COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 20.02.1996 
COM(96) 51 final 
THE SINGLE MARKET IN 1995 
- Report from the Commission to the 
Council and the European Parliament -

NOTE 
References in the body of the report to Council or Commission legislation and to Treaty articles 
are followed by an asterisk* without a footnote. Full titles and references of legislation and the 
text of Treaty articles are given in Annex 2 to the report. 

^ 
Contents 
Introduction 1 
Section 1 - Overall assessment of the operation Of the Single market 3 
§ 1 - Completing and streamlining the legislative framework of the Single 3 
Market 
§ 2 - Making the Single Market work 4 
§ 3 - Confirming the Single Market as the cornerstone of Economic and 5 
Monetary Union 
§ 4 - Securing a Single Market for the citizen 6 
§ 5 - Adapting the Single Market to technological and other change 6 
§ 6 - Preparing the Single Market for enlargement 7 
§ 7 - Conclusion 7 
Section 2 - Managing the single market 9 
§ 1 - Implementation of Community law: transposai 9 
§ 2 - Enforcement of Community law 13 
A. Cooperation on enforcement of Internal Market rules 13 
B. Penalties for infringements of Community law 14 
§ 3 - Access to justice and judicial cooperation 15 
A. Training and information provided for the legal professions in the field 15 
of Community law 
B. Access to justice for consumers 15 
C. Free movement of judgements 16 
§ 4 - Evaluation of the effectiveness of the legislation 16 
§5- Statistics 17 
§6- Regulatory policy and simplification 17 
A. Regulatory policy and simplification of legislation 17 
B. Legislative and declaratory consolidation 18 
§7- Communication and information policy 18 
THE SINGLE MARKET IN 1995 
CONTENTS nfo 
Section 3 - Free movement of persons 19 
§ 1 - Abolition of controls at internal frontiers 19 
§ 2 - Free movement of persons in the Community 20 
A. Right of residence 20 
B. Recognition of qualifications 20 
C. Employment services in cross-border regions 21 
Section 4 - Free movement of goods 23 
Instruments provided for by Community law for ensuring free movement of 
goods 
§ 1 - Articles 30 to 36 of the EC Treaty 23 
A. Introduction 23 
B. The main fields in which the Commission acted to eliminate obstacles 23 
to trade in 1995 
a) Road vehicles 24 
b) Food 25 
c) Chemical products 25 
d) Pharmaceutical and medical products 25 
e) Other types of obstacle 25 
C. Action by the Court of Justice 26 
§ 2 - Technical harmonization and standardization 27 
A. Adoption and implementation of legislation in the various sectors 27 
a) Agricultural products 27 
• Veterinary and zootechnical legislation 27 
• Plant health and other legislation relating to crop products and animal 27 
nutrition 
• Plant variety rights 28 
• Complaints 28 
b) Capital goods 28 
c) Foodstuffs 28 
d) Pharmaceutical products 29 
e) Chemicals 29 
f) Motor vehicles 29 
B. Special free movement arrangements 30 
a) Dual-use goods 30 
b) Agricultural products 30 
C. Standardization policy 30 
D. Quality, certification, and conformity marking policy 31 
§ 3 - Prevention and control instruments 31 
A. Prevention of new obstacles - Procedure 83/189/EEC* 31 
B. Enforcement of the mutual recognition principle 32 
Section 5 - Freedom to provide services and right of establishment 33 
§ 1 - Services in general 33 
§ 2 - Financial services 33 
A. Credit institutions 33 
a) Derivatives 33 
b) Interpretative communication on the interest of the general good 34 
B. Insurance services 35 
THE SINGLE MARKET IN 1995 
CONTENTS 1C 
C. Cross-border credit transfers 36 
Section 6 - Free movement of capital 37 
Section 7 - Taxation 39 
§ 1 - Indirect taxation 39 
§ 2 - Direct taxation 40 
Section B - The business environment 43 
§ 1 - Intellectual and industrial property 43 
A. Intellectual property 43 
B. Industrial property 43 
§ 2 - Company law and financial information 44 
§ 3 - Commercial communication 45 
§4- Media 46 
A. Media ownership 46 
B. Legal protection of encrypted services 46 
C. Audiovisual policy 46 
§ 5 - Protection of personal data 47 
§ 6 - Information Society Services 47 
Section 9 * Public procurement 49 
§ 1 - Application of the Community rules 49 
A. Action by the Commission 50 
B. Decisions by the Court of Justice 50 
§ 2 - Development of Community legislation 51 
§3- Other activities 51 
A. "SIMAP" project 51 
B. Improvement of participation of SMEs in public procurement 52 
C. Defence Procurement 52 
Section 10 - Transport, Energy and Telecommunications 53 
§ 1 - Transport 53 
A. Airtransport 53 
B. Road transport 54 
C. Inland waterways 54 
D. Maritime Transport 54 
E. Railways 54 
§ 2 - Energy 55 
A. New Internal Energy Market Legislation 55 
B. Free Movement of Goods 55 
C. Transposition 56 
D. Standardisation 56 
§ 3 - Telecommunications 56 
§ 4 - Trans-European Networks 57 
THE SINGLE MARKET IN 1995 
CONTENTS A ci. 
