with the seriousness of the 
infringements established (total fines amounting to ECU 132.15 million in the cartonboard case 
and, under the ECSC Treaty, total fines of ECU 100 million in the steel beams case (87)). 
203. In 1994 the Commission energetically pursued measures to increase competition in 
the field of transport. 
Liberalization of air transport has revealed the importance of ground handling services, 
which constitute a genuine barrier to market entry. To ensure that all operators can compete on 
an equal footing, the Commission is convinced of the need to bring the monopolies currently 
existing in several Member States to an end and to ensure that there is at least some competi­
tion in the provision of these services. Consultation of interested parties has thus been organ­
ized in order to assess the technical feasibility and the possible impact of action to liberalize 
them. A proposal for a Directive was adopted by the Commission on 13 December 1994. 
Several cases are currently being investigated in connection with liberalization of ground 
handling services at a number of Community airports. 
§ 2 - Cross-border payments 
204. The Commission adopted a communication in November (88) which includes a proposal 
for a Directive which would lay down minimum transparency and performance rules applicable 
to cross-border credit transfers. The proposal aims at ensuring that banks provide customers 
with the necessary information and comply with contractual obligations in respect of execution 
time for transfers, that double-charging is avoided and that lost payments are refunded. 
This proposal followed a study, carried out in the first half of 1994, confirming a number of 
shortcomings related to the transparency and performance of cross-border transfers. These 
shortcomings had also been reflected in continuous requests from individual businesses and 
their associations, the distributive and retail trades and consumers for improvements in this 
area. 
The communication also contained a draft notice on the application of the EC competition rules 
to cross-border credit transfer systems. This deals, inter alia, with the conditions for accepting 
certain types of inter-bank fee arrangements which might be needed to avoid the occurrence of 
double-charging. The draft will be open to comment from all interested parties with a view to its 
final adoption in 1995. 
(86) Commission Regulation (EEC) No 3384/94* and documents 94/C 385/01. 94/C 385/02. 94/C 385/03 and 94/C 
385/04 (OJ C 385, 31.12.1994). 
(87) OJL 116 of 6 May 1994. 
(88) COM(94) 436 final of 18 November 1994: EU funds transfers 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 61 
205. Finally, taking into account the suggestions made by the banking industry, business and 
consumers, the Commission has adopted a work programme of measures on which work is 
underway or to be undertaken in 1995. The Commission will seek advice from its two consul­
tative groups on payment systems on the way in which these systems can best be prepared for 
the introduction of the ecu. Work on payments netting and settlement finality is continuing in 
the Commission's "legal framework" group of Member State experts, and every effort will be 
made to reach operational conclusions, including the possibility of a proposal for a directive, on 
the question of settlement finality during 1995. 
A Commission study on the transparency of card payments is under way to assess whether 
improvements are needed, possibly in the form of an update of Commission Recommendation 
88/590/EEC*. The regulatory implications of the new generation of payment instruments and 
techniques (pre-paid cards, home and phone banking etc.) are also being analysed. 
§ 3 -Intellectual and industrial property 
A. Intellectual property 
• Legislative developments 
206. The Commission pressed ahead with its work in the intellectual property sphere, taking 
as a basis the Treaty mles on the free movement of goods and services and on the right of 
establishment. 
Respect for the principles enshrined in Articles 30*, 52* et 59* of the EC Treaty is ensured by 
initiating preliminary infringement or infringement proceedings. However, where the obstacles 
stemming from national legislation do not constitute restrictions prohibited by the above articles 
or where such restrictions are justified (Articles 36*, 55*. 56* and 66*), harmonization alone can 
enable the single market to function properly. 
The Commission accordingly continued the harmonization drive already embarked upon, while 
maintaining the emphasis on the search for a high level of protection of copyright and related 
rights. It thus transmitted to the Council its amended proposal for a Directive on the legal 
protection of databases (89); discussions are continuing in that body with a view to the adoption 
of a common position. It is also considering the need for a measure harmonizing certain rules 
of copyright and related rights applicable to private copying, and the appropriateness of such 
action in the areas of reprography and droit de suite. 
• Implementation and enforcement of the legislation 
207. Directive 91/250/EEC* on the legal protection of computer programs was to have been 
transposed by Member States by 1 January 1993. Only Denmark, Italy and the United Kingdom 
did so in time. In 1993 four other Member States adopted such measures. In 1994 Belgium, 
France, the Netherlands and Portugal followed suit. Luxembourg is the only country that has 
not yet adopted any provisions on the subject. 
Directive 92/100/EEC* on rental right and lending right and on certain rights related to copyright 
in the field of intellectual property requires Member States to bring into force the provisions 
necessary to comply with the obligations it lays down before 1 July 1994. Belgium has adopted 
national implementing measures and the French authorities have informed the Commission 
that their domestic law, and the regulations for its implementation, are in keeping with the 
Community mles. The Commission will not fail to take appropriate steps against Member 
States which do not satisfy the obligations stemming from the Directive. 
(89) COM (93) 464 final of 4 October 1994 (OJ C 308, 15.11.1993). 
THE SINGLE MARKET IN 1994 
62 PART TWO - DETAILED REVIEW 
The Commission pressed ahead with its infringement proceedings against the Greek Govern­
ment for Its incorrect transposai of Directive 87/54/EEC* on the legal protection of topographies 
of semiconductor products. 
208. As regards the technological aspects of the protection of intellectual property in the 
context of the "information society", the Commission drew up a specific action plan for inclusion 
in the Specific Programme for Information Technologies under the Fourth Framework 
Programme. The expected response from European industry to the corresponding call for 
proposals published in late 1994 should enable R&TD projects to be launched before the end of 
1995. 
B. Industrial property 
209. In the industrial property sphere the Commission is continuing its efforts, firstly, to create 
new industrial property rights at Community level and, secondly, to harmonize national rights 
which impede the free movement of goods. 
• Legislative developments 
210. Regulation (EC) No 40/94* on the Community trade mark entered into force on 
15 March. Community trade marks, registered for a period often years, renewable for a further 
ten, will be granted by the Office for Harmonization in the Internal Market (trade marks and 
designs), which is set up by the Regulation and whose seat is in Alicante, Spain. Work on the 
adoption of measures implementing the Regulation will be pursued actively in 1995 in order 
that the Office may become fully operational. It is envisaged that it will be open to receive the 
first applications for Community trade marks on 1 January 1996. 
The system introduced by the Regulation will have enormous advantages over the two systems 
currently available to trade mark proprietors. Under the first of these systems, a proprietor who 
wishes to have protection in all Member States must register his trade mark with the intellectual 
property offices of the Benelux, for those three Member States, and of the other Member 
States. Each registration is subject to the rules of the State concerned governing procedure and 
any oppositions or appeals. The proprietor must use the language of each office, pay registra­
tion fees to all the national offices and, often, enlist the services of several trade mark agents. 
Under the second system, after having registered his trade mark in his own country, the 
proprietor may have recourse to the services of WIPO (World Intellectual Property Organiza­
tion) under the Madrid Agreement conceming international registration of trade marks. Not all 
Member States are party to the Madrid Agreement, however, and each valid registration in a 
given country is governed by the domestic rules of that country, exactly as in the case of the 
first system. 
By contrast, the Community system will make it possible to acquire, by a single procedure, 
protection which is valid throughout the Community. This protection will be strengthened by the 
existence of a quasi-judicial body, the Office's Boards of Appeal, from whose decisions appeal 
may lie to the Court of Justice. 
The measures to combat counterfeiting will be made more effective by Member States' desig­
nating a limited number of lower and higher courts with exclusive jurisdiction to hear cases 
involving the counterfeiting of Community trade marks. 
211. The proposal for a Regulation on Community design (90) is currently before Parliament. 
Meanwhile, the Commission will do all it can to induce Member States to ratify the Agreement 
on Community patents (91). On 8 December the representatives of the Member States meeting 
(90) COM(93) 342 final of 3 December 1993 (OJ C 29, 31.1.1994). 
(91 ) Agreement relating to Community patents, done at Luxembourg on 15 December 1989 (Directive 89/695/EEC*). 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 63 
within the Council adopted a joint declaration calling upon Member States to ratify the Agree­
ment as soon as possible. 
212. The proposal for a Directive on the legal protection of biotechnological inventions (92) 
formed the subject-matter of a conciliation procedure with Parliament at the end of 1994. 
Parliament rejected the proposal in February 1995 
213. Parliament is examining, in parallel with the Regulation on Community design, the 
proposal for a Directive on the legal protection of design at national level (93). The proposal 
is justified by the fact that, as with trade marks, national designs will coexist with Community 
ones. This presupposes that the essential elements of currently divergent domestic laws will be 
harmonized in order that, first, a genuine single market may be established in this area and, 
second, domestic laws may be compatible with the proposed system of Community protection. 
Design is of increasing importance to a wide range of goods. Good design is,-for" Community 
firms, a major asset when it comes to competing with low-cost third-country industries. 
214. On 9 December the Commission adopted a proposal for a Regulation on the creation of 
a supplementary protection certificate for plant protection products (94). The aim is to 
contribute, by creating a new sectoral industrial property right, to the completion of the single 
market in plant protection products and to ensure that inventions in the sector benefit from 
protection of sufficient duration. 
215. The Commission intends to round off its industrial property policy by presenting in the 
near future a Green Paper on utility models. Utility models are an alternative form of protec­
tion for technical inventions to patents. Unlike patents, they are granted without any examina­
tion, and they are registered for a shorter period. As a result, they are cheaper and can be 
obtained more quickly than patents. They thus serve as a useful complement to the patent 
system. This type of protection currently exists in most Member States in widely varying forms. 
This state of affairs can create obstacles to the completion of the single market and lessen the 
scope for innovative activities, and hence firms' competitiveness. The Commission is therefore 
currently preparing a Green Paper for the benefit of interested parties with a view to assessing 
the need for Community action in this area. 
• Implementation and enforcement of the legislation 
216. Generally speaking, Member States are transposing Directives in this sector relatively 
long after the deadline and often not until infringement proceedings have been initiated. In the 
case of Directive 89/104/EEC* on trade marks, the slippage from the timetable set for trans­
posai was due to the adoption of the Regulation on the Community trade mark. Six Member 
States (Belgium, Germany, Ireland, Luxembourg, the Netherlands and Portugal) have yet to 
notify national implementing measures. Serious problems remain in the case of the Benelux 
countries. The uniform legislation in the Benelux countries does not contain the principle of 
"confusion", which is the sine qua non for bringing an infringement action if a similar mark is 
used on the market. 
• External aspect 
217. With regard to the external aspect of the single market, the Community, represented by 
the Commission, participated as a special delegation in the diplomatic conference for the 
conclusion of the Trademark Law Treaty under the auspices of WIPO. The Treaty simplifies 
considerably the procedures for registering, renewing and assigning trade marks, thereby limit­
ing the cost of protecting them. It should lead to increased recourse by firms to trade marks. 
Similarly, in May the Commission took part on behalf of the Community in the working group 
(92) COM(88) 496 final of 28 September 1988 (OJ C 10,13.1.1989). as amended by COM(92) 589 final of 16 December 
1992 (OJ C 44, 16.2.1993) and by COM(94) 245 final of 9 June 1994. 
(93) COM(94)344finalof30 September 1994 (OJC 290,18.10.1994). 
(94) COM(94) 579 final of 9 December 1994 (OJC 390.31.12.1994). 
THE SINGLE MARKET IN 1994 
64 ' PART TWO - DETAILED REVIEW 
drawing up rules implementing the Madrid Agreement and the Madrid Protocol (WIPO conven­
tions on the international registration of trade marks). 
C. Measures against counterfeiting 
218. The Commission is also taking measures to combat piracy, of which there has been a 
resurgence in the Community. On 22 December the Council adopted Regulation (EC) 
No 3295/94* laying down measures to prohibit the release for free circulation, export, re-export 
or entry for a suspensive procedure of counterfeit and pirated goods. 
D. Case-law of the Court of Justice 
219. With respect to copyright, attention must be drawn to the judgment delivered by the 
Court on 20 October 1993 in the Phil Collins and Patricia cases(95). 
The questions put in these cases were raised in connection with two disputes. One was 
between the British singer/songwriter Phil Collins and a record distributor and concerned the 
marketing in Germany of a compact disc containing a recording, made without Mr Collins's 
consent, of a concert he had given in the United States. The other was between EMI Electrola, 
the holder in Germany of exclusive rights to exploit recordings of shows given in the UK in 
1958 and 1959 by the British singer Cliff Richard, and a company called Patricia, and 
concerned the marketing by the latter in Germany of phonograms containing recordings of the 
shows. 
Under the German Copyright Act, authors or performers from other Member States and those 
claiming under them are denied the right, accorded to German nationals, to prohibit the market­
ing in Germany of a phonogram manufactured without their consent where the performance 
was given outside Germany. 
In its judgment, the Court held that copyright and related rights, which fall within the scope of 
the EC Treaty, are necessarily subject to the general principle of non-discrimination laid down 
in Article 6 (formerly Article 7) of that Treaty, without there even being any need to connect 
them with the specific provisions of Articles 30*, 36*. 59* and 66 thereof. The Court went on to 
define the content of that provision, stating that, in prohibiting "any discrimination on grounds of 
nationality", it requires that persons in a situation governed by Community law be placed on a 
completely equal footing with nationals of the Member State concerned. In so far as that prin­
ciple is applicable, it therefore precludes a Member State from making the grant of an exclu­
sive right subject to the requirement that the person concerned be a national of that State. The 
principle may, in the Court's view, be directly relied upon before a national court by an author 
or performer from another Member State, or by those claiming under them, in order to claim 
the benefit of protection reserved to national authors and performers. 
It follows from this judgment that Member States are required to grant nationals of other 
Member States the same rights and protection as they grant holders of national rights. 
§ 4 -Company law and financial information 
220. Company law is in a state of flux and needs to be adapted to take account of the needs 
of companies in the single market. The Directives which have been adopted so far on the basis 
(95) Judgements of the Court of 29 October 1993 in joined Cases C-92/92 and C-326/92 (1993] ECR 1-5145. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 65 
of Article 54* of the EC Treaty have contributed to the approximation of national laws on the 
protection of shareholders, creditors and third parties. 
The Single Act and the Treaty on European Union seek to facilitate cooperation and mobility 
among companies in order that they might enjoy the benefits of a unified market. Nevertheless, 
the need to respect the principle of subsidiarity enshrined in Article 3b* of the Treaty means 
that due regard must be had to the cross-border aspects of company law. 
221. In this context the European company is high on the list of priorities. At present, 
companies from different Member States still cannot merge without resorting to complex and 
costly arrangements. The creation of the European company would afford those companies 
which so wish the opportunity to restructure more easily by means of cross-border mergers. It 
would also enable those companies which so wish to transfer their registered office within the 
Community without having to .be -dissolved and re-formed. The proposal for a Directive, 
concerning cross-border mergers of public limited companies (Tenth Directive) might also play 
a major part here. The speedy adoption of these two instruments is considered a priority by the 
business community, as is pointed out by UNICE in the memorandum it has sent to the new 
Commission. 
222. Other measures proposed by the Commission are still awaiting approval by the Council. 
These include the proposal for a Directive on takeover and other general bids (Thirteenth 
Directive). At the Edinburgh and Essen European Councils the Commission undertook to 
present a revised version of the proposal with a view to dealing with the existing legal obsta­
cles. 
223. Then there is the proposal concerning the structure of public limited companies (Fifth 
Directive). It is more than 20 years since the original proposal was presented, and in view of 
trends in some Member States' company law since then there is a need for a study on simplifi­
cation of the rules governing the functioning of public limited companies in the European 
Union. The aim is to determine whether the law on public limited companies should be simpli­
fied in keeping with the need for effective company management. The results of the study 
should be known in the course of 1995. 
224. On 21 March the Council adopted Directive 94/8/EC* amending Directive 78/660/EC* in 
order to incorporate the results of the five-yearly revision of the amounts in ecus used to define 
the SMEs to which Member States grant derogations regarding annual accounts 
The Commission will explore possible ways of improving the level of financial reporting within 
the Union and of strengthening its position in international accounting harmonization. There is 
some pressure, especially from business, for a Community initiative along such lines, given the 
internationalization of capital markets and the growing predominance of US standards. 
In order to obtain an overview of existing barriers to the establishment of a single market for 
audit services, the Commission has launched a study of the main differences in Member 
States' laws and regulations concerning the role, responsibilities and position of the statutory 
auditor. 
225. In 1994 the Accounting Advisory Forum held two meetings, at which it discussed cash 
flow statements, environmental issues in financial reporting and the application of the prudence 
and matching principles. Documents are being prepared on these subjects. The Forum is an 
advisory body of experts from main parties interested in accounting in the European Union, 
including national standard-setting bodies, preparers, users and auditors of accounts and 
accounting academics. Its main function is to advise the Commission on accounting matters 
and possible ways of facilitating further harmonization in the accounting field. Since it was 
created in 1990, the Forum has finalized position papers on accounting for government grants, 
foreign currency translation and accounting for lease contracts. These documents will be 
published by the Commission in 1995. 
The Accounting Directives Contact Committee also held two meetings in 1994. It is a body 
composed of representatives from the Member States which was set up by the Fourth Directive 
(78/660/EEC*). Discussions addressed the negotiations taking place in the IOSCO Technical 
Committee's working party on accounting standards, the relationship between environmental 
THE SINGLE MARKET IN 1994 
66 PART TWO - DETAILED REVIEW 
audit and statutory audit, application of certain provisions of the Seventh Directive 
(83/349/EEC*) and the future of accounting harmonization in the European Union. 
Finally, in 1994 the Commission brought an infringement action before the Court of Justice 
against Germany for non-disclosure of annual accounts by a large number of companies in that 
Member State. 
§5 -Taxation 
A. Indirect taxation 
226. The picture after the new VAT and excise duty arrangements have been in operation for 
two years is largely positive and encouraging, even if some difficulties remain. 
Various evaluations have been made of the transitional VAT arrangements, on the initiative of 
both private firms and organizations (studies by Deloitte Touche Tohmatsu, KPMG Peat 
Marwick, the BDI (Federal Association of German Industry), the FEB (Fédération des entre­
prises de Belgique) and some Member States (studies initiated by H.M. Customs and Excise in 
the United Kingdom and conducted by the Economic Institute for small and medium-sized 
enterprises in the Netherlands). The Euro Info Centres have also made an assessment of how 
the new VAT arrangements are working. 
If the results of these studies are compared a number of constants emerge which confirm the 
main conclusions of the Commission report on the operation of the transitional VAT arrange­
ments (96). 
227. Thanks to the Enterprise Consultation Committee, the Advisory Committee on Customs 
and Indirect Taxation, Commission Working Party No 1 (on which the tax administrations are 
represented), the VAT Committee and the Excise Committee, solutions have in many cases 
been found for these difficulties and simplifications have been introduced (treatment of triangu­
lar transactions, contract work). Other simplifications, in both the VAT and the excise duty 
fields, have been formally proposed by the Commission and are under discussion in the 
Council. As regards VAT, the proposal for a second simplification Directive (treatment of 
certain chain transactions, work on movable property) is still under discussion within the 
Council. In the case of excise duty, the proposal for a Directive containing simplification meas­
ures (clarification of the text of Directive 92/12/EEC*. relaxation of certain rules) was adopted 
in December 1994. 
228. The Commission has launched a comparative survey of national legislation on VAT and 
excise duty into which Community legislation has been incorporated: the survey will pay special 
attention to how these rules actually work in practice. (97). 
The first report evaluating the new tools for administrative cooperation introduced on 1 January 
1993 under the transitional VAT arrangements confirms that the means chosen (the VAT 
information exchange system (VIES), the Standing Committee on Administrative Cooperation 
and the CLO (Central Liaison Office) are consistent with the objectives set by Regulation (EEC) 
218/92 (Report (94) 262 final)). 
In addition, in order to achieve closer cooperation between national administrations, a 
Community programme (Matthaeus-Tax), which is modelled on the programme in the customs 
field, has been introduced for the training and exchange of tax administration officials. Under 
this programme, two-month exchanges of one hundred officials took place in 1994. 
(96) COM (94) 515 final of 23 November 1994 
(97) OJC 189 of 12 July 1994. 
THE SINGLE MARKET IN 1994 
PAR r TWO - DETAILED REVIEW 67 
229. Nevertheless the difficulties encountered by business are a reminder that firms and 
consumers do not yet enjoy all the advantages expected from a single market: the need to 
prove the intra-Community nature of their operations, the burden of the identification and decla­
ration requirements and the deterrent effect of certain provisions are all obstacles to the 
expansion of trade between Member States. These difficulties, combined with the large number 
of rules applicable, translate into complex mechanisms for applying the common system of 
VAT, despite the simplicity of Its operating principles. 
The difficulties encountered will not be solved satisfactorily under the transitional arrange­
ments, because these difficulties are the direct and inevitable result of rules adopted by the 
Sixth Directive (relating to the place where transactions are taxed and the place where tax is 
deducted) and of choices made by the Council. 
230. Examination of experience under the transitional arrangements will serve as a basis for 
drawing up the definitive system. In order to prepare for the forthcoming debate on the nature 
of the definitive system, the Commission organized a conference on 27 and 28 June 1994 
which provided an opportunity for wide-ranging consultation of all interested parties. 
The definitive VAT system will have to take account of the following points: 
• simplicity for taxable persons and national tax administrations; 
• equal treatment and neutrality of taxation for domestic and intra-Community transac­
tions; 
• implications tor the approximation of VAT rates; 
• implications for the harmonization of the right to deduct, exemptions, special 
schemes (in particular for small firms); 
• detection and combating of fraud; 
• assuring Member States' and Community revenue from tax. 
The Importance of this dossier calls for an ambitious approach from the Commission, involving 
exhaustive preparation and wide-ranging consultation of the Interested parties. 
The Commission intends to present guidelines for the definitive VAT system to the ECOFIN 
Council as soon as possible. 
B. Direct taxation 
231. Tax regimes In force in the Member States continue to inhibit the proper functioning of 
the internal market. Differences in national tax regimes both hinder the expansion of enter­
prises into other national markets and create bamers to the free movement of people. The 
Commission has focused Its action on five areas. These are: 
• the elimination of double taxation on cross-border income and gains; 
• the introduction of a more' neutral system of taxation of savings; 
• the realisation of a neutral system of taxation of insurance services; 
• the taxation of individuals who are resident in one Member State but earn their living 
in another; and 
• the Improvement of the fiscal environment of SMEs. which face particular problems in 
developing their activities beyond national boundaries. 
However these efforts have not resulted in any substantial progress, which Is particularly diffi­
cult to achieve as decisions of the Council with regard to taxation matters still require unanim­
ity. 
