COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 20.11.1996 
COM(96) 530 final 
GREEN PAPER 
ON 
COMMERCE 
(presented by the Commission) 

TABLE OF CONTENTS 
I- INTRODUCTION 
II- STRUCTURE AND DEVELOPMENT OF COMMERCE 
1- Economie and social importance of commerce 
2- Concentration and Competition in commerce 
3- The development of independent organised commerce 
4- The development of the Single Market and internationalisation 
4.1- Cross-border trading in the Single Market 
4.2- Cross-border trading with countries outside the EU 
III- THE ROLE OF AND ACTION UNDERTAKEN BY THE MEMBER STATES 
AND THE EU RELATING TO COMMERCE 
1- Actions undertaken by the Member States 
2- Role and actions of the EU 
2.1- Actions in support of commerce 
2.2- The consultative framework 
IV- NEW CHALLENGES FACING COMMERCE 
1- Ensuring the effectiveness of the Single Market 
1.1- Barriers to the Single Market 
1.2- Consumers' concerns 
1.3- The introduction of the euro 
2- Enterprise environment 
2.1- Administrative burdens and simplification of legislation 
2.2- Training 
2.3- Statistical information 
3- Employment, competitiveness and cohesion 
3.1- The rural environment 
3.2- The urban environment 
4- The Information Society and Commerce 
V- OPTIONS FOR THE FUTURE 
/ <7K 
ANNEXES 
ANNEX A: Statistics 
ANNEX B: Areas directly concerning commerce subject to national legislation 
ANNEX C: A detailed list of community legislative measures 
ANNEX D: Various actions at community level affecting commerce 
ANNEX E: Institutional addresses 
ib 
I- INTRODUCTION 
1- Every day, almost 370 million EU citizens consume and use goods - food, clothes, 
furniture, books, cars, computers - produced by the 58 million people employed in 
agriculture and manufacturing throughout the EU, as well as millions more beyond. But it 
is thanks to the 22 million people employed in commerce within the EU that its citizens 
are able to access this vast range of products where and when they want, at affordable 
prices and accompanied by service. Commerce is the gate through which a wealth of goods 
from other countries enters the domestic market and thus expands the variety of items on 
offer. This applies not only to goods from third countries but also to goods from other 
Member States which have benefited from the development of the Internal Market. 
2- This vital economic sector, the second largest in the Community, approaches the 
millennium facing several challenges which must be addressed immediately if it is to 
maintain its contribution to the economic and social well-being of our citizens. 
3- These challenges include the increased competition arising from opportunities to trade 
across the whole territory of the Single Market; the constraints on developing the full 
potential of the Single Market from heterogeneous regulations on a national, regional or 
local level; the introduction of a single currency which will provide immediate advantages 
but offer also several practical challenges specific to the sector; the evolving relationship 
between consumers and suppliers; the continuing restructuring of the sector in order to 
adjust to the competitive environment and its effect on communities dependant on or served 
by the existing structures; the need to provide an environment in which enterprises can 
flourish; the rapid expansion of the use of existing technology and the exploitation of new 
technology to streamline service and facilitate new forms of direct trading; the need to 
maintain a competitive European industry in the light of globalisation of commerce via the 
information society revolution (electronic commerce). 
4*" Despite its place at the heart of the economy, the sector suffers from a lack of readily 
available information and analytical data. Since rapid transfer of information is 
fundamental to maintaining competivity and adjusting to market trends this gap must be 
filled. 
5- For activities which impinge so directly on the everyday lives of people, the commerce 
sector appears to have been taken for granted. The time is right to initiate a full 
consultation on the challenges facing commerce and the possible options for meeting these 
challenges. This Green Paper is designed to launch the consultation process. 
6- The terms "commerce" and "distribution" are often used as synonyms although the 
former is sometimes regarded as referring more to the selling aspect and the latter more to 
the logistical angle. In this paper the term "commerce" is used to refer to both kinds of 
activities and in particular to wholesale and retail trade. The commerce sector dealt with 
in this paper covers all trading activity from the purchase of goods from the producer to the 
delivery of these goods to the final consumer. The paper does not deal specifically with the 
trade in services, although mention is made of some services which are directly concerned 
with traded products e.g. tourism/crafts. 
1 C^ 
OBJECTIVES OF THE GREEN PAPER 
7- The aim of this Green Paper on Commerce is to stimulate considered discussion on the 
importance of this sector of the economy and the challenges that face it on the eve of the 21st 
century: 
• it examines the structure and development of commerce . 
• it describes the actions of Member States and the EU and their respective roles. 
• it identifies the challenges facing the sector and raises issues which require public 
consultation. 
8- The discussion arising from the Green Paper should lead to the identification of actions by 
the entreprises themselves, by public administrations in the Member States or by the EU which 
will assist the sector to meet the challenges while remaining competitive and contributing to 
employment and social cohesion. 
II- STRUCTURE AND DEVELOPMENT OF COMMERCE 
1- Economic and social importance of commerce 
9- Commerce is the second largest area of economic activity within the European Union. It is 
an essential component in measuring the level and strength of a national economy and a key 
sector for generating employment opportunities and growth. Yet, alongside its purely economic 
functions, commerce has important social functions. It is a point of contact between citizens 
and their local community and provides the latest information on life style, cultural patterns and 
community activity. As a major determinant on social and cultural patterns, lifestyles and 
physical planning, commerce is pivotal to the European socio-economic model. The social 
integrating function of commerce might gain further importance in the future due to the 
progressive ageing of the European population! 
10- The prosperity of commerce has important ramifications for jobs throughout the EU: over 
22 million people in the EU work in commerce - almost 16% of total EU employment. In 10 
years, between 1982 to 1992, commerce created about 2.3 millions jobs in the 15 Member 
states, a growth of 12 % . In the same period, total employment in the EU increased by 7 %. 
Commercé thus created a significantly higher proportion of jobs than the total economy. The 
growth of trade employment, i.e. the rate of creation of new jobs, has differed between the 
Member States': Spain, + 25%, Netherlands + 23%, Austria + 20%, Italy + 15%, Germany 
+ 14%, United Kingdom + 10%, France + 1%. The figures vary greatly from one Member 
State to another, and one of the points for debate following publication of this Green Paper will 
be to analyse the reasons for such variations2. 
11- Commerce's contribution to the GDP of the EU economy remained stable from 1982 to 
1992, at about 13%. During this period, the average GDP and the value added of the commerce 
sector grew at the same pace, by about 25%. Productivity in commerce increased around 13%, 
in these ten years. 
Commerce , second largest employer in the EU3 in 1994 : 
4.5 million commercial enterprises 
one third of all EU enterprises, 95% of which contain fewer than 10 employees 
22 million jobs 
16% of the EU workforce 
55% of persons employed in retail trade are women 
3.4 million retailing enterprises employing 15 million people 
1.1 million wholesaling enterprises providing 7 million jobs 
13% on average of added value in the EU economy 
12- Women represent a significant proportion of the labour force in the retail sector, making 
up 55% of those working in retail trade. This has been instrumental in providing entry to the 
labour market for many women. The distributive trades also contain a high number of part 
time jobs. However, whilst many women are willing to accept part-time work as a means of 
reconciling work and family responsibilities, one third of women working part-time do so 
because the ûill-time job opportunities which they would prefer are not available. It is worth 
noting that in recent years there has been an increase in part-time work in many Member 
States, in the retail sector as in others. Greater use of part-time work can be beneficial to 
employers and employees: it can enable employers to be more flexible, while shorter working 
hours suit many employees. However, it is important to ensure that those who work shorter 
hours are given comparable treatment to those in full-time employment.Negotiations at 
European level have recently begun between the social partners on flexibility of working time 
and security of employment. These are expected to cover part-time work. 
13- Commerce also offers the opportunity to European citizens to create and run their own 
enterprise, usually after first gaining experience in a commercial firm. The small amount of 
capital necessary to set up a commercial enterprise relative to that required by other economic 
activities contributes greatly to this opportunity afforded by commerce. 
14- Commerce covers all trading activity from the purchase of goods from the producer to the 
delivery of these goods to the final consumer. Traders have a crucial task of responding to 
consumer demand and thus enhancing their profitability. Developments in recent years have 
resulted in a marked increase in the influence of commerce on manufacturers, with competing 
2 A 1994 Report on Employment Performance by Mc Kinsey Global Institute identifies weak performance 
in job creation in Europe vis-a-vis the US and concludes that the reasons are entry barriers. These 
conclusions merit further reflection. 
3 EUROSTAT data: see annex A 
operators joining forces in order to negotiate with manufacturers from a position of strength. 
15- The daily contact between traders and their clients enables the former to adapt to and better 
satisfy demand by keeping to a minimum unsold goods and therefore any waste of factors of 
production. Commerce has therefore an important contribution to make in promoting the 
efficient use of resources and accordingly encouraging sustainable development. In addition, 
through their intermediate position the commerce sector is able to influence both manufacturers 
and consumers. They can encourage manufacturers to develop and produce "greener" products, 
while they can play a significant role in providing environmental information to consumers. 
This involves the development of flexible partnerships with both consumers and suppliers and 
a constant evolution of the regulatory framework aimed at ensuring an acceptable balance 
between the legitimate interests of the traders and the legitimate interests of the consumers. 
16- There is growing recognition of the pivotal role played by commerce in maintaining a 
balanced community life, be it in city centres, or local, neighbourhood shops in both urban and 
rural areas. A lively local commercial centre often doubles up as the cultural centre of a 
community, giving commerce an important socially cohesive function. Shops, be they large 
or small, bring life to town centres and inhibit the growing problem of urban desertification, 
which encourages the spread of crime. 
17- Commerce also performs an important socio-economic function by serving as a medium 
through which people meet, communicate, socialise and interact. It serves as an interface not 
just between different sectors and groups within societies but between different nations, cultures 
and countries. At a personal level, for many people, shopping is not merely a chore but an 
enjoyable, social activity, not least because of the efforts made by traders to make it so and to 
stimulate demand. For many, especially the elderly or those living alone, shops, in particular 
local stores, may provide their only regular source of contact and conversation with other 
people and the outside world. 
2- Concentration and Competition in commerce 
18- With the aim of modernising, commerce has placed much emphasis on concentration and 
internationalisation. In its 1991 Communication "Towards a Single Market in Distribution"4 the 
Commission drew attention to concentration as one of the phenomena likely to be accelerated 
by the creation of the internal market and which affects wholesaling, retailing and wholesaling 
to industrial consumers alike. This is confirmed in the Commission recent study "Effectiveness 
and Impact of Internal Market Integration on the Organisation and Performance of 
Distribution" 
19- Concentration in commerce appears to be irreversible in all Member States but is much 
more developed in those in the North compared to those in the south, particularly as regards 
the food sector. For example, in 1994, the six major retail self-service food outlets in each 
Member State accounted for a significant market share in general food sales: 57% in Germany, 
61% in Belgium, 35% in Spain, 67% in France, 39% in Greece, 28% in Italy. In Finland, the 
4 Commission Communication "Towards a Single market in Distribution" COM (91)41 final of 11.03.1991 
s "Effectiveness and Impact of Internal Market Integration on the Organisation and Performance of 
Distribution", European Commission, Directorate General XV, 1996. 
major retail food group accounts for 40% market share, and the three big retail food groups 
account for 80%.These trends are also influenced by factors such as the increase in the number 
of women in paid employment, private car ownership and the development of infrastructure. 
20- The negative effect of this development could be the possibility of establishing de facto 
vertical integration or the dependency of the manufacturer on retaining a single client. This in 
turn prevents the manufacturer seeking other clients or new distributors competing for supplies. 
For smaller distributors with an insignificant market share this also prevents them purchasing 
similar goods at similar prices. Concentration might also encourage manufacturers with market 
power to exploit weaker buyers by raising prices, thus diminishing their competitiveness and 
accelerating the process of concentration on the retail level. 
21- This process of concentration is only part of the larger debate concerning relations between 
commerce and industry and the competition rules existing between them. This debate is now 
open in many Member States and will be developed at EU level. The result of this trend 
towards concentration has reinforced the hand of major distributors vis-a-vis their suppliers and 
encouraged the development of distributor own brands. Another important indication is the 
creation since the early 1980s of buying alliances at national, European or even global level, 
which have led to a growth in the power of large distribution groups, integrated or otherwise, 
and to sometimes rather strained relations between producers and traders. 
22- Ensuring competitive markets within commerce, as in other parts of the economy, is an 
important tool in the battle against rising prices and benefits the consumer. On the other hand 
concentration of market share in the hands of a few firms can reduce the potential influence 
of the consumer as regards, e.g. product range, choice of outlet (location of stores), or market 
signals. Competition rules play an important role for commerce. Of special interest are the rules 
concerning franchising, exclusive purchasing and selling and on selective distribution. 
3- The development of independent organised commerce 
23- In order to remain competitive on the market and maintain their market share, commercial 
Small and Medium Sized Enterprises (SMEs) are increasingly working together in associated 
networks in the form of cooperation between retailers, such as buying groups and voluntary 
chains of one or more wholesalers and several retailers or in franchise chains. This 
phenomenon is more marked in the non-Mediterranean Member States. Concentration is no 
stranger to these forms of commercial co-operation. This form of supply, known as independent 
organised commerce, is becoming increasingly widespread in the EU. Organisation along these 
lines combines the flexibility and service of small shops whilst offering the benefits of efficient 
logistics associated with larger structures. However the form in which such concentrations arise 
may give rise to questions about their compatibility with competition rules inside the Union. 
24- Co-operation enables heads of a small firm to enter a decision-making forum, to have 
contacts with other sole traders confronted by the same issues, to benefit from training and the 
support of similar professionals based on a real common interest, notably within a common 
buying structure and sales and marketing policy which allows them to attain a sufficient critical 
mass. These competitive advantages compensate for the partial loss of autonomy by the head 
of a small firm, in particular as regards the upstream part of the distribution chain, that is their 
suppliers. 