Section 11 - The Internal Market and other Community policies 59 
§ 1 - Competition policy 59 
§ 2 - Social dimension of the internal market 60 
§ 3 - Consumer policy 61 
A. Consumer behaviour - cross-border purchasing 61 
B. Consumer policy priorities 1996-1998 62 
§ 4 - Environmental policy 62 
A. Integration of environment and single market policy 62 
B. Approximation of laws and other Community legislation in the environ- 63 
mental field 
§ 5 - Small and medium-sized enterprises 64 
§ 6 - Education and Training 65 
§ 7 - Research 66 
Annexes 67 
1 - Abbreviations and acronyms 
2 - Community provisions cited 
A. EC Treaty 
B. Official Journal - references 
3 - Judgements of the Court of Justice cited 
4 - Recent reports, studies and surveys on the single market 
THE SINGLE MARKET IN 1995 
X 
Introduction 
This is the third Commission report on the operation of the single market. In accordance with 
the request of the Brussels European Council of 1993 that a report be submitted to the Euro­
pean Council at the end of each year, a short report on the Single Market is 1995 was submit­
ted to the European Council in Madrid on 15-16 December. It is reprinted here as Section I of 
this report. 
THE SINGLE MARKET IN 1995 

3 
Section 1 - Overall assessment of the operation of the single 
market (1) 
1. The completion of the Single Market is of central importance for the Union given its 
potential to contribute to European growth and job creation. In 1995 a growing awareness has 
emerged of the Single Market's centrality in paving the way for Economic and Monetary Union, 
strengthening European industry's competitiveness and stimulating economic growth on the 
basis of sustainable development. Indeed, the Competitiveness Advisory Group, chaired by 
Mr. Ciampi, emphasised the urgency of accelerating the Single Market process. The prosperity 
of our citizens and the improvement in their quality of life depends on its full realisation. 
2. Even if, taken as a whole, the Single Market is working, there are still problems in 
specific areas. In 1995 we have seen steady progress towards the achievement of the Single 
Market. Evidence from many quarters clearly shows that most companies believe that the 
Single Market is bringing them benefits. Concerns remain, however: they include continuing 
technical barriers to trade; incomplete legislation on key issues such as taxation and company 
law; uneven or over-bureaucratic enforcement of legislation; the need to continue to reinforce 
competition policy, in particular in the area of state aids and the liberalisation of public utilities; 
and demands for compensatory measures arising from monetary disturbances. Even more 
important, the Single Market has not yet been sufficiently focused on the needs of the citizens, 
who often are not fully aware of the opportunities it offers to them. 
3. The policy of the Commission in 1995 has been organised along six lines of action, 
designed to give a fresh impetus to the Single Market: 
(i) completing and streamlining the legislative framework of the Single Market; 
(ii) making the Single Market work; 
(iii) confirming the Single Market as the cornerstone of Economic and Monetary Union; 
(iv) securing a Single Market for the citizen; 
(v) adapting the Single Market to technological and other change; and 
(vi) preparing the Single Market for enlargement. 
4. This report reviews the progress made under each of these headings during 1995. It 
focuses on the main developments or problems. 
§ 1 - Completing and streamlining the legislative framework of the Single 
Market 
5. Our first priority must be the completion of the legislative framework for the Single 
Market, including the hard core of proposals from the 1985 White Paper and liberalisation in 
sectors not covered by that programme. A number of examples may be cited. European busi­
ness cannot yet benefit from the European Company Statute the absence of which the Ciampi 
Report estimated to cost business ECU 30 Billion a year. Similarly, companies and cross-fron-
(1 ) This section is the text of the report on the Single Market in 1995 which was submitted to the European Council for its 
meeting in Madrid on 15-16 December 1995. 