232. SMEs, in particular, are unable, as yet, to take full advantage of the single market, and 
encounter difficulties in the legal and fiscal environment in which they operate. They are often 
taxed more heavily, and have to bear proportionally higher costs when they operate across 
borders than in the case of a purely national activity. As SMEs are generally believed to be 
THE SINGLE MARKET |M 19S4 
68 PART TWO - DETAILED REVIEW 
significant contributors to the creation of employment and to economic growth, the Commission 
launched the following initiatives to improve their situation: 
• it adopted, on 25 May 1994, a Communication on the improvement of the fiscal envi­
ronment of SMEs (98), indicating four fields of action These are: achieving tax parity 
between incorporated and unincorporated enterprises; reducing the administrative 
burdens on SMEs beginning to engage in cross-border activities by taxing their 
permanent establishments in their country of residence; providing appropriate fiscal 
treatment for venture capital investment; and the taxation of the transmission of 
enterprises; 
• in parallel, it issued a Recommendation inviting the Member States to correct the 
deterrent effects of progressive rates of income tax payable by sole proprietorships 
and partnerships in respect of reinvested profits (94/3907EC*). and to eliminate tax 
obstacles to changes in the legal form of enterprises, in particular the incorporation of 
sole proprietorships or partnerships; 
• on 7 December 1994, following its Communication of 23 July 1994, it issued a 
Recommendation inviting the Member States to take action to improve the fiscal 
environment relating to the transfer of ownership of SMEs, with the objective of safe­
guarding the fabric of such businesses and saving jobs (99). 
Improving the taxation environment is an ongoing concern. The Commission will take account 
of reactions to the four main orientations set out in the Communication of 25 May 1994 in 
deciding how to take forward its consideration of the taxation of permanent establishments and 
of venture capital investment. 
233. Double taxation remains a limiting factor for the smooth functioning of the Internal 
Market for companies, and progress in view of adopting Commission proposals to reduce 
double taxation remains slow. On 30 November 1994 the Commission withdrew the proposal 
for a directive abolishing withholding taxes on interest and royalty payments, as there was no 
unanimous agreement in the Council on the desirability of such a directive. As the problem of 
the double taxation of cross-border interest and royalty payments has not gone away, the 
Commission will continue to work towards a solution, which might lead to new legislative 
proposals. Nor has the Council yet discussed the proposals to extend the scope of the parent-
subsidiary and merger directives or the proposal for a directive on the taking into account by 
companies of losses incurred by their permanent establishments or subsidiaries in other 
Member States. 
Overall, the situation in relation to taxation of companies in a single market remains unsatisfac­
tory. 
234. However the Council met several times to discuss the question of the taxation of 
savings. The Council sought a consensus solution based on the co-existence of withholding 
tax systems and declaration-based systems to ensure a minimum level of taxation. 
Member States considered that the co-existence of the different systems of taxation required a 
balance in the exchange of inforrhation between those States with a withholding tax, which 
generally have banking secrecy, and the other States They also underlined the need for any 
Union-wide solution to this question to preserve the competitiveness of financial centres in the 
Union. No agreement has yet been reached on this complex issue. However, all Member 
States have agreed to sign and ratify the Council of Europe Convention on Mutual Assistance 
in criminal matters (of 1959) (not yet signed by Ireland) and its Additional Protocol regarding 
tax offences (of 1978) (not yet ratified by Belgium and Luxembourg). 
235. The Commission has set up a working group to simplify the withholding tax procedures 
on interests, dividends and royalties. An agreement in principle has been reached on the use of 
the direct application of reduced rates of withholding tax, rather than later reimbursement one, 
and on the use of a common form The working group is now focusing on the necessary practi-
(98) OJ C 187 of 9 July 1994. pp. 5-11 
(99) COM(94) 3312 final of 7 December 1994 
THF SINGLE MARKET IN 1994 
PART TWO-DETAILED REVIEW 69 
cal arrangements. A common approach for the certification of residence is still under discus­
sion. 
236. On 1 July 1994, the third generation life insurance directive (92/96/EEC*) entered into 
force, thereby opening up the possibility for life insurance companies to sell their products 
cross-border without having to be established in the Member States where they trade. Some 
Member States' tax systems, however, still make a distinction between the tax treatment of 
policies sold by an established insurer and the treatment of policies with a non-resident insurer. 
Typically, the discrimination involves the tax deductibility of premium payments made by the 
policy holder, although it can also occur with the taxation of the proceeds of foreign policies. 
These differences remain a barrier to the cross-border sale of policies in certain Member States 
and hinder the development of the internal market in insurance. The Commission has taken up 
with the Member States concerned the matter of the compatibility of these national tax provi­
sions with the fundamental freedoms in the EC Treaty. The working group which it set up with 
Member States to try to solve the wider issues of how to prevent the loss of tax from cross-
border policies if certain of these national provisions are dismantled, also continued to meet. In 
1994, this group considered two possible solutions, both based on the exchange of information 
between Member States about life insurance policies and policy holders. Member States have 
not, however, yet been able to agree upon a common approach. 
237. Furthermore, within the framework of Directive 77/799/EEC* of 19 December 1977 
conceming mutual assistance between the competent authorities of the Member States in the 
field of direct taxation, two meetings took place between the Member States and the Commis­
sion, to streamline the information exchange process. These meetings led to the introduction of 
some internal guidelines on the conduct of exchange of information on request, as well as a 
code of practice on the time it should take for requests to be answered which should ultimately 
benefit companies as well. 
238. Following Commission Recommendation 94/79/EC of December 1993 conceming the 
taxation of non-resident individuals who earn income in a Member State other than that of their 
residence, the Commission continued to receive a large number of complaints and questions 
relating to such cases. The Commission maintained that it was unacceptable for individuals 
who lived in one Member State but received the vast majority of their income from another to 
be taxed more heavily than individuals who lived and worked in the same Member State. Such 
an outcome was contrary to the basic freedom of movement for workers provided for by Article 
48 of the EC Treaty. Following a hearing in October 1994, the Court of Justice delivered its' 
ruling in February 1995 on an important case in this regard (Finanzamt Kôln - Altstadt vs 
Schumacker C-279/93). In that case a Belgian national, who was also resident in Belgium, 
derived all or virtually all his income from employment in Germany. He claimed certain tax 
advantages and reliefs which were, under German tax law, accorded only to residents of 
Germany, notably a reduction in his tax liability arising from the way of taxing married couples. 
The Court's decision, given on 14 February 1995, was in his favour, thus validating at the same 
time the Commission's position, as set out in its recommendation. 
§ 6 -Small and medium-sized enterprises 
239. Recognizing the important role that SMEs should play in stimulating growth and creating 
employment, the Community's enterprise policy concentrates on creating an environment to 
improve the competitiveness of enterprises, particularly small and medium-sized ones, and to 
provide the support services necessary to take advantage of the opportunities provided by the 
single market. This multi-annual programme concentrates on providing better access to 
Community information for enterprises; improving the business partner search networks offer­
ing cooperation opportunities; developing measures to provide for direct contact between 
entrepreneurs; and promoting subcontracting opportunities and greater involvement in public 
procurement. 
THE SINGLE MARKET IN 1994 
70 PART TWO - DETAILED REVIEW 
Information 
240. The provision of basic information is increasingly a requirement for SMEs who want to 
take advantage of the opportunities provided by the single market. The Euro Info Centre (EIC) 
network is now providing a more sophisticated range of services to assist SMEs, including 
market information on standards and certification, on public procurement opportunities (through 
the use of special software), and the identification of appropriate contacts in other Member 
States. The EICs in turn have proved to be a valuable source of detailed information on SMEs' 
experience about operating in the single market EICs have also acted on behalf of SMEs that 
are facing problems but do not wish to raise any formal complaint 
B. Cooperation 
241. The Commission has expanded its major networks for promoting cooperation between 
businesses, i.e. the Business Cooperation Network (BC-Net) and the Business Cooperation 
Centre (BRE). BC-Net has 530 members on five continents, 495 in the Member States and 35 
in 26 non-member countries. In 1994 BC-Net forwarded 8 300 cooperation profiles of a 
commercial, technical or financial nature. The BRE network, which has nearly 500 correspon­
dents in 59 countries, underwent technical and operational improvements during 1994. 
Europartenariat is an initiative started by the Commission to encourage partnership and coop­
eration between SMEs in less developed regions and/or regions in industrial decline with other 
companies in the Union. Europartenariat events were held in Gdansk, involving 400 Polish 
companies, and in Bilbao, involving 480 Spanish companies 
C. Support measures 
242. Measures in support of businesses have included pilot projects on vocational training, 
standardization and certification, finance, research and technological development, and 
marketing. 
The Euromanagement network of tiaining and consultancy bodies has initiated pilot projects to 
prepare SME managers to take part actively in the single market and avail themselves of the 
opportunities provided. Under one Euromanagement project 843 SMEs were evaluated and 
then advised by consultants on standardization, certification, quality assurance and safety at 
work. The aim of this project was to obtain a better idea of the problems of adapting to Euro­
pean requirements in these fields 
The Second European Conference foi aart and smèW enterprises "Craft and Small Enterprises, 
the Key to Growth, Employment and Innovation" was held in Berlin on 26 and 27 September 
1994. More than 1 200 representatives of the (.raft and small business sector and the national 
and regional governments of the European l inion and the EEA States participated in the six 
workshops and the plenary meeting aimed al improving the competitiveness of small and craft 
enterprises and facilitating their integration into trie single market 
Commerce 
243. Several studies on topics of intcr^t to commercial t>MEs within the Union were 
commissioned. Subjects covered include: an analysis of the impact of the block exemption for 
distributors of motor vehicles; the role of independent organized networks in the modernization 
of commerce; and structural changes in retailing within the European Union. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 71 
Under the Commerce 2 000 project, the Commission launched a call for tenders to promote 
cooperation in the fields of training and technology which resulted in 55 contracts being signed 
for the co-financing of feasibility studies. 
E. Access to finance 
244. Many small and medium-sized enterprises remain unable to take advantage of the single 
market because of continuing problems with access to finance. The Round Table of leading 
representatives from the banking sector set up by Commissioner Vanni d'Archirafi in 1993 
looked at best practices within the European Union, including ways of improving relatjons 
between banks and SMEs, and considered how the financial instruments at the* European 
Union's disposal could best be used to benefit SMEs. the Round Table submitted its final 
report to the Commission on 19 May 1994. Apart from bank lending, other recommendations 
concern the establishment of a European Capital Market for SMEs and the role to be played by 
the EIF in improving the overall fiscal environment of SMEs. 
F. Transfer of businesses 
245. While SMEs play an important role in creating growth and employment, unfortunately 
thousands of SMEs disappear every year because they have not overcome the difficulties 
involved in transferring them. The Commission issued a Consultation Paper in July 1994 (100) 
which was widely commented on and held a Public Hearing on 17 October 1994 with interested 
parties. In the light of the ideas that emerged from the consultation process, a Recommenda­
tion on the Transfer of Small and Medium-sized Enterprises was addressed to the Member 
States on 7 December 1994 (101). Its aim is to eliminate the main obstacles to successful 
transfers by extending throughout the Community initiatives which have hitherto remained 
limited to Member States. In particular the Member States are asked to introduce measures 
aimed at increasing owners' awareness of the problems involved in transfer and encourage 
them to prepare for this operation during their lifetime by: 
• creating a financial environment suited to a successful transfer; 
• enabling businessmen to prepare for transfer by offering suitable instruments; 
• ensuring the continuity of partnerships and sole proprietorship in the event of the 
death of a partner or the owner; 
• providing for successful transfers within the family by ensuring that inheritance and 
gift taxes do not jeopardize the survival of an enterprise; 
• providing tax incentives for businessmen to transfer enterprises by selling them, 
primarily when there is no one within the family to continue the business. 
Implementation of the measures which have been recommended to the Member States will 
help to ensure the continued existence of SMEs, and of the jobs they provide (see also para. 
232 above, on direct taxation). 
(100) OJ C 204 or 23 July 1994, p. 1 
(101 ) COM(94) 3312 final of 7 December 1994 
THE SINGLE MARKET IN 1994 
72 PART TWO - DETAILED REVIEW 
§ 7 -Commercial communications 
246. Commercial communication covers all forms of marketing communication (advertising, 
sponsorship, direct marketing and public relations). Since all industrial and service sectors in 
the European economy are concerned, commercial communication is subject to a host of 
differing types of regulations. The Commission therefore believes that coherent policy in this 
area requires strengthening of internal co-ordination. In preparation for the publication in 1995 
of a Green Paper on this subject, the Commission completed an extensive round of consulta­
tions with all interested parties on the role of commercial communication in the single market 
and potential.barriers.to the circulation of such, services.within the Union. The results of three 
seminars held in 1993 were complemented by a market research survey across the Union and 
an open postal questionnaire. 
247. The Green Paper will describe how greater coordination might be achieved based on (i) 
an in-depth review of the role of commercial communication within the Union and (ii) an analy­
sis of the regulatory framework which covers these forms of communication. It will include: 
• operational guidelines explaining the Commission's policy approach, given the objec­
tives for which it has competence; 
• an explanation of how the principles of subsidiarity and proportionality would be 
applied; 
• an assessment and a proposal for a commercial communication central contact and 
market monitoring point within the Commission; 
• a list of potential policy problems in specific areas that will require further considera­
tion. 
§8 -Media 
A. Media ownership 
248. The Green Paper Pluralism and media concentration in the internal man\et. An assess­
ment of the need for Community action (102) identified a number of obstacles to the smooth 
functioning of the internal market caused by disparities between national measures on media 
ownership (television, radio, press). The aim of these measures is to protect pluralism by limit­
ing ownership by a single person of several media companies at once. The Green Paper 
concluded by presenting different possible options. During the consultation process conducted 
on the basis of the Green Paper numerous contributions were obtained from the interests 
concerned and opinions were received from the Economic and Social Committee (103) and 
Parliament (104), which on 20 January 1994 adopted a Resolution on this matter. 
On 5 October the Commission adopted a Communication to Parliament and the Council on the 
follow-up to the consultation process (105). This is an intermediate report which presents an 
analysis of the consultation on the question of the need for Community action. It concludes that 
an initiative at Community level relating to media ownership could prove necessary and that it 
is therefore appropriate to continue the consultation. A second round of consultation has the 
objective of establishing whether an initiative is required and providing the main factors of 
(102) COM(92) 480 final or 23 December 1992. 
(103) OJC 304 of 10 November 1993, p. 17. 
(104) OJ C 44 of 14 December 1994, p. 177. 
(105) COM(94) 353 of 5 October 1994 (OJ C 323. 21.11.1994). 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 73 
assessment essential for establishing the content of a possible initiative. A questionnaire was 
circulated accompanied by two studies with a view to having contributions in the spring of 1995. 
B. Legal protection for coded radio signals 
249. As announced in the Strategic Programme, a Green Paper is in preparation on the 
protection of coded signals for televisual and audio broadcasting. The present legal uncertainty 
with regard to the protection of coded television services and the various solutions adopted by 
existing national laws are not only a barrier to the movement of these services, but also to 
trade in signal decoders. The Green-Paper will examine whether new Community measures 
could play a role in removing bamers to the movement of coded television services and signal 
decoders. 
250. Two studies have already been carried out on the protection of coded broadcasting 
services. The first concentrated on the economic and technical aspects, and in particular the 
coding systems currently used, their advantages and defects, and their vulnerability. The 
second dealt with the legal aspects, analysing the factors determining the development of 
coded broadcasting services, the causes of piracy, and the legal solutions which have some­
times been adopted. 
A third study has now been launched on the national rules existing in the Union in order to 
evaluate their compatibility with the principles of the single market. In addition in 1994 contacts 
took place with the professionals concerned (broadcasters, cable distribution companies, copy­
right owners) on the problems caused by the present legal situation. These contacts illustrated 
the interest of the parties concerned in the Commission initiative. Professionals, whether 
programme makers or distributors, feel the need for greater protection of coded broadcasting 
services, since this would permit the development of satellite services intended for a European 
audience. Further meetings with the professionals will take place in order to discuss any 
Community measures. The draft Green Paper should be completed in the first half of 1995. 
C. Audiovisual policy 
251. On 6 April 1994 the Commission adopted a Green Paper entitled "Strategy options to 
strengthen the European programme industry in the context of the audiovisual policy of the 
European Union" (105). This Green Paper focuses on a specific aspect of the audiovisual indus­
try, the development of the European film and television programme industry. It has launched a 
debate on options for the future around three lines of action, namely: 
• the mles of the game; 
• financial incentives at Union level; 
• the convergence of national support systems. 
The Green Paper was submitted to professional circles for wide-ranging consultation, in particu­
lar at the European Audiovisual Conference held in July 1994. 
On the basis of the outcome of the Conference proceedings and of various contributions from 
professional organizations, firms and national authorities, work has been initiated with a view to 
preparing proposals on the MEDIA 2 programme and revising the "Television without Frontiers" 
Directive (89/552/EEC*). 
(106) COM(94)96of4June1994. 
THE SINGLE MARKET IN 1994 
74 PART TWO - DETAILED REVIEW 
§ 9 - Protection of personal data 
252. The Internal Market Council reached political agreement in December 1994 on the 
amended proposal for a Directive on the protection of individuals with regard to the processing 
of personal data and on the free movement of such data. The common position was adopted 
by the Council on 20 February 1995. 
The Directive aims to narrow divergences between national data protection laws to the extent 
necessary to remove obstacles to the free movement of personal data within the EU. As a 
result, any person whose data are processed in the Community will be afforded an equivalent 
level of protection of his rights, in particular his right to privacy, irrespective of the Member 
State where the processing is carried out. 
253. Until now, differences between national data protection laws have resulted in obstacles 
to transfers of personal data between Member States, even when these States have ratified the 
1981 Council of Europe Convention on personal data protection. This has been a particular 
problem, for example, for companies wishing to transfer data conceming their employees 
between their operations in different Member States. 
Such obstacles to data transfers could seriously impede the future growth of information society 
services, particularly those dependent on personal data such as financial services and distance 
selling. As the Bangemann Group report to the Corfu European Council remarked : "Without 
the legal security of a Union-wide approach, lack of consumer confidence will certainly under­
mine the rapid development of the information society". As a result the Corfu European Council 
called for the rapid adoption of the data protection Directive. 
254. To prevent abuses of personal data and ensure that data subjects are informed of the 
existence of processing operations, the Directive will lay down common rules, to be observed 
by those who collect, hold or transmit personal data as part of their economic or administrative 
activities or in the course of the activities of their association. 
In particular, there will be an obligation to collect data only for specified, explicit and legitimate 
purposes, and for data to be held only if relevant, accurate and up to date. The Directive will 
also establish the principle of fairness, so that collection of data should be as transparent as 
possible. The Directive will require all data processing to have a proper legal basis. The six 
legal grounds defined in the Directive will be: consent, contract, legal obligation, vital interest of 
the data subject or the balance between the legitimate interests of those controlling data and 
those on whom data is held (i.e. data subjects). 
255. Data subjects will be granted a number of important rights including the right of access to 
data, the right to know where the data originated (if such information is available), the right to 
have inaccurate data rectified, a right of recourse in the event of unlawful processing and the 
right to withhold permission to use their data in certain circumstances (for example, individuals 
will have the right to opt out free-of-charge from being sent direct marketing material without 
providing any specific reason). 
In the case of sensitive data, conceming an individual's ethnic or racial origin, political, religious 
or philosophical beliefs, trade union membership or health or sexual life, the Directive will 
establish that data can only be processed with the explicit consent of the individual, except in 
specific cases such as where there is an important public interest (e.g. for medical or scientific 
research), where alternative safeguards will have to be established. 
The common position has been sent by the Council to Parliament for a second reading and 
adoption under the co-decision procedure. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 75 
Section 6 - Public procurement 
256. During the year the Community legislative framework in the public procurement field was 
supplemented with entry into force of the last consolidated directives. Several important deci­
sions by the Court of Justice also clarified aspects of the public procurement rules. The 
Commission strove to take greater account of the special problems encountered by SMEs in 
bidding for contracts by holding a seminar devoted specifically to the question and by looking 
into various concrete measures that could be taken to help SMEs. In the external relations 
field, the new.govemment procurement agreement was signed in Marrakesh on 15 April in the. 
context of the Uruguay Round (see Section 9). 
§ 1 - Development and application of the new legislative framework 
A. Application of the Community rules 
257. Following the entry into force this year of the last consolidated directives (Directives 
93/36/EEC*, 93/37/EEC* and 93/38/EEC*), the Commission stepped up checks on transposai 
of the legislation, taking action against those Member States that failed to fulfil their general 
obligation to communicate their national implementing measures and examining the measures 
communicated by Member States that had transposed these and earlier directives. 
258. Taking account of the extra time that Spain, Greece and Portugal have been allowed for 
transposing Directive 93/38/EEC* (and Directive 90/531/EEC*), most Member States have 
failed to meet the deadlines of 14 June 1994 and 1 July 1994 for transposing Directives 
93/36/EEC* and 93/38/EEC*, while there are still major delays in transposing some of the 
earlier directives, in particular Directive 92/50/EEC* on services and Directive 92/13/EEC*j)Q 
review procedures in the utilities sectors. 
Of the 23 infringement proceedings in hand for failure to communicate national measures 
implementing the public procurement directives, nine were initiated in 1994 and concern Direct­
ive 93/36/EEC*. 
Following its examination of measures communicated, the Commission discovered five new 
infringements over and above the 16 for which it had already initiated proceedings in previous 
years. These sometimes involve questions of principle that could jeopardize the opening-up of 
public procurement in the Member States concerned. 
The situation with regard to Directive 92/50/EEC* is alarming, since most Member States have 
so far failed to communicate their national implementing measures, which they are not 
expected to adopt in the near future, and the others have adopted measures that are some­
times far from satisfactory. 
The Commission of course continued to follow up proceedings initiated in connection with its 
scrutiny of the transposai of earlier directives (the amended Works Directive 71/305/EEC* and 
the amended Supplies Directive 88/295/EEC*) and brought one case for faulty transposai 
against Germany to the Court of Justice. 
259. The Commission stepped up its checks on application of the rules by contracting authori­
ties and contracting entities in each of the Member States. These checks focused in particular 
on the conditions in which Member States award contracts for the supply of pharmaceutical 
products. It also dealt with all infringements, discovered as a result of complaints or through its 
own investigations, involving the application of rules of Community law that can be relied on in 
THE SINGLE MARKET IN 1994 
76 PART TWO - DETAILED REVIEW 
the public procurement field (directives and Treaty articles); the number of such infringements 
doubled as compared with 1993, most probably as a result of the progressively wider imple­
mentation of the directives following entry into force of the most recent texts. 
a) Action by the Commission 
260. Of the 206 cases dealt with in 1994 (including 121 new cases opened), the Commission 
settled matters with the Member State concerned in 66 cases before the infringement proceed­
ings had run their full course. To that end, it set up procedures for dialogue and consultation (in 
particular through bilateral meetings with individual Member States to discuss a range of 
issues) in order to offer Member States the legar and technical assistance they need and to 
endeavour to find mutually acceptable solutions to disputes in accordance with Community law. 
A few examples are worth mentioning. 
Greece 
261. For the construction of an aqueduct at Reressi, a public works contract was awarded in 
breach of the mles on publication of a tender notice. The Greek authorities claimed that the 
work had to be done as a matter of urgency and that the contract went hand-in-hand with 
construction of another aqueduct at Evinos. The Commission refuted these arguments: the 
drought had already existed for a very long time, and the two aqueducts were two entirely sepa­
rate structures. Following the Commission's intervention, the Greek Government agreed to 
annul its decision awarding the contract. 
Portugal 
262. In awarding a contract for the supply of computer equipment, the Portuguese public body 
concerned assessed the tenders submitted but then eliminated the two top-ranking tenders on 
the basis of criteria that had not been mentioned in the tender notice or the tender specifica­
tions. The Commission also noted breaches of Articles 30* and 59* of the EC Treaty. In the 
end, the Portuguese authorities cancelled the contract and started a new award procedure. 