25- It would be wrong to believe that independent commerce is condemned to disappear in the 
face of competition from large integrated firms. Certainly, the commercial revolution unleashed 
in the Northern Member States has been accompanied by a trend towards concentration and the 
development of large integrated firms, but the overall trend is not that of the disappearance of 
independent traders who are often associated to them through various forms of contracts such 
as franchising. 
26- The emergence of independent organised commerce is arguably the most important 
development to have taken place in the commercial world since the advent of large scale 
distribution. Today, this kind of commerce represents 22% of retail sales in Germany and 40% 
in the Netherlands. Franchise networks alone account for 8% of retail turnover in France (30% 
in the United States). 
4- The development of the Single Market and internationalisation 
4.1- Cross-border trading in the Single Market 
27- The most obvious characteristic of the retail trade is its dépendance on local outlets and 
its need to take account of local preferences and prejudices. This explains the very important 
part played in maintaining a healthy enterprise environment of national, regional or local 
regulations. It also explains to a large extent the mechanisms used by commerce to supply 
customers directly in other Member States. 
28- The principle mechanism for establishing a presence in other Member States used by retail 
companies is by becoming majority share holders in local distribution companies. This has 
been especially prevalent during the last ten years in the Southern Member States: by 1994, 
virtually all Spanish hypermarkets were in the hands of companies mainly or partially 
controlled by capital based in other Member States. A similar situation prevails in Portugal 
and Greece and takeover and merger activity is continuing. Some large retail enterprises have 
also established a direct presence by opening stores but this is still relatively rare. Another 
mechanism is by the establishmemt of voluntary chains supported by wholesalers, franchise 
chains and buying groups, uniting large numbers of commercial SMEs. 
29- On the wholesale side the picture is different because wholesalers are not so tightly linked 
to local outlets. A study undertaken by the Commission6 in 1993 demonstrated this and 
underlined that a distinction must be made between the internationalisation of wholesaling and 
that of retailing. As regards wholesaling, the cross-border dimension is an integral part of 
strategies implemented in response to structural changes in distribution channels. 
Internationalisation of wholesaling is occurring in all sectors (food, non-food, inter-industry) 
and has important consequences for producers, acting as a counterweight to the trend towards 
concentration in production brought about by the need to supply larger markets, and enabling 
SMEs involved in production to access markets beyond their national frontiers. 
30- The internationalisation of retailing as far as the establishment of shops is concerned is 
currently more limited to certain large retail groups which are big enough, and possess the 
"Foreign investments in retailing and wholesaling in the EC", 1993: Commerce and Distribution Series, 
DG XXIII 
techniques necessary, to take advantage of international markets and adapt to their particular 
characteristics. Indeed one of the spin-off developments is the acquisition of know-how on 
servicing different consumption patterns. This move is likely to continue given that the 
attainment of a critical mass achieved as a result of cooperation of SMEs or concentration, the 
globalisation of markets and the relative saturation of domestic markets encourage operators 
to internationalise. Opportunities should remain available for smaller companies looking for 
niche markets through interactive websites on the Internet. 
31- Though some retailers have expanded outside their home market to other Member States, 
the large majority stays within the home market as far as Europe is concerned. Cultural 
differences are likely to persist and will continue to restrict the organic expansion of firms and 
retail formats outside national territories. Franchise chains, however, which link local traders 
to an international concept continue to develop and are certainly an important element in the 
Europeanisation of commerce. Nevertheless, significant price differences continue to exist 
between the Member States which implies that the internationalisation of brand names does not 
necessarily lead to internationalisation of supply, nor does it produce convergence in prices for 
the consumer. 
31a- The localisation of retail outlets will become less important to cross-border trading when 
transport across frontiers becomes a significantly smaller element in the cost of products. The 
Commission proposals on improving transport infrastructure particularly as regards the Trans-
European-Network is important in this respect. 
4.2- Cross-border trading with countries outside the EU 
32- The same general trends as can be observed in cross-border trading inside the EU can be 
observed for selling outside the Union. In effect wholesaling has shown an immediate move 
into establishing a presence in European non-Member States and even into the US and Asia 
whereas export of the retail function has not followed this expansion. On the other hand easier 
access to information and the availability of goods on the international market via audio visual 
and infoiixiation networks is stimulating local demand which often can only be supplied from 
outside the consumers home territory. This is a challenge for electronic commerce which must 
be fac^J u.^ntly by the EU. 
33- The modernisation of commerce in the Central and Eastern European Countries (CEEC), 
is important for promoting the economic integration of the countries. On the proposal of the 
Committee on Commerce and Distribution, three panels of professionals were created in 1995 
and visited Russia, Ukraine and Hungary, to identify the main problems facing commerce in 
these countries and to determine the areas in which the professionals and their federations could 
help them. New missions will be set up in 1996, as far as possible in liaison with the Phare 
and Tacis programmes, in particular, to co-finance management training and technical 
assistance to develop logistical distribution structures adapted to local needs. 
34- A similar method could be used in order to reinforce historical links between the 
distribution systems of the Mediterranean littoral states. Such actions for training and technical 
assistance could be inserted into the framework of the "Barcelona Declaration" adopted at the 
See Annex D -"Transport policy" 
Euro-Mediterranean Conference of 17-18 November 1995. 
35- A number of questions arise about the consequences of internationalisation for commercial 
enterprises. It is notably the case of the influence of national regulations on commerce, 
guarantee and after sales service. Commercial enterprises established within the Community 
will be subject to them and their differences might lead to Internal Market barriers that will 
hamper the development of these European based commercial enterprises when compared with 
their international competitors. On the other hand the dynamics of internationalisation may 
force revision of these national rules particularly when suppliers are situated outside the 
European Union. This is also the case for equal access by enterprises to communication 
networks. 
36- Here it is essential to allow firms of all sizes access to communications and sales networks, 
by ensuring that the principle of the freedom of establishment and competition policy are 
effectively applied. Cross border commerce will require both retailers and wholesalers to adjust 
to competition from non traditional sources. The Internal Market principle of the free 
circulation of services could give rise to conflict between local enterprises subject to local 
regulations and non-domestic suppliers subject to less restrictive regulations in their home 
countries. Clearly the possibility that Internal Market barriers will appear to prevent such 
conflicts is significant and therefore such regulatory differences need to be thoroughly 
examined and will form an aspect of the consultation arising from the Green Paper. In 
particular, the reasons why commerce remains relatively under-europeanised should be further 
examined and solutions should be sought to enable the Internal Market to work for the benefit 
of the consumer, notably as far as price variations are concerned. 
Ill- THE ROLE OF AND ACTION UNDERTAKEN BY THE MEMBER STATES AND 
THE EU RELATING TO COMMERCE 
37- The flexibility and competitiveness of commerce can not be maintained if the sector is too 
firmly constrained by regulation. It works best on local knowledge of markets and individual 
initiative not on centralised regulation. Nevertheless, as with other economic sectors, the global 
market place sometimes requires a global response and global standards just as the internal 
market offers special challenges for EU enterprises which require to be dealt with at the 
European level. 
1- Actions undertaken by the Member States 
38- Commerce within the EU is characterised by disparate national economic, demographic, 
legal, fiscal, structural and cultural characteristics of each Member State. The market, although 
part of a larger entity, is, above all, local. Commerce is very flexible in adapting to socio­
economic structures and the differences between commercial structures in the EU reinforce 
varying consumption and behaviour patterns. 
39- The Single Market provides new opportunities for traders to enter new markets with 
products universally in demand and to introduce new products from regional markets into other 
localities of the Union. What is important is that the opportunities for entering local markets 
are not inhibited by regulations which unfairly restrict competition and that the retail trade is 
not discouraged from sourcing from non-traditional suppliers or subjected to restrictive trading 
conditions by dominant local enterprises. 
40-The regulation of commercial activities is a competence of the Member States, subject to 
the respect of Community law as set out in the Treaties, in particular as concerns competition, 
freedom of establishment, free movement of goods and services. 
41- There are differing national rules relating to the creation of enterprises (such as registration 
and various fiscal and social obligations), the siting and rental of commercial premises, opening 
hours, consumer protection (such as lotteries, discounts, special reductions and sales, as well 
as the involvement of consumers in product distribution, such as pyramid sales, home parties 
and sponsorship gift) and unfair practices (such as refusal to sell, conditions of sale and 
purchase, imposed, recommended or maximum prices). Some of the practices, e.g. opening 
hours are deemed by the Court of Justice to be the competence of the Member States; some, 
e.g. consumer protection, are subject to EU directives as well as national regulations. Annex B 
provides more information on the differences in national regulations. 
2- Role and actions of the EU 
42- Aware of the importance the creation of the internal market has for distribution, the 
Council of Ministers of 14 November 1989 adopted a Resolution8 inviting the Commission to 
present concrete proposals. On 11 March 1991 the Commission then adopted a Communication 
entitled "Towards a Single Market in Distribution" , supported by the Council of Ministers in 
its Conclusions of 30 June 199210, which underlines the fact that the success of the internal 
market is dependent upon the creation of a single market in distribution. 
43- Many EU legislative measures have an impact upon commerce . It is also vital to ensure 
that conditions for fair competition between economic actors exist, whilst guaranteeing the 
same market opportunities. The Commission will continue to examine how to allow different 
forms of co-operation, and in particular groups of traders, free access to the forms of 
organisation and operation which appear best suited for the market situation. How these 
developments should best be reconciled with the need to respect the principals of open access 
and non-discrimination at the heart of competition policy is being examined by Commission 
services at present. 
2.1- Actions in support of commerce 
44- The Commission encourages the modernisation of commercial enterprises through 
COMMERCE 2000 pilot action. These actions, supported directly by the Commission, seek 
to promote commercial co-operation through the use of new technology, give prominence to 
good practices and provide help in choosing the right technology, taking account of each 
situation. The results already obtained have shown the impact of new technologies on the 
8 Council Resolution on commerce in the context of the internal market (89/C 297/02) 
9 Commission Communication "Towards a Single Market in Distribution" COM (91) 41 final of 11.03.91 
10 Council Conclusions of 30.06.1992, Bull. CE 6-1992, point 1.3.58 
11 See Annex C - Detailed list of community legislatives measures 
9 
process of commercial co-operation, and the importance of training to accompany the changes. 
45- Commercial enterprises also benefit from general measures taken in favour of enterprises 
within the framework of the Multi-annual Programme for Community actions to reinforce 
priority areas and to ensure the continuity and consolidation of enterprise policy, especially 
SMEs given their importance for creating employment and stimulating growth.12 Given that 
one in three SMEs is involved in commerce, actions taken in favour of SMEs will normally 
include actions in favour of enterprises in the commerce sector. 
46- Specific actions aimed at improving information increasing transparency and raising the 
awareness of the professionals active in commerce have been carried out. The Commission also 
uses the Euro-Info-Centres (EIC) network to distribute targeted information about businesses. 
47- In addition to support from specific enterprise policy initiatives other Community policies 
directly assist the commerce sector in particular via structural policies and training support. 
These and other relevant Community actions are explained more fully in Annex D. 
2.2- The consultative framework 
48- Given the importance of legislation in the area of commerce it is essential that the 
Commission consults closely with the parties concerned. In response to the Council's request 
in its Resolution of 14 November 1989 to reinforce "co-operation between the Commission and 
the Member States by high level meetings of those responsible for internal commerce", the 
Commission set up and meets regularly with a panel of governmental experts on internal 
commerce, as well as with the Directors General of internal commerce from the administrations 
of the different Member States. The meetings help to promote exchanges of information 
between the Member States and the Commission. 
49- It is equally necessary to ensure that commerce is consulted as far up the distribution 
chain as possible and, accordingly, the Commission regularly consults and informs professional 
associations representing commercial enterprises at European level. Commerce is thus 
represented in a certain number of specific consultative committees, e.g. the Consultative 
Committee for Food Products. 
50- Above all, the Commission consults the Committee on Commerce and Distribution (CCD), 
composed of entrepreneurs from commerce, on all Community legislation or questions 
concerning commerce. The CCD has working groups on the internal market, external trade, 
economic and financial questions, the environment, consumer affairs, tourism and leisure, social 
affairs, lifelong learning and the information society. There are also several sub-groups dealing 
with issues of specific interest to commerce , such as company law, distance selling, 
competition and SMEs. The CCD helps the Commission to identify the impact of its draft 
legislation on commerce and therefore the best means of achieving its objectives. 
51 - The Commission intends to promote a dialogue between consumers and traders and to give 
it a strong impetus. This objective will be pursued within an operational framework, with a 
view to encouraging both parties to reflect on how to improve cooperation. 
Decision 93/379/EEC of 14.06.1993, Oi L 161 of 02.07.1993 and Council Decision on a third 
Multiannual Programme for SMEs (1997-2000) 
10 
52- Sector-based social dialogue on commerce has taken place between the European federation 
representing wholesaling and retailing (EuroCommerce) and the European trade union 
representing those employed in the area (Eurofiet). These two organisations have been pursuing 
social dialogue since 1983. In 1993, EuroCommerce and Eurofiet recognised each other as 
social partners within the meaning of Articles 3 and 4 of the Agreement on social policy. This 
social dialogue led to the signature in 1988 of a memorandum on training in retailing. Various 
projects have been pursued by the social partners and supported by Community grants on the 
basis of a transnational partnership: for example, a project under the FORCE programme 
concerning the long-distance training of employers and employees in commerce and another 
project called ASSIST relating to the training of business leaders of SMEs and new employees. 
On September 18 1996 the Commission adopted a communication concerning the development 
of the social dialogue at community level13. 
IV- NEW CHALLENGES FACING COMMERCE 
53- On the eve of the 21st century, commerce is confronted with a broad range of challenges. 
How commerce reacts and adapts to them will impact not only on commerce itself but also 
have repercussions throughout the economy and society of the European Union. The importance 
of commerce as a source of jobs will need to be kept constantly under review as new forms 
of trading are introduced. The evolution of the information society, while providing the tools 
for a more efficient management of the logistics and planning of the sector also provides the 
means for direct and distance selling into the home. While these trends are not likely to replace 
traditional trading methods completely they will have a direct impact on the kind of 
employment available in the sector, the training requirements and the competitiveness. 