THE SINGLE MARKET IN 1995 
SECTION 1 - OVERALL ASSESSMENT OF THE OPERATION OF THE SINGLE MARKET 
tier workers increasingly complain about the problems of double taxation. Yet, the Commis­
sion's proposals on these issues remain blocked despite the European Council's repeated 
insistence on the importance of improving the fiscal and legal environment for business, in 
particular SMEs. Furthermore, financial services across frontiers are inhibited by widely differ­
ent fiscal regimes depriving our citizens of new products at competitive rates. The rejection in 
March 1995 by the Parliament of the draft directive on the protection of biotechnological 
inventions (2) means that our industry is at a significant competitive disadvantage The Com­
mission has now put forward a new initiative in this key area (3). 
6. Although the interim regime has proved its value, the remaining problems reported by 
traders with the implementation of Value Added Tax can only be resolved with the introduction 
of a definitive regime. This will require fundamental changes to allow intra-Community sales to 
be treated in the same way as domestic sales, while ensuring that Member States' VAT reve­
nues remain at current levels. 
7. 1995 saw continuing problems with regard to controls on people crossing our internal 
borders. However, significant steps towards achieving the free movement of people have been 
taken. In July, the Commission presented three proposals to eliminate such controls (4), on the 
clearly stated condition that they would enter into force only when the essential security meas­
ures have been implemented. The Council also adopted two regulations relating to free move­
ment of people: the first (Regulation (EC) No. 1683/95*) established a model type of visa, the 
second (Regulation (EC) No. 2317/95*) agreed a list of third countries whose nationals must 
have a visa to enter Community territory. 
8. Competition policy is particularly important in certain key areas if the full advantages of 
the Single Market are to be realised. In the telecommunications sector, the deadline of 1998 
remains as the date by which full liberalisation will have been achieved, while the use of alter­
native infrastructures for liberalised services will be allowed two years earlier. In 1995, there 
has been a welcome acceleration in the pace of liberalisation and competition in the telecom­
munications sector, enabling it to play its pivotal role in the creation of a European Information 
Society. Further progress in the gas and electricity sectors is needed. And, although the basic 
framework of the single transport market is in place, further measures are needed, especially 
for airport ground-handling facilities, railways and inland waterways. The Commission has 
tabled proposals to this effect during 1995. 
9. However, completing the legislative framework is not the whole story. There is a growing 
awareness that regulators at national and Community level must also ensure better and simpler 
regulation. The Commission has prepared a report for the European Council on better law­
making. Codification proposals involving the repeal of about 350 instruments were before the 
Council and Parliament by the end of 1995. The Molitor Group has also reported on legislative 
and administrative simplification. The application of these principles in the Single Market area 
is of key importance, given that the whole objective of Single Market legislation is to eliminate 
regulatory barriers to free movement. The considerable efforts now being made at Community 
level must be mirrored at national level. It is a cause for concern, for example, that 438 
proposals for technical legislation at national level were notified to the Commission in 1995. 
§ 2 - Making the Single Market work 
10. Our citizens and business must be able to make full and effective use of the rights that 
have been created under Single Market law. The Commission is therefore committing major 
resources to monitor implementation of agreed legislation and ensure its full and effective 
enforcement. 
(2) COM (95) 661 final, not yet published. 
(3) See footnote (92) of 1994 report. 
(4) COM (95) 346, published in OJ C306; COM (95) 347, published in OJ C289, COM (95) 348, published in OJ 307. 
THE SINGLE MARKET IN 1995 
SECTION 1 - OVERALL ASSESSMENT OF THE OPERATION OF THE SINGLE MARKET 
11. One of the main tools to achieve an effective and speedy resolution of problems as they 
arise is through increased co-operation between national administrations. A network of contact 
points in all national administrations covering priority sectors is now largely in place and it 
should increasingly help in resolving administrative and other problems across the Single 
Market. 