Belgium 
263. For the construction of a building intended for the Flemish Executive, a works contract 
was awarded without prior publication. The Commission's intervention prompted the Belgian 
authorities to draw up tender specifications and publish tender notices. 
Italy 
264. The Mezzogiomo had a system of regional preferences whereby 30% of public supply 
and public service contracts awarded by administrations were reserved for local firms. 
In its judgment of 20 March 1990 in the Du Pont de Nemours case (107), the Court of Justice 
had already declared this system incompatible with Article 30* of the Treaty. Following further 
intervention by the Commission, the Italian- authorities embarked on a reform of their legisla­
tion, eliminating the provisions establishing the system of preferences for firms located in the 
Mezzogiomo and thereby putting an end to these infringements of Community law. 
Germany 
265. The city of Hamburg published a tender notice for the supply of concrete sleepers which 
referred exclusively to Deutsche Bundesbahn house standards and accepted only technical 
(107) Judgement of the Court of 20 March 1990 in Case C-21 /88 [1990] ECR 1-889. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 77 
experience relevant to the supply of similar products certified by Deutsche Bundesbahn. In the 
wake of discussions between the Commission and the German authorities, the contracting 
authority suspended the procedure and agreed to restart it having due regard to the observa­
tions made by the Commission. 
266. Although public contract award procedures have been harmonized at Community level, 
obstacles that may be caught by Articles 30 et seq.* remain. One example of such obstacles is 
national rules establishing systems of preferences that reserve a given share of public 
contracts awarded by administrations for firms located in certain areas of the national territory. 
The Commission has also noted that some tender notices, irrespective of the value of the 
contract (above or below the thresholds laid down by the public procurement directives), fail 
properly to apply the mutual recognition principle. 
b) Decisions by the Court of Justice 
267. Four important decisions are worthy of mention; other cases are still pending before the 
Court and should shortly be decided: 
Judgment of 3 March 1994 in Case C-328/92 Commission v Spain rPharmaceutical prod­
ucts")^) 
268. The Court of Justice of the European Communities held that Spain's basic social-security 
legislation, which enabled the administration to award by direct agreement public contracts for 
the supply of pharmaceutical products to establishments covered by the social security 
scheme, was incompatible with Directive 77/62/EEC*. The Court stated that the only excep­
tions allowed to Directive 77/62/EEC* were those exhaustively and specifically listed therein 
and that the derogations to the rules aimed at effectively guaranteeing the rights recognized by 
the Treaty in the public procurement field must be construed strictly (109); that it is for the 
person placing reliance on it to prove that the exceptional circumstances justifying the deroga­
tion do in fact exist; and that the conditions laid down must all be satisfied (no). 
Order of the President of the Court of 22 April 1994 in Case C-87/94 R Commission v Belgium 
rWalloon buses") (m) 
269. While rejecting the Commission's request that the Court suspend a contract for the 
supply of buses, the President of the Court recognized the right to apply for interim measures 
to put an end to serious, irreparable harm that can be caused by performance of a disputed 
contract. In the case in point, the President nevertheless upheld, on the balance of the interests 
at stake, the argument put forward by the Belgian authorities concerning the dilapidated condi­
tion of the buses. 
The decision also implies that the Commission should not accept any fait accompli and that it 
retains the possibility of requesting the Court to act under Article 186* of the Treaty to suspend 
performance of contracts concluded in breach of Community rules. This case-law could serve 
as an effective warning to contracting authorities that infringe the Community rules on public 
procurement. 
(108) Judgement of the Court of 3 May 1994 in Case C-328/92 [1994] ECR 1-1569. 
(109) Judgement of the Court of 18 March 1990 In Case C-24/91 [1992] EÇR 1-1989, paragraph 36 
(110) Op. cit., paragraph 13, for the corresponding provision applicable to public works contracts. 
(111) Order of the President of the Court of 22 April 1994 in Case C-97/94 [1994] ECR 1-1395. 
THE SINGLE MARKET IN 1994 
78 PART TWO - DETAILED REVIEW 
Judgment of 14 April 1994 in Case C-389/92 Ballast Nedam Groep v Belgium (112) 
270. This reference for a preliminary ruling concerned a Member State's refusal to include on 
a list of registered contractors companies that did not possess equipment and staff themselves 
but were linked to companies that did. 
In line with the arguments developed by the Commission and the conclusions of the Advocate 
General, the Court held that the Works Directive allowed a holding company to take part in a 
tendering procedure even if it was not itself a contractor or a supplier of the goods covered by 
the contract. If, however, the firm submitting the tender did not itself have the resources to 
perform the contract, the contracting authority was entitled to check whether, by virtue of 
special links, it could effectively rely on the resources available to the other companies 
(paragraph 18 and operative part of the judgment). 
Judgment of 26 April 1994 in Case C-272/91 Commission v Italy rLottomatica") (113) 
271. This case concerned the award by the Italian Ministry of Finance of a public contract for 
a lottery computerization system. The contract was not publicized in the Official Journal and 
was reserved for companies and groupings that were mainly publicly owned. It was awarded to 
the Lottomatica consortium. 
By Order of 31 January 1992, confirmed on 12 June 1992, the President of the Court of Justice 
called on Italy to suspend the legal effects of the award decision and of the contract signed with 
the firm Lottomatica. The Italian Government did not comply with these Orders until 27 May 
1993. 
The Court subsequently found in favour of the Commission, basing its judgment on Articles 52* 
and 59* of the Treaty and Directive 93/36/EEC* on public supply contracts. 
With regard to Articles 52* and 59*. the Court held that the design and operation of a computer 
system were technical activities that fell within the scope of Articles 52* and 59* and rejected 
the arguments put forward by the Italian Government, which maintained that they were activi­
ties connected with the exercise of official authority within the meaning of Article 55* of the 
Treaty. 
As far as the Directive on public supply contracts is concerned, the Court stated that, since the 
contract related to the supply of an integrated computerized system, including in particular the 
supply of certain goods to the administration, it was subject to the advertising and award rules 
laid down in the Directive, even if the administration was to become the system owner only 
after nine years. 
§ 2 -Community financing 
272. The Commission attaches the utmost importance to observance of the principle estab­
lished in Regulation (EEC) No 2052/88* (114) on the tasks of the Stmctural Funds, whereby 
operations financed by the Stmctural Funds, the EIB or the other existing financial instruments 
must comply with the provisions of the Treaties and secondary legislation and must be in line 
with Community policies, including that on public procurement. 
As well as ensuring that policies are consistent, this principle has to do with the effectiveness of 
stmctural operations: in the interests of economic and social cohesion, Community rules must 
be complied with so that all Member States can benefit: 
(112) Judgement of the Court of 14 April 1994 in Case C-398/92 [1994] ECR 1-1289. 
(113) Judgement of the Court of 26 April 1994 in Case C-272/91 [1994] ECR 1-1409. 
(114) As amended by Council Regulation (EEC) No 2081/93* of 20 July 1993 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 79 
• the Member State that receives the funding will obtain the best value for money for 
operations financed by the Funds; 
• the other Member States will see that Community funding is used to best effect, and 
their own firms will be entitled to bid for contracts under the projects concerned. 
273. With this in mind, the Commission decided in 1988 to introduce a system for monitoring 
compliance with the public procurement rules in the context of projects or programmes 
financed by the Structural Funds and Community financial instruments. 
For all operations exceeding ECU 25 million, the Commission decisions granting Community 
finance require the recipients to send it automatically information on the essential features of 
the contracts concerned; smaller operations are monitored by means of random checks. The 
new Regulations (EEC) No 2082/93* and (EC) No 1164/94* coordinating thé Structurer Funds 
•and the Cohesion Fund thus require the existence of Community finance to be mentioned in all 
contract notices published in the Official Journal by the entities in receipt of the funding. 
The Commission is also looking into further ways of preventing infringements in connection 
with contracts financed by the Community. 
The fact remains, however, that, given the scale of the task and the limited resources available 
to the Commission, the effectiveness of the monitoring effort depends largely on the attitude of 
the Member States and economic operators. 
In connection with the Cohesion Fund, a systematic check on compliance with the public 
procurement mles was carried out during the successive stages of approval and execution of 
all projects financed. From April 1993 to October 1994. some 590 applications for financing of 
individual projects or groups of projects under the Cohesion Fund (including 385 applications 
relating to the environment and 205 in the transport sector) were thus checked. Checks focused 
chiefly on compliance with requirements conceming the advertising of contracts, on conformity 
with the directives of requirements laid down in contract notices and on reports on contract 
awards (where required by the directives). 
274. During the year, the Commission sent each Member State the findings of an overall 
random check on compliance with the Community mles on public procurement carried out on 
projects financed by the ERDF over the period 1985-88. The exercise was also aimed at gain­
ing a general picture of the behaviour of contracting authorities and drawing practical conclu­
sions with a view to adjusting the system of control. 
The Commission also received from Greece and Spain amendments which they had made to 
their national legislation on public procurement in view of the risk of losing large amounts of 
funding as a result of contracts being awarded on the basis of rules that were incompatible with 
Community law. 
§ 3 -Advisory Committees 
275. To assist the Commission in its task of establishing a Community legislative framework 
for public procurement, two committees are in operation: 
• the Advisory Committee for Public Procurement, composed of representatives of the 
Member States, which was set up in 1971 by Council Decision 71/306/EEC* of 
26 July 1971, as amended by Decision 77/63/EEC* of 21 December 1976, and which 
the Commission has to consult; 
• the Advisory Committee on the Opening-up of Public Procurement, composed of 
representatives of the business community, which was set up in 1987 by Commission 
Decision 87/305/EEC* of 26 May 1987, as amended by Decision 87/560/EEC* of 
17 July 1987, and which is a committee of the consultative type that does not come 
within the scope of the Regulation on committee procedures. 
THE SINGLE MARKET IN 1994 
80 PART TWO - DETAILED REVIEW 
Consultation of these two Committees will continue to provide the Commission with essential 
advice in tackling the problems posed by application of the legislation, for example by consider­
ing the simplification and consolidation of existing texts and finding pragmatic, reasonable ways 
of overcoming the obstacles to the opening-up of public procurement. Adjustments will have to 
be made to the existing rules, in that emphasis will have to be placed on economic rather than 
legal aspects. 
276. To ensure that information flows satisfactorily between itself and those involved in public 
procurement, the Commission decided to set up an in-house information service for which the 
contact point is to be the secretariat of the Advisory Committees. This information exchange 
system is now in the process of being launched (115). 
§ 4 -Information systems for public procurement (SIMAP) 
277. More than two years ago the Commission conducted a study on the use of information 
technology in public procurement which led to a project known by the acronym SIMAP - infor­
mation system for public procurement. 
The study recommended in particular that: 
• electronic data interchange (EDI) should be introduced; 
• computerized information systems for public procurement should use European and 
International standards, 
There are two main information flows: one between the national purchasing entities and the 
Publications Office, the other between purchasing entities. There are about 400 000 purchasing 
entities in the EU covered by the Directives, of which some 100 000 publish contract notices 
regularly or occasionally. The Publications Office received at least 100 000 notices this year 
and is expected to receive 150 000 within two years. These notices are published daily in the 
Official Journal and in Tenders Electronic Daily (TED) and are thereby made known to all 
potential suppliers. 
Even if only ten percent of purchasing entities and one percent of potential suppliers were 
prepared to participate in electronic procurement they would represent 170 000 new EDI users 
within the context of electronic tendering. The recommendations in the report on 'Europe and 
the global information society', presented to the European Council in June 1994, identified 
public procurement as one of the top ten priority applications for information technology. In the 
report it was suggested that at least 10% of all purchasing authorities should have electronic 
tendering procedures implemented within the next two to three years to gain a critical mass for 
the general conversion. 
278. Four main SIMAP pilot projects have been defined to check the technical feasibility of 
such an information exchange system and to estimate the likely operating costs: 
1 - Notification (procurement notices); 
2 - Information dissemination; 
3 - Market monitoring and analysis; 
4 - Information exchange between purchasers and suppliers. 
279. In order to monitor present activities and to guide the future development of the overall 
information system for public procurement, especially with regard to the introduction of elec­
tronic data interchange, the Commission last year suggested to the Western European Edifact 
(115) The address of the contact point is as follows: 
DG XV/B/4 - C100 - Mr Paul Fraix - Rue de la Loi, 200 - B-1049 Brussels 
Tel. No: (+32-2) 295 89 46 - Fax: (+32-2) 295 01 27 
E-mail (i) X 400: G=Paul; S=Fraix; 0=dg15; P=CEC; A=RTT; C=BE 
(ii) INTERNET: Paul.Fraix@dg15.cec.be 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 81 
Board (WEEB) that a new Edifact message development group be set up in that area. As a 
result Message Development Group 12 - Public Procurement was established. 
280. SIMAP can be seen as the focus of the Commission's effort to encourage the use of 
modem technology in public procurement procedures. In its initial pilot phase SIMAP will test 
the practicality of using electronic mail, electronic data interchange and on-line databases by 
setting up a working system to increase the efficiency of notification of public procurement 
contracts and improve the dissemination of such information. 
For purchasers and suppliers even greater benefits will come from using electronic mail, elec­
tronic data interchange and on-line databases for the large volume of transactions which fall 
below the thresholds of the Directives. These are generally also the transactions most interest­
ing to SMEs. 
281. Other areas where the use of modem technology could be of imrriediate benefit include 
the provision of user-friendly access to information about national legal regimes and the 
dissemination of information about subcontracting opportunities. Electronic payment systems 
are also important. 
Such systems will contribute directly to the achievement of improvements in industrial 
competitiveness and efficiency, budgetary savings, improvements in quality and value for 
money of public sector purchases, increased market integration and greater trading opportuni­
ties. 
The main tasks of the Commission in this area are to promote standardization and to raise the 
level of awareness and use of modem technologies. The volume of data being exchanged has 
increased steadily and will continue to grow further, so that a change in administrative proce­
dures becomes necessary. The use of standardized electronic messages is essential to this 
change. Early standardization will also help to avoid any hidden form of discrimination or 
protectionism and provide open access for everybody. 
§ 5-Other activities 
282. On 14 and 15 January the Commission held a seminar on opening up public procure­
ment in the single market and affording SMEs greater access to contracts. The seminar was 
attended by those involved in procurement: lawyers, public purchasers, company managers 
and representatives of trade associations. 
One of the major concerns evoked by participants was the difficulty experienced by small and 
medium-sized enterprises in securing access to public contracts. If SMEs are to gain maximum 
benefit from the opening-up of public procurement, they need to have local partners, a full 
range of business advisory services, rapid, precise and reliable information, and properly quali­
fied staff. 
These topics were discussed in detail in working groups focusing on the application of 
Community law on public procurement, training, standardization and service networks. 
THE SINGLE MARKET IN 1994 
82 PART TWO - DETAILED REVIEW 
Section 7 - Building the internal market in the regulated sectors 
§ 1 - Energy 
283. As well as applying the Treaty's rules to the energy field - especially those on the free 
movement of goods and on competition - the Community is pressing ahead with its legislative 
work on opening up the electricity, and gas markets. 
The positions in the Council on opening up electricity generation to competition have drawn 
closer to each other, and common rules have been adopted for the production of gas and oil 
(Directive 94/22/EC*). Efforts to increase standardization in the energy field have continued. 
At the energy Council on 29 November 1994, the Commission announced that a Green Paper 
(adopted on 11 January 1995) would be put forward on energy policy to stimulate debate in the 
Union, though specific solutions or decisions would not be proposed at this stage. 
A. Legislative developments 
a) Exploration and production of hydrocarbons 
284. Directive 94/22/EC* on the conditions for granting and using authorizations for the 
prospection, exploration and production of hydrocarbons was adopted by the Council on 
30 May 1994. The Hydrocarbons Directive covers the activity of producing gas and oil. As a 
consequence, it completes the internal market for gas at the upstream level. The liberalization 
of downstream activities (transport, storage and distribution) is covered by the proposed Direct­
ive mentioned at point 290. 
The Directive is based on four general principles: firstly, Member States retain sovereignty over 
gas and oil resources, in particular in deciding which areas to open up for exploration, what 
level or rates of tax royalties to levy, and whom to choose as licensee; secondly, Member 
States decide the rules for operating conditions and long-term policy as regards depletion of 
resources; thirdly, participation by the State is allowed, under certain provisions and within 
certain limits to ensure the State does not prejudice the equal treatment of other companies; 
fourthly, a framework is established to reflect the principles of transparency, objectivity and 
non-discrimination. 
The Directive sets provisions for applying for and giving authorizations, for abolishing exclusive 
rights, for ensuring reciprocity as regards third countries, for the management of the State 
participation, and for public procurement. It needs to be fully applied by all Member States by 
1 July 1995. 
b) Gas and electricity markets 
285. In December 1993, the Commission adopted amended proposals for Directives on the 
internal market in natural gas (116) and in electricity (117) following the amendments voted by 
Parliament at first reading. In May and November, the Council held a thorough discussion of 
five important points in the electricity proposal: 
(116) COM(93) 643 final of 7 December 1993 (OJ C 123, 4.4.1994, p. 26). 
(117) Op. cit. p. 1 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 83 
• public service obligations; 
• opening up production to competition; 
• separating the activities of integrated undertakings for accounting purposes; 
• the functions of the network operator; 
• direct commercial links between producers and consumers (TPA). 
In its conclusions of 29 November 1994 the Council recorded its agreement on the first four 
points. As regards the last point, agreement has been reached on the principle of market 
liberalization in areas extending beyond production, the procedures for which have yet to be 
determined. To this end, the Commission was invited to examine the compatibility, under 
comparable access and market liberalization conditions, of two systems, namely TPA and the 
single purchaser system,, analysing in particular the consequences in terms of competition and 
the possibilities opert to consumers and producers (H8). Coreper has beerr invited to finalize its 
discussions on this basis, with a view to the adoption of a formal common position in 1995. 
286., The Council's examination of the amended proposal on the internal market in natural 
gas (119) has been held over until the work on the Electricity Directive is complete. 
B. Implementation and enforcement of the legislation 
a) State aid 
287. The Commission adopted Decision No 341/94/ECSC (120) implementing Decision No 
3632/93/ECSC establishing Community mles for State aid to the coal industry for the period up 
to the expiry of the ECSC Treaty in 2002. Aid will be authorized only if it promotes economic 
viability, worker redeployment, regional conversion and harmony with the environment and if it 
is regressive and transparent. 
b) Free movement of goods 
288. Under Articles 30, 34 and 37* of the EC Treaty, the Commission referred to the Court of 
Justice the cases of five Member states (Belgium, Spain, France, Italy and the Netherlands) 
where there is still a monopoly on the import or export of gas or electricity. In Denmark, the 
monopoly on the import of gas has been abolished. 
c) Competition rules 
289. In its Almelo ruling, the Court of Justice held that commercial contracts between regional 
and local electricity supply undertakings containing exclusive supply clauses being in breach 
with competition rules may be justified under Article 90(2)* of the Treaty. It was confirmed that 
the supply of electricity is to be considered as a service of general economic interest. However, 
it was left to the appreciation of the national judge whether the restriction of competition was 
necessary and justified to fulfil this service of general economic interest. 
The Commission is at present analysing whether an exclusive concession contract between the 
town of Kleve and the electricity utility RWE is compatible with the Treaty, especially its 
competition rules. In this contract RWE has been granted exclusive land use rights in the 
(118) See the working paper of the Commission SEC(95) 464 final of 22 March 1995 
(119) COM(93) 643 final of 7 December 1993 (OJ C 123, 4.4.1994, p. 26) 
(120) OJ L 49 of 19 February 1994 
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84 PART TWO - DETAILED REVIEW 
conceded territory against concession fees together with an exclusive electricity supply right, 
possibly to restrict cross-border trade. 
d) Standardization 
290. The global approach to standardization in the energy field, proposed by the Commission 
with a view to completing the internal market (121), was continued. 
The idea of giving mandates to CEN-Cenelec is based on the objectives of promoting energy 
efficiency and renewable sources of energy (SAVE programme - four mandates) and of devel­
oping alternative energy sources (ALTENER programme - two mandates). 
The Commission also issued, under Directive 92/42/EEC*, a standardization mandate with 
regard to the efficiency requirements for new hot-water boilers. 
In 1994, several European standards were drawn up in the field of energy, of which three on 
fuels should be mentioned: EN 228 (lead content of petroleum products), EN 589 (LPG fuels), 
EN 690 (diesel). 
e) Specific energy legislation 
291. As regards gas transit, the Commission updated the list of entities eligible to move gas in 
transit (Directive 94/49/EC*) and set up the Committee of Experts provided for by Directive 
91/296/EEC* 
The Council noted the report on the implementation of Directive 90/377/EEC* on the transpar­
ency of gas and electricity prices charged to industrial end-users. The report, which highlights 
the major variations in price between Member States and between regions, was also transmit­
ted to Parliament and the Economic and Social Committee. 
Five Member states (Belgium, Spain, Italy, Luxembourg and Portugal) have not yet transposed 
Directive 92/42/EEC* on the efficiency of new hot-water boilers, and infringement proceedings 
have been initiated against them. 
As regards the notification of inspection bodies, the Community instrument concerned is Direct­
ive 90/396/EEC* on appliances burning gaseous fuels. An extension is being prepared to 
include appliances burning liquid fuels. 
On 21 January 1994 the Commission adopted Directive 94/2/EC* implementing Directive 
92/75/EEC* with regard to energy labelling of household electric refrigerators, freezers and 
their combinations. 
f) Transport of and traffic in nuclear products 
292. The countries of the Union must face up to a growing traffic in nuclear materials, which is 
threatening their security. On 7 September 1994 the Commission accordingly adopted a 
communication in which it summarizes the situation and sets out certain ways of combating this 
illicit trade (122), in particular intensified checks at the external frontiers, increased judicial and 
police cooperation between the Member States and the strengthening of cooperation with the 
countries where the traffic originates. 
(121 ) SEC(92) 724 final of 9 June 1992. 
(122) COM(94) 383 of 7 September 1994. 
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PART TWO - DETAILED REVIEW 85 
§ 2 -Telecommunications 
• Legislative developments 
293. The Commission presented a Green Paper on the liberalization of telecommunications 
infrastmcture. The first part of the Paper, adopted on 25 October (123), establishes the general 
principle that there should be a free choice of infrastructure for the provision of liberalized 
services and sets out a timetable for the liberalization of the infrastructure, on which timetable 
political agreement was reached in the Council on 17 November. The second part, published in 
January 1995, determines the procedures for liberalizing the infrastructure. On 21 December 
the Commission adopted a proposal for a Directive amending Directive 90/388/EEC*with a 
view to-abolishing restrictions on the use of cable television networks for the.supply of 
telecommunications services. 
294. The Commission also adopted, on 27 April 1994, in the field of radiocommunications, a 
Green Paper on mobile and personal communications, which contained proposals relating to a 
Community policy for the development of this sector. The results of the consultation on the 
Green Paper were set out in a communication of 23 November (124). 
295. As regards satellite communications, the Commission, on 22 March, adopted an 
amended proposal for a Directive on the mutual recognition of licences for telecommunications 
services and, on 4 January, a proposal for a Directive relating to satellite communications 
services. On 10 June, it also adopted a communication on the provision of and access to space 
segment capacity (125). Lastly, on 14 October, it adopted Directive 94/46/EC*. which liberalizes 
the market for satellite telecommunications equipment and services. 