1- Ensuring the effectiveness of the Single Market 
54- The Single Market will stimulate commerce and Economic Monetary Union (EMU) will 
further facilitate cross border trade. The impact on local enterprises and communities of this 
development will need to be observed to ensure that consumers as well as entrepreneurs derive 
a benefit. The expected benefits include a wider variety of products from a bigger range of 
sources at more competitive prices. The need to maintain a viable commerce sector will bring 
pressures to improve competivity which in turn may precipitate further changes in the social, 
physical and technical infrastructures of commerce. 
LI- Barriers to the Single Market 
55- From the existing evidence it is already apparent that differing laws affecting the 
establishment of retail operations can severely hamper existing retail groups from expanding 
their operations across Europe since the differing regulations may imply that they have to 
totally alter the shop formats which they have successfully developed in their national home 
markets. These regulations extend from planning regulations to regulations on unfair 
competition, franchising, solvency, pricing etc. They can be general or sector specific (e.g. 
pharmacies). Such differences can undermine the viability of investment seeking to establish 
new retail operations in neighbouring European markets. This issue requires urgent attention. 
56- Similarly, the application of differing national laws on the cross-border use of promotions 
COM (96) 448 final of 18.09.96 
11 
(affecting the cross-border use of relatively new concepts such as customer loyalty cards as 
well as more traditional sales promotions) and on cross-border commercial communications in 
general can restrict the possibility for commerce to expand and benefit from the area without 
frontiers. This affects direct marketing and mail order operators who have to alter the content 
(not just language) of their marketing material when operating across borders. It also affects 
business to business commercial enterprises who rely heavily on direct marketing and 
catalogues. Finally, it can also restrict those retailers near to borders who wish to advertise their 
services to neighbouring non-domestic regions. The Commission is currently considering the 
fragmented regulatory regime in the Internal Market that currently hampers cost effective cross-
border commercial communication services. It published a Green Paper on this issue in May.14 
1.2- Consumers' concerns 
57- The europeanisation of consumer attitudes has also affected the development of the sector 
in the Single Market.Consumers are showing a change in their behaviour, thus establishing new 
challenges to which the commerce sector must adapt, in the same way as that of the production 
sector. Increasingly, consumers are concerned by production methods, together with 
preoccupations about the environment, conditions surrounding production in certain less 
developed countries, or the welfare of animals. 
58- A point of particular concern is food consumption; the concern about BSE, chemical 
residues, genetic modifications, irradiation of food, all contribute to a general unease about food 
quality and relevant controls and responsibilities. Also, the development of Community 
legislation concerning labelling has led to a surfeit of information on labels. There are many 
consumers who are unable to understand or to use these details; on the other hand, some 
information which the consumers would appreciate, such as those concerning safety in the use 
of the product, or its nutritional value, are lacking.Labels must provide a clear message to 
consumers, such as in the case of the European eco-label. An alternative to excessive labelling 
is for shops to give greater information on their policies as regards consumer concerns such as 
the environment, e.g. by identifying "green" products or encouraging recycling. 
59- From a consumer perspective, growing international sourcing expands the variety of 
products that are available in local shops. EU-wide sourcing and more efficient distribuiton 
methods also make those products available at lower prices. Any trend towards price 
convergence will mean that fewer consumers will pay the kind of unreasonably high prices that 
are typical for an environment with segmented markets. 
60- Consumers and traders do not always share a common interest but the pursuit of their 
differing objectives should not give rise to confrontation. It pays both sides to maintain a 
dialogue to ensure that any major differences can be resolved. Both the Consumer Council and 
the Committee on Commerce and Distribution have expressed a wish to have joint consultations 
on some issues. The Commission will take steps to organize such consultation. 
14 "Commercial Communications in the Internal Market" COM(96) 192 final. 
15 See Annex C - Detailed list of community legislative measures 
12 
A number of issues should be addressed to ensure the benefits of the Internal Market are 
fully shared bv the commerce sector: e.g. 
• What can be done to encourage or facilitate greater access for wholesalers and 
retailers across frontiers? 
•What kind of cooperation will permit smaller commercial operators to ensure 
their competitiveness in the Single Market? 
1.3- The introduction of the Euro 
61- The dynamic effect of the Single Market will be greatly enhanced by the introduction of 
the single currency which will ease the burdens of instability of fluctuating exchange rates and 
the associated administrative costs especially on traders involved directly in cross-border 
trading. The Madrid Council of December 1995 endorsed a three-phase scenario for the 
introduction of the single currency. EMU will be launched on 1 January 1999, when the 
exchange rates will be locked and the euro will become the single currency of the monetary 
union. Euro notes and coins will enter circulation by the end of 2001 at the latest. 
62- The introduction of the single currency is of great importance to the distribution chain since 
it will be one of the most affected areas in the economy. The role of traders will be essential 
for it is they who will be asked to "sell" the euro to consumers to familiarize citizens with the 
euro. For many EU citizens, their first practical experience of the euro will be when they are 
shopping. 
63- Preparations for the EMU are gathering pace. The Commission on 16 October 1996 
adopted draft regulation on the introduction of the euro with a view to giving economic 
operators legal security. Inter alia, the proposed legislation defines the legal status of the euro 
and ensures full legal equivalence between the euro and national currency units during the 
transitional period. Moreover, it reaffirms the principle of the continuity of contracts and 
specifies a general rounding rule. It is hoped that agreement on these proposals can be reached 
at the forthcoming Dublin European Council meeting in December 1996. 
64- Retailers will have to convert prices from national currency to the euro. Establishing a price 
list in euros is not just a matter of multiplying through the fixed conversion rate. Prices will 
be set at convenient levels which are effective from a marketing standpoint and, inevitably, 
some prices may need to be adjusted in real terms. Shops will need to assist their customers 
to cope with a new and unfamiliar price structure in euros. Particular attention must be given 
to those citizens who will face most difficulties in making conversions, such as the elderly and 
visually impaired. One possibility to familiarise customers would be to display prices in dual 
form. Other possibilities would be displaying conversion tables, distributing information 
leaflets or placing simple calculators at the disposal of clients. The Commission will shortly 
propose appropriate measures in this specific field. 
65- There will be a new demand for the training of personnel and staff dealing with the general 
public. They will also need to be trained to deal with the change in accounts and use of new 
equipment, particularly during the transitional period. The arrangements for the introduction of 
euro notes and coins and the withdrawal of national notes and coins from circulation will 
COM(96) 499 of 16.10.1996 
13 
present logistical challenges. This phase will last a maximum of six months and must be 
completed by 1 July 2002. Cash handling devices such as vending machines and cash registers 
will need to be adjusted to the technical specifications of euro notes and coins. 
66- EMU will lead to greater price transparency between countries as consumers can more 
easily compare prices in euro. This could result in increased cross-border shopping, especially 
if there are high price differentials between Member States. It could present an immediate 
advantage to commerce and specially to distance sellers and encourage a more rapid 
development of electronic commerce. 
67- The commerce sector needs to prepare for the potential opportunities which the improved 
functioning of the internal market entails. Information and assistance to customers should be 
seen as an important marketing tool to attract a greater market share. 
68- Public authorities have a key role to play in assisting private economic agents to introduce 
the euro, in particular via the provision of precise timely information. For its part, the 
Commission working together with the European Parliament has launched an information 
campaign on EMU. The involvement of all groups of currency users, such as business 
associations, is critical to the success of the programme. Given their central role in assisting 
citizens make the change to the euro, associations representing commerce must be associated 
with this initiative. The Commission is examining how best to achieve this objective. 
National authorities and the Commission are under an obligation themselves to reflect 
how the ongoing communication campaign can address the information needs of this 
sector and how they can facilitate the necessary adjustment process. 
In particular they may wish to address the issues of whether there is a special role for 
Member States, the banks, the large store groups, the professional organisations, other 
specific groups and which of the sector's adjustment problems are specific to the sector. 
2- Enterprise environment 
2.1- Administrative burdens and simplification of legislation 
69- As has been mentioned , since one in three SMEs is involved in commerce actions taken 
in favour of SMEs will benefit the commerce sector directly. The Commission has recently 
issued a number of communications and recommendations in this area which have no legally 
binding effect but act as signals and indications to encourage Member States to be inspired by 
each others' best practices. The Commission has hitherto intervened on the themes of 
improvement of the tax laws and the transfer of SMEs, payment deadlines in commercial 
transactions and the definition of SMEs. 
70- One of the most important issues is administrative and legislative simplification and 
deregulation. Parallel to the report of the Molitor Group, and in the context of the White Paper 
on "Competitiveness, Employment and Growth", the Commission's strategic programme for 
the completion of the Single Market and the Integrated Program for SMEs, a Committee on 
the simplification of the business environment has also been established, with the objective of 
Supra II- 2.1- actions in support of commerce 
14 
exchanging best practices, and focusing on the possibilities of easing the burden on business, 
especially small and medium sized enterprises (SMEs), through legislative and administrative 
simplification. 
71- The Commission has also recently adopted a communication containing a report on the first 
actions in the SLIM initiative aimed at simplified Community and national legislation.The 
reduction of administrative burdens associated with over-regulation and, hence, the reduction 
of costs should be of immediate benefit to the consumers. The complexity of national 
legislation surrounding the sector and its potential constraint on a rapid achievement of the 
objectives of the Single Market together with specific leg'slation on labelling merit special 
attention. The Commission will consider which aspects of legislation affecting this sector would 
benefit from future SLIM initiatives. 
2.2- Training 
72- The evolution in organisation, infrastructure, know-how and methodologies of the sector 
is creating a demand for new or more refined skills. This means that commerce must be 
prepared to invest in training of personnel from the shop floor to senior managers in order to 
take advantage of the new opportunities especially those associated with the introduction of the 
euro and the new information technologies. The Commission already offers support for such 
training within the framework of the Leonardo da Vinci Community programme , which gives 
significant support to a certain number of transnational pilot-projects in this domain.This must 
be reinforced, principally as far as SMEs are concerned. 
73- In addition to the need to train employees in the new techniques and the new environment 
which is emerging from the innovations by traditional means, firms can engage in distance 
training by means of computer networks which can be used for teaching and motivating 
entrepreneurs and their staff on business related subjects. Distance training is extremely 
flexible because it enables training to be carried out without people having to leave their place 
of work. 
23- Statistical information 
74- Without reliable information, economic operators can only take decisions on the basis of 
hypotheses or estimates, a process which itself leads to inequalities between operators as SMEs 
lack the means to conduct large scale research. It is therefore important for those involved in 
commerce, be they economic operators or public authorities, to have at their disposal statistics 
and economic analyses in order to facilitate taking the necessary decisions and to respond 
promptly to the need to adapt. 
75- Accordingly, to improve statistical information an annex on "commerce" was integrated 
into the proposed rules on structural statistics on business presented by the Commission on 
3 April 199520, and which is now awaiting adoption by the Council. Professionals have 
supported this initiative within the CCD: if business charges are to be reduced as much as 
possible, some reliable and detailed statistics are indispensable to the economic players. Some 
18 See Annex D - "training support" 
19 See Annex D - "statistics" 
20 OJ C-146 of 13.6.95 
15 
statistical studies have been prepared and published by Eurostat in collaboration with 
DG XXIII" . Methodological manuals have been drawn up and are available to national 
statisticians in order to have accurate and comparable statistics in the different countries of the 
European Union. 
76- We must nevertheless examine in the context of this Paper whether more needs to be done 
to enable decision makers both private and in public administrations to have a clear up to date 
picture of the current situation and the trends. The sector itself should consider setting"up a 
system (i.e. database) to help increase commercial awareness on the possibilities within the 
Union to meet demand on new products. Any such action would need to take into account 
the additional administrative burden which may be placed on enterprises as a result of 
providing additional statistics. Without such information the increasing globalisation of supply 
and point-of-sale marketing could leave EU entrepreneurs at a disadvantage. 
The commerce sector will benefit from the energetic application of the Commission 
enterprise policy and should immediately tackle with the Commission the problems of 
overregulation, notably in labelling, and the needs for properly structured training for 
both traditional and new skills. It must also examine how the information flow can be 
improved so that i) decision makers in the smaller enterprises are constantly up-to-date 
with the market, and ii) public administrations have the data to understand and to address 
the problems of the sector. 
3- Employment, competitiveness and cohesion 
3.1- The rural environment 
77- Our society depends on trade without which it would loose its dynamism and its cohesion. 
This feature is very apparent in rural areas which cover 80% of Community territory and they-
are very diverse in character. Many rural communities today face a shortage of commercial 
enterprises or primary services, notably in sparsely populated areas with a loose urban 
framework. This phenomenon is not new but it has worsened in the last 15 years with changes 
in lifestyles, patterns of consumption and the distribution chain itself. 
78- The decline of the neighbourhood shop is a symptom of the trend of economic flight from 
rural areas (exodus of the local community, serious reduction in primary activities, especially 
employment in agriculture,) and is a cause for serious concern. When the last shop closes the 
future of the village itself is threatened because commerce is a facility unlike others. 
79- Local commerce is an efficient way of trying to reduce the risk of marginalisation of rural 
populations who must be able to benefit from a wide range of locally-provided services. It is 
sometimes vital to retaining other activities such as providing the natural outlet for local 
craftsmen, especially in tourist areas where trade is highly seasonal. Commerce performs a 
variety of roles: the function of livening up the local community and creating social bonds is 
largely fulfilled by local shops. They are an attraction for the local inhabitants and the 
surrounding area and often become the only meeting place. Commerce performs an 
irreplaceable social function. 
"Retailing in the European single market 1993" and "Retailing in the European economic area", 1993 
and 1995, EUROSTAT and DG XXIII 
16 
80- Local rural shops are usually characterised by limited sales areas, with a reduced selection 
of goods on offer, mostly food items. They are also restricted to customers who live nearby. 