12. Among the developments in 1995 was the proposal by the Commission of the Customs 
2000 action programme (5) to modernise customs administrations and support cooperation 
between them. The Council responded positively to the Commission's request that appropriate 
sanctions are set to penalise infringement of Single Market rules. Furthermore, the Council 
recently agreed a new notification system for national measures, to come into effect in 1997, 
thereby strengthening the means available for tackling illegal restrictions on the free movement 
of goods across frontiers and ensuring that the principle of mutual recognition is respected. The 
need for such an instrument is clear: the number of complaints about such measures received 
increased from 202 in 1994 to 259 in 1995. The free movement of goods has also been facili­
tated by progress on European standardisation and, in the pharmaceuticals sector, by the 
opening of the European Agency for the Evaluation of Medicines. 
13. Transposing Community directives into national legislation in all 15 Member States pro­
ceeded steadily in 1995. Taken overall, by December 1995 the Member States had adopted 
93.4% of the national measures required in order to implement the Community's Single Market 
legislation. Member States levels of transposition of Single Market legislation vary consider­
ably: Denmark, the Netherlands, Spain and Sweden are substantially above the Community 
average of 93.4%; Greece, Germany and Austria are substantially below. Regrettably, imple­
mentation of agreed Community law remains seriously flawed in some key sectors as it was 
last year (notably public procurement, intellectual property and insurance). Failure by Member 
States to honour their commitments is all the greater cause for concern the longer they persist. 
During 1995, the Commission increasingly concentrated its attention on the quality of transpo­
sition. To that end, while the Commission remains committed to seeking to resolve problems in 
full co-operation with Member States, it has shown that it will not hesitate to initiate infringe­
ment proceedings for incorrect or incomplete transposition, and indeed in 1995 there has been 
a significant increase in the number of proceedings concerning the 1985 White Paper meas­
ures. 
14. The Commission also intends to react quickly to complaints by individuals and busi­
nesses and to take prompt action to ensure that their rights under Community law are 
respected. 
§ 3 - Confirming the Single Market as the cornerstone of Economic and 
Monetary Union 
15. Economic and Monetary Union means a Single Market working with a single currency, 
and until this is achieved the full benefits of a Single Market will not be realised. The Commis­
sion's Green Paper on the single currency (6) has given considerable impetus to the debate on 
the scenario for its introduction. 
Financial institutions and markets have responded with comments and suggestions on all 
aspects of the draft reference scenario for the changeover to a single currency outlined in the 
Green Paper. All interested parties, including consumers, were invited to discuss the issues in 
detail during the autumn, providing valuable suggestions for the Commission. 
(5) COM (95) 119 final, OJ No C 301, 13.11.1995 as amended by COM (95) 451 final, OJ No C 327, 7.12.1995 as 
amended by COM (95) 576 final, not yet published. 
(6) COM (95) 333 final of 31.5.1995. 
THE SINGLE MARKET IN 1995 
SECTION 1 - OVERALL ASSESSMENT OF THE OPERATION OF THE SINGLE MARKET 
16. In the period before EMU is achieved, significant currency fluctuations, such as those 
that have occurred in recent years, could impair the proper functioning of the Single Market. In 
October 1995, the Commission firmly rejected demands for compensatory measures that would 
imply new barriers to trade, and considered that increased budgetary discipline and conver­
gence of economies - that is, exactly those guidelines that are needed to achieve the condi­
tions for the single currency - are the only appropriate response. 
§ 4 - Securing a Single Market for the citizen 
17. The Single Market has often been perceived as benefiting the citizens of the Union only 
indirectly, mainly through lower prices and wider choice of goods and services. More should be 
done, if the citizen is to perceive that he or she is central to the Single Market. The creation of 
a Single Market which benefits the citizen to the full is a key objective of this Commission. 
Besides the removal of frontier controls and the remaining obstacles to free movement, this 
includes heightened consumer protection, improved access to justice and the settlement of 
consumer disputes in the single market, as well as an improvement to the social and environ­
mental dimension of the Single Market. 
Several developments in 1995 contributed to this objective. New rules on cross-border credit 
transfers (7) will ensure a more efficient service to the citizen and small and medium busi­
nesses and provide for compensation where losses occur. The EURES network is facilitating 
the free movement of workers by ensuring co-operation between public employment services. 
Rulings by the Court of Justice confirmed that individuals who live in one Member State but 
earn most of their income in another must be granted the same tax treatment as residents (8). 
However, the recognition of qualifications is of equally fundamental importance for citizens 
wishing to take full advantage of Single Market employment opportunities. While thousands of 
individuals gain recognition of their diplomas under Community directives each year, 1995 saw 
an increase in the number of complaints to the Commission. The Commission will shortly 
propose a major simplification of the relevant legislation. 