296. The need to align rates on costs while maintaining a universal service constitutes a key 
element in the preparation of the liberalization. In this connection, on 7 February and 6 May 
respectively, the Council and Parliament adopted resolutions (126) on universal service princi­
ples in the telecommunications sector. All the Member States have already started to restore 
equilibrium to current rate structures. 
On 19 July, under the codecision procedure, Parliament rejected the Council common position 
on the proposal for a Directive on the application of open network provision (ONP) to voice 
telephony. In response to Parliament's request of 30 September (127), the Commission 
announced, in a communication of 29 November (128), its intention to put forward a new 
proposal. 
• Implementation and enforcement of the legislation 
297. Wanting to avoid any risk of the market becoming fragmented, the Council, in its resolu­
tion of 22 July 1993 (129), stressed the need for rapid and effective implementation of current 
Community instruments. The correct application of current Community law in the telecommuni­
cations sector is particularly important at the moment in the context of the emergence of the 
information society, heralded in the Bangemann Report, whose implementing procedures are 
laid down in the action plan adopted in 1994. 
In this respect, the Commission, during 1994, continued to examine the national transposai 
measures communicated by the Member States for the directives and decisions in force. 
(123) COM(94) 440 of 24 October 1994. 
(124) COM(94) 492 of 23 November 1994. 
(125) COM(94) 210 of 10 June 1994; Bull, EC 6-1994, point 1.2.120. 
(126) OJ C 48 of 16 February 1994 and OJ C 205 of 25 July 1994. 
(127) OJ C 305 of 31 October 1994. 
(128) COM(93) 513 of 26 October 1993. 
(129) Resolution 93/C 213/01 of 22 July 1993. 
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86 PART TWO - DETAILED REVIEW 
298. Telecommunications terminal equipment is the subject of a basic Directive, 
91/263/EEC*. which provides for the adoption by the Commission of instruments of compulsory 
application - the common technical regulations (CTR); thus, the Commission has so far 
adopted eight common technical regulations, namely Decisions 94/11/EC* and 94/12/EC* on 
the GSM. 94/470/EC*on 2Mbit leased lines. 94/471/EC* and 94/472/EC*on Digital European 
Cordless Telecommunications (DECT), 94/796/EC* and 94/797/EC* on the ISDN and 
94/821 /EC* on 64kbit/s leased lines. Other types of terminal will be covered in further deci­
sions. 
To date, eight Member States have notified to the Commission national measures transposing 
Directive 91/263/EEC*. Examination of the texts communicated shows that Denmark. France, 
Italy, Portugal and the United Kingdom have adopted measures incorporating the totality of the 
Directive. The German, Spanish and Dutch notifications are regarded as being partial or 
unsatisfactory transposais. The Commission has initiated infringement procedures against 
these three Member States for non-compliânce. Belgium, Greece, Ireland and Luxembourg 
have still not notified their national implementing measures. The Commission has decided to 
go ahead with the infringement procedures for failure to notify, initiated in 1993; it has therefore 
referred the matter to tie Court of Justice, bringing four actions against these countries for 
failure to fulfil their obligations (Article 169* of the EC Treaty). 
In order to unify the symbols and rules employed concerning the Community marking of prod­
ucts, the Council, through Directive 93/68/EEC*. adopted measures amending the New 
Approach Directives, including Directive 91/263/EEC*. Only France, the Netherlands and 
Portugal have notified to the Commission national measures transposing the Directive. 
Through the adoption of Directive 93/97/EEC* conceming satellite earth station equipment, the 
scope of Directive 91/263/EEC*was extended and supplemented. The Member States have to 
communicate their transposai measures by 1 May 1995 at the latest. 
299. The three Frequency Directives, i.e. Directives 87/372/EEC* (GSM), 90/544/EEC* 
(Ermes) and 91/287/EEC* (DECT), have been transposed by all the Member States. 
The implementation of the numbering Decision, 91/396/EEC*. concerning the introduction of a 
single European emergency call number (112) is proving difficult in some Member States. The 
latter have to alter their national numbering plans to ensure that 112 is introduced as a single 
European emergency call number; these technical changes are costly and complicated. Thus, 
France, Ireland, Italy and the Netherlands have requested a derogation from the Commission 
pursLant to Article 3(2) of the Decision. The Commission has still not received any information 
concerning the implementation of the Decision in Spain. Greece and Portugal. 
Seven Member States (Belgium, Germany, Greece, Luxembourg, Ireland, Italy and Portugal) 
have currently implemented Decision 92/264/EEC* on the adoption of 00 as the standard inter­
national access telephone code in the Community. A further period for the implementation of 
the Decision has been granted by the Commission to France, Denmark and the United King­
dom pursuant to Article 3(2) of the Decision. These countries pleaded technical and financial 
difficulties to justify delaying the complete introduction of the 00 code in their national number­
ing plans. 
300. With regard to ONP, since the basic Directive, i.e. the framework Directive 90/387/EEC*. 
which sets out the principles governing the provision of an open telecommunications network, 
has already been transposed in all the Member States, the Commission continued to examine 
national transposais of the first specific Directive in the ONP context, namely Directive 
92/44/EEC*. The correct application of this instrument is particularly important at this juncture, 
in view of the emergence of the information society. 
The majority of the Member States (i.e. Belgium, France, Germany, Denmark, the United 
Kingdom, Portugal, Spain, Italy , Ireland and the Netherlands) have communicated to the 
Commission their national measures transposing the Directive. The notified texts are still being 
examined, but an initial qualitative assessment shows that the transposais are partial or 
unsatisfactory. This situation could be the result of the effort to change the general regulatory 
framework which some Member States (Germany, the Netherlands and Denmark) have made 
in preparation for the second stage of the liberalization of telecommunications services set for 
1988 (see point 296 above). The Commission has also continued with infringement proceed-
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 87 
ings against those Member States which have not yet notified measures transposing the 
Directive. 
Section 8 - Trans-European Networks 
§ 1 -Introduction 
301. To enable citizens of the Union, economic operators and regional and local authorities to 
benefit fully from the single market, the European Union in 1994 continued its efforts to estab­
lish and develop trans-European networks in the transport, energy and telecommunications 
infrastructure sectors. Community action is intended principally to promote the interlinking and 
interoperability of national networks and access to them. 
When it met in Brussels in December 1993, the European Council gave a significant political 
boost to the creation of trans-European networks, in accordance with the new Title XII to the EC 
Treaty and with the White Paper on growth, competitiveness and employment. It gave the 
Commission the job of ensuring the progress and coordination of work in this field, and called 
for two high-level groups to assist the Commission and the European Council in their task. 
§ 2 - Telecommunications and the information society 
302. In its report submitted to the European Council in Corfu, entitled "Europe and the global 
information society", the Bangemann Group invited the Union to trust market mechanisms. This 
presupposes inter alia measures to abolish the rigidities which are prejudicial to Europe's 
competitive capacity and the devising of a common regulatory approach to promote the 
appearance, on a Community scale, of a competitive market in information services. To this 
end, the report contains specific recommendations and an action plan covering specific initia­
tives based on partnership between the public and private sectors. The Corfu European Council 
approved the principal points of the report and requested the institutions to take various meas­
ures to implement the recommendations. 
303. On 19 July 1994 the Commission published an action plan for its work, which sought to 
draw up a timetable for the implementation of the Community measures in progress, the 
recommendations of the Bangemann Report and the conclusions of the Corfu European 
Council. The communication was favourably received by the Council on 28 September and by 
Parliament on 30 November. At one and the same time it covers the regulatory and legal 
framework, the networks, the social, societal and cultural aspects and promotion activities. It 
provides in particular for the completion of the process of opening up markets to competition 
and the preparation of a set of guidelines for trans-European telecommunications networks. 
304. A report on the information society, providing a preliminary survey of progress achieved 
since the Corfu European Council, was examined by the European Council in Essen. The 
Heads of State or Government expressed the wish that the work in progress should be contin­
ued. 
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88 PART TWO - DETAILED REVIEW 
305. Significant progress was made at the end of the year as regards data communication 
networks. On 21 December, the Council reached a common position on the proposal on guide­
lines for the development of the integrated services digital network (ISDN) as a trans-European 
network. In November and December, the Council also reached agreement on a Commission 
proposal on trans-European networks for the interchange of data between administrations (IDA) 
(with Article 235 of the EC Treaty as the legal basis), opening the way for the adoption of the 
proposal in 1995, once Parliament has given its opinion. 
306. In its conclusions of 30 May on the fourth annual progress report on ISDN, the Council 
recognized the importance of Euro-ISDN for Community enterprises and for advanced infor­
mation networks in the Union. On 20 June it adopted a resolution on information exchange 
between administrations, in which "it stressed the importance of coordinating and introducing 
operational systems that meet identified needs. It also adopted/ on 11 July, ^Decision 
94/445/EC* on inter-administration telematic networks for statistics relating to the trading of 
goods between Member States (Edicom). 
§ 3 - Transport and energy 
307. Meeting at Essen in December, the European Council adopted the principal recommen­
dations in the Christophersen Group's report. In particular, it invited the authorities responsible 
to overcome the legal and administrative obstacles to the execution of the projects. 
308. On 19 January the Commission adopted a proposal for a Parliament and Council Deci­
sion laying down a series of guidelines on trans-European energy networks and a proposal for a 
Council Decision laying down a series of measures aimed at creating a more favourable 
context for the development of those networks. The guidelines are designed to strengthen the 
security of the Union's energy supplies, ensure effective operation of the internal energy market 
and promote economic and social cohesion. On 29 November the Council confirmed the list of 
projects of common interest and made progress as regards the creation of a more favourable 
context for the development of energy networks. 
309. On 7 April the Commission adopted a proposal for a Parliament and Council Decision on 
guidelines for the development of the trans-European transport network. The guidelines are 
aimed at the integration of all transport infrastructure networks into a multimodal network in 
order to ensure by 2010 optimum and environmentally sound exploitation of all modes of trans­
port. 
310. The interoperability of the European high-speed train network was the subject of a 
Commission proposal on 15 April, based on Article 129d of the EC Treaty. The proposal 
provides for the establishment of a regulatory framework so that the infrastructure, rolling stock 
and equipment are sufficiently compatible for any transport undertaking which so wishes to 
operate, at least economic cost, a commercial service on any route of its choice over the Euro­
pean high-speed train network. The proposal was endorsed on 21 September by the Committee 
of the Regions and on 23 November by the Economic and Social Committee. 
311. A second report by the high-level group responsible for studying the development of 
high-speed trains was drawn up in 1994 for publication in February 1995 (130). The report 
quantifies the impact of the high-speed network on the socio-economic development of the 
European Union, the integrated transport market, safety and the life of the citizen. It also 
includes a new master plan for the trans-European high-speed train network in 2010. which 
takes account of the conclusions of the Essen European Council and the recommendations for 
the gradual development of the network. 
(130) Not yet published. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 89 
§4- Financing 
312. On 2 March the Commission adopted, pursuant to Article 129c of the EC Treaty, a 
proposal for a Council Regulation laying down general mles for the granting of Community 
financial aid in the field of trans-European networks. The proposal, which was endorsed by the 
Economic and Social Committee, the Committee of the Regions and Parliament, was still being 
discussed in the Council at the end of the year. 
In the same context, on 15 June, the Commission adopted a communication on financing 
trans-European networks, which describes the various financing possibilities and concludes that 
at the current stage in the process none of them should be excluded, especially recourse to 
. complementary fund-raising on capttal-markets. 
313. The Essen European Council welcomed the setting up, within the EIB, of a special group 
for the financing of the networks and approved the approach of the Christophersen Group, 
which proposes, as regards financing, that projects be examined on a case-by-case basis. The 
Member States, the Commission and the EIB were invited to continue with the coordination of 
the work on financing, and the Heads of State or Government invited the Council to release the 
necessary funds. 
Section 9 - The Internal Market and other Community policies 
§ 1 -Social Dimension of the internal market 
314. The development of the internal market, which aims to construct a large economic entity 
within which progress and prosperity are assured, must be accompanied by the progressive 
introduction of an effective social dimension. That is the aim of the Community's social policy, 
which is centred on the "Community Charter of the Fundamental Social Rights of Workers", on 
the Social Action Programme (131) and on the White Paper on European Social Policy (132). 
In 1992. 1993 and 1994 the Council did adopt a number of Directives, such as those on the 
protection of pregnant workers and workers who have recently given birth or are breastfeeding, 
on collective redundancies (92/85/EEC* and 91/56/EEC*), the one on certain aspects of the 
organization of working time and on the protection of young people at work (93/104/EEC* and 
94/33/EC*). In addition, a Directive on the labelling of tobacco products was adopted to rein­
force measures to combat smoking (92/41/EC*). 
In September 1994 an important directive about informing and consulting employees in 
Community-scale undertakings was adopted, marking the first use by the Council of the provi­
sions of the Agreement on Social Policy annexed to the Treaty on European Union 
(94/45/EC*). 
315. In the field of the health and safety of workers, a series of directives was adopted, cover­
ing temporary or mobile work sites, safety and/or health signs at work, medical treatment on 
board vessels, the extractive industries and biological agents. In July 1994 Regulation (EC) 
No 2062/94* setting up the European Agency for Safety and Health at work was adopted. 
Proposals for Council directives guaranteeing minimum health and safety requirements for 
(131 ) Community Charter of the Fundamental Rights of Workers, Luxembourg, OOPEC, 1990. 
(132) White Paper on Social Policy, COM(94) 333 final of 27 July 1994. 
THE SINGLE MARKET IN 1994 
90 PART TWO - DETAILED REVIEW 
transport activities, physical and chemical agents and work equipment are still under discus­
sion. The General Framework for Action in the field of Safety, Hygiene and Health Protection at 
Work, presented by the Commission in November 1993, contributed to the launch during 1994 
of preliminary consultations of the institutions of the Union with a view to establishing the 
Fourth Programme of Action in Hearth and Safety at Work, centred on completing and rational­
izing the core of European legislation introduced as part of the social dimension of the single 
market. 
316. The Commission's White Paper on European Social Policy (133), presented in July 1994, 
set out a framework for the future development of social policy in which its different elements 
can become better integrated, and more mutually reinforcing. The starting point of the White 
Paper was the need for a new mix between economic and social policies in order successfully 
to meet the challenges that the European Union is currently facing. Europe cannot have a 
competitive economy unless bur societies as a whole are productive. Social policy "must there­
fore serve the interests of all people - both those in employment and those who are not. 
Within this framework, top priority is given to employment and the fight against unemployment. 
The White Paper also made proposals to develop and consolidate the legislative base, notably 
as concerns labour law, hearth and safety and equality of treatment between women and men; 
emphasised the need to make an increased effort to ensure that the legislation already adopted 
by the Council is property implemented and enforced across the Union; highlighted the need to 
strengthen cooperation and action across society as a whole, with a particular focus on the 
problems of poverty and social exclusion, disabled people and older people, and action in the 
field of public health; and proposed a major information effort to ensure that European citizens 
are aware of the value added of Union activity in the social field. 
In accordance with the White Paper, the Commission presented a specific action plan at the 
level of the Union and the Member States directed at reversing the trend of unemployment to 
the European Council at its meeting in Essen in December 1994, on the basis of which it 
endorsed a series of specific proposals for action by the Member States to improve the skills of 
the Community workforce, to turn growth into more jobs, to ensure that labour costs are 
competitive, to strengthen labour market policies and to provide additional support for young 
people and the unemployed, urging the Member States to transpose these recommendations in 
their individual policies into a multiannual programme having regard to the specific features of 
their economic and social situation 
317. The reform of the European Social Fund, adopted in July 1993, increased the capacity of 
the Community to support the process of labour market development and adjustment in the 
Member States, in line with the emphasis on active intervention to support the process of 
change within the internal market. 
318. With a view to making the free movement of workers effective and to promoting the 
establishment of a genuine European employment market, the EURES (European Employment 
Service) network was set up (134) to act both as an employment agency on a European scale, 
with the job of informing, advising and placing job-seekers throughout the territory of the Union, 
and as a forum for examining, at operational level, all questions associated with employment in 
Europe. 
§ 2 -Consumer policy 
319. The single market was not created for the benefit of business alone, and it will not func­
tion properly without the active and genuine participation of consumers. The citizen as 
consumer has a right to the benefits generated by increased competition and a wider choice of 
(133) Op.cit. 
(134) See Regulation (EEC) No 2434/92*. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 91 
goods and services, while enjoying adequate protection of his safety and his other essential 
interests. In addition, the buying choices of well-informed consumers can speed up the positive 
economic effects of an integrated market. Consumers therefore have a crucial role to play in 
the pursuit of the single market objectives. 
3jflt By 1 September 1994, the Member States were to have transposed forty-five directives 
concerning consumer policy. The average rate of transposai is 97%, which is relatively satisfac­
tory. However, it should be noted that this average rate masks substantial differences and that 
it reflects progress on communicating national implementing measures without reference to 
progress on effective application of such measures. 
The particular importance for consumers of the recently adopted Directives 92/59/EEC and 
93/13/EEC* (general product safety and unfair contract terms), which entered into force this 
year, highlights the fact that it is essential to develop close cooperation with national authorities 
to ensure that the Directives are effectively transposed on schedule. 
321. Since 1 November 1993, a new dimension has been added to the Community's 
consumer policy. 
These changes are substantial since they concern both the substance and the methods of 
Community action. Intended by the Single Act as a back-up policy to the single market, 
consumer policy becomes a policy in its own right in the Treaty on European Union. From now 
on, consumer protection is recognized as such in Article 129a of the Treaty, with two separate 
but complementary bases: 
• measures taken in the context of the completion of the single market; 
• specific action concerning health, safety and economic interests of consumers and 
the provision of adequate information to them. 
322. New measures could arise from the identification of shortcomings in the functioning of 
the single market, and from specific policy measures designed to apply the law more effec­
tively. 
Moreover, the Commission will always remain free to propose to the institutions and the 
Member States subjects for discussion in the form of communications or Green Papers. This 
was done for access to justice and after-sales guarantees, which, after broad-ranging and 
fruitful consultation, were discussed by the Consumer Forum on 4 October 1994. All these 
discussions will enable the Commission to identify the shortcomings and problems in the func­
tioning of the internal market and take the measures needed to remedy them. 
In addition, during 1994 the Commission departments worked on the preparation of a Green 
Paper on transparency of prices for services, which is due to be published in 1995. 
§ 3 -Education and training 
323. The Commission has proposed that the Council adopt the programme Youth for 
Europe III. This programme would cover a range of activities for young people between 15 and 
25 - projects outside school and training - and for youth leaders and youth organizations. 
Specific support would be reserved for projects making it easier for disadvantaged young 
people to gain access to the Programme. The aim of the new programme is to strengthen and 
develop young people's activities, in particular those calling for initiative and enterprise, and 
short and long-term voluntary service activities (eighteen months). 
THE SINGLE MARKET IN 1994 
92 PART TWO - DETAILED REVIEW 
§ 4 - Research 
324. The White Paper on growth, competitiveness and employment highlights the role of 
research and technological development (RTD) as a motor for recovery. 
The Community's multiannual framework programmes constitute the essential instrument for 
implementing the Union's RTD policy. The fourth framework programme in the field of 
research, technological development and demonstration (1994-98), based on the EC Treaty, 
was adopted on 26 April 1994 (European Parliament and Council Decision 94/1110/EC*) and, 
at the same time, the Council adopted the framework programme (1994-98) based on the 
EAEC Treaty (Decision 94/268/Euratom*). 
The specific implementation programmes were all adopted between July and December 1994. 
Measures under the specific programme on "Standardization, measurement and testing" are 
based largely on support for implementation of the single market. In addition, most of the other 
specific programmes now provide for standardized procedures to make it easier to take part 
and to encourage cooperation with RTD projects. The programmes on information technolo­
gies, advanced communications and computer applications cover areas of RTD which are 
important to the completion of the Information Society. 
The White Paper stresses the impact of better coordination of the research effort on a more 
competitive economy. In October 1994, the Commission adopted the communication 
"Research and Technological Development: Achieving Coordination Through Coopera­
tion" (135), which creates the prospect of a consistent approach by national and Community 
policy in the field of RTD. In 1995, priority will be given to promoting initiatives to this end. 
Section 10 - External aspects 
325. In order to promote a healthy climate for international trade and to prevent distortions to 
the internal market due to unlawful or anti-competitive practices, the Union has to maintain 
both a dynamic commercial policy and a coherent, effective approach to managing the Union's 
external frontier. There were a number of important developments in these areas in 1994. 
§ 1 - Implementation of the European Economic Area 
326. The agreement on the European Economic Area (EEA) entered into force on 1 January 
1994. creating the world's largest integrated trading area. The four freedoms of the internal 
market were extended to Austria. Finland, Iceland, Norway and Sweden, although Austria, 
Finland and Sweden have since become Member States. The effective implementation and 
operation of the Agreement is the responsibility of the EEA Joint Committee, on which the 
Community is represented by the Commission. 
327. In March 1994, the EEA Joint Committee 
• revised the EEA mles of origin to maintain the possibility for producers in the EEA 
States of combining materials originating in Switzerland (without such an amendment, 
(135) COM(94) 438 final of 19 October 1994. 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 93 
this possibility would have been jeopardized as a result of Switzerland's non-partici­
pation in the EEA); 
• added to the EEA more than four hundred new pieces of Union legislation adopted 
since the Agreement was finalized in 1991. 
The Community's internal market acquis having developed in 1994, the EEA Joint Committee 
has taken further decisions to integrate this more recent legislation into the EEA, thus applying 
it to the EFTA States concerned. 
§ 2 - Common Commercial Policy 
A. Import regime 
328. On 7 March 1994, the Council adopted Regulation (EC) 519/94*(amended by Regulation 
(EC) 1921/94*) and, on 23 December 1994, Regulation (EC) 3285/94*. abolishing all national 
quantitative restrictions in force in the Member States. This was accompanied by the introduc­
tion of a limited number of Community quotas to be applied to seven categories of product 
originating in the People's Republic of China only. 
The quotas will be managed at Community level by the Commission under a third regulation, 
Regulation (EC) No 520/94*. Henceforth, Community importers may use a standard import 
licence which will be valid throughout the Community. In addition, the integrated system for 
management of import and export quotas was further developed in 1994. 
B. Commercial defence instruments 
329. The Council adopted Regulations (EC) Nos 3283/94* (anti-dumping), 3284/94* (anti-
subsidies), 3285/94 (safeguards) and 3286/94* (trade barriers), which amended and stream­
lined the decision-making procedures for the Community's commercial defence instrumentsT 
Time-limits have been introduced for the imposition of duties on dumped or subsidized imports 
from third countries and for the introduction of safeguard measures. In addition, provision was 
made to make investigations more transparent. In a decision to be adopted no later than 1 April 
1995, the Council will specify when these new time limits will apply, depending on the neces­
sary budgetary resources being made available. 
C. Mutual Recognition Agreements 
330. 1994 saw the opening of negotiations with third countries on the mutual recognition of 
conformity assessment. Parties to Mutual Recognition Agreements will have the right to test 
and certify their products to the technical requirements of the other party prior to the product 
being exported. Each party will recognize the tests, certificates and marking carried out in the 
territory of the other party. Such agreements reduce trade costs by avoiding duplication of 
testing and certification of regulated products. Mutual recognition is both a trade-liberalizing 
initiative aimed at improving access of Community products to third country markets and a 
means of enabling the Union's trading partners to participate in the conformity assessment 
procedures designed to meet the objectives of the single market. 