Yet commercial SMEs must be able to offer competitive prices, allowing the local population 
to defend their spending power and to raise their standard of living, especially for elderly 
people. 
81- Ensuring the delivery of products to less-populated areas is one of the most important 
problems facing them. In fact, a price gap between rural shops and the closest medium to large 
sized stores may well be inevitable.Studies examining the establishment of this type of shop 
conclude that the price gap need not exceed 15-20%. Commerce must examine the logistical 
structure (franchise, voluntary chain, purchasing group, electronic ordering) as a means of 
achieving the necessary competitiveness. 
82- Modern sales outlets in rural areas can become multiservice businesses through being a 
medium for postal or banking operations, the orders and delivery department for distance 
selling groups or the contact point for telecommunications networks. The creation of such mini-
service centres in sparsely populated areas can play a part in the development of networks for 
the provision of services to the elderly. Pilot projects undertaken in this area, e.g. in Germany 
(Nachbarschaftsladen 2000), France (1000 villages) and the United Kingdom have shown 
interest in this approach. 
83- The structure of sales patterns in rural and less populated areas can prompt suppliers to set 
themselves up in proximity, along with all the related services they use. Thus, the maintenance 
of commercially viable shops in rural areas has local effects on employment and economic 
activity. This is accentuated in sparsely populated areas, such as islands or peripheral zones. 
Local shops are part of the 17 areas identified by the Commission in its research on Local 
Development and Employment Initiatives (LDEI) and taken up again in the Commission 
Communication on "A European strategy encouraging LDEIs". 
3.2- The urban environment 
84- On the threshold of the 21st century, European cities are still the main economic, 
innovative and cultural centres: 80% of the EU population lives in urban zones. In the era of 
mass consumption, new forms of distribution have changed urban land use with the appearance 
of large out-of-town shopping centres, as well as the widespread establishment of specialised 
shops along arterial routes sparking off or contributing to the economic decline of city centres. 
Inner city, planning and the commercial equilibrium in urban areas are a major political issue 
in many countries. 
85- The development of city centres as locations for the service industries (offices, financial 
services, cinemas, theatres, public administration,) and the consequent rise in the cost of space 
has, in the recent past, put pressure on city centres residence and choice of jobs. A paradox of 
high rents, high prices and high unemployment being organically linked in city centres has its 
effects on commerce. 
86- Some areas face difficulties of supply. These areas normally have other social problems 
not directly related to commerce other than a low effective demand. In some cases the hard 
discount or the supermarket is the only local shop. Nevertheless their requirements for access 
to supplies must be met. In the absence or reluctance of external investors the endogenous 
development of neighbourhood shops in these urban areas seems to be, by its very nature, the 
rational response. It would create employment and also the feeling of safety, as shops are 
17 
meeting places and centres of exchange that further the revitalisation of local communities. 
There is scope for examining the possibility of extrapolating the experience of the large 
retailers who have developped local co-operation in city centres and commercial areas. 
87- An integrated policy in favour of the city seems increasingly necessary. It is a question 
of achieving a balance that takes into account the interests and needs of all inhabitants living 
in urban areas and indeed of society as a whole as well as ensuring that access to the market 
place is kept open and that active competition is maintained. 
88- Commercial development in suburbs, in most cases supermarkets, is already an established 
phenomenon in the northern Member States and in full expansion in southern Member States. 
It is important not only to examine the competition between small traders in city centres and 
suburban supermarkets but also that between big suburban shopping centres and large city 
centre shops, non-food specialised supermarkets, small traders, etc. and to look at competition 
between commercial poles rather than between forms of commerce. 
89- The impact on the environment of passenger journeys undertaken by consumers - usually 
in a car - on their way to and from shopping centres on the urban periphery or green field sites 
has an impact on sustainable long term development of cities. Equally, growing congestion, in 
particular in city centres, has repercussions for commerce, such as difficulty of deliveries and 
rising logistical costs. The environmental impact of the changing infrastructure of commerce 
should be tackled by the different interests working together and the Commission can give a 
lead by stimulating the debate. 
A number of questions should be asked about enhancing competitiveness and ensuring 
stability and social cohesion during the structural adjustments affecting commerce: 
•How can the continuing operation of local small scale commerce despite short 
term economic and market trends be ensured? 
• How can the conflicting interests between environmental objectives, the 
increasing use of the private car as a shopping vehicle and the needs of non-
mobile sections of the population be reconciled? 
• How can the traditional synergy between commerce and the community as 
regards employment and service be maintained? 
4- The Information Society and Commerce 
90- The use of information technologies makes it possible to enhance existing services and to 
create new multi-media services and applications which combine sound, text and visual images. 
The development of these modes of communication provides an opportunity for strenghtening 
the competitiveness of enterprises and opening new perspectives regarding organisation of work 
and job creation. The application of new technologies to everyday life is transforming our 
world into an Information Society. The Commission has recently published several documents 
on this theme". 
Green Paper "Living and working in the Information Society", COM(96) 389 final of 24.07.96, and 
Commission Communications "The Information Society: from Corfu to Dublin - The new emerging 
priorities" and "The implications of the Information Society for European Union Policy - Preparing the 
next steps", COM(96) 395 final of 24.07.96. Commission Communication on "Europe at the forefront 
18 
91- The use of these technologies has provided important opportunities for new commercial 
activities which range from advertising on the Internet to conducting trade transactions 
electronically. Commercial enterprises have to re-examine their strategy and organisation, an 
activity which will have implications as regards training of heads of enterprises and employees 
with an eye to preparing and motivating them for the constant changes which will be necessary. 
The entire distribution chain from the producer to the consumer will have to reorganise itself 
and adapt its structures and strategies accordingly. Relationships with consumers will similarly 
be transformed. It is essential to increase awareness among our citizens, consumers and 
entrepreneurs and to analyze not only the positive effects and new opportunities offered to 
commerce and to consumers, but to examine the risks and negative side-effects which the 
Information Society could engender. 
92- Apart from direct sales to final consumers, enterprises are also interested in examining 
business to business opportunities. These may include catalogues or company brochures which 
enable commercial enterprises to expand their range of potential suppliers and partners, 
financial and solvency information on competitors or suppliers, as well as information on 
markets and on regulatory issues, especially relating to local markets. Commercial enterprises 
may also wish to provide information themselves, mainly to consumers, with the aim of raising 
the company's profile by putting on line information and commercial communications which 
stand a reasonable chance of being seen and the presentation of products via electronic 
catalogues. 
93- All these possibilities are available on systems with a world wide application. Electronic 
commerce increases opportunities for participation in the global market place. It is possible for 
sellers to expand their geographical range without any physical movement. Cross-border sales, 
particularly of SMEs, will accelerate faster through the use of electronic trading than through 
traditional means. It will also increase market opportunities for SMEs in peripheral regions. 
Recognising this global aspect and the strategic importance to involve SMEs as the foundation 
of economic activity and key to innovation, the G7 Pilot Project "Global Marketplace for 
SMEs" offers the opportunity to spread internationally activities and projects launched on a 
regional basis and to allow participation of European SMEs in the global trade market. 
94- Clearly, the changes which companies need to effect to take account of new technologies 
will have an impact upon employment within the distributive trades. The exact nature of these 
repercussions will depend on the share of the market accruing to "virtual" sales. Electronic 
commerce looks likely to acquire an important part of the market, in which case a new division 
of the market will occur possibly to the detriment of traditional forms of selling, such as that 
in shops, with a risk of large scale redundancies, especially in large stores. It is, however, 
premature to exclude the possibility that the stimulus to participate in a larger global market 
will still leave enough room in the new infrastructure for traditional forms of selling to 
maintain their volume even with a smaller share. At the same time, new jobs will be created 
by, for example, new operators on the market or the development of branches specialised in 
electronic commerce, and in packaging and delivery services. It is difficult, however, to 
estimate with any accuracy what the direct effects will be on overall employment or on existing 
commercial enterprises. 
of the global information society: Rolling Action Plan" under preparation. 
19 
Enabling technologies for Electronic Commerce 
Electronic Commerce encompasses a wide range of communication technologies 
including email, fax, EDI, EFT multi-media, shared databases, electronic catalogues and 
directories. Any of these technologies can be used to support electronic commerce, the 
choice will be governed by the context of their use (each is highly appropriate for some 
contexts and inaproppriate for others). 
EDI (Electronic Data Interchange) provides an application-to-application communication 
technology which facilitates the electronic exchange of orders, faster delivery, better time 
management and improved customer satisfaction. 
Internet, email and home pages offers different possibilities of connection and usages and 
seek to reach the widest potential of users at low communication cost. 
Application of EDI has been one of the subjects dealt with in the framework of the 
COMMERCE 2000 action. Though it is well established in European countries, it has 
been perceived by many SMEs to be too complex and too costly in view of their business 
requirements and developments of Internet tools may be easier to acess and may better fit 
their needs. 
On the positive side, Internet tools allow companies to strengthen their brand image, to 
expand their distribution channels and to achieve savings on long distance 
communications. However the current disadvantages are a variable quality of service and 
limited security, especially with regard to payment. 
95- The development of electronic commerce, along with the creation of "virtual" shopping 
centres, could lead to the emergence of new operators in the distribution chain, for example, 
producers of physical goods for whom new technologies could simplify distribution, producers 
of information (computer software, books, films etc.), electronic retailers, specialised in various 
areas, who today use traditional distance selling and new specialised companies which operate 
on the market by using market makers (organisers of electronic markets). There will also be 
new kinds of distributor using systems for the physical distribution of goods adapted to deliver 
directly from the producer to the consumer or in co-operation with an electronic trader or the 
market maker. Such delivery systems have already been developed by enterprises involved in 
distance selling which, in certain cases, guarantee delivery the day after an order has been 
placed. 
96- Other new operators are electronic networks or telecommunications companies, such as 
cable operators, telephone companies or private networks which can provide access to the 
consumer's home and those using market choice boxes (servers designed to facilitate consumer 
use of interactive programmes) through which a vast choice of electronic traders can be 
reached. In effect, these servers help to designate how the telephone, television and computer 
will be combined to link the home to the market place. 
97- Information technologies can contribute to reduce distribution costs to a minimum, for 
example, the sale and distribution of computer software via a communication network. It may 
be possible to reduce distribution costs along the entire length of the distribution chain. 
Electronic links between producers and retailers make it possible to lower costs by reducing 
paper transactions or replacing them entirely by electronic transactions. 
20 
ECR (Efficient Consumer Response) 
ECR involves the setting up of a close partnership between suppliers and distributors with 
the installation of the required technologies, especially the EDI: "just-in-time" deliveries 
by planning orders and automatic replenishing of stocks by sharing sales data; 
management of sales and promotional areas and the joint development of new products. 
A study presented at the "Congress on ECR in Europe" on 25 and 26 January 1996 
indicated that ECR represents total savings of 250 MECU within the EU, equivalent to a 
possible reduction of 5.7% of the retail price. But ECR implies a total re-examination of 
commercial relations between producers and distributors. What is required is a move 
away from flows within the distribution chain pushed by producers to flows pulled by 
demand. 
Development of ECR must be monitored to ensure that both manufacturers and 
consumers continue to benefit from this substantial shift in economic power towards 
retailers. In particular it is important to prevent dependence of the manufacturing 
industry, notably SMEs, on single outlets and consumers choice being dictated by internal 
management decisions geared to company financial considerations rather than consumer 
need (e.g. lowering quality for cost reasons). 
98- In the framework of home shopping teleshopping has became an important activity of 
distance selling. The legal framework for trans-european teleshopping (Directive 89/552/EEC 
"Television without frontiers") is currently under revision. The draft directive concerning the 
protection of consumers in respect of distance contracts (distance selling) is at the conciliation 
stage.The future directives will contain among other measures more specific provisions on 
teleshopping. Home shopping can become more attractive by offering on-line information. The 
development of "virtual shopping centres" is already under way. Home shopping will still 
require the physical delivery of the goods to the purchaser, who no longer has to go shopping 
to get what he/she wants. This will lead to a change in transport pattern - less shopping trips 
but more deliveries, opening up potential employment opportunities. 
99- The potential changes in consumer behaviour, mainly to the degree consumers can put 
confidence in the new systems, will depend on the extent to which they are left safely and 
conveniently able to exploit the facilities offered by new technologies in terms of price, product 
quality, available choice and time savings. 
100- The problem of the security of electronic transactions is already a major subject of 
discussion, the importance of which is growing daily with the development of shopping by 
computer. Electronic commerce needs security for its operations, especially at the payment 
stage, which requires the use of a specific encrypting system, yet it is clear that the current lack 
of any regulation in this area is causing a distortion of the internal market and constitutes an 
impediment to its smooth operation23. The Commission indicated in its Communication on the 
Confidence Pact for Employment presented to the Florence European Council in June 1996, 
that proposals for regulations in the field of electronic commerce are necessary. 
Green paper on the legal protection of encrypted services in the Single Market, COM (96)76 of 
06.03.1996 
21 
In addition to meeting the most immediate challenge of providing an appropriate 
regulatory framework for the development of electronic commerce a number of other 
challenges need to be tackled, e.g.: 
• What will be the role of the Union, the Member States and the trade itself in 
ensuring a secure transparent, integrated and competitive market in the new 
environment? 
•What will be the effect on employment in the sector as a whole as well as 
distinct parts of it? 
• What can be done to enhance the awareness of the sector to the new 
opportunities? 
V- OPTIONS FOR THE FUTURE 
101- The analysis of commerce outlined above, while not exhaustive, provides an overview of 
a number of problem areas which are of concern to many sectors but in which the future health 
of commerce plays a pivotal role. Although these problem areas are extremely complex and 
will be affected by political decisions at many levels involving society at large, there will be 
no lasting solutions to these problems unless we can guarantee a healthy development of 
commerce. 