18. The Union must also communicate more effectively with the individual citizen to make 
clear what Europe has to offer. Substantial preparatory work was carried out in 1995 to prepare 
the launch in 1996 of a new initiative designed to inform citizens about the advantages and 
opportunities they enjoy in the Single Market. The Commission is collaborating closely with the 
Member States and the European Parliament in preparing ten guides for the general public. 
Each will provide useful general information on a particular theme, such as the citizen's right to 
live and work in another Member State and to enjoy health provision and equal opportunities, 
travelling in the European Union and buying goods and services across frontiers. Information 
sheets are now being prepared which will provide much more detail to help citizens know and 
exercise their rights. 
§ 5 - Adapting the Single Market to technological and other change 
19. The Single Market is not static - it will develop and our regulatory approach and adminis­
trative procedures must develop with it. A particular challenge is to ensure that this regulatory 
environment can keep pace with technological progress: new services and new ways of provid­
ing them are confronting the Community with new challenges. 
(7) Common Position SEC (95) 1976 final. 
(8) Case of Wielockx - See para. 135. 
THE SINGLE MARKET IN 1995 
SECTION 1 - OVERALL ASSESSMENT OF THE OPERATION OF THE SINGLE MARKET 
20. For the Information Society an appropriate regulatory framework is essential; it will give 
the market the confidence it needs to allow the necessary investments in the networks to be 
made, whilst enabling the services using the networks (such as teleshopping, home banking 
and distance education) to benefit fully from the opportunities offered by the Single Market. 
During 1995 major elements of legislation were agreed. In July the Council and the European 
Parliament adopted a directive on the protection of individuals with regard to the processing of 
personal data and on the free movement of such data (Directive 95/46/CE)*.. The Council also 
reached a common position on the proposal for a directive on the legal protection of data­
bases (9). However, there are many other issues arising in this field which need to be tackled, 
and the Commission has this year produced Green Papers and carried out consultations on 
issues such as copyright and related rights in the Information Society (10) as well as the protec­
tion of pluralism in the media (11). 
21. The successful realisation of trans European Networks, with greater participation of pri­
vate investment where possible, is also necessary to achieve the full potential of the Single 
Market. The Commission submitted a separate report to the European Council (12) on this 
subject. These Networks will, however, only achieve their full potential if the services offered 
over them are open to competition and do not remain in the hands of monopoly suppliers. 
§ 6 - Preparing the Single Market for enlargement 
22. A major challenge is to prepare for the successful integration of the associated countries 
of Central and Eastern Europe into the Single Market. A key element of the Community's pre-
accession strategy is the Commission's White Paper on the Single Market (13) which was pre­
sented to the Cannes European Council. It provides guidelines for the associated countries to 
help them align their legislation and administrative structures with those of the Union. A Tech­
nical Assistance Exchange Information Office has been established in Brussels to provide 
practical help and advice. 
In addition, the Union continues to help Malta and Cyprus to assimilate the acquis communau­
taire in anticipation of the opening of accession negotiations. 
23. The European Union is also working towards affirming beyond its present and future bor­
ders the principle of open access on which its Single Market is founded. In the field of financial 
services important progress was achieved in July 1995, at the initiative of the Union, with the 
WTO interim agreement for the liberalisation of financial services. 
§ 7 - Conclusion 
24. In 1995 the Commission identified six major lines of action on the Single Market. Pro­
gress has been made towards each of the objectives, but there is much unfinished business 
ahead. 
The Commission will in 1996 present a more complete analysis of the impact and effectiveness 
of the Single Market since its inception, which should provide the basis for fine-tuning and 
developing tomorrow's agenda. 
(9) COM (92) 24 final, OJ No C 156, 23.6.1992 as amended by COM (93) 464 final, OJ No C 308, 15.11.1993 
Common position No 20/95, OJ No C 288, 30.10.1995. 
(10) COM (95) 382 final of 19.7.1995. 
(11) COM (92) 480 final of 16.12.1992. 
(12) CSE(95)571. 
(13) COM (85) 310 final of 14.06.85. 
THE SINGLE MARKET IN 1995 
SECTION 1 - OVERALL ASSESSMENT OF THE OPERATION OF THE SINGLE MARKET 
25. However, the priorities for action are clear. They centre on the completion of the Single 
Market for the citizens, promoting a more effective Single Market for business, especially small 
and medium-sized enterprises, achieving the liberalisation of gas and electricity