Negotiations are currently under way with the United States, Canada, Australia, New Zealand 
and Switzerland, while discussions with additional trading partners could begin towards the end 
of 1995 or the beginning of 1996. 
THE SINGLE MARKET IN 1994 
94 PART TWO - DETAILED REVIEW 
D. Export Regime 
331. In December 1994 the Council established an integrated system of export controls on 
dual-use goods by adopting Council Regulation (EC) No 3381/94* and Council Decision 
94/942/CFSP* (the latter was based on Article J.3 of the Treaty on European Union). The 
system will apply from 1 July 1995. During the transitional period, the Member States will 
subject exports of dual-use goods to effective controls and work towards common standards. 
The system is also intended to ensure compliance with the international commitments of the 
Member States, and hence of the Union, especially on non-proliferation. It will represent a first 
step towards the establishment of a complete and consistent Community regime for controlling 
the export of dual-use goods. 
E. Export credit insurance 
332. In July 1994 the Commission presented a proposal for a Dirr-4ive on state-supported 
medium and long-term export credit insurance (136), which aims to prevent the distortion of 
competition between exporters that results from Member States offering different export credit 
facilities. The proposed Directive establishes common principles for guarantees and premiums 
and provides for a degree of transparency in cover policies. 
Public export credit insurance institutions provide short-term export credit insurance related to 
commercial «risk in countries which are considered to have a reliable economy and legal 
system. Such activity, usually referred to as "marketable risk", is also of interest to private 
insurance companies. The Commission is considering whether to propose to Member States, 
pursuant to Article 93(1)* of the EC Treaty, that they remove the particular advantages enjoyed 
by public export credit insurers which distort the market for private insurance companies. 
F. Transport 
333. The declaration adopted by the Second Pan-European Transport Conference held in 
Crete in March 1994 stresses the definition of concepts needed to prepare a coordinated pan-
European transport policy. This declaration points out, in particular, that such a policy must be 
organized on the principles of the market economy and of free competition, and that gradual 
liberalization of market access must be achieved in line with progress made on harmonizing 
competitive conditions. 
With regard to the development of pan-European transport infrastructures, the Conference 
adopted an indicative approach consisting in the identification of priority corridors in Central 
and Eastern Europe and of selection criteria for projects of common interest. 
G. Development of the Community legal framework for public procure­
ment following the conclusion of the GATT agreement 
334. In April 1994, in parallel with the conclusion of the Uruguay Round, the European Union 
signed, with 10 other countries, a new agreement with the objective of opening public procure­
ment to international competition. This agreement, which will also cover works and services, 
and will include contracts made by public authorities at regional and local level, will widen by 
about ten times the coverage of the agreement signed in 1979 and will permit the opening of 
(136) COM(94) 297 final of 13 July 1994 (OJ C 272. 30.9.1994). 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 95 
contracts estimated at 350 billion ecus each year. This agreement is to enter into force on 1 
January 1996. 
The new agreement requires limited amendments to Community directives on public procure­
ment in order to prevent discrimination that would penalize European firms and operators and 
to make the directives easier to apply following the agreement. 
These amendments are currently the subject of two proposals for European Parliament and 
Council Directives, one amending Directives 92/50/EEC*, 93/36/EEC* and 93/37/EEC*. the 
other amending Directive 93/38/EEC*. These proposals have been presented to the Advisory 
Committee for Public Procurement for an opinion. 
H. Development of the.Community legal framework for financial ser­
vices following the conclusion of the GATT agreement 
335. As a result of the successful conclusion of the Uruguay Round negotiations on 
15 December 1993, financial services became an integral part of the General Agreement on 
Trade in Services (GATS). The Uruguay Round package was signed by all participants at their 
meeting in Marrakesh on 15 April 1994. 
In December 1994 the Council adopted a package of legislation containing all the amendments 
to Community legislation needed to incorporate the results of the Uruguay Round into 
Community law (137). With regard to financial services, no amendments to current Community 
legislation seemed necessary. Even if the Community decides in the end to maintain its reci­
procity clauses, specific provisions such as Article 9(6) of the Second Banking Directive are 
designed to ensure that any Community measures are compatible with the obligations resulting 
from the GATS. 
The Commission is aware of the need to involve the European financial services industry to the 
greatest possible extent in the GATS negotiations on financial services. As well as more 
general meetings on the results of Uruguay Round negotiations, the Commission organized a 
round-table discussion with representatives from European banks and insurance companies 
with a view to obtaining direct feed-back from the industries immediately concerned by the 
GATS negotiations; they were consulted with regard to their major interests in order to focus 
the Community's negotiating objectives. 
I. External aspects of intellectual property 
336. The globalization of the world economy means that the objectives and strategies which 
the Commission intends to promote in the field of intellectual property also form part of interna­
tional relations, whether from the multilateral or bilateral point of view. The external aspect of 
the single market is particularly important in this field. 
At multilateral level, the Commission is continuing to take part in discussions held in the two 
intergovernmental committees of experts in the World Intellectual Property Organization with a 
view to adopting a protocol to the Beme Convention and a new instrument on the rights of 
performing artists and phonogram producers. 
It has also examined what measures should be taken in order to ensure the application of the 
Agreement on trade-related aspects of intellectual property rights (TRIPS), which is one of the 
results of the multilateral negotiations of the Umguay Round. This examination led to the adop­
tion by the Council of a decision concerning the extension of legal protection of topographies 
(137) OJL 363 of 23 December 1994. 
THE SINGLE MARKET IN 1994 
96 PART TWO - DETAILED REVIEW 
for semi-conductor products to nationals of the member countries of the World Trade Organi­
zation. 138 
337. The Commission also took part in the negotiations which led to the adoption on 11 May 
1994 by the Council of Europe of the European Convention relating to questions of copyright 
law and neighbouring rights in the framework of transfrontier broadcasting by satellite, the 
contents of which were based on the principles of Directive 93/83/EEC* of 27 September 1993 
on the same subject. 
338. Lastly, from a more specific point of view, it should be stressed that the Commission is 
negotiating with representatives of third countries to grant reciprocal legal protection to the 
semi-conductors sector, in accordance with the principles laid down in Directive 87/54/EEC* of 
16 December 1986. Thus, protection granted to persons from the United States has been 
extended until 1 July 1995 on thé basis of reciprocity (139). The Council has also adopted deci­
sions granting protection to persons from Canada (140) and to persons from certain territories 
having special links with the United Kingdom and the Netherlands (141). 
§ 3 - Customs Union 
A. Administrative cooperation between customs authorities in general 
339. Since 1 January 1993 action by customs authorities in the Member States has taken 
place almost exclusively at the external frontier writ large, i.e. as a concept rather than as a 
simple physical line separating third countries, and including, in particular, airports and internal 
customs clearance offices. Consequently, in a single market without internal borders, it 
becomes essential for the smooth operation of the market that the nature of checks carried out 
is similar, regardless of the Member State concerned. 
That is why the customs authorities of the Member States are involved, in partnership with the 
Commission, in setting up a number of measures as the forerunner of what customs will be 
in the year 2000. All these measures are intended to allow customs authorities to monitor and 
check the Community's external border in the interest of its businesses and citizens by consoli­
dating existing legislation through homogeneous practices. The objective of these customs 
authorities is therefore to fit into a context of making trade easier and guaranteeing the effec­
tiveness and the equivalence of checks. 
340. A number of measures were taken in 1994 and will be continued in 1995: 
• Adoption of new working methods 
The Commission departments have undertaken to disseminate the techniques of risk 
analysis, which enable physical or document checks to be effectively targeted, by 
preparing, with the support of the Member States, guidelines allowing the Member 
States to become aware of all the existing methods in the Union, with a view to apply­
ing those which are best suited to local conditions. 
In 1995 identical work will deal with audit techniques, the aim of which is to carry out 
detailed checks on the accounting and management of firms (including firms with 
establishments in a number of countries). 
(138) Council Decision of 27 June 1994 (OJ L 170, 5.7.1994. p. 34). 
(139) Op. cit. 
(140) Council Decision of 24 October 1994 (OJL 284, 1.11.1994, p. 61). 
(141) Council Decision of 19 December 1994 (OJ L 351, 31.12.1994, p. 12). 
THE SINGLE MARKET IN 1994 
PART TWO - DETAILED REVIEW 97 
By using these methods, the Member States' customs authorities will be able to 
achieve equivalent results regardless of where a consignment has to be processed, 
without affecting the necessary flow of commercial traffic. 
Assessment of the results 
With a view to improving knowledge of the working methods used by other customs 
administrations when carrying out checks and procedures at the external border, and 
in order to ensure equivalence of checks and equal treatment of economic operators, 
pilot schemes called "monitoring exercises" took place on an experimental basis in 
1994. These are visits to Member States carried out by joint teams made up of 
national officials from other Member States and of Commission officials. Monitoring 
exercises took place in ports, airports and free zones. One exercise is currently being 
carried out for all customs aspects affecting imports in the textile sector and further 
measures will be launched in 1995. 
Identification of objectives and allocation of resources (financing) 
In view of the large number of tasks facing customs authorities, they must be able to 
identify their objectives and allocate their resources in line with priorities. Appropriate 
coordination is being sought at this stage. 
Training 
As early as 1991, a special training programme for officials from the Member States 
(Matthaeus programme) was set up by Council Decision 91/341/EEC*. This 
programme consists in the exchange of officials of Member State customs authorities 
and the organization of seminars on specific aspects of customs legislation. 
In 1994, there were four hundred exchanges of officials from all Member States. In 
addition, fifteen training seminars were organized, in which more than five hundred 
officials from all the Member States took part. The topics covered included training 
methods for customs officials, working methods requiring development (audit, risk 
analysis), examination and investigation of specific fields (customs control of the 
CAP, free zones, tariff controls, classification of goods, etc.), and the joint develop­
ment of management techniques. Lastly, four specific programmes have been estab­
lished with the agreement of the Member States and will be included in the training 
programmes of national customs colleges. 
However, the customs authorities will increasingly need staff who can adapt continu­
ally to the changing nature of tasks and technologies, and to the acquisition of a 
'Community approach'. That is why measures are currently being examined with a 
view to strengthening the role of this training programme, in order to take account, in 
particular, of the Commission's communication to the Council and the European 
Parliament of 15 December 1993 (142). In the same way, steps should be taken to 
ensure that customs staff have the necessary expertise in accounting and computer 
science. 
Information technology 
The Commission and the Member States support the idea of an overall strategy to 
guide the future development of the computerization of customs procedures. 
This strategy is based on the exploitation of existing systems and the development of 
links between these systems. The aim is also to use firms' computer systems. 
(142) COM(93) 661 of 15 December 1993. 
THE SINGLE MARKET-IN 1994 
98 PART TWO - DETAILED REVIEW 
B. Mutual assistance on customs and agriculture 
341. A proposal for a regulation to recast Community mles on mutual assistance on customs 
and agricultural matters is currently being discussed in the Council (143). The change advo­
cated concerns, in particular, the establishment of a database on combating fraud (the customs 
information system - CIS), strengthening the role of Community coordination (information on 
the follow-up to notified cases of fraud, participation in investigations in the Member States, 
extension of assistance on demand), and the introduction of rules governing relations between 
administrative assistance and judicial procedures. 
The amended proposal for a Council and European Parliament Regulation (EC) on mutual 
assistance between the administrative authorities of the Member States and cooperation 
between the latter and the Commission to ensure the correct application of the law on customs 
or agricultural matters (144) was amended by the Commission under Article 189a(2)* of the EC 
Treaty by taking account of the amendments made by the European Parliament on first read­
ing (145) which it had accepted or in respect of which it had promised to amend the text of its 
proposal. The amended proposal was sent to the Council and to Parliament on 17 February 
1994 (146), and is currently before the Council. 
C. Customs penalties 
342. The Commission, in partnership with the Member States, is continuing work on the 
impact of customs penalties. The objective is to prevent distortions of competition that could 
affect economic operators and to protect the Community's financial interests. At present, the 
range, classification and degree of seriousness of customs infringements are being examined 
by the Commission departments on the basis of the provisions of the Community Customs 
Code (Regulation (EEC) No 2913/92*). 
(143) COM(92) 544 final of 21 December 1992 (OJ C 56, 26.2.1993) 
(144) COM(93) 350 final of 1 September 1993 (OJ C 262, 28.9.1993). 
(145) Document PE 177.122 (PV 48) of 15 December 1993, pp. 18 and 63 (OJ C 20, 24.1.1994, p. 90) 
(146) COM(94) 34 final of 17 February 1994 (OJ C 80. 17.3.1994). 
THE SINGLE MARKET IN 1994 
PART THREE 
Future priorities 
343. The analysis in this report shows that much still remains to be done to make the single 
market a reality for citizens and for business within the Union. The effectiveness of the single 
market in promoting European integration, the competitiveness of European industry and the 
prosperity of European citizens depends on the commitment of Member States both to enforc­
ing existing mles and to adopting the relatively limited number of legislative measures which 
are still required. 
The Commission, for its part, will continue to examine the problems concerning the operation 
of the single market with a view to ensuring that an adequate political and technical response is 
achieved. 
344. Among the key issues where progress will have to be made over the next few years are 
the following: 
• completing the single market for the citizen 
Individuals need to see the advantages of European integration in their daily lives, if 
they are to be interested in or supportive of the European endeavour. Achieving full 
freedom of movement of persons is therefore clearly a priority. The adoption of the 
directive on the right to vote in municipal elections is an important development in 
this context. But progress is needed too on ensuring speedy and effective redress, 
and on the social aspects of the single market. Another important aspect is further 
developing the rights of the citizen as a consumer in the single market. 
• promoting a more effective single market for business 
Businesses must be provided with the right conditions to enable them to exploit the 
opportunities of the single market. Many companies, in particular small and 
medium-sized businesses, are discouraged from trying to expand into new markets 
beyond their own national frontiers because of the scale of administrative difficulties 
and extra costs. The advantages of the single market are also limited by the various 
types of tax barrier. For VAT, the introduction of a definitive regime which would allow 
businesses to operate with greater simplicity and reduced burdens is a priority. At the 
same time, the possibilities of simplifying the Intrastat requirements will be examined. 
The lack of progress in the field of company taxation has already been referred to 
above. The Union will have to find a way forward on these issues as the disadvan­
tages of remaining tax barriers become increasingly obvious as firms seek to take full 
advantage of the single market. 
• liberalizing energy and telecommunications 
These are the areas where the Union is furthest from achieving the objective of a 
single market. While some progress is being made, a clear political commitment is 
needed to ensure that the benefits of competition are fully realized in these sectors. 
With regard to telecommunications, the recent Council decision on the liberalization 
of infrastructure on 1 January 1998 means that there is now agreement on the princi-
THE SINGLE MARKET IN 1994 
100 PART THREE-FUTURE PRIORITIES 
pie of liberalization of the whole sector. This provides a clear signal to industry, as 
well as to the Commission, which must now address the regulatory issues in order to 
achieve effective competition. Much more remains to be done, however, in the 
energy sector. 
• preparing for the information society 
Appropriate Community-level solutions must be found to the problems of ensuring a 
coherent regulatory framework for the provision of new cross-border services. It is 
important to avoid a proliferation of different rules at national level which will later 
have to be harmonized in order to permit these services to operate more economi­
cally; any necessary regulation should be developed at Community level. 
• Trans-European Networks 
The task of creating the environment within which these networks can be developed 
and of ensuring that there is a coherent approach to their development both within 
and across the sectors concerned will be a major priority for the growth of the internal 
market in the coming years. The success of this undertaking also depends to a 
significant degree on the liberalization of the relevant sectors. 
• assisting Central and Eastern Europe to adapt to single market reguirements 
A major pre-accession strategy designed to assist the countries of Central and East-
em Europe in adapting to the requirements of the single market will be an important 
step towards the goal of their subsequent integration into the Union. 
• ensuring eouivalent enforcement 
The Commission intends to pursue its activity with regard to the assessment of the 
comparability and equivalence of national sanctions in cases of infringement of 
Community law. 
345. In the course of 1995, the Commission will review the 1993 Strategic Programme in the 
light of this report and may come forward with a new definition of policy goals and a revised 
work programme for completion of the single market. 
THE SINGLE MARKET IN 1994 
>o A 
Annexes 
1 - Abbreviations and acronyms 
2 - Community provisions cited 
- EC Treaty 
- Official Journal - references 
3 - Judgements of the Court of Justice cited 
4 - Recent reports, studies and surveys on the single market 
5 - Organizations which provided contributions 
THE SINGLE MARKET IN 1994 

yuo 
Annex 1 - Abbreviations and acronyms 
ACA 
ACP 
Altener 
BAC 
BCCI 
Bc-Net 
BRE 
BSE accession compensatory amount 
African, Caribbean and Pacific countries party to the Lomé Convention 
Alternative Energy (programme for the development of alternative ehergies) 
B 
Banking Advisory Committee 
Bank of Credit and Commerce International 
Business Cooperation Network 
Business Cooperation Centre 
Bovine Spongiform Encephalopathy 
CAP 
CCBE 
CEN 
Cenelec 
CIS 
CLO 
CMT 
COM 
Coreper 
CPA 
CSF Common Agricultural Policy 
Conseil des barreaux de la Communauté Européenne (Council of the Bars 
and Law Societies of the European Community) 
Comité européen de normalisation (European Committee for Standardiza­
tion) 
Comité européen de normalisation électrotechnique (European Committee 
for Electrotechnical Standardization) 
customs information system 
Central Liaison Office 
CMT substances: carcinogenic, mutagenic and toxic for reproduction 
common organization of the market 
Comité des Représentants permanents des États rhembres de la Commu­
nauté (Permanent Representatives Committee) 
classification of products by activity (for statistical purposes) 
Community Support Framework 
DIN Deutsches Institut fur Normung (German Standards Institute) 
EAEC European Atomic Energy Community (Euratom) 
ECU European Currency Unit 
EDI Electronic data interchange 
EDICOM Electronic data interchange on commerce 
EEA European Economic Area 
EEC European Economic Community 
EFTA European Free Trade Association 
EIB European Investment Bank 
EIC European Information Centre 
EIF European Investment Fund 
EIS European information system 
EMS European Monetary System 
EOTC European Organization for Testing and Certification 
THE SINGLE MARKET IN 1994 
/° M 
ANNEX 1 
ERDF 
ESC 
ETSI 
Euratom 
EURES 
Eurostat European Regional Development Fund 
Economic and Social Committee 
European Telecommunications Standards Institute 
see EAEC 
European Employment Service 
Statistical Office of the European Communities 
FEB Fédérations des entreprises de Belgique (Belgian Business Fédérations) 
GATS 
GATT 
GPA 
GSM 
GTIAD 
Icomia 
IDA 
Interreg 
Intrastat 
ISDN 
ISO 
Matthaeus 
Matthaeus Tax 
MCA 
MFN General Agreement on Trade in Services 
General Agreement on Tariffs and Trade 
GATT agreement on public procurement 
Standards laid down by the ETSI for pan-European personal mobile 
communications 
Groupe de travail pour l'interprétation des directives bancaires (Working 
Group on the Interpretation of the Banking Directives) 
I 
International Council of Marine Industry Associations 
Interchange of Data between Administrations 
Community initiative concerning border areas 
System for collecting statistics on intra-Community trade 
integrated services digital network 
International Standards Organization 
M 
Programme for the exchange of customs officials 
Programme for the exchange of indirect taxation officials 
Monetary compensatory amount 
Most-favoured nation 
NATO 
OJEC 
ONP 
OOPEC N 
North Atlantic Treaty Organization 
O 
Official Journal of the European Communities 
Open network provision 
Office for Official Publications of the European Communities 
Pa room Paris Commission 
SAD 
SAVE 
SCENT 
SE 
SIMAP 
SMEs Single administrative document 
Special action programme for vigorous energy efficiency 
System Customs Enforcement Network 
Societas Europaea (European company) 
Information system on public procurement 
Small and medium-sized enterprises 
THE SINGLE MARKET IN 1994 
ANNEX 1 3 
TED Tenders Electronic Daily 
TEU Treaty on European Union 
TIR International carriage of goods by road 
U 
UCITS Undertakings for Collective Investment in Transferable Securities 
UNICE Union des Confédérations de l'Industrie et des Employeurs d'Europe (Union 
of Industrial and Employers' Confederations of Europe) 
VAT value added tax 
VIES VAT information exchange system 
W 
WIPO World Intellectual Property Organization 
THE SINGLE MARKET IN 1994 

Annex 2 - Community provisions cited 
A. EC Treaty a 47) 
PRINCIPLES 
Article 3 
For the purposes set out in Article 2, the activities of the Community shall include, as provided in this 
Treaty and in accordance with the timetable set out therein: 
(a) the elimination, as between Member States, of customs duties and quantitative restrictions on the 
import and export of goods, and of all other measures having equivalent effect; 
(b) a common commercial policy; 
(c) an internal market characterized by the abolition, as between Member States, of obstacles to the 
free movement of goods, persons, services and capital; 
(d) measures concerning the entry and movement of persons in the internal market as provided for in 
Article 100c; 
(e) a common policy in the sphere of agriculture and fisheries; 
(f) a common policy in the sphere of transport; 
(g) a system ensuring that competition in the internal market is not distorded; 
(h) the approximation of the laws of Member States to the extent required for the functioning of the 
common market; 
(i) a policy in the social sphere comprising a European Social Fund; 
(j) the strengthening of economic and social cohesion; 
(k) a policy in the sphere of the environment; 
(I) the strengthening of competitiveness of Community industry; 
(m) the promotion of research and technological development; 
(n) encouragement for the establishment and development of trans-European networks; 
(o) a contribution to the attainment of a high level of health protection; 
(p) a contribution to education and training of quality and to the flowering of the cultures of the 
Member States; 
(q) a policy in the sphere of development cooperation; 
(r) the association of the overseas countries and territories in order to increase trade and promote 
jointly economic and social development; 
(s) a contibution to the strengthening of consumer protection; 
(t) measures in the spheres of energy, civil protection and tourism. 
Article 3b 
The Community shall act within the limits of the powers conferred upon it by this Treaty and of the objec 
tives assigned to it therein. 
(147) As amended by the Treaty on European Union. 
THE SINGLE MARKET IN 1994 
/> î 
ANNEX 2 
In areas which do not fall within its exclusive competence, the Community shall take action, in accor 
dance with the principle of subsidiarity, only if and in so far as the objectives of the proposed action 
cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale or effects 
of the proposed action, be better achieved by the Community. 
Any action by the Community shall not go beyond what is necessary to achieve the objectives of this 
Treaty. 
Article 6 
Within the scope of application of this Treaty, and without prejudice to any special provisions contained 
therein, any discrimination on grounds of nationality shall be prohibited. 
The Council, acting in accordance with the .procedure referred to in Article 189c, may adopt rules 
designed to prohibit such discrimination'. 
Article 7a 
The Community shall adopt measures with the aim of progressively establishing the internal market over 
a period expiring on 31 December 1992, in accordance with the provisions of this Article and of Arti 
des 7b, 7c, 28, 57(2), 59, 70(1), 84, 99, 100a and 100b and without prejudice to the other provisions of 
this Treaty. 
The internal market shall comprise an area without internal frontiers in which the free movement of 
goods, persons, services and capital is ensured in accordance with the provisions of this Treaty. 
Article 7b 
The Commission shall report to the Council before 31 December 1988 and again before 31 December 
1990 on the progress made towards achieving the internal market within the time limit fixed in Article 7a. 