102- From areas as diverse as town planning and rural development to transactions payment 
security in an environment more and more influenced by information technology, legislators 
can either assist or obstruct the initiatives taken by entrepreneurs to establish a viable 
commerce. Most of these decisions will continue to be taken at national, regional or even local 
level, but the evolution of the internal market will increasingly involve decisions at the EU 
level. The debate on these issues must take place now if the EU is to adapt as painlessly as 
possible to the evolution in progress. 
103- This debate will be in keeping with the subsidiarity principle, if it takes into account the 
three lines of action at Community level: 
• consultation or co-ordination between public authorities through an organised 
exchange of best practices, with the aim of identifying benchmarks for successful 
solutions, 
• co-ordination of Community policies whicn can have an impact on these problem 
areas, 
• action at Community level to the extent necessary to contribute to solving the 
problems. 
104- These different modalities of action have been successfully applied in the field of 
enterprise policy and can therefore serve as useful instruments to indicate the options under 
discussion. 
105- Responses to this Green Paper are invited both to provide information and to suggest 
possible answers or directions to follow. The Commission is conscious of the fact that so many 
daily activities affect the commercial environment or are affected by it that no paper could 
22 
cover all aspects. It firmly believes that without an open public debate on the various issues 
identified in the paper Community enterprises will be disadvantaged in the rapidly evolving 
global market place and may be unprepared for the social adjustments which are taking place 
in the Member States. The Commission believes that by launching a debate now the EU will 
be in a position to supply decision-makers at all levels with a set of options which will allow 
for the necessary initiatives to be taken in time to meet the challenges of the next few decades. 
In the context of the consultations arising from this Green Paper and in the course of 1997 the 
Commission will propose specific measures to deal with the most immediate challenges. 
Accordingly, 
the European Parliament 
the Council of Ministers 
the Member States 
the Economic and Social Committee 
the Committee of the Regions 
representative organisations, the social partners and other bodies active in 
commerce at European or Member State or regional level 
individuals with experience or knowledge of the sectors 
are requested to give their reactions to this Green Paper on the role of commerce in the 
European Union. 
no later than 31 May 1997 
to 
European Commission 
Directorate General XXIII 
"Green Paper on Commerce and Distribution" 
rue de la Loi 200 Wetstraat 
B-1049 Brussels 
For additional information: telephone: (+ 32 2) 295 16 42 
fax: (+ 32 2) 295 89 84 
E-Mail: commerce@dg23.cec.be 
23 
ANNEX A: STATISTICS 
Introduction 
The purpose of the tables and figures in this annex is to present a general panorama of European 
commerce at the beginning of the 1990s. They are based on the most recent data available, which explains 
why the dates are not always uniform within the same table. Originally these data come from the National 
Statistical Institutes, Eurostat databases (Mercure for statistics on services and New Cronos for the 
harmonised national accounts) and sometimes from university or private sources. For the most part they 
are lifted from recent or forthcoming Eurostat publications (cf. following bibliography). In general, the 
statistics reproduced cover macro-economic values (number of enterprises and local units, number of 
persons employed, turnover, valued added, etc.). However, the last three tables relate to the main retailing 
groups (turnover, involvement in international trade) and the main buying syndicates operating at European 
Union level. 
For further information: 
'Retailing in the European single market 1993" DG XXIII and Eurostat 1993, Office for Official Publications 
of the European Communities. 
'Retailing in the European Economic Area" (Supplement to the former publication dealing with the EFTA 
countries), DG XXIII and Eurostat 1995, Office for Official Publications of the European Communities. 
Retailing, services, transport, Monthly Bulletin, Eurostat. 
Forthcoming publications: 
'Retailing in the European Economic Area" Update of the two previous publications, Publication planned for 
1997 (first half of year). 
"Wholesaling in the European Economic Area. Publication planned for 1997 (first half of year). 
'Retailing in the Central and Eastern European Countries (CEECs)" Publication planned for 1997 (first 
quarter). 
<y ?\ 
1. Importance of commerce in the European Union 
Commerce accounts for almost 13% of the total Gross Domestic Product of the 15 countries of the Union, 
employing more than 15% (15.6) of the active population and encompassing almost 30% of enterprises. In 
terms of these three yardsticks countries display substantial differences, which are the result of national 
characteristics, for example the importance of tourism or the predominance of small enterprises. They may 
also arise from the statistical sources and methods used. For this reason any. differences should be 
interpreted with caution as long as the Commission's policy of standardising commerce statistics has not 
been implemented. 
Table 1: Share of commerce1(1991) in the European economy 
% of Gross 2 % of total % of the total 
Domestic Product employment number of enterprises3 
Belgium 15.2 16.3 20.3 
Denmark 12.3 12.1 19.4 
Germany4 10.5 14.8 28.0 
Greece5^ 11.2 12.3 40.0 
Spain 15.4 16.0 33.3 
France 12.6 14.3 27.6 
Ireland 8.7 13.5 30.0 
Italy 15.5 17.3 34.0 
Luxembourg 13.9 15.7 28.1 
Netherlands 12.8 17.9 26.7 
Austria 13.0 14.9 30.5 
Portugal 17.1 14.4 29.8 
Finland 8.9 13.5 24.4 
Sweden 12.0 17.7 23.7 
United Kingdom 11.5 16.5 27.3 
EU 15 12.7 15.6 29.4 
Iceland 11.0 12.0 12.4 
Norway 12.3 14.9 26.1 
EEA 12.7 15.6 29.3 
United States6 14.5 18.3 17.9 
Japan 13,4 18J : 
1 Wholesale and retail trade including recovery and repair. 
2 Gross Domestic Product at market prices. 
3 Share of wholesale and retail trade, data for 1987-1994. 
4 West Germany. 
5 Excluding recovery and repair. 
6 Gross Domestic Product : 1992. 
Source: Eurostat. 
!ï 
Figure 1: Share of commerce in GDP (1991) of countries of the European Union 
Ireland t^&#?&#&&3&&&&&v&&&f#t 
Finland Ë 
Germany Ê 
Greece EMMSSHS 
UK i m 
Sweden E22; 
Denmark ESSS 
France KS&S&s 
^ 
Netherlands 
Austria Luxembourg E 
Spain E 
Belgium ES2S2MS 
Italy i 
Portugal H 3 
il 
1 
H3 
3 
0 8 10 
% of GDP 12 14 16 18 
o?G 
2- Enterprises and employment in European commerce 
2.1- Absolute figures on numbers of enterprises and numbers of persons employed confirm the quantitative 
significance of commerce. At the beginning of the 1990s there were more than 4.5 million enterprises and 
more than 22 million persons employed in commerce. The vast majority of enterprises are small, since the 
average number of gainfully employed persons per enterprise is 4.9 for commerce as a whole, of which 6.3 
in wholesaling and 4.4 in retailing. 
Table 2.1: Enterprises and employment in commerce. Absolute values (in '000) 
Number of enterprises 
Wholesale trade Retail Total Year Number of persons employed 
Wholesale trade Retail Total Year 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy l 
Luxembourg 
Netherlands 
Austria 
Portugal 
Finland l 
Sweden 
United 
Kingdom2 
EU 15 
Iceland u 
Norway M 
EEA 
United States 
Japan 72.9 
37.8 
186.1 
46.8 
73.1 
106.1 
3.4 
235.6 
2.1 
75.8 
18.0 
28.4 
18.3 
39.7 
142.7 
1086.9 
1.4 
20.2 
1108.5 
363.9 
300.0 123.8 
47.6 
435.5 
198.6 
569.7 
417.2 
29.3 
888.3 
3.4 
102.9 
40.0 
132.1 
28.3 
61.4 
348.2 
3426.5 
1.6 
38.3 
3466.4 
1589.1 
1300.0 196.8 
85.4 
621.6 
245.4 
642.8 
523.3 
32.7 
1124.0 
5.5 
178.7 
58.1 
160.5 
46.6 
101.1 
490.9 
4513.4 
3.1 
58.4 
4574.9 
1953.0 
1600.0 1991 
1992 
1993 
1993 
1992 
1994 
1993 
1991 
1993 
1994 
1994 
1993 
1993 
1993 
1991 
1992 
1993 
1987 
1988 234 
166 
1692 
108 
485 
975 
45 
1078 
12 
403 
196 
197 
89 
191 
921 
mm 
7 
107 lltll 5609 
4332 275 
199 
3285 
471 
1537 
2040 
151 
2389 
20 
637 
290 
364 
116 
288 
3030 509 
365 
4978 
579 
2022 
3015 
196 
3467 
32 
1040 
486 
561 
205 
479 
3951 
15215 22112 
8 15 
123 230 
15346 22357 
12820 18429 
6851 11183 1992 
1992 
1993 
1993 
1992 
1994 
1993 
1990 
1993 
1994 
1994 
1993 
1993 
1993 
1991 
1992 
1993 
1987 
1991 
Persons employed: full-lime equivalent. 
2 Persons employed in retailing : 1980 
-*' Wholesale trade: including motor vehicles 
^ Data on local units 
Source: Eurostat. 
IV tf 
2.2- Five countries account for the major share of enterprises in the European Community: Italy (almost 
25%), Germany (14 %), Spain (14 %), France (12 %) and the United Kingdom (11%).These countries also 
have the largest shares in terms of employment, but in a different order: Germany (23 %), United kingdom 
(18.%), Italy (16 %),France (14.%) and Spain (10.%). 
Table 2.2: Breakdown of commerce in the European Union 
Number of enterprises 
Wholesale trade Retail Total Number of persons employed 
Wholesale trades Retail Total 
Shares 
(%) 
Belgium 
Denmark 
Germany 
Greece 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Austria 
Portugal 
Finland 
Sweden 
United 
Kingdom 
EU 15 6.7 
3.5 
17.1 
4.3 
6.7 
9.8 
0.3 
21.7 
0.2 
7.0 
1.7 
2.6 
1.7 
3.7 
13.1 
il00;0 3.6 
1.4 
12.7 
5.8 
16.6 
12.2 
0.9 
25.9 
0.1 
3.0 
1.2 
3.9 
0.8 
1.8 
10.2 4.4 
1.9 
13.8 
5.4 
14,2 
11.6 
0.7 
24.9 
0.1 
4.0 
1.3 
3.6 
1.0 
2.2 
10.9 
100.0 100.0 3.4 
2.4 
24.5 
1.6 
8.6 
14.1 
0.7 
1.5.6 
0.2 
5.8 
2.8 
2.8 
1.3 
2.8 
13.4 
100.0 1.8 
1.3 
21.6 
3.1 
10.9 
13.4 
1.0 
15.7 
0.1 
4.2 
1.9 
2.4 
0.8 
1.9 
19.9 2.3 
1.6 
22.5 
2.6 
10.2 
13.6 
0.9 
15.7 
0.1 
4.7 
2.2 
2.5 
0.9 
2.2 
17.9 
100.0 100.0 
V olcP 
3- Retail outlets in the European Union 
The number of retail shops in the countries of the European Union is estimated at almost 4 million. They are 
situated primarily in Italy, France, Germany, Spain and the United Kingdom. The ratio of the numbers of 
shops to enterprises is 15, a measure of the predominance of enterprises with one shop. The number of 
shops per 1 000 inhabitants is obviously very high in countries with a strong tourist industry such as 
Portugal, Greece, Italy, but this is not the only relevant factor, as demonstrated by the number of persons 
employed per shop. The United Kingdom has the highest number of persons employed per shop and one of 
the lowest number of shops per 1 000 inhabitants. Greece and Italy have the shops with the smallest 
number of persons employed. 
Table 3: Retail outlets in the European Union (1990) 
Belgium 2 
Denmark 
Germany 3 
Greece 2 
Spain 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Austria 
Portugal 2 
Finland 
Sweden 
United Kingdom 2 
EU 15 
Iceland 
Norway 
EEA 
United States 
Japan Number of outlets 1 
(1000) 
1 Data for 1986-1990. 
2 Eurostat estimate. 
3 West Germany. 
Source: Eurostat. Outlets per 
1000 
inhabitants 
140.0 
51.5 
533.7 
184.9 
523.2 
546.1 
31.7 
983.0 
4.4 
119.4 
52.5 
190.0 
39.7 
72.2 
466.6 
3939.0 
1.7 
39.5 
3980.2 
1929.3 
1619.8 14.1 
10.0 
8.5 
18.4 
13.4 
9.7 
9.0 
17.1 
11.6 
8.0 
6.9 
19.2 
7.9 
8.5 
8.1 
11.3 
6.7 
9.3 
11.2 
8.3 
13.3 Employees 
per outlet 
2.0 
3.9 
4.4 
1.8 
2.7 
3.8 
4.1 
2.4 
4.1 
3.4 
4.8 
3.1 
4.6 
4.2 
6.5 
3.5 
4.7 
3.1 
3:6 
6.6 
4.2 
VI 
Austria 
Finland 
Netherlands 
UK 
Sweden 
Germany 
Ireland Figure 2: Density of retail outlets (1990) 
France 1 
Denmark l2 
I uxembourg E 
mmm 
.} .gium 
Italy 
Greece i -i 
Portugal fcwssa 
5 10 
N ir>iLier of outlets per 1000 inhabitants 20 
VII JO 
4- Breakdown of retail enterprises by activity 
Taking the European Union as a whole, almost 31% of enterprises primarily sell food and beverages, 18.5% 
clothing and footwear, 13.4% household appliances. Thece percentages vary considerably from country to 
country. For example, food retailing is particularly highly developed in the Mediterranean countries, but also 
in Ireland and in the United Kingdom. However, it should not be forgotte.i that some of the divergences 
may arise from difficulties in classifying enterprises by activity. 