The Council, acting by a qualified majority on a proposal from the Commission, shall determine the 
guidelines and conditions necessary to ensure balanced progress in all sectors concerned. 
CITIZENSHIP OF THE UNION 
Article 8b 
1. Every citizen of the Union residing in a Member State of which he is not a national shall have the 
right to vote and to stand as a candidate at municipal elections in the Member States in which he resides, 
under the same conditions as nationals of that State. This right shall be exercised subject to detailed 
arrangements to be adopted before 31 December 1994 by the Council, acting unanimously on a proposal 
from the Commission and after consulting the European Parliament; these arrangements may provide for 
derogations where warranted by problems specific to a Member State. 
2. Without prejudice to Article 138(3) and to the provisions adopted for its implementation, every 
citizen of the Union residing in a Member State of which he is not a national shall have the right to vote 
and to stand as a candidate elections to the European Parliament in the Member States in which he 
resides, under the same conditions as nationals of that State. This right shall be exercised subject to 
detailed arrangements to be adopted before 31 December 1993 by the Council, acting unanimously on a 
proposal from the Commission and after consulting the European Parliament; these arrangements may 
provide for derogations where warranted by problems specific to a Member State. 
COMMUNITY POLICIES - FREE MOVEMENT OF GOODS -
ELIMINATION OF QUANTITATIVE RESTRICTIONS BETWEEN MEMBER STATES 
Article 30 
Quantitative restrictions on imports and all measures having equivalent effect shall, without prejudice to 
the following provisions, be prohibited between Member States. 
THE SINGLE MARKET IN 1994 
ANNEX 2 
Article 34 
1. Quantitative restrictions on exports, and all measures having equivalent effect, shall be prohibited 
between Member States. 
2. Member States shall, by the end of the first stage at the latest, abolish all quantitative restrictions 
on exports and any measures having equivalent effect which are in existence when this Treaty enters into 
force. 
Article 36 
The provisions of Articles 30 to 34 shall not preclude prohibitions or restrictions on imports, exports or 
goods in transit justified on grounds of public morality, public policy or public security; the protection of 
.heattrrand life of humans, animals or plants; the protection of national treasures possessing artistic," 
historic or archaeological value; or the protection of industrial and commercial property. Such prohibi 
tions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised 
restriction on trade between Member States. 
COMMUNITY POLICIES - FREE MOVEMENT OF PERSONS, 
SERVICES AND CAPITAL- RIGHT OF ESTABLISHMENT 
Article 52 
Within the framework of the provisions set out below, restrictions on the freedom of establishment of 
nationals of a Member State in the territory of another Member State shall be abolished by progressive 
stages in the course of the transitional period. Such progressive abolition shall also apply to restrictions 
on the setting-up of agencies, branches or subsidiaries by nationals of any Member State established in 
the territory of any Member State. 
Freedom of establishment shall include the right to take up and pursue activities as self-employed per 
sons and to set up and manage undertakings, in particular companies or firms within the meaning of the 
second paragraph of Article 58, under the conditions laid down for its own nationals by the law of the 
country where such establishment is effected, subject to the provisions of the Chapter relating to capital. 
Article 55 
The provisions of this Chapter shall not apply, so far as any given Member State is concerned, to activi 
ties which in that State are connected, even occasionally, with the exercise of official authority. 
The Council may, acting by a qualified majority on a proposal from the Commission, rule the provisions 
of this Chapter shall not apply to certain activities. 
Article 56 
1. The provisions of this Chapter and measures taken in pursuance thereof shall not prejudice the 
applicability of provisions laid down by law, regulation or administrative action providing for special 
treatment for foreign nationals on grounds of public policy, public security or public health. 
2. Before the end of the transitional period, the Council shall, acting unanimously on a proposal from 
the Commission and after consulting the European Parliament, issue directives for the coordination of 
the above-mentioned provisions laid down by law, regulation or administrative action. After the end of the 
second stage, however, the Council shall, acting in accordance with the procedure referred to in Article 
189b, issue directives for the coordination of such provisions as, in each Member State, are a matter for 
regulation or administrative action. 
COMMUNITY POLICIES - FREE MOVEMENT OF 
PERSONS, SERVICES AND CAPITAL- SERVICES 
Article 59 
Within the framework of the provisions set out below, restrictions on freedom to provide services within 
the Community shall be progressively abolished during the transitional period in respect of nationals of 
THE SINGLE MARKET IN 1994 Jo) 
4M 
ANNEX 2 
Member States who are established in a State of the Community other than that of the person for whom 
the services are intended. 
The Council may. acting by a qualified majority on a proposal from the Commission, extend the provi 
sions of the Chapter to nationals of a third country who provide services and who are established within 
the Community. 
COMMUNITY POLICIES - FREE MOVEMENT OF PERSONS, 
SERVICES AND CAPITAL- CAPITAL AND PAYMENTS 
Article 73 
1. .-If movements of capital lead to" disturbances in the functioning of the-capital market in any1 
Member State, the Commission shall, after consulting the Monetary Committee, authorize that State to 
take protective measures in the field of capital movements, the conditions and details of which the 
Commission shall determine. 
The Council may. acting by a qualified majority, revoke this authorization or amend the conditions or 
details thereof. 
2. A Member State which is in difficulties may, however, on grounds of <v* crecy or urgency, take the 
measures mentioned above, where this proves necessary, on its own initiative. The Commission and the 
other Member States shall be informed of such measures by the date of their entry into force at the 
latest. In this event the Commission may, after consulting the Monetary Committee, decide that the State 
concerned shall amend or abolish the measures. 
COMMUNITY POLICIES - COMMON RULES ON COMPETITION, TAXATION AND 
APPROXIMATION OF LAWS - RULES ON COMPETITION - RULES APPLYING TO UNDERTAKINGS 
Article 85 
1. The following shall be prohibited as incompatible with the common market: all agreements 
between undertakings, decisions by associations of undertakings and concerted practices which may 
affect trade between Member States and which have as their object or effect the prevention, restriction or 
distortion of competition within the common market, and in particular those which: 
(a) directly or indirectly fix purchase or selling prices or any other trading conditions; 
(b) limit or control production, markets, technical development, or investment; 
(c) share markets or sources of supply; 
(d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing 
them at a competitive disadvantage; 
(e) make the conclusion of contracts subject to acceptance by the other parties of supplementary 
obligations which, by their nature or according to commercial usage, have no connection with the 
subject of such contracts. 
2. Any agreements or decisions prohibited pursuant to this Article shall be automatically void. 
3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of: 
- any agreement or category of agreements between undertakings; 
- any decision or category of decisions by associations of undertakings; 
- any concerted practice or category of concerted practices; 
which contributes to improving the production or distribution of goods or to promoting technical or 
economic progress, while allowing consumers a fair share of the resulting benefit, and which does not: 
(a) impose on the undertakings concerned restrictions which are not indispensable to the attainment 
of these objectives; 
(b) afford such undertakings the possibility of eliminating competition in respect of a substantial part 
of the products in question. 
THE SINGLE MARKET IN 1994 
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ANNEX 2 
Article 86 
Any abuse by one or more undertakings of a dominant position within the common market or in a 
substantial part of it shall be prohibited as incompatible with the common market in so far as it may 
affect trade between Member States. 
Such abuse may, in particular, consist in: 
(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions; 
(b) limiting production, markets or technical development to the prejudice of consumers; 
(c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing 
them at a competitive disadvantage; 
(.d) . making the conclusion of contracts subject to acceptance by the other parties of supplementary 
obligations which, by their nature or according to commercial usage, have no connection with the 
subject of such contracts. 
COMMUNITY POLICIES - COMMON RULES ON COMPETITION, TAXATION AND 
APPROXIMATION OF LAWS - RULES ON COMPETITION - AIDS GRANTED BY STATES 
Article 93(1) 
The Commission shall, in cooperation with Member States, keep under constant review all systems of 
aid existing in those States. It shall propose to the latter any appropriate measures required by the 
progressive development or by the functioning of the common market. 
COMMUNITY POLICIES - COMMON RULES ON COMPETITION, TAXATION 
AND APPROXIMATION OF LAWS - APPROXIMATION OF LAWS 
Article 100 
The Council shall, acting unanimously on a proposal from the Commission and after consulting the 
European Parliament and the Economic and Social Committee, issue directives for the approximation of 
such laws, regulations or administrative provisions of the Member States as directly affect the establish 
ment or functioning of the common market. 
Article 100a 
1. By way of derogation from Article 100 and save where otherwise provided in this Treaty, the 
following provisions shall apply for the achievement of the objectives set out in Article 7a. The Council 
shall, acting in accordance with the procedure referred to in Article 189b and after consulting the 
Economic and Social Committee, adopt the measures for the approximation of the provisions laid down 
by law, regulation or administrative action in Member States which have as their object the establishment 
and functioning of the internal market 
2. Paragraph 1 shall not apply to fiscal provisions, to those relating to the free movement of persons 
nor to those relating to the rights and interests of employed persons. 
3. The Commission, in its proposals envisaged in paragraph 1 concerning health, safety, environ 
mental protection and consumer protection, will take as a base a high level of protection. 
4. If, after the adoption of a harmonization measure by the Council acting by a qualified majority, a 
Member State deems it necessary to apply national provisions on grounds of major needs referred to in 
Article 36, or relating to protection of the environment or the working environment, it shall notify the 
Commission of these provisions. 
The Commission shall confirm the provisions involved after having verified that they are not a means of 
arbitrary discrimination or a disguised restriction on trade between Member States. 
By way of derogation from the procedure laid down in Articles 169 and 170, the Commission or any 
Member State may bring the matter directly before the Court of Justice if it considers that another 
Member State is making improper use of the powers provided for in this Article. 
THE SINGLE MARKET IN 1994 
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ANNEX 2 
5. The harmonization measures referred to above shall, in appropriate cases, include a safeguard 
clause authorizing the Member States to take, for one or more of the non-economic reasons referred to in 
Article 36, provisional measures subject to a Community control procedure 
Article 100b 
1. During 1992, the Commission shall, together with each Member State, draw up an inventory of 
national laws, regulations and administrative provisions which fall under Article 100a and which have not 
been harmonized pursuant to that Article. 
The Council, acting in accordance with the provisions of Article 100a, may decide that the provisions in 
force in a Member State must be recognized as being equivalent to those applied by another Member 
State. 
2. The provisions of Article 10ûa(4) shall apply by analogy. 
3. The Commission shall draw up the inventory referred to in the first subparagraph of paragraph 1 
and shall submit appropriate proposals in good time to allow the Council to act before the end of 1992. 
Article 100c 
1. The Council, acting unanimously on a proposal from the Commission and after consulting the 
European Parliament, shall determine the third countries whose nationals must be in possession of a 
visa when crossing the external borders of the Member States. 
2. However, in the event of an emergency situation in a third country posing a threat of a sudden 
inflow of nationals from that country into the Community, the Council, acting by a qualified majority on a 
recommendation from the Commission, may introduce, for a period not exceeding six months, a visa 
requirement for nationals from the country in question. The visa requirements established under this 
paragraph may be extended in accordance with the procedure referred to in paragraph 1. 
3. From 1 January 1996, the Council shall adopt the decisions referred to in paragraph 1 by a quali 
fied majority. The Council shall, before that date, acting by a qualified majority on a proposal from the 
Commission and after consulting the European Parliament, adopt measures relating to a uniform format 
for visas. 
4. In the areas referred to in this Article, the Commission shall examine any request made by a 
Member State that it submit a proposal to the Council. 
5 This Article shall be without prejudice to the exercise of the responsibilities incumbent upon the 
Member States with regard to the maintenance of law and order and the safeguarding of internal security. 
6. This Article shall apply to other areas if so decided pursuant to Article K.9 of the provisions of the 
Treaty on European Union which relate to cooperation in the fields of justice and home affairs, subject to 
the voting conditions determined at the same time. 
7 The provisions of the conventions in force between the Member States governing areas covered 
by this Article shall remain in force until their content has been replaced by directives or measures 
adopted pursuant to this Article. 
COMMUNITY POLICIES - COMMON COMMERCIAL POLICY 
Article 115 
In order to ensure that the execution of measures of commercial policy taken in accordance with this 
Treaty by any Member State is not obstructed by deflection of trade, or where differences between such 
measures lead to economic difficulties in one or more Member States, the Commission shall recom 
mend the methods for the requisite cooperation between Member States. Failing this, the Commission 
may authorize Member States to take the necessary protective measures, the conditions and details of 
which it shall determine. 
In case of urgency, Member States shall request authorization to take the necessary measures them­
selves from the Commission, which shall take a decision as soon as possible; the Member States 
concerned shall then notify the measures to the other Member States The Commission may decide at 
any time that the Member States concerned shall amend or abolish the measures in question. 
THE SINGLE MARKET IN 1994 
^fj 
ANNEX 2 
In the selection of such measures, priority shall be given to those which cause the least distur bance of 
the functioning of the common market 
COMMUNITY POLICIES - CONSUMER PROTECTION 
Article 129a 
1. The Community shall contribute to the attainment of a high level of consumer protection through: 
(a) measures adopted pursuant to Article 100a in the context of the completion of the internal market; 
(b) specific action which supports and supplements the policy pursued by the Member States to 
protect the health, safety.and economic interests of consumers and to, provide adequate informa 
tion to consumers. 
2. The Council, acting in accordance with the procedure referred to in Article 189b and after consult 
ing the Economic and Social Committee, shall adopt the specific action referres to in paragraph 1(b). 
3. Action adopted pursuant to paragraph 2 shall not prevent any Member State from maintaining or 
introducing more stringent protective measures. Such measures must be compatible with the Treaty. The 
Commission shall be notified of them. 
COMMUNITY POLICIES - TRANS-EUROPEAN NETWORKS 
Article 129b 
1. To help achieve the objectives referred in Articles 7a and 130a and to enable citizens of the Union, 
economic operators and regional and local communities to derive full benefit from the setting-up of an 
area without internal frontiers, the Community shall contribute to the establishment and development of 
trans-European networks in the areas of transport, telecommunications and energy infrastructures. 
2. Within the framework of a system of open and competitive markets, action by the Community 
shall aim at promoting the interconnection and interoperability of national networks as well as access to 
such networks. It shall take account in perticular of the need to link island, landlocked and peripheral 
regions with the central regions of the Community. 
Article 129c 
1 In order to achieve the objectives referred to in Article 129b, the Community: 
shall establish a series of guidelines covering the objectives, priorities and broad lines of meas­
ures envisaged in the sphere of trans-European networks; these guidelines shall identify projects 
of common interest; 
shall implement any measures that may prove necessary to ensure the interoperability of the 
networks, in particular in the field of technical standardization; 
may support the financial eforts made by the Member States for projects of common interest 
financed by Member States, which are identified in the framework of the guidelines referred to in 
the first indent, particularly through feasibility studies, loan guarantees or interest-rate subsidies; 
the Community may also contribute, through the Cohesion Fund to be set up no later than 
31 December 1993 pursuant to Article 130d, to the financing of specific projects in Member States 
in the area of transport infrastructure. 
The Community's activities shall take into account the potential economic viability of the projects. 
2. Member States shall, in liaison with the Commission, coordinate among themselves the policies 
pursued at national level which may have a signifiant impact on the achievement of the objectives 
referred to in Article 129b. The Commission may, in close cooperation with the Member State, take any 
useful initiative to promote such coordination. 
3. The Community may decide to cooperate with third contries to promote projects of mutual interest 
and to ensure the interoperability of networks. 
THE SINGLE MARKET IN 1994 
/H' 
ANNEX 2 
Article 129d 
The guidelines referred to in Article 129c(1) shall be adopted by the Council, acting in accordance with 
the procedure referred to in Article 189b and after consulting the Economic and Social Committee and 
the Committee of the Regions. 
Guidelines and projects of common interest which relate to the territory of a Member State shall require 
the approval of the Member State concerned. 
The Council acting in accordance with the procedure referred to in Article 189c and after consulting the 
Economic and Social Committee and the Committee of the Regions, qhall adopt the other measures 
provided for in Article 129c(1). 
INSTITUTIONS OF THE COMMUNITY - PROVISING GOVERNING THE INSTITUTIONS -
THE INSTITUTIONS - THE COURT OF JUSTICE 
Article 169 
If the Commission considers that a Member State has failed to fulfil an obligation under this Treaty, it 
shall deliver a reasoned opinion on the matter after giving the State concerned the opportunity to submit 
its observations 
If the State concerned does not comply with the opinion within the period laid down by the Commission, 
the latter may bring the matter before the Court of Justice. 
Article 173 
The Court of Justice shall review the legality of acts adopted jointly by the European Parliament and the 
Council, of acts of the Council, of the Commission and of the ECB, other than recommendations and 
opinions, and of acts of the European Parliament intended to produce legal effects vis-à-vis third parties. 
It shall for this purpose have jurisdiction in actions brought by a Member State, the Council or the 
Commission on grounds of lack of competence, infringement of an essential procedural requirement, 
infringement of this Treaty or of any rule of law relating to its application, or misuse of powers. 
The Court shall have jurisdiction under the same conditions in actions brought by European Parliament 
and by the ECB for the purpose of protecting their prerogatives. 
Any natural or legal person may, under the same conditions, institute proceedings against a decision 
addressed to that person or against a decision which, although in the form of a regulation or a decision 
addressed to another person, is of direct and individual concern to the former. 
The proceedings provided for in this Article shall be instituted within two months of the publication of the 
measure, or of its notification to the plaintiff, or, in the absence thereof, of the day on which it came to 
the knowledge of the latter, as the case may be. 
Article 175 
Should the European Parliament, the Council or the Commission, in infringement of this Treaty, fail to 
act, the Member States and the other institutions of the Community may bring an action before the 
Court of Justice to have the infringement established. 
The action shall be admissible only if the institution concerned has first been called upon to act. If, within 
two months of being so called upon, the institution concerned has not defined its position, the action may 
be brought within a further period of two months. 
Any natural or legal person may, under the conditions laid down in the preceding paragraphs, complain 
to the Court of Justice than an institution of the Community has failed to address to that person any act 
other than a recommendation or an opinion. 
The Court of Justice shall have jurisdiction, under the same conditions, in actions or proceedings brought 
by the ECB in the areas falling within the latter's field of competence and in actions or proceed ings 
brought against the latter. 
THE SINGLE MARKET IN 1994 
ANNEX 2 
Article 186 
The Court of Justice may in any cases before it prescribe any necessary interim measures. 
INSTITUTIONS OF THE COMMUNITY - PROVISING GOVERNING THE INSTITUTIONS -
PROVISIONS COMMON TO SEVERAL INSTITUTIONS 
Article 189a 
1. Where, in pursuance of this Treaty, the Council acts on a proposal from the Commission, 
unanimity shall be required for an act constituting an amendment to that proposal, subject to Article 
189b(4)and(5). 
2. As long as the Concil has not acted, the Commission may alter its proposal at any time during the 
procedures leading to the adoption of a Community act. 
B. Official Journal - references <148) 
1964 
Council Directive 64/432/EEC of 26 June 1964 on animal health problems affecting intra-Community 
trade in bovine animals and swine (OJ L 121, 29/07/64) 
1970 
Council Directive 70/524/EEC of 23 November 1970 concerning additives in feedingstuffs (OJ L 270. 
14/12/70) 
1971 
Council Directive 71/305/EEC of 26 July 1971 concerning the co-ordination of procedures for the award 
of public works contracts (OJ L 185, 16/08/71 ) 
Council Decision 71/306/EEC of 26 July 1971 setting up an Advisory Committee for Public Works 
Contracts (OJ L 185, 16/08/71) 
1972 
Council Directive 72/166/EEC of 24 April 1972 on the approximation of the laws of Member States relat 
ing to insurance against civil liability in respect of the use of motor vehicles, and to the enforcement of 
the obligation to insure against such liability (OJ L 103, 02/05/72) 
1975 
Council Directive 75/324/EEC of 20 May 1975 on the approximation of the laws of the Member States 
relating to aerosol dispensers (OJ L 147, 09/06/75) 
Council Decision 75/365/EEC of 16 June 1975 setting up a Committee of Senior Officials on Public 
Health (OJ L 167, 30/06/75) 
1976 
Council Directive 76/768/EEC of 27 July 1976 on the approximation of the laws of the Member States 
relating to cosmetic products (OJ L 262, 27/09/76) 
Council Directive 76/769/EEC of 27 July 1976 on the approximation of the laws, regulations and admin­
istrative provisions of the Member States relating to restrictions on the marketing and use of certain 
dangerous substances and preparations (OJ L 262, 27/09/76) 
(148) To provide clarity, the references are cited in numerical order; regulations follow upon other types of measures. 
THE SINGLE MARKET IN 1994 JM 
10 ANNEX 2 
Commission Regulation (EEC) No 1624/76 of 2 July 1976 concerning special arrangements for the 
payment of aid for skimmed-milk powder denatured or processed into compound feedingstuffs in the 
territory of another Member State (OJ L 180. 06/07/76) 
1977 
Council Directive 77/62/EEC of 21 December 1976 coordinating procedures for the award of public 
supply contracts (OJ L 13, 15/01/77) 
Council Decision 77/63/EEC of 21 December 1976 amending Decision 71/306/EEC setting up an Advi­
sory Committee for Public Contracts (OJ L 13, 15/01/77) 
Council Directive 77/93/EEC of 21 December 1976 on protective measures against the introduction into 
the Member States of harmful organisms of plants or plant products (OJ L 26, 31/01/77) 
Council Directive 77/504/EEC of 25 July 1977 oh pure-bred breeding; animals of the bovine species'(OJ' 
L 206, 12/08/77) 
Council Directive 77/799/EEC of 19 December 1977 concerning mutual assistance by the competent 
authorities of the Member States in the field of direct taxation (OJ L 336, 27/12/77) 
1978 
Fourth Council Directive 78/660/EEC of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the 
annual accounts of certain types of companies (OJ L 222, 14/08/78) 
Council Directive 78/686/EEC of 25 July 1978 concerning the mutual recognition of diplomas, certifi­
cates and other evidence of the formal qualifications of practitioners of dentistry, including measures to 
facilitate the effective exercice of the right of establishment and freedom to provide services (OJ L 233, 
24/08/78) 
Council Directive 78/687/EEC of 25 July 1978 concerning the coordination od provisions laid down by 
lax. regulation or administrative action in respect of the activities of dental practitioners (OJ L 233, 
24/08/78) 
1979 
Council Directive 79/112/EEC of 18 December 1978 on the approximation of the laws of the Member 
States relating to the labelling, presentation and advertising of foodstuffs for sale to the ultimate 
consumer (OJ L 33, 08/02/79) 
Council Directive 79/196/EEC of 6 February 1979 on the approximation of the laws of the Member 
States concerning electrical equipment for use in potentially explosive atmospheres employing certain 
types of protection (OJ L 43, 20/02/79 
Council Directive 79/279/EEC of 5 March 1979 coordinating the conditions for the admission of securi­
ties to official stock exchange listing (OJ L 66, 16/03/79) 
Commission Regulation (EEC) No 1725/79 of 26 July 1979 on the rules for granting aid to skimmed 
milk processed into compound feedingstuffs and skimmed-milk powder intended for feed for calves (OJ L 
199, 07/08/79) 
Commission Regulation (EEC) No 1726/79 of 26 July 1979 amending Regulations (EEC) No 1624/76, 
(EEC) No 368/77, (EEC) No 443/77 and (EEC) No 1844/77 on aid measures and special sales opera 
tions for skimmed-milk powder for use in feed (OJ L 199, 07/08/79) 
1980 
Council Directive 80/390/EEC of 17 March 1980 coordinating the requirements for the drawing up, 
scrutiny and distribution of the listing particulars to be published for the admission of securities to official 
stock exchange listing (OJ L 100, 17/04/80) 
Council Directive 80/777/EEC of 15 July 1980 on the approximation of the laws of the Member States 
relating to the exploitation and marketing of natural mineral waters (OJ L 229, 30/08/80) 
1983 
Council Directive of 83/189/EEC 28 March 1983 laying down a procedure for the provision of informa 
tion in the field of technical standards and regulations (OJ L 109, 26/04/83) 
Seventh Council Directive 83/349/EEC of 13 June 1983 based on the Article 54 (3) (g) of the Treaty on 
consolidated accounts (OJ L 193, 18/07/83) 
THE SINGLE MARKET IN 1994 
ANNEX 2 „ ^ 
j1984 j 
Second Council Directive 84/5/EEC of 30 December 1983 on the approximation of the laws of the 
Member States relating to insurance against civil liability in respect of the use of motor vehicles (OJ L 8, 
11/01/84) 
Commission Regulation (EEC) No 2349/84 of 23 July 1984 on the application of Article 85 (3) of the 
Treaty to certain categories of patent licensing agreements (OJ L 219, 16/08/84) 
1985 
Council Directive 85/611/EEC of 20 December 1985 on the coordination of laws, regulations and 
administrative provisions relating to undertakings for collective investment in transferable securities 
(UCITS) (OJ L 375, 31/12/85) 
Commission Regulation (EEC) No 123/85 of 12 December'1984 on the application of Article 85 (3) of 
the Treaty to certain categories of motor vehicle distribution and servicing agreements (OJ L 15, 
18/01/85) 
1986 
Council Regulation (EEC) No 3842/86 of 1 December 1986 laying down measures to prohibit the 
release for free circulation of counterfeit goods (OJ L 357. 18/12/86) 
1987 
Council Directive 87/54/EEC of 16 December 1986 on the legal protection of topographies of semicon 
ductor products (OJ L 24, 27/01/87) 
Commission Decision 87/305/EEC of 26 May 1987 setting up an advisory committee on the opening-
up of public procurement (OJ L 152, 12/06/87) 
Council Directive 87/328/EEC of 18 June 1987 on the acceptance for breeding purposes of pure-bred 
breeding animals of the bovine species (OJ L 167. 26/06/87) 
Council Directive 87/357/EEC of 25 June 1987 on the approximation of the laws of the Member States 
concerning products which, appearing to be other than they are, endanger the health or safety of 
consumers (OJ L 192. 11/07/87) 
Council Directive 87/372/EEC of 25 June 1987 on the frequency bands to be reserved for the coordi­
nated introduction of public pan-European cellular digital land-based mobile communications in the 
Community (OJ L 196. 17/07/87) 
Commission Decision 87/560/EEC of 17 July 1987 amending Decision 87/305/EEC of 26 May 1987 
setting up an advisory committee on the opening-up of public procurement (OJ L 338, 28/11/87) 
1988 
Council Directive 88/295/EEC of 22 March 1988 amending Directive 77/62/EEC relating to the coordi­
nation of procedures on the award of public supply contracts and repealing certain provisions of Directive 
80/767/EEC (OJ L 127, 20/05/88) 
Council Directive 88/344/EEC of 13 June 1988 on the approximation of the laws of the Member States 
on extraction solvents used in the production of foodstuffs and food ingredients (OJ L 157, 24/06/88) 
Second Council Directive 88/357/EEC of 22 June 1988 on the coordination of laws, regulations and 
administrative provisions relating to direct insurance other than life assurance and laying down provi 
sions to facilitate the effective exercise of freedom to provide services and amending Directive 
73/239/EEC (OJ L 172, 04/07/88) 
Council Directive 88/378/EEC of 3 May 1988 on the approximation of the laws of the Member States 
concerning the safety of toys (OJ L 187, 16/07/88) 
Commission Recommendation 88/590/EEC of 17 November 1988 concerning payment systems, and 
in particular the relationship between cardholder and card issuer (OJ L 317, 24/11/88) 
Council Directive 88/661/EEC of 19 December 1988 on the zootechnical standards applicable to 
breeding animals of the porcine species (OJ L 382, 31/12/88) 
Council Regulation (EEC) No 2052/88 of 24 June 1988 on the tasks of the Structural Funds and their 
effectiveness and on coordination of their activities between themselves and with the operations of the 
European Investment Bank and the other existing financial instruments (OJ L 185. 15/07/88) 
THE SINGLE MARKET IN 1994 
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12 ANNEX 2 
1989 
Council Directive 89/48/EEC of 21 December 1988 on a general system for the recognition of higher-
education diplomas awarded on completion of professional education and training of at least three years' 
duration {OJ L 19, 24/01/89) 
First Council Directive 89/104/EEC of 21 December 1988 to approximate the laws of the Member 
States relating to trade marks (OJ L 40, 11/02/89) 
Council Directive 89/106/EEC of 21 December 1988 on the approximation of laws, regulations and 
administrative provisions of the Member States relating to construction products (OJ L 40, 11/02/89) 
Council Directive 89/107/EEC of 21 December 1988 on the approximation of the laws of the Member 
States concerning food additives authorized for use in foodstuffs intended for human consumption (OJ L 
40,11/02/89) 
Council Directive 89/299/EEC of 17 April 1989 on the own funds of credit institutions (OJ L 124, 
05/05/89) 
Council Directive 89/361/EEC of 30 May 1989 concerning pure-bred breeding sheep and goats (OJ L 
153, 06/06/89) 
Council Directive 89/397/EEC of 14 June 1989 on the official control of foodstuffs (OJ L 186, 30/06/89) 
Council Directive 89/398/EEC of 3 May 1989 on the approximation of the laws of the Member States 
relating to foodstuffs intended for particular nutritional uses (OJ L 186, 30/06/89) 
Council Directive 89/552/EEC of 3 October 1989 on the coordination of certain provisions laid down by 
law, regulation or administrative action in Member States concerning the pursuit of television broadcast­
ing activities (OJ L 298, 17/10/89) 
Second Council Directive 89/646/EEC of 15 December 1989 on the coordination of laws, regulations 
and administrative provisions relating to the taking up and pursuit of the business of credit institutions 
and amending Directive 77/780/EEC (OJ L 386, 30/12/89) 
Council Directive 89/647/EEC of 18 December 1989 on a solvency ratio for credit institutions (OJ L 
386, 30/12/89) 
Commission Regulation (EEC) No 556/89 of 30 November 1988 on the application of Article 85 (3) of 
the Treaty to certain categories of know-how licensing agreements (OJ L 61, 04/03/89) 
Council Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between 
undertakings (OJ L 395, 30/12/89) 
1990 
Council Directive 90/118/EEC of 5 March 1990 on the acceptance of pure-bred breeding pigs for 
breeding (OJ L 71. 17/03/90) 
Council Directive 90/119/EEC of 5 March 1990 on the acceptance of hybrid breeding pigs for breeding 
(OJL 71, 17/03/90) 
Council Decision 90/218/EEC of 25 April 1990 concerning the administration of Bovine Somatotrophin 
(BST)(OJL 116, 08/05/90) 
Council Directive 90/364/EEC of 28 June 1990 on the right of residence (OJ L 180, 13/07/90) 
Council Directive 90/365/EEC of 28 June 1990 on the right of residence for employees and self-
employed persons who have ceased their occupational activity (OJ L 180, 13/07/90) 
Council Directive 90/377/EEC of 29 June 1990 concerning a Community procedure to improve the 
transparency of gas and electricity prices charged to industrial end-users (OJ L 185. 17/07/90) 
Council Directive 90/387/EEC of 28 June 1990 on the establishment of the internal market for tele­
communications services through the implementation of open network provision (OJ L 192. 24/07/90) 
Commission Directive 90/388/EEC of 28 June 1990 on competition in the markets for telecommunica­
tions services (OJ L 192, 24/07/90) 
Council Directive 90/396/EEC of 29 June 1990 on the approximation of the laws of the Member States 
relating to appliances burning gaseous fuels (OJ L 196, 26/07/90) 
Council Decision 90/424/EEC of 26 June 1990 on expenditure in the veterinary fiels (OJ L 224, 
18/08/90) 
Council Directive 90/531/EEC of 17 September 1990 on the procurment procedures of entities operat­
ing in the water, energy, transport and telecommunications sectors (OJ L 297, 29/10/90) 
Council Directive 90/544/EEC of 9 October 1990 on the frequency bands designated for the coordinated 
introduction of Pan-European land-based public radio paging in the Community (OJ L 310, 09/11/90) 
THE SINGLE MARKET IN 1994 
^ 
ANNEX 2 13 
Council Directive 90/619/EEC of 8 November 1990 on the coordination of laws, regulations and admin 
istrative provisions relating to direct life assurance, laying down provisions to facilitate the effective exer 
cise of freedom to provide services and amending Directive 79/267/EEC (OJ L 330, 29/11/90) 
1991 
Council Directive 91/173/EEC of 21 March 1991 amending for the ninth time Directive 76/769/EEC on 
the approximation of the laws, regulations and administrative provisions of the Member States relating to 
restrictions on the marketing and use of certain dangerous substances and preparations (L 85, 05/04/91) 
Council Directive 91/250/EEC of 14 May 1991 on the legal protection of computer programs (OJ L 122, 
17/05/91) 
Council Directive 91/263/EEC of 29 April 1991 on the approximation of the laws of the Member States 
concerning telecomrnunications terminal equipment, including the mutual recognition of their conformity 
(OJL 128, 23/05/91) 
Council Directive 91/287/EEC of 3 June 1991 on the frequency band to be designated for the coordi­
nated introduction of digital European cordless telecommunications (DECT) into the Community (OJ L 
144,08/06/91) 
Council Directive 91/296/EEC of 31 May 1991 on the transit of natural gas through grids (OJ L 147, 
12/06/91) 
Council Directive 91/308/EEC of 10 June 1991 on prevention of the use of the financial system for the 
purpose of money laundering (OJ L 166, 28/06/91 ) 
Council Decision 91/341/EEC of 20 June 1991 on the adoption of a programme of Community action 
on the subject of the vocational training of customs officials (Matthaeus programme) ((OJ L 187, 
13/07/91) 
Council Decision 91/396/EEC of 29 July 1991 on the introduction of a single European emergency call 
number (OJL 117, 06/08/91 ) 
Council Decision 91/414/EEC of 15 July 1991 concerning the placing of plant protection products on the 
market (OJ L 230. 19/08/91) 
Council Directive 91/440/EEC of 29 July 1991 on the development of the Community' s railways (OJ L 
237.24/08/91) 
Council Regulation (EEC) No 2092/91 of 24 June 1991 on organic production of agricultural products 
and indications referring thereto on agricultural products and foodstuffs (OJ L 198, 22/07/91) 
1992 
Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to 
excise duty and on the holding, movement and monitoring of such products (OJ L 76, 23/03/92) 
Council Directive 92/13/EEC of 25 February 1992 coordinating the laws, regulations and administrative 
provisions relating to the application of Community rules on the procurement procedures of entities 
operating in the water, energy, transport and telecommunications sectors (OJ L 76, 23/03/92) 
Council Directive 92/30/EEC of 6 April 1992 on the supervision of credit institutions on a consolidated 
basis (OJL 110. 28/04/92) 
Council Directive 92/41/EEC of 15 May 1992 amending Directive 89/622/EEC on the approximation of 
the laws, regulations and administrative provisions of the Member States concerning the labelling of 
tobacco products (OJ L 158, 11/06/92) 
Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water boilers fired 
with liquid or gaseous fuels (OJ L 167, 22/06/92) 
Council Directive 92/44/EEC of 5 June 1992 on the application of open network provision to leased 
lines (OJ L 165, 19/06/92) 
Council Directive 92/49/EEC of 18 June 1992 on the coordination of laws, regulations and administra 
tive provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC 
and 88/357/EEC (third non-life insurance Directive) (OJ L 228. 11/08/92) 
Council Directive 92/50/EEC of 18 June 1992 relating to the coordination of procedures for the award of 
public service contracts (OJ L 209. 24/07/92) 
Council Directive 92/51/EEC of 18 June 1992 on a second general system for the recognition of 
professional education and training to supplement Directive 89/48/EEC (OJ L 209, 24/07/92) 
THE SINGLE MARKET IN 1994 
/ IP 
14 ANNEX 2 
Council Directive 92/53/EEC of 18 June 1992 amending Directive 70/156/EEC on the approximation of 
the laws of the Member States relating to the type-approval of motor vehicles and their trailers (OJ L 225 
10/08/92) 
Council Directive 92/59/EEC of 29 June 1992 on general product safety (OJ L 228, 11/08/92) 
Council Directive 92/75/EEC of 22 September 1992 on the indication by labelling and standard product 
information of the consumption of energy and other resources by household appliances (OJ L 297, 
13/10/92) 
Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage 
improvements in the safety and health at work of pregnant workers and workers who have recently given 
birth or are breastfeeding (tenth individual Directive within the meaning of Article 16 (1) of Directive 
89/391/EEC) (OJ L 348, 28/11/92) 
Council Directive 92/96/EEC of 10 November 1992 on the coordination of laws, regulations and admin 
istrative provisions, relating to direct life assurance,. and; amending Directives 79/267/EEC and 
90/619/EEC (third life assurance Directive) (OJ L 360, 09/12/92) 
Council Directive 92/100/EEC of 19 November 1992 on rental right and lending right and on certain 
rights related to copyright in the field of intellectual property (OJ L 346, 27/11/92 
Council Directive 92/109/EEC of 14 December 1992 on the manufacture and the placing on the market 
of certain substances used in the illicit manufacture of narcotic drugs and psychotropic substances (OJ L 
370, 19/12/92) 
Council Directive 92/110/EEC of 14 December 1992 amending Directive 88/657/EEC laying down the 
requirements for the production of, and trade in, minced meat, meat in pieces of less than 100 grams 
and meat preparations (OJ L 394, 31/12/92) 
Council Directive 92/120/EEC of 17 December 1992 on the conditions for granting temporary and lim­
ited derogations from specific Community health rules on the production and marketing of certain prod­
ucts of animal origin (OJ L 62, 15/03/93) 
Council Directive 92/121/EEC of 21 December 1992 on the monitoring and control of large exposures of 
credit institutions (OJ L 29, 05/02/93) 
Council Resolution 92/1218/EEC of 7 December 1992 on making the single market work (OJ C 334, 
18/12/92) 
Council Decision 92/264/EEC of 11 May 1992 on the introduction of a standard international telephone 
access code in the Community (OJ L 137, 20/05/92) 
Council Regulation (EEC ) No 218/92 of 27 January 1992 on administrative cooperation in the field of 
indirect taxation ( VAT ) (OJ L 24, 01/02/92) 
Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and 
designations of origin for agricultural products and foodstuffs (OJ L 208, 24/07/92) 
Council Regulation (EEC) No 2082/92 of 14 July 1992 on certificates of specific character for agricul­
tural products and foodstuffs (OJ L 208, 24/07/92) 
Council Regulation (EEC) No 2434/92 of 27 July 1992 amending Part II of Regulation (EEC) No 
1612/68 on freedom of movement for workers within the Community (OJ L 245, 26/08/92) 
Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code 
(OJL 302, 19/10/92) 
1993 
Council Directive 93/6/EEC of 15 March 1993 on the capital adequacy of investments firms and credit 
institutions (OJ L 141, 11/06/93) 
Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21/04/93) 
Council Directive 93/15/EEC of 5 April 1993 on the harmonization of the provisions relating to the plac­
ing on the market and supervision of explosives for civil uses (OJ L 121, 15/05/93) 
Council Directive 93/16/EEC of 5 April 1993 to facilitate the free, movement of doctors and the mutual 
recognition of their diplomas, certificates and other evidence of formal qualifications (OJ L 165, 07/07/93) 
Council Directive 93/22/EEC of 10 May 1993 on investment services in the securities field (OJ L 141, 
11/06/93) 
Council Directive 93/35/EEC of 14 June 1993 amending for the sixth time Directive 76/768/EEC on the 
approximation of the laws of the Member States relating to cosmetic products (OJ L 151, 23/06/93) 
Council Directive 93/36/EEC of 14 June 1993 coordinating procedures for the award of public supply 
contracts (OJ L 199. 09/08/93) 
THE SINGLE MARKET IN 1994 
^Al 
ANNEX 2 15 
Council Directive 93/37/EEC of 14 June 1993 concerning the coordination of procedures for the award 
of public works contracts (OJ L 199. 09/08/93) 
Council Directive 93/38/EEC of 14 June 1993 coordinating the procurement procedures of entities 
operating in the water, energy, transport and telecommunications sectors (OJ L 199, 09/08/93) 
Council Directive 93/43/EEC of 14 June 1993 on the hygiene of foodstuffs (OJ L 175. 19/07/93) 
Commission Directive 93/46/EEC of 22 June 1993 replacing and modifying the Annexes to Council 
Directive 92/109/EEC on the manufacture and placing on the market of certain substances used in the 
illicit manufacture of narcotic drugs and psychotropic substances (OJ L 159. 01/07/93) 
Sixteenth Commission Directive 93/47/EEC of 22 June 1993 adapting to technical progress Annexes 
II, III, V, VI and VII of Council Directive 76/768/EEC on the approximation of the laws of the Member 
States relating to cosmetic products (OJ L 203, 13/08/93) 
Council Directive 93/68/EEC of 22 July 1993 amending Directives 87/404/EEC (simple pressure 
vessels). 88/373/EEC (safety of toys), 89/.106/EEC (construction products). 89/336/EEC (eleotromagnetic 
compatibility), 89/392/EEC (machinery). 89/686/EEC (personal protective equipment), 90/384/EEC (non-
automatic weighing instruments), 90/385/EEC (active implantable medicinal devices), 90/396/EEC 
(appliances burning gaseous fuels), 91/263/EEC (telecommunications terminal equipment), 92/42/EEC 
(new hot-water boilers fired with liquid or gaseous fuels) and 73/23/EEC (electrical equipment designed 
for use within certain voltage limits) (OJ L 220, 31/08/93) 
Council Directive 93/83/EEC of 27 September 1993 on the coordination of certain rules concerning 
copyright and rights related to copyright applicable to satellite broadcasting and cable retransmission (OJ 
L 248, 06/10/93) 
Council Directive 93/96/EEC of 29 October 1993 on the right of residence for students (OJ L 317, 
18/12/93) 
Council Directive 93/97/EEC of 29 October 1993 supplementing Directive 91/263/EEC in respect of 
satellite earth station equipment (OJ L 290, 24/11/93) 
Council Directive 93/104/EC of 23 November 1993 concerning certain aspects of the organization of 
working time (OJ L 307, 13/12/93) 
Council Directive 93/109/EC of 6 December 1994 laying down detailed arrangements for the exercise of 
the right to vote and stand as a candidate in elections to the European Parliament for citizens of the 
Union residing in a Member State of which they are not nationals (OJ L 329, 30/12/93) 
Council Regulation (EEC) No 315/93 of 8 February 1993 laying down Community procedures for 
contaminants in food (OJ L 37, 13/02/93) 
Council Regulation (EEC) No 2081/93 of 20 July 1993 amending Regulation (EEC) No 2052/88 on the 
tasks of the Structural Funds and their effectiveness and on coordination of their activities between 
themselves and with the operations of the European Investment Bank and the other existing financial 
instruments (OJ L 193, 31/07/93) 
Council Regulation (EEC) No 2082/93 of 20 July 1993 amending Regulation (EEC) No 4253/88 laying 
down provisions for implementing Regulation (EEC) No 2052/88 as regards coordination of the activities 
of the different Structural Funds between themselves and with the operations of the European Investment 
Bank and the other existing financial instruments (OJ L 193, 31/07/93) 
1994 
Commission Directive 94/1/EC of 6 January 1994 adapting some technicalities of Council Directive 
75/324/EEC on the approximation of the laws of the relating Member States to aerosol dispensers (OJ L 
23, 28/01/94) 
Commission Directive 94/2/EC of 21 January 1994 implementing Council Directive 92/75/EEC with 
regard to energy labelling of household electric refrigerators, freezers and their combinations (OJ L 45, 
17/02/94) 
Commission Directive 94/3/EC of 21 January 1994 establishing a procedure for the notification of inter 
ception of a consignment or a harmful organism from third countries and presenting an imminent phyto 
sanitary danger (OJ L 32, 05/02/94) 
Council Directive 94/5/EC of 14 February 1994 supplementing the common system of value added tax 
and amending Directive 77/388/EEC -Special arrangements applicable to second-hand goods, works of 
art, collectors' items and antiques (OJ L 60, 03/03/94) 
Council Directive 94/8/EC of 21 March 1994 amending Directive 78/660/EEC as regards the revision of 
amounts expressed in ecus (OJ L 82, 25/03/94) 
THE SINGLE MARKET IN 1994 
y it 
16 ANNEX 2 
Directive 94/9/EC of the European Parliament and of the Council of 23 March 1994 on the approxi 
mation of the laws of the Member States concerning equipment and protective systems intended for use 
in potentially explosive atmospheres (OJ L 100. 19/04/94) 
Directive 94/10/EC of the European Parliament and of the Council of 23 March 1994 materially 
amending for the second time Directive 83/189/EEC laying down a procedure for the provision of infor 
mation in the field of technical standards and regulations (OJ L 100. 19/04/94) 
Directive 94/11/EC of the European Parliament and of the Council of 23 March 1994 on the approxi 
mation of the laws, regulations and administrative provisions of the Member States relating to labelling of 
the materials used in the main components of footwear for sale to the consumer (OJ L 100, 19/04/94) 
Commission Decision 94/11/EC of 21 December 1993 on a common technical regulation for the 
general attachment requirements for public pan-European cellular digital land-based mobile communica­
tions (OJ L 8, 12/01/94.) 
Commission Decision 94/12/EC of 21 December 1993 on a common technical regulation for the 
telephony application requirements for public pan-European cellular digital land-based mobile communi­
cations (OJ L 8. 12/01/94) 
Council Directive 94/13/EC of 29 March 1994 amending Directive 77/93/EEC on protective measures 
against the introduction into the Community of organisms harmful to plants or plant products and against 
their spread within the Community (OJ L 92, 09/04/94) 
Directive 94/18/EC of the European Parliament and of the Council of 30 May 1994 amending Direc­
tive 80/390/EEC coordinating the requirements for the drawing up, scrutiny and distribution of the listing 
particulars to be published for the admission of securities to official stock-exchange listing, with regard to 
the obligation to publish listing particulars (OJ L 135, 31/05/94) 
Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guar 
antee schemes (OJ L 135, 31/05/94) 
European Parliament and Council Directive 94/22/EC of 30 May 1994 on the conditions for granting 
and using authorizations for the prospection, exploration and production of hydrocarbons (OJ L 164, 
30/06/94) 
Directive 94/25/EC of the European Parliament and of the Council of 16 June 1994 on the approxi 
mation of the laws, regulations and administrative provisions of the Member States relating to recréa 
tional craft (OJ L 164, 30/06/94) 
Commission Directive 94/26/EC of 15 June 1994 adapting to technical progress Council Directive 
79/196/EEC on the approximation of the laws of the Member States concerning electrical equipment for 
use in potentially explosive atmospheres employing certain types of protection (OJ L 157, 24/06/94) 
Council Directive 94/28/EC of 23 June 1994 laying down the principles relating to the zootechnical and 
genealogical conditions applicable to imports from third countries of animals, their semen, ova and 
embryos, and amending Directive 77/504/EEC on pure-bred breeding animals of the bovine species (OJ 
L178. 12/07/94) 
Council Directive 94/29/EC of 23 June 1994 amending the Annexes to Directives 86/362/EEC and 
86/363/EEC on the fixing of maximum levels for pesticide residues in and on cereals and foodstuffs of 
animal origin respectively (OJ L 189, 23/07/94) 
Council Directive 94/30/EC of 23 June 1994 amending Annex II to Directive 90/642/EEC relating to the 
fixing of maximum levels for pesticide residues in and on certain products of plant origin, including fruit 
and vegetables and providing for the establishment of a list of maximum levels (OJ L 189, 23/07/94). 