Table 4: Breakdown of œtail enterprisas by main sector of activity (%) 
Food, 
beverages, 
tobacco Textiles, 
clothing, 
footwear Household 
appliances Motor 
vehicles, 
including 
fuel Miscell­
aneous Total Year 
Belgium 
Denmark 
Germany 
Greece 1 
Spain 
France 
Ireland2 
Italy 
Luxembourg 
Netherlands 
Austria1 
Portugal 
Finland 
Sweden 
United 
Kingdom 
EU 15 
Iceland 3-4 
Norway 1 
Ilillllll 28.0 
24.5 
20.8 
29.5 
39.7 
26.1 
54.0 
33.3 
23.8 
20.0 
27.2 
39.7 
24.3 
23.1 
36.7 
30.8 
30.7 
29.2 
30.8 18.2 
16.4 
15.6 
19.5 
20.3 
19.0 
9.0 
22.8 
18.8 
18.3 
"7.3 
18.8 
13.4 
1". 
6 
18. 
19.1 
16.3 
18.5 12.7 
16.8 
16.9 
14.8 
13.4 
11.2 
4.4 
11.7 
15.6 
21.1 
7.4 
7.4 
10.2 
18.2 
15.7 
13.4 
1 1 
^.3 
13.3 10.0 
13.9 
12.5 
7.7 
3.2 
15.3 
11.5 
6.1 
15.5 
8.3 
12.6 
5.5 
13.1 
12.4 
24.6 
10.2 
12.1 
10.2 31.1 
28.5 
34.2 
28.5 
23.4 
28.4 
21.0 
26.0 
26.4 
32.4 
35.5 
28.6 
39.1 
30.6 
14.4 100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 
100.0 1988 
1992 
1992 
1988 
1988 
1992 
1988 
1991 
1993 
1994 
1994 
1993 
1993 
1993 
1992 
27.1 100.0 
41.2 100.0 1992 
34.1 100.0 1993 
27.2 100.0 
1 Data relating to local unit. 
2 Food, beverages, tobacco, including cafés where more than 50 % of alcoholic drinks are consumed 
on the premises 
3 Data for retail outlets 
4 Excluding motor vehicle distribution.. 
Source: Eurostat. 
VIII 3/ 
5- Employment in retail distribution 
At the beginning of the 1990s, slightly more than 70% of the active population in commerce were 
employees, of which just over 55% were women, while part-time working was particularly prevalent (almost 
28% of total employment). The Mediterranean countries, Greece and Italy, are those which have fewest 
employees: in these countries independent traders predominate. In contrast, in the countries of northern 
Europe, the percentage of employees is 80% or higher. In the case of female employment, the average 
level (55%) is exceeded in most countries of northern Europe and Austria while Greece, Spain, France and 
Italy record female employment levels below the average. The frequency of part-time work appears linked 
to that of female employment and is particularly high in northern European countries. 
Table 5: Employment characteristics in retail distribution 
Belgium J 
Denmark 
Germany 
Greece ^ 
Spain 
France 3 
Ircland4 
Italy 
Luxembourg D 
Netherlands" 
Austria 7 
Portugal 
Finland ° 
Sweden 
United Kingdom** 
EU 15 9 
Iceland 
Norway 
EEA 10,11 Share of total employment %) 
Employees Women 
54.1 
84.9 
84.8 
28.9 
55.4 
78.0 
72.9 
33.6 
87.4 
80.0 
84.9 
75.8 
81.0 
79.8 
84.4 
70.5 
85.8 
89. Q 58.1 
52.5 
64.8 
43.6 
51.9 
50.3 
45.6 
44.4 
51.6 
56.7 
62.4 
43.4 
68.8 
60.8 
58.4 
55.2 
63.0 
5513 Part-time 
workers 
17.4 
35.0 
39.0 
3.3 
6.4 
19.3 
23.2 
11.5 
34.6 
13.0 
5.1 
38.2 
38.4 
111 
47.0 
28:2; Year 
1989 
1992 
1993 
1988 
1992 
1993 
1991 
1991 
1993 
1990 
1991 
1993 
1993 
1993 
1991 
1992 
1993 
Part-time workers: Eurostat estimate. 
Employees and part-time workers: Eurostat estimate. 
Women: 1989' 
Women : Eurostat estimate 1988. 
Women and part-time workers: Eurostat estimate 1989. 
Women : Eurostat estimate. 
Part-time workers: 1988. 
Excluding motor vehicle distribution 
Share ol part-time workers: excluding Italy and Finland.. 
0 Share of women: excluding Iceland. 
1 Share of part-time workers: excluding Italy, Finland et Iceland. 
Source: Eurostat. 
IX 3L 
Figure 3: Share of employees in total employment (1988-1993) 
Italy "k 
H 
Belgium pi 
Spain 
Ireland 
Portugal 
France 
Sweden fS 
Netherlands 
Finland 
-I 
UK 
Austria 
Denmark 
Germany 
Luxembourg 
10 30 40 50 60 70 
% share in total employment 80 90 
6- Turnover in commerce 
At the beginning of the 1990s total turnover in retail distribution in the 15 countries of the European Union 
was about ECU 1600 billion. By comparison, it should be<borne in mind that the Gross Domestic Product, 
which is the sum of the final uses of goods and services, was estimated at ECU 5400 billion in 1992. Four 
countries, Germany, the United Kingdom, France and Italy accounted for 74% of this total. The average 
turnover per enterprise (ECU 471 000) and per persons emplayed (ECU 110 000) varies greatly between 
countries. These disparities are a clear reflection of the very greg.t diversity of European countries. 
Table 6: Characteristics of turnover in retail distribution 
Turnover 
Total 
(billion ECU) %) Average turnover per : 
enterprise persons employed 
(1000 ecu) (1000 ecu) Year1 
Belgium 
Denmark 
Germany 
Greece 2 
Spain ^ 
France 
Ireland 
Italy 
Luxembourg 
Netherlands 
Austria 
Portugal 
Finland 
Sweden 
United Kingdom 4 
EU 15 
Iceland 
Norway 
EEA 
t 51.4 
24.8 
430.3 
20.0 
119.8 
260.0 
12.2 
230.0 
3.8 
69.3 
38.1 
26.5 
17.6 
39.6 
283.2 
1626.5 
1.1 
24.0 
1651.6 3.2 
1.5 
26.5 
1.2 
7.4 
16.0 
0.7 
14.1 
0.2 
4.3 
2.3 
1.6 
1.1 
2.4 
17.4 
100.0 
Reference year for turnover. May differ for enterprises and persons 
2 Eurostat estimate. 
3 Excluding enterprises in motor vehicle distribution. 
Turnover including VAT. 
Source: Eurostat 402 
522 
859 
114 
234 
563 
415 
259 
1106 
693 
951 
200 
622 
645 
813 
471 
645 
628 
473 
employed. 
X 187 
125 
131 
59 
86 
124 
92 
96 
193 
113 
131 
73 
151 
138 
93 
•ill! 
135 
195 
mm 1990 
1992 
1992 
1990 
1992 
1990 
1991 
1990 
1993 
1992 
1994 
1993 
1993 
1993 
1992 
1992 
1993 
33 
7- Sales formats 
During the past thirty years the general food sector has experienced a rapid development of new sales 
structures (discount stores, supermarkets, hypermarkets). These new formats, which are not always 
initiated by large enterprises, have substantially reduced the proportion of traditional sales formats. Table 7 
shows that in Germany, Spain and the United Kingdom, they account for 75% or more of food distribution. 
Table 7 : Market share of sales formats in the food sector (%) (1994) 
Germany France1 Italy' Spain" United 
Kingdom2 
"Discount" store 27.6 
Supermarket 29.7 
Hypermarket (superstores in the 24.3 
United Kingdom) 
Sub-total 81.6 
Others (mini-markets, traditional 18.4 
stores, convenience stores) 
Total 100.0 4.0 
24.6 
30.5 
59.1 
40.9 
100.0 5.7 
27.2 
11.4 
44.3 
55.7 
100.0 9.0 
36.5 
30.5 
76.0 
24.0 
100.0 9.0 
66.0 
75.0 
25.0 
100.0 
1 Of total food distribution. 
2 Of grocery distribution. 
Source: EHI. INSEE, S&P. NIELSEN, IGD. 
8- The main distribution groups in the world 
Table 8: The top 15 distribution groups in the world 
Ranking 
1° 
2° 
3° 
4° 
5° 
6° 
7° 
8° 
9° 
10° 
11° 
12° 
13° 
14° 
15° Company Country 
Wal Mart USA 
Sears Rebouck USA 
Metro-Kaufhof-Asko D 
K Mart USA 
Téngejmann D 
Ito Yokado J 
Carrefour F 
The Daiei J 
Edeka D 
American Stores USA 
Promodés F 
Safeway USA 
Jusco J 
Super Valu USA 
A & P USA 1992 turnover 
(billion dollars) 
51 
48 
43(1) 
35 
30 
24,5 
24 
19 
18 
17,5 
17 
15 
14 
12,7 
12(1) 
(1) Estimate 
Source: N. D. Basile & R. Garosci "Commercio e Grande Distribuzione: La sfida del 2000" - 1995 
XI 3^1 
9- Main European retail distribution groups 
The market presence of the major European retailing groups, which operate mainly in the food sector, is 
also an indication that concentration has advanced more rapidly in northern Europe. Within the leading 
European retailing groups, the first sixteen, classified by turnover, are German, French and British. The 
other groups come from the Netherlands, Belgium, Sweden and Switzerland. There is just one Spanish 
group in the top twenty-five. Some of these groups have speeded up growth by acquiring corporations 
engaged in other forms of retail distribution. One name, originally active in the wholesale and cash and 
carry market, has substantially increased the retailing share of its total sales by purchasing large chain 
stores and acquiring holdings in food distribution. Large mail order companies have been acquired by large 
chain store operators for the same reason. 
Table 9 : Main retailing groups 
Group Country Main activity Turnover 1991-1992 
(billion ECU) 
Tengelmann 
Metro 1 
Rewe 
Carrefour2 
Intermarché 
Leclerc 
Albrecht (Aldi) 
Edeka 
J. Sainsbury 
Promodès 
Tesco 
Pinault-Printemps 
Otto Versand 
Spar 
Casino-Rallye 
Asko 3 
Ahold 
Karstadt 4 
Marks & Spencer 
Schickedanz 5 
ICA 
Delhaize Le Lion 
El Corte Ingles 
Argyll 
Vendex 
International Germany 
Germany 
Germany 
France 
France 
France 
Germany 
Germany 
United 
Kingdom 
France 
United 
Kingdom 
France 
Germany 
Germany 
France 
Germany 
Netherlands 
Germany 
United 
Kingdom 
Germany 
Sweden 
Belgium 
Spain 
United 
Kingdom 
Netherlands , non-food, inter-industry, 
and-carry Food 
Food 
cash-
Food 
Food 
Food 
Food 
Food 
Food 
Food 
Food 
Food 
Chain stores 
Mail order 
Food 
Food 
Food 
Food 
Large chain stores, mail order 
Large chain stores, food, clothing 
Mail order, food 
Food 
Food 
Large chain stores, food 
Food 
Non-food, inter-industry 22.8 
22.6 
18.5 
16.2 
15.4 
15.3 
13.4 
13.2 
13.1 
11.0 
10.8 
10.7 
10.2 
10.1 
10.0 
9.9 
9.8 
9.3 
8.6 
8.4 
7.5 
7.3 
7.1 
7.0 
7.0 
1 Owns Kaufhof and shareholdings in Asko 
2 Owns Euromarché. 
3 Owns Coop AG. 
4 Owns Neckermann. 
5 Owns Quelle. 
Sources : Eurostat: Institute of Retail Studies (1RS), University of Sterling. 
XII 75 
10- International turnover of main European retailing groups 
During the last ten years, wholesale and retaile distribution enterprises have stepped up initiatives aimed at 
internationalisation. In the case of food distribution, initiatives to expand internationally have been taken 
mainly by the following countries: France, Germany, United Kingdom, Belgium and the Netherlands. 
Among the sales formats most frequently adopted outside national frontiers have been the hypermarket (by 
French corporations) and the discount stores (by German companies). 
Table 10 : International turnover of European retailers (1990-91) 
International turnover 
Corporation Country Main activity Amount 
(Million ECU) % of total 
turnover of the group 
Tengelmann 
Metro. 
Promodès 
Delhaize Le Lion 
Ahold 
Otto Versand 
Carrefour 
Vendex 
International 
Aldi 
Ikea 
Auchan 
J. Sainsbury 
Marks & Spencer 
GUS 
Au Printemps 
La Redoute 
Quelle 
Dixons 
Docks de France 
Casino 
Ratners Germany 
Germany 
France 
Belgium 
Netherlands 
Germany 
France 
Netherlands 
Germany 
Sweden 
France 
United 
Kingdom 
United 
Kingdom 
United' 
Kingdom 
France 
France 
Germany 
United 
Kingdom 
France 
France 
United 
Kingdom Food 12 656.4 
Food, non-food, inter- 6 036.1 
industry, C&C 
Food 5 506.2 
Food 5 283.0 
Food 4 548.3 
Mail order 3 602.2 
Food " 3 414.7 
Non-food, inter-industry • 2 808.7 
Food 2 520.0 
Furniture 2 138.2 
Food 1 413.2 
Food 1 356.3 
Large chain stores, food, 1 055.5 
clothing 
Mail order 1 013.6 
Large chain stores 986.0 
Mail order 879.3 
Mail order 759.9 
Electrical goods 726.2 
Food 508.4 
Food 449.3 
Jewellery and related articles 348.2 55.7 
35.0 
34.4 
72.4 
50.6 
45.9 
31.1 
35.3 
20.0 
76.2 
15.3 
11.8 
12.7 
26.9 
20.2 
35.0 
10.6 
30.6 
13.3 
6.1 
27.6 
Sources : Eurostat, Institute for Retail Studies (1RS), Sterling University. 