Seventeenth Commission Directive 94/32/EC of 29 June 1994 adapting to technical progress Annexes 
II, III, V, VI and VII of Council Directive 76/768/EEC on the approximation of the laws of the Member 
States relating to cosmetic products (OJ L 181, 15/07/94) 
Council Directive 94/33/EC of 22 June 1994 on the protection of young people at work (OJ L 216, 
20/08/94) 
European Parliament and Council Directive 94/34/EC of 30 June 1994 amending Directive 
89/107/EEC on the approximation of the laws of Member States concerning food additives authorized for 
use in foodstuffs intended for human consumption (OJ L 237, 10/09/94) 
Directive 94/35/EC of the European Parliament and of the Council of 30 June 1994 on sweeteners 
for use in foodstuffs (OJ L 237, 10/09/94) 
Directive 94/36/EC of the European Parliament and of the Council of 30 June 1994 on colours for 
use in foodstuffs (OJ L 237, 10/09/94) 
Commission Directive 94/38/EC of 26 July 1994 amending Annexes C and D to Council Directive 
92/51/EEC on a second general system for the recognition of professional education and training to 
supplement Directive 89/48/EEC (OJ L 217, 23/08/94) 
THE SINGLE MARKET IN 1994 
ANNEX 2 17 
Commission Directive 94/39/EC of 25 July 1994 establishing a list of intended uses of animal feeding 
stuffs for particular nutritional purposes (OJ L 207, 10/08/94) 
Commission Directive 94/40/EC of 22 July 1994 amending Council Directive 87/153/EEC fixing guide 
lines for the assessment of additives in animal nutrition (OJ L 208, 11/08/94) 
Council Directive 94/43/EC of 27 July 1994 establishing Annex VI to Directive 91/414/EEC concerning 
the placing of plant protection products on the market (OJ L 227, 01/09/94) 
Council Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council 
or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the 
purposes of informing and consulting employees (OJ L 254, 30/09/94) 
Commission Directive 94/46/EC of 13 October 1994 amending Directive 88/301/EEC and Directive 
90/388/EEC in particular with regard to satellite communications (OJ L 268, 19/10/94) 
Commission Directive 94/49/EC of 11 November 1994 updating the list of entities covered by Council 
Directive 91/296/EEC on the transit of natural gas through grids (OJ L 295, 16/11/94) 
European Parliament and Council Directive 94/52/EC of 7 December 1994 amending for the second 
time Directive 88/344/EEC on the approximation of the laws of the Member States on extraction solvents 
used in the production of foodstuffs and food ingredients (OJ L 331, 21/12/94) 
Commission Directive 94/59/EC of 2 December 1994 amending for the third time the Annexes to 
Council Directive 77/96/EEC on the examination for Trichinae (Trichinelle spiralis) upon importation from 
third countries of fresh meat derived from domestic swine (OJ L 315, 08/12/94) 
Council Directive 94/65/EC of 14 December 1994 laying down the requirements for the production and 
placing on the market of minced meat and meat preparations (OJ L 368, 31/12/94) 
Council Directive 94/71/EC of 13 December 1994 amending Directive 92/46/EEC laying down the 
health rules for the production and placing on the market of raw milk, heat-treated milk and milk-based 
products (OJ L 368. 31/12/94) 
Council Directive 94/80 of 19 December 1994 laying down detailed arrangements for the exercise of the 
right to vote and to stand as a candidate in municipal elections by citizens of the Union residing in a 
Member State of which they are not nationals (OJ L 368, 31/12/94) 
Council Decision 94/117/EC of 21 February 1994 laying down the minimum requirements as regards 
structure and equipment to be met by certain small establishments ensuring the distribution of fishery 
products in Greece (OJ L 54, 25/02/94) 
Council Decision 94/268/Euratom of 26 April 1994 concerning a framework programme of Community 
activities in the field of research and training for the European Atomic Energy Community (1994 to 1998) 
(OJL 115, 06/05/94) 
Commission Decision 94/341/EC of 3 June 1994 amending Commission Decision 93/437/EEC laying 
down specific conditions for importing fishery products from Argentina (OJ L 151, 17/06/94) 
Council Decision 94/370/EC of 21 June 1994 amending Decision 90/424/EEC on expenditure in the 
veterinary field (OJ L 168, 02/07/94) 
Council Decision 94/445/EC of 11 July 1994 on inter-administration telematic networks for statistics 
relating to the trading of goods between Member States (Edicom) (OJ L 183, 19/07/94) 
Commission Decision 94/470/EC of 18 July 1994 on a common technical regulation for attachment 
requirements for terminal equipment interface for ONP 2 048 kbit/s digital unstructured leased line (OJ L 
194. 29/07/94) 
Commission Decision 94/471/EC of 18 July 1994 on a common technical regulation for general termi­
nal attachment requirements for Digital European Cordless Telecommunications (DECT) (OJ L 194 
,29/07/94) 
Commission Decision 94/783/EC of 14 September 1994 concerning the prohibition of PCP notified by 
the Federal Republic of Germany (Only the German text is authentic) (OJ L 316, 09/12/94) 
Commission Decision 94/796/EC of 18 November 1994 on a common technical regulation for the pan-
European integrated services digital network (ISDN) primary rate access (OJ L 329, 20/12/94) 
Commission Decision 94/797/EC of 18 November 1994 on a common technical regulation for the pan-
European integrated services digital network (ISDN) basic access (OJ L 329, 20/12/94) 
Commission Decision 94/821/EC of 9 December 1994 on a common technical regulation for attach­
ment requirements for terminal equipment interface for ONP 64 kbit/s digital unstructured leased line (OJ 
L339, 29/12/94) 
Council Decision 94/936/EC of 20 December 1994 amending Decision 90/218/EEC concerning the 
placing on the market and administration of bovine somatotrophin (BST) (OJ L 366, 31/12/94) 
THE SINGLE MARKET IN 1994 J *i 
jri 
ANNEX 2 
Council Decision 94/942/CFSP on the joint action adopted by the Council on the article J3 of the Treaty 
on European Union concerning the control of exports of dual-use goods (OJ L 367, 31/12/94) 
Decision 94/1110/EC of the European Parliament and of the Council of 26 April 1994 concerning the 
fourth framework programme of the European Community activities in the field of research and techno­
logical development and demonstration (1994 to 1998) (OJ L 126, 18/05/94) 
Council Regulation (EC) No 40/94 of 20 December 1993 on the Community trade mark (OJ L 11. 
14/01/94) 
Council Regulation (EC) No 519/94 of 7 March 1994 on common rules for imports from certain third 
countries and repealing Regulations (EEC) Nos 1765/82, 1766/82 and 3420/83 (OJ L 67, 10/03/94) 
Council Regulation (EC) No 520/94 of 7 March 1994 establishing a Community procedure for adminis 
tering quantitative quotas (OJ L 66, 10/03/94) 
Council Regulation (EC) No 1468/94 of 20 June 1994 amending Regulation (EEC) No 2092/91 on 
organic production of agricultural products and indications referring thereto on agricultural products and 
foodstuffs (OJ L 159. 28/06/94) 
Council Regulation (EC) No 1164/94 of 16 May 1994 establishing a Cohesion Fund (OJ L 130, 
25/05/94) 
Council Regulation (EC) No 1921/94 of 25 July 1994 amending Regulation (EC) No 519/94 on common 
rules for imports from certain third countries (OJ L 198, 30/07/94) 
Council Regulation (EC) No 2062/94 of 18 July 1994 establishing a European Agency for Safety and 
Health at Work (OJ L 216, 20/08/94) 
Council Regulation (EC) No 2100/94 of 27 July 1994 on Community plant variety rights (OJ L 227, 
01/09/94) 
Commission Regulation (EC) No 2515/94 of 9 September 1994 amending Regulation (EEC) No 
1848/93 laying down detailed rules for the application of Council Regulation (EEC) No 2082/92 on certifi­
cates of specific character for agricultural products and foodstuffs (OJ L 275, 26/10/94) 
Council Regulation (EC) No 3283/94 of 22 December 1994 on protection against dumped imports from 
countries not members of the European Community (OJ L 349, 31/12/94) 
Council Regulation (EC) No 3284/94 of 22 December 1994 on protection against subsidized imports 
from countries not members of the European Community (OJ L 349, 31/12/94) 
Council Regulation (EC) No 3285/94 of 22 December 1994 on the common rules for imports and 
repealing Regulation (EC) No 518/94 (OJ L 349, 31/12/94) 
Council Regulation (EC) No 3286/94 of 22 December 1994 laying down Community procedures in the 
field of the common commercial policy in order to ensure the exercise of the Community' s rights under 
international trade rules, in particular those established under the auspices of the World Trade Organiza­
tion (OJ L 349. 31/12/94) 
Council Regulation (EC) No 3295/94 of 22 December 1994 laying down measures to prohibit the 
release for free circulation, export, re-export or entry for a suspensive procedure of counterfeit and 
pirated goods (OJ L 341, 30/12/94) 
Council Regulation (EC) No 3381/94 of 19 December 1994 on the control of exports of certain dual-use 
goods and technologies and of certain nuclear products and technologies (not yet published) 
Council Regulation (EC) No 3384/94 of 21 December 1994 on the notifications, time limits and hear­
ings provided for in Council Regulation (EEC) No 4064/89 on the control of concentrations between 
undertakings. 
THE SINGLE MARKET IN 1994 
yiiï 
Annex 3 - Judgements of the Court of Justice cited 
Judgement of the Court of 18 May 1982 §61 
Joined Cases 115 and 116/81 
Reports of cases 1982 pages 1665 - 1713 
Rezguia Adoui v Belgian State and City of Liège 
Dominique Cornuaille v Belgian State 
Reference for a preliminary ruling: Tribunal de Première Instance - Liège 
Public policy - Right of residence or establishment 
Judgement of the Court of 9 February 1994 § 66 
Case C-319/92 
Reports of cases 1994 pages I-0425 
Salomone Haim v Kassenzahnârztliche Vereinigung NordRhein 
Reference for a preliminary ruling: Bundessozialgericht - Germany 
Establishment and provision of services - Dental practitioners - Recognition of evidence of formal 
qualifications. 
Judgement of the Court of 9 February 1994 § 66 
Case C-154/93 
Reports of cases 1994 pages 1-0451 
Abdullah Tawil-Albertini v Ministre des Affaires sociales 
Reference for a preliminary ruling: Conseil d'Etat - France 
Establishment and provision of services - Dental practitioners - Recognition of evidence of formal 
qualifications. 
Judgement of the Court of 20 February 1979 § 72 
Case 120-78 
Reports of cases 1979 pages 649 - 665 
Rewe-Zentral AG v Bundesmonopolverwaltung fur Branntwein 
Reference for a preliminary ruling: Hessisches Finanzgericht 
Measures having an effect equivalent to quantitative restrictions 
Judgement of the Court of 2 February 1994 § 83 
Case C-315/92 
Reports of cases 1994 pages 1-0317 
Verband sozialer Wettbewerb v Clinique Laboratoires SNC and Estée Lauder Cosmetics GmbH. 
Reference for a preliminary ruling: Landgericht Berlin - Germany 
Free movement of goods - Name of a cosmetic product liable to mislead consumers. 
Judgement of the Court of 24 March 1994 § 84 
Case C-80/92 
Reports of cases 1994 pages 1-1019 
Commission of the European Communities v Kingdom of Belgium 
Failure of a Member State to fulfil its obligations - Legislation applicable to radiocommunications 
transmitters and receivers. 
Judgement of the Court of 2 June 1994 § 85 
Joined Cases C-69/93 and C-258/93 
Reports of cases 1994 pages I-2355 
Punto Casa Spa v Sindaco del comune di Capena and Comune di Capena and promozioni 
polivalenti Venete soc. coop. ARL (PPV) v Sindaco del comune di Torri di Quartesolo and comune 
di Torri di Quartesolo 
Reference for a preliminary ruling: Preturia circondariale di Roma - Italy 
Interpretation of Articles 30 and 36 of the Treaty - Prohibition on certain kinds of Sunday tradings. 
THE SINGLE MARKET IN 1994 
/ lé 
ANNEX 3 
Judgement of the Court of 24 November 1993 § 85 
Joined Cases C-267/91 and C-268/91 
Reports of cases 1993 pages I-6097 
Criminal proceedings against Bernard Keck and Daniel Mithouard 
Reference for a preliminary ruling: Tribunal de Grande Instance de Strasbourg - France 
Free movement of goods - Prohibition of resale at a loss. 
Judgement of the Court of 22 June 1994 § 86 
Case C-426/92 
Reports of cases 1994 pages I-2757 
Federal Republic of Germany v deutsches Milk Kontor GmbH. 
Reference for a preliminary ruling: Bundesverwaltungsgericht - Germany 
Aid for skimmed-milk powder - Systematic frontier inspections - Measure having equivalent effect 
-Costs of inspections-Charge having equivalent.effect- -
Judgement of the Court of 15 September 1994 § 87 
Case C-293/93 
Reports of cases 1994 pages I-4249 
Criminal proceeding against Ludomira Neeltje Barbara Houtwipper 
Reference for a preliminary ruling: Arrondissementsrechtbank Zutpher. - Netherlands 
Free movement of goods - Precious metals - Compulsory Hallmark. 
Judgement of the Court of 22 June 1982 §87 
Case 220/81 
Reports of cases 1982 pages 2349 - 2363 
Criminal proceeding against Timothy Frederick Robertson and others 
Reference for a preliminary ruling: Tribunal de Première Instance - Brussels 
Measures having an effect equivalent to quantitative restrictions 
Judgement of the Court of 2 August 1993 § 93 
Case C-303/92 
Reports of cases 1993 pages I-4739 
Commission of the European Communities v Kingdom of the Netherlands 
Failure of a Member State to fulfil obligations - Failure to implement directives within the 
prescribed period. 
Judgement of the Court of 9 August 1994 § 160 
Case C-359/92 
Reports of cases 1994 pages 1-3681 
Federal Republic of Germany v Council of the European Union 
Action for annulement of measures - Directive 92/59/EEC on general product safety - Legal base -
Article 100a and third indent of Article 145 of the EEC Treaty 
Judgement of the Court of 24 March 1994 § 167 
Case C-275/92 
Reports of cases 1994 pages 1-1039 
Her Majesty's Customs ans excise v Gerhart Schindler and Jôrg Schindler 
Reference for a preliminary ruling: High Court of Justice, Queen's Bench Dicision - United 
Kingdom 
Lotteries 
Judgement of the Court of 22 March 1994 § 167 
Case C-375/92 
Reports of cases 1994 pages I-0923 
Commission of the European Communities v Kingdom of Spain 
Failure of a Member State to fulfil its obligations - Freedom to provide services - Tourist guides -
Professional qualification required by national rules 
THE SINGLE MARKET IN 1994 
ANNEX 3 3 J h 
Judgement of the Court of 9 August 1994 § 167 
Case C-43/93 
Reports of cases 1994 pages I-3803 
Raymond Vander Elst v Office des migrations internationales 
Reference for a preliminary ruling: Tribunal administratif de Châlons-sur-Marne - France 
Freedom to provide services - Nationals of a non-Member Country 
Judgement of the Court of 20 October 1993 §219 
Joined Cases C-92/92 and C-326/92 
Reports of cases 1993 pages 1-5145 
Phil Collins v Imtrat Handelgesellschaft MbH and Patricia Im und Export Verwaltungsgesellschaft 
MbH and Leif Emanuel Kraul v EMI Electrola GmbH 
Reference for a preliminary ruling: Landgericht Munchen I and Bundesgerichtshof - Germany 
. . Article 7 of the. Treaty-Copyright and related rights 
Judgement of the Court of 20 March 1990 § 264 
Case 21/88 
Reports of cases 1990 pages I-0889 
Du Pont de Nemours Italiana Spa v Unita sanitaria locale N. 2 di Carrara and 3 M Italiana Spa 
Reference for a preliminary ruling: Tribunale amministrativo régionale della Toscana - Italy 
Public supply contracts - Reservation of 30% of such contracts to undertakings situated in a 
particular region. 
Judgement of the Court of 18 March 1992 § 268 
Case C-24/91 
Reports of cases 1992 pages 1-1989 
Commission of the European Communities v Kingdom of Spain 
Directive 71/305/EEC - Award of public works contrâtes - Publication of notice of contract -
Derogation for reasons of urgency. 
Judgement of the Court of 3 May 1994 § 268 
Case C-328/92 
Reports of cases 1994 pages 1-1569 
Commission of the European Communities v Kingdom of Spain 
Failure to fulfil obligations - Public supply contracts - Pharmaceuticals products and specialities. 
Order of the President of the Court of 22 April 1994 § 269 
Case C-87/94 R 
Reports of cases 1994 pages 1-1395 
Commission of the European Communities v Kingdom of Belgium 
Application for interim measures - Urgency - Balance of interests - Public safety - Public contracts 
- Transport sector - Council Directive 90/531/EEC 
Judgement of the Court of 14 April 1994 §270 
Case C-389/92 
Reports of cases 1994 pages 1-1289 
Ballast Nedam Group nv v Belgian State 
Reference for a preliminary ruling: Raad van Staat - Belgium 
Freedom to provide services - Public works contracts - Registration of contractors - Relevant 
identity 
Judgement of the Court of 26 April 1994.. §271 
Case C-272/91 
Reports of cases 1994 pages 1-1409 
Commission of the European Communities v Italian Republic 
Concession for the lottery computerization system. 
THE SINGLE MARKET IN 1994 

.^'î 
Annex 4 - Recent reports, studies and surveys on the 
single market 
f7?7e following list does not purport to be exhaustive. It is a selection of publications dealing with 
the practical operation of the single market in general which have been brought to the attention 
of the Commission during 1994. It does not include the many academic works which are 
published regularly in this field). 
The Single European Market: Centralization or Competition among national rules, The Royal 
Institute of International Affairs, 1994 
Resolution and report of the conference of the Ministers for Economic affairs of the German 
"Lander" on the implication for business of the transitions to the Single market, German 
"Lander", March 1994 
77?e internal Market, a balance sheet, BEUC, 14 April 1994 
European Business Survey, Grant Thornton International Business Strategies Ltd, May 1994 
Single Market Compliance unit: breakdown of detailed cases, Department of Trade and 
Industry, May 1994 
Rapport: achever la réalisation d'un vrai marché unique pour renforcer nos entreprises, 
CNPF, June 1994 
Report: road freight transport in the single European Market, Committee of Enquiry, July 
1994 
Enquête: "Marché intérieur européen: où en est-on?", Fédération des Entreprises de 
Belgique, September 1994 
Conference on Technical Barriers to Trade in Europe, Danish Ministry of Industry and 
Coordination/European Commission/Confederation of Danish Industries, 13 September 
1994 (Copenhagen) 
Avis sur le rapport annuel sur le fonctionnement du marché intérieur, Comité Economique et 
Social, September 1994 
Non Tariff Barriers in the European Union, Eurochambres, October 1994 
Enquête: "Europe, mode d'emploi", Direction Générale Provence-Alpes-Côte d'Azur, May-
October 1994 
Ligne ouverte pour l'identification des problèmes des entreprises espagnoles dans le marché 
unique, Ministère du Commerce et du Tourisme, October 1994 
Enquête sur le fonctionnement du marché unique, VNO-NCW (Pays-Bas), December 1994 
The Single Market and the future development of the European Union, Confederation of 
British Industry, October 1994 
The EC's internal market: implementation, economic consequences, unfinished business, 
Peter Hoeller and Marie-Odile Louppe, OECD, Paris, 1994 
THE SINGLE MARKET IN 1994 

sv 
Annex 5 - Organizations which provided contributions to 
the Report 
Association of European Airlines (AEA) 
Association of European Cooperative and Mutual Insurers (ACME) 
British Telecom (BT) ' 
Bureau International des Producteurs d'Assurances et de Réassurances (BIPAR) 
Commissao do Mercado de Valores Mobiliarios 
Confédération Européenne de l'Immobilier 
Confédération Fiscale Européenne (CFE) 
Confederation of British Industry (CBI) 
Confederation of the Food and Drink Industries of the EEC (CIAA) 
Conference Européenne des Administrations des Postes et des Télécommunications 
(CEPT) 
Coordination Committee for the Textile Industries in the European Economic Community 
(COMTEXTIL) 
Danmarks Rederiforening Danish Shipowners' Association 
E C Committee of the American Chamber of Commerce in Belgium (AMCHAM) 
EFTA Surveillance Authority 
Eurocommerce 
European Association of Consumer Electronics Manufacturers (EACEM) 
European Association of Cooperative Banks (EACB) 
European Association of Craft, Small and Medium-Sized Enterprises (UEAPME) 
European Automobile Manufacturers' Association (EAMA) 
European Business Aviation Association (EBAA) 
European Chemical Industry Council (CEFIG) 
European Community Mortgage Federation 
European Communiy's Independent Airline Association (ACE) 
European Confederation of Associations of Manufacturers of Insulated Wires and Cables 
(EUROPACABLE) 
European Confederation of Medical Suppliers Associations (EUCOMED) 
European Consumers'Organisation (BEUC) 
European Cosmetic Toiletry and Perfumery Association (COLIPA) 
European Crop Protection Association (ECPA) 
European Federation of Engineering Consultancy Associations (EFCA) 
European Federation of Equipment Leasing Company Associations 
European Fertilizers Manufacturers 'Association (EFMA) 
European Grouping of the Electricity Supply Industry (EURELECTRIC) 
European Organisation of Reinforced Plastics and Composite Materials (GPRMC) 
European Petroleum Industry Association (EUROPIA) 
European Prorietary Medicines Manufacturers' Association (AESGP) 
European Salt Producers' Association 
European Savings Bank Group (ESBG) 
THE SINGLE MARKET IN 1994 
>3<L 
ANNEX 5 
European Society for Opinion and Marketing Research (ESOMAR) 
European Telecommunications and Professional Electronics Industry (ECTEL) 
Fédération des Experts Comptables Européens (FEE) 
Federation of European Publishers (FEP) 
International Air Transport Association (IATA) 
International Confederation of Paper and Board Converters in Europe (CITPA) 
Liaison Group of the European Mechanical, Electrical, Electronic and Metalworking 
Industries (ORGALIME) 
Liaison Office of the Rubber Industry of the E.E.C. (BLIC) 
Sociedade Portuguesa de Autores 
Union des Confédérations de l'Industrie et des Employeurs d'Europe (UNICE) 
THE SINGLE MARKET IN 1994 

ISSN 0254-1475 
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