XIII 3<* 
Table 11: Main European buying and distribution groups(1993) 
Group Corporation 
members Creation date Base Turnover 
1991 (billion ECU) 
EMD 
(European Marketing Distribution 
AG) Markant (D) 
NISA Today's (UK) 
Selex (E,l) 
Zev-Markant (A) 
Superkob (DK) 
Musgrave (IRL) 
Uniarme (P) 1988 Switzerland 63.3 
Deuro/MIAG 
(Deuro Buying AG/Metro 
International AG) Metro (D,F,I,A,DK) 
Carrefour (F,E,P) 
Makro (NL) 1990 Switzerland 52.2 
AMS 
(Associated Marketing Services) ICA (S) 
Kesko (SF) 
Allkauf (D) 
Rinascente (I) 
Hakon (N) 
Mercadona (E) 
JMR (P) 
Superquinn (IRL) 1990 Switzerland 46.8 
ERA 
(European Retail Alliance) Ahold (NL) 
Argyll (UK) 
Casino (F) 1989 Luxembourg 21.9 
Eurogroup Rewe (D) 
Coop (CH) 
Paridoc (F) 
GIB Group (B) 
Vendex Food (NL) 1988 Germany 43.0 
CEM 
(Cooperation Européenne 
de Marketing) Edeka (D, DK) 
CRAI (I) 
Conad (I) 
Booker (UK) 
UDA (E) 1989 Belgium 41.6 
NAF 
(Nordisk Andelsforbund) KF-group (S) 
Coop (DK, I) 
SOK (SF) 
EKA (SF) 
NKL (N) 
CWS (UK) 1918 Denmark 36.9 
BIGS 
(BIGS Buying International Group 
SPAR) Spar(D,UK,A) 
Axel Dagab (S) 
Unil (N) 
TukoSpar (SF) 
Despar (I) 
Unigro (NL) 
Dagrofa (DK) 
Unigrobel (B) 
BWG (IRL) 
Bernag Ovag (CH) 
Hellaspar(GR) 1990 Netherlands 31.5 
Sources : Eurostat: Cescom - Bocconi University, Milan. 
XIV aï 
ANNEX B 
AREAS DIRECTLY CONCERNING COMMERCE SUBJECT TO NATIONAL REGULATIONS 
Rules on the creation of enterprises 
Italy and Belgium regulate commercial activities by requiring the possession of a diploma or 
professional experience in order to open a shop. In contrast, in France, Germany, Portugal and 
the United Kingdom, only some activities, such as the sale of arms and munitions and that 
of alcoholic beverages, are regulated. As regards itinerant trade an authorization or licence is 
generally required but the precise means and conditions vary from one country to another. 
Furthermore, it is the local authorities which regulate the conditions for the exercising of a 
profession in a particular area (local permits, permitted or prohibited zones). 
Regulation of the siting and rental of commercial premises 
As regards the construction of commercial premises, in Italy, France and Belgium specific 
regulations requiring the authorization of stores above a certain size threshold have been in 
force since the 1970s. At the beginning of 1996, Spain introduced similar legislation. In 
other Member States, such as the Netherlands and Germany, it is urban planning laws which 
determine the use of building. In effect, each country has its own particular set of regulations. 
The same applies to regulations governing the rental of commercial premises with precise and 
relatively protective regulations existing in France, freedom of negotiation between the parties 
in the United Kingdom and a variety of other situations in between in the other Member 
States. 
Opening Hours 
One of the most representative examples of differentiation between "national policies" are 
regulations relating to shop opening hours, legislation which can have an important impact 
in border areas. As a result of cultural and historical differences, such legislation varies 
enormously from one Member State to the other. In certain countries, France, for example, 
opening hours are not regulated directly but by labour laws. As regards Sunday trading, the 
situation is even more complex ranging from complete freedom to total closure: in Scotland 
and Sweden, freedom to open is the rule; in France numerous exceptions exist permitting the 
employment of staff, while the owner may also open on his own if he so wishes; in Italy and 
Greece derogations exist for tourist regions: in Germany virtually all shops are closed. 
There is no secondary Community legislation in this field and the Court of justice has had the 
opportunity on numerous occasions to give its opinion on the divergences between national 
legislation. The court's position has always been the same: it considers that these regulations 
are the competence of the Member States and that Article 30 does not apply if the regulation 
applies in the same way to all economic operators selling national products and those 
originating in other Member States, both in law and in practice.1 
See cases: Torfaen Borough Council, 23.1 1.1989, C-145/88, Rec. p.3851; Conforama, 28.02.1991, C-
3 12/89, Rec. p.997; Norwich City Council, 16.12.1992, C-169/91 ; Punto Casa SpA, 02.06.1994. C-69/93 
and C-258/93. 
XV 
3? 
Consumer Protection and Unfair Practices 
There are many EU directives relating to consumer protection and unfair practices (especially 
as concerns misleading advertising, general product safety, doorstep selling, indication of 
prices and labelling, and unfair contract terms), but national regulations are still important. 
The EU directives in question may constitute for many Member States a reference base on 
top of which they have imposed stricter obligations on commercial enterprises. In areas such 
as guarantees of consumer goods, regulation continues to be at national level even though 
there is Community initiatives2. 
Major differences also exist between regulations relating to promotional activities. 
Accordingly, in Belgium there is a detailed and complete regulation on the subject (law of 
14 July 1991) covering special promotions, sales, closing down sales, discounts and free gifts. 
Selling at below cost price in Belgium is not allowed. In Italy, on the other hand, it is 
permitted (law 80 of 19 March 1980) whereas closing down sales and sales in general are 
strictly regulated. Similarly, in the United Kingdom and France it is obligatory to indicate 
both the original price and the new price in the case of price reductions but in Germany there 
is no obligation in this area. 
Proposal tor a directive on the sell of consumer goods and associated garanties, COM(95) 520 final of 
18.06.96 
XVI 
Si 
ANNEX C - A DETAILED LIST OF COMMUNITY LEGISLATIVE MEASURES 
EU legislation directly concerning commerce 
There are a number of directives concerning the implementation of freedom of establishment 
and freedom to provide services: 
i. wholesaling (Directive 64/223/EEC), 
ii. retailing (Directive 68/363/EEC), 
iii. commercial intermediaries, industry and crafts (Directive 64/224/EEC), 
iv. commercial agents (Directive 86/653/EEC), 
v. ambulant trade (Directive 75/369/EEC), 
vi. teleshopping (Directive 89/552/EEC "Television without frontiers"). 
Technical harmonization and the removal of barriers caused by differences in 
national product legislation (main regulations) 
A first set of (horizontal) directives on product composition deals with product ingredients: 
i. directive on authorised food additives (89/107/EEC) 
ii. directive on colouring (62/2645/EEC - 94/36/EC) 
iii. directive on sweeteners (94/36/EEC) 
iv. directive on additives other than colouring or sweeteners (81/712/EEC - 95/2/EC) 
v. directive on flavourings (88/388/EEC) 
vi. directive on the inventory of the source materials and substances used in the 
preparation of flavourings (88/389/EEC) 
vii. directive on preservatives (64/54/EEC) 
viii. directive on specific purity criteria for preservatives (65/66/EEC) 
ix. directive on emulsifiers, stabilisers, thickeners and gelling agents (74/329/EEC) 
x. directive on specific purity criteria for emulsifiers, stabilisers, thickeners and gelling 
agents (78/663/EEC) 
xi. directive on purity criteria for antioxidants (78/664/EEC) 
xii. directive on erucic acid (76/621/EEC) -
The Directives on manufacturing methods regulate various aspects of the production process. 
i. directives on methods for the quantitative analysis of binary textile fibre mixtures 
(72/276/EEC) 
ii. directives on methods for the quantitative analysis of ternary fibre mixtures 
(73/44/EEC) 
A different set of directives contain (vertical) product legislation for specific food products: 
i. directive on cocoa and chocolate (73/241 /EEC) 
ii. directive on sugar (73/437/EEC) 
iii. directive on honey (74/409/EEC) 
iv. directive on fruit juices and similar products (93/77/EEC) 
v. directive on fruit jams, jellies, marmalades and chestnut puree (79/693/EEC) 
vi. directive on preserved milk (76/118/EEC) 
vii. directive on edible caseins and caseinates (85/503/EEC) 
viii. directive on natural mineral waters (80/777/EEC) 
ix. directive on other water for human consumption (80/778/EEC) 
XVII id 
x. directive on coffee and chicory extracts (85/59/EEC) 
The internal market program lays down the following packaging directives for the 
composition of materials and articles intending to come into contact with foodstuffs: 
i. directive on vinyl chloride monomer (78/142/EEC) 
ii. directive on testing migration of constituents of plastic materials and articles 
(82/711/EEC) 
iii. directive on ceramics (84/500/EEC) 
iv. directive on plastics (82/711/EEC) 
v. directive on regenerated cellulose film (93/10/EEC) 
Several legislative measures relate to product safety and hygiene: 
i. directive on hygiene and foodstuffs (93/43/EEC) 
ii. regulation on contaminants in food (93/315/EEC) 
iii. directive on airborne noise emitted by household appliances (86/594/EEC) 
iv. directive on toy safety (88/378/EEC) 
The following directives and regulations with labelling: 
i. directive on the identification of foodstuffs by lots (89/396/EEC) 
ii. directive on nutrition labelling rules (90/496/EEC) 
iii. regulation on spirit drinks (1576/89) 
iv. directive on labelling of foodstuff prices (79/5 81/EEC) 
v. directive on and resolution on the labelling of non-food product prices (88/314/EEC -
Resol. of 07.06.88) 
vi. directive on the indication by labelling of the energy consumption of household 
appliances (92/75/EEC) 
vii. directive on labelling and standard product information of the consumption of energy 
and other resources by household appliances (92/75/EEC) 
viii. directive on textile names (71/307/EEG) 
ix. regulation on geographical indications and designation of origin (Reg. (EEC) 
n°208"i/92) 
The following legislation deals with testing, certification and enforcement: 
i. directive on the verification procedure of purity criteria for certain additives 
(87/712/EEC) 
ii. directive on .the certification of the specific character of foodstuffs with a particular 
nutritional purpose (89/398/EEC) 
iii. decision on the standing committee for foodstuffs (85/7/EEC) 
iv. decision on the advisory committee for foodstuffs (80/1073/EEC) 
v. directive on the official inspection of foodstuffs (93/99/EEC) 
vi. directive on additional measures concerning the control of foodstuffs (89/397/EEC) 
vii. directives on methods of analysis necessary for checking the composition of cosmetic 
products (80/1335/EEC, 82/434/EEC, 83/514/EEC, 85/490/EEC, 93/73/EEC) 
XVIII 
1/ 
Elimination of border controls and abolition of border formalities 
Several regulations and directives achieve the elimination of frontier controls: 
i. regulation on Community Transit (3648/91) 
ii. regulation on the use of TIR and ATA carnets in Community Transit (3237/96) 
iii. regulation on the abolition of customs formalities at internal frontier crossings 
(3648/91) 
iv. regulation on the elimination of transport checks at frontiers (4060/89) 
v. regulation on the abolition of certain internal frontier controls into the filed of road 
and inland waterway transport and their transfer to the Community's external frontier 
(4060/89) 
vi. directives on exemption from VAT for the final importation of goods (83/181/EEC) 
xi. directive on the refund of VAT for taxable persons not established in the country 
(79/1072/EEC) 
Indirect taxation (VAT and Excises) - Main directives 
i. Sixth Council directive on the uniform basis of assessment (77/388/EEC, last amended 
94/42/EC)) 
ii. Eighth Council directive relating to turnover taxes-refund of value added tax to taxable 
persons not established in the territory of the country (79/1072/EEC) 
iii. Thirteenth Council directive relating to turnover tax-refund of value added tax to 
taxable persons not established in Community territory (86/560/EEC) 
iv. directive on excise duties : general arrangements, holding and movement of excise 
duty products (92/12/EEC, amended by 92/108/EEC and 94/74/EC)) 
v. directive on the approximation of taxes on cigarettes (92/79/EEC) 
vi. directive on the approximation of taxes on manufactured tobacco other than cigarettes 
(92/80/EEC) 
vii. directive on the harmonization of structures of excise duty on mineral oils 
(92/81/EEC) 
viii. directive on the approximation of excise duty rates on mineral oils (92/82/EEC) 
ix. directive on the harmonisation of the structures of excise duties on alcohol and 
alcoholic beverages (92/83/EEC) 
x. directive on the approximation of the rates of excise duty on alcohol and alcoholic 
beverages (92/84/EEC) 
xi. directive on taxes other than turnover taxes which affect the consumption of 
manufactured tobacco (95/59/EC) 
The liberalization of road transport 
A quite extensive legislative framework underlies the creation of the internal market in road 
transport by trucks. 
i. regulation on road carriage between member states (881/92/EEC ) 
ii. regulation on inland cabotage for carriage of goods by road (3921/91) 
XIX 
^ 
iii. proposal for a directive on the admission of the occupation of road transport 
operator and mutual recognition of diplomas (74/562/EEC). 
Relevant Environment Legislation 
i. regulation on a Community eco-label award scheme (880/92/EEC) 
ii. directive on packaging and packaging waste (94/62/EC) 
iii. directive on batteries and accumulators containing certain dangerous substances 
(91/157/EEC). 
XX 
Uft 
ANNEX D 
VARIOUS ACTIONS AT COMMUNITY LEVEL AFFECTING COMMERCE 
a. Consumer protection legislation 
It is traders who are in daily contact with consumers - their customers - and, accordingly, 
commerce and distribution are very much involved in consumer protection. Consumer 
protection regulations are currently being developed, especially as regards the safety and 
quality of goods, the security of transactions (in particular as regards indication of prices, unit 
pricing, advertising, consumer credit and unfair terms), as well as guarantees and access to 
justice. Faced with these changes, which have a particular effect on the daily life of EU 
citizens, commerce attaches a great deal of importance to providing consumers with adequate 
information and products and service in conformity with the law, a process which begins at 
the point of sale. The Community has adopted Directive 84/450/EEC on misleading 
advertising and a proposal on comparative advertising (modification to the existing misleading 
advertising directive) . Under Council Directive 85/374 concerning liability for defective 
products, liability is extended to importers of products into the Community and to suppliers 
when the producer cannot be identified. 
b. Competition legislation 
The Council Resolution of 10 October 1994 on policy favouring SMEs invited Member 
States and the Commission to examine, via mutual consultation, to what extent legislative 
measures in the Member States or from the Commission could result in an extra burden 
specifically for SMEs, in particular by "examining the possibilities of co-operation between 
SMEs (e.g. co-operation networks for joint purchases and sales) in the framework of EU 
competition law". 
The principles set out in Articles 85 and 86 of the Treaty are the basis of the system of 
individual and categorical exemptions, franchising in particular has benefited from an 
exemption since 1988. The Commission is preparing a Green Paper on Vertical Restrictions 
which will give an overview of past Commission policy, examine how and to what extent 
agreements and exemptions have been implemented and will set out the options for future EU 
action. It will show the need to analyse relations between the producers, wholesalers and 
retailers. 
It is vital to ensure that conditions for fair competition between economic actors exist, whilst 
guaranteeing the same market opportunities. The Commission will continue to examine how 
to allow different forms of co-operation, and in particular groups of traders, free access to the 
forms of organisation and operation which appear best suited for the market situation. How 
these developments should best be reconciled with the need to respect the principals of open 
access and non-discrimination at the heart of competition policy is being examined by 
Commission services at present. 
c. Food legislation 
There is a substantial body of Community legislation relating to foodstuffs, in particular 
5 OJ C-294 of 22.10.94, p.6 
XXI m 
measures concerning labelling, food additives, materials in contact with foodstuffs and food 
hygiene. Such legislation aims at a high level of health and safety, consumer protection, fair 
conditions of competition and ensuring the free movement of goods within the Internal 
Market. The Commission intends to present a green Paper on the General Principles of Food 
legislation at EU level. 
d. Self-regulation 
Discussions on the regulation of commerce led the Commission in its Communication of 1991 
to recommend the self-regulation of commercial professions, a notion supported by the 
Council, in its Conclusions of 30 June 1992. As they are worked out by the professionals and 
therefore rely on civil law provisions between economic operators, codes of conduct obtain 
the support of those to whom they apply. Commerce is keen on European codes of good 
conduct between businesses or between businesses and consumers because they provide a 
flexible legal framework whilst respecting the principle of judicial security in complementing 
the body of Community legislation. They favour the smooth running of the internal market 
and of competition by reducing trade barriers between Member States through the 
harmonisation of commercial practices. Furthermore, they favour economic efficiency by 
reducing conflicts with clients, notably by allowing the quick settlement of international 
lawsuits by way of mediation and arbitration. The Commission has already indicated that out-
of-court procedures may play an important role in settling consumer disputes whenever certain 
minimum criteria have been established to ensure the transparency of the procedure and the 
independence of the body responsible for dealing with the disputes4. Within this framework, 
professional organisations represented in the CCD have drawn up and presented to the CCD 
for discussion and approval professional codes of conduct relating to franchising, distance 
selling and in 1995 direct selling. 
e. Transport policy 
Efficient and reasonably priced transport is vitally important to the present and future success 
of commerce and distribution especially taking into account trends in locational manufacturing 
and population shifts, the dispersal of economic activities, and increasing shipment frequency 
of decreasing size. Current Community Transport policy will affect the shape and to a certain 
extent the options available in transport in the coming decade. The Trans-European Transport 
Network will provide transport corridors from one end of Europe to the other. The 
Commission is furthermore actively seeking to promote the continued development of 
environmental friendly multi-modal transport. This requires a balance of policies favouring 
the development of coherent, integrated transport systems for the Community as a whole. 
Several policy initiatives adopted recently by the Commission promote the development of 
efficient, sustainable and smooth transport flow, both for passengers and freight. These will 
affect future transport planning and costs and will affect the operators of distribution networks 
and commerce itself. 
/ Energy policy 
The wheels of commerce are literally, ciled by energy, be it as electricity to run the business 
Commission Communication "Action Plan on consumer access to justice and the settlement of consumer 
disputes in the internal market", COM(96) 13 final of 14.02.96. 
XXII 
or as transportation fuel to bring goods to market. The Community energy legislation, which 
aims at integration of the energy markets, security of supply and environmental protection, 
is therefore important for the development of commerce. 
In particular, the current initiatives for liberalising the internal market for electricity and 
natural gas will contribute to more competitively priced energy supplies for the development 
of commerce. In addition, this integration process will increase the total volume of 
commercial activity by gradually turning gas and electricity into competitively traded 
commodities. 
g. Environment policy 
The achievement of a high level of environmental protection throughout the European Union 
constitutes an important element which trade needs to take into consideration with a view to 
contributing to sustainable development. The Commerce represents a major link in the product 
chain which has consequences for the environment, as in the case of transport and packaging. 
Operators in the Commerce sector are companies in their own right and should aim to use 
more sustainable means of transport and to reduce their energy use and waste output. One 
way to achieve this would be to establish an environmental management system. 
The Commerce sector does not only have effects on its own stage in the product chain, but 
due to its intermediate position this sector is able to influence both manufacturers as well as 
consumers. This sector can encourage manufacturers to develop and produce greener products. 
The Commerce sector also has an important role to play in achieving waste management 
objectives, such as in the packaging area, the promotion of recycling and the creation of 
markets for recycled products as well as the collection of data in the waste area. In addition, 
they can play a significant role in providing environmental information to consumers. 
h. Social dialogue 
Sector-based social dialogue on commerce has taken place between the European federation 
representing wholesaling and retailing (EuroCommerce) and the European trade union 
representing those employed in the area (Eurofiet). These two organisations have been 
pursuing social dialogue since 1983. In 1993, EuroCommerce and Eurofiet recognised each 
other as social partners within the meaning of Articles 3 and 4 of the Agreement on* social 
policy. This social dialogue led to the signature in 1988 of a memorandum on training in 
retailing. Various projects have been pursued by the social partners and supported by 
Community grants on the basis of a transnational partnership: for example, a project under 
the FORCE programme concerning the long-distance training of employers and employees 
in commerce and another project called ASSIST relating to the training of business leaders 
of SMEs and new employees. On September 18 1996 the Commission approved a 
communication concerning the development of the social dialogue at community level. 
/. Statistics 
Without reliable information, economic operators can only take decisions on the basis of 
hypotheses or estimates, a process which itself leads to inequalities between operators as 
SMEs lack the means to conduct large scale research. It is therefore important for those 
involved in commerce, be they economic operators or public authorities, to have at their 
disposal statistics and economic analyses in order to facilitate taking the necessary decisions 
XXIII 
10 
and to respond promptly to the need to adapt. 
The quality of the statistical information on distributive trades is not at present sufficient to 
provide more than a general overview of the situation and trends in distribution. The 
development, in co-operation with Eurostat, of a real European system of statistics on 
commerce will make it possible to analyse the economic facts at Community, national or 
regional level. It is necessary to improve the availability of reliable, comparable and up-to-
date statistics by making them a priority and by putting statistical information at the disposal 
of users, especially enterprises, by means of European institutional and electronic networks. 
Accordingly, to improve statistical information an annex on "commerce" was integrated into 
the proposed rules on structural statistics on business presented by the Commission on 
3 April 19955, and which is now awaiting adoption by the Council. In parallel, an annex to 
the draft regulation on short term statistics is currently being discussed with the Member 
States, and should shortly be proposed to the Council. Professionals have supported this 
initiative within the CCD: if business charges are to be reduced as much as possible, some 
reliable and detailed statistics are indispensable to the economic players. Some statistical 
studies have been prepared and published by Eurostat in collaboration with DG XXIII6. 
Methodological manuals have been drawn up and are available to national statisticians in 
order to have accurate and comparable statistics in the different countries of the European 
Union. 
j. Pilot programmes 
The Commission encourages the modernisation of commercial enterprises through 
COMMERCE 2000 pilot programmes. These actions, supported directly by the Commission, 
seek to promote commercial co-operation through the use of new technology, give prominence 
to good practices and provide help in choosing the right technology, taking account of each 
situation. The results already received have shown the impact of new technologies on the 
process of commercial co-operation, and the importance of training to accompany the 
changes. 
k. Structural policies 
EU Structural Funds allotted to different objectives and different regions do not exclude the 
possibility of intervention to commerce if the Member State or region believes that 
commerce* is vital to the revitalisation of an area. It should be recalled that within the 
framework of the Structural Funds, the Commission's goal is of territorial development: these 
interventions in favour of commerce must therefore be placed amongst the elements of a more 
global development or reconversion strategy which implies integrated and programmed 
actions. Portugal, for example, envisaged that, from the first phase of programming of the 
Structural Funds in 1988, but especially for the programming period 1994-1999, a part of the 
operational programme relating to the modernisation of the economic tissu deal with 
commerce and services. 
5 OJ C-146 of 13.6.95 
6 "Retailing in the European single market 1993" and "Retailing in the European economic area", 1993 
and 1995, EUROSTAT and DG XXIII 
XXIV If} 
Community initiatives, which complement the programmes adopted by the Member States, 
are programmes for a precise area or theme which will bring about 14 Mrd.ECU to the 
Member States from 1994-1999. Several initiatives are particularly concerned with 
commerce: the Community initiative in favour of SMEs (in particular the national programme 
submitted by Spain includes specific actions aimed at commerce and distribution), ADAPT, 
URBAN, LEADER and INTERREG. 
Another example, for the new programming of Objective 2 (economic conversion of declining 
industrial areas) for the period 1997-1999, the Commission provided Member States with 
guidelines and details concerning ways of taking into account retail trade within the 
framework of a more global policy of urban renewal and the redevelopment of run-down 
areas. Installations and collective services geared to the development of neighbourhood shops 
could benefit from aid from the Structural Funds in areas in crisis, characterised notably by 
high levels of unemployment and high insecurity. The refurbishment of buildings and run­
down commercial centres could also be taken into account. 
As a result of participating in local development, commerce can use Structural Funds to aid 
its modernisation. It is a matter of raising the awareness of business leaders in order to 
prepare them for the changes to come: technical assistance, presentation of "model" 
businesses, etc, creating co-operation and partnership networks of small enterprises whatever 
the legal form, of which none is preferred over and above the others (Buying groups, 
voluntary chains or franchise networks), and modernising and bringing up to date outlets 
promoting the concept of high performance distribution managed within the framework of 
independent organised commerce. 
Moreover, the development of the use of new technologies for communication infrastructures 
and point of sale management, and training programmes, relying on innovative support, 
adapted to the needs of traders can be aided via Structural Funds, as can the implementation 
of financial engineering. Commercial enterprises offer, as far as finance is concerned, little 
in the way of real guarantees, and to favour investment, it is necessary to support financial 
engineering techniques such as the development.of guarantee funds and mutual security funds. 
The recent decision of the EIB to finance commerce is a positive step to promote the 
development of commercial^ SMEs. It is up to the Member States, however, to propose 
operational programmes and to accept any local or regional proposals including commerce. 
/. Training support 
As far as training is concerned, a significant number of pilot projects which have received 
Community support under the LEONARDO DA VINCI programme7 are of direct benefit to 
SMEs in the commerce and distribution sector. This programme has as a particular aim the 
encouragement of access for small and medium-sized enterprises and their employees. Within 
the framework of the first call for proposals launched in 1995, numerous vocational training 
pilot projects involving SMEs from the trade and distribution sector were initiated : for 
example, a transnational project aiming to anticipate the effects of the changes which occur 
in the trade and distribution sector for employees in less qualified jobs. Another pilot project 
attempted to develop a vocational training system for the benefit of SMEs' managers in the 
craft bakery sector. 
OJ L-340 of 29.12.94 p.8 
XXV H2 
nu Relations with Central and Eastern Europe and 
non-European Mediterranean third countries 
The modernisation of commerce in the Central and Eastern European Countries (CEEC), is 
important for promoting the economic integration of the countries. On the proposal of the 
Committee on Commerce and Distribution, three panels of professionals were created in 1995 
and visited Russia, Ukraine and Hungary, to identify the main problems facing commerce and 
distribution in these countries and to determine the areas in which the professionals and their 
federations could help them. New missions will be set up in 1996, as far as possible in 
liaison with the Phare and Tacis programmes, in particular, to co-finance management training 
and technical assistance to develop logistical distribution structures adapted to local needs. 
A similar formula could be used in order to reinforce historical links between the distribution 
systems of the Mediterranean littoral states. Such actions for training and technical assistance 
could be inserted into the framework of the principles set out in the "Barcelona Declaration" 
adopted at the Euro-Mediterranean Conference of 17-18 November 1995. 
XXVI if\ 
ANNEX E - INSTITUTIONNAL ADRESSES 
EUROPEAN PARLIAMENT 
Rue Belliard 97-113 
B - 1047 Bruxelles 
"Commerce and Distribution" Inter-group 
Chairman: Mr Garosci 
Vice-Chairman: Mr Gasoliba I Bôhm 
Mr Lange 
Mr Secchi 
Mrs Thyssen 
Tel.: 32-2- 284 25 96 (M. Licandro - General Secretary) 
Fax: 32-2- 284 90 36 
ECONOMIC AND SOCIAL COMMITTEE OF THE EUROPEAN COMMUNITIES 
Rue Ravenstein. 2 
B - 1000 Bruxelles 
Directorate A: Industry section 
Members of the "Commerce" Category 
Messrs. Andrade 
Folias 
Frerichs 
Giesecke 
Mrs Green 
Messrs. Regaldo 
Stollnberger 
Tel: 32-2- 546 95 98 or 546 96 33 
Fax: 32-2- 546 97 57 
e-mail: Joao.PereiraDosSantos@Ces.be 
COMMITTEE OF THE REGIONS OF THE EUROPEAN UNION 
Rue Ravenstein. 2 
B - 1000 Bruxelles 
Tel: 32-2-546 22 11 
Fax: 32-2-546 28 96 
XXVII ^ 

ISSN 0254-1475 
COM(96) 530 final 
DOCUMENTS 
EN 02 10 08 06 
Catalogue number : CB-CO-96-600-EN-C 
ISBN 92-78-11749-8 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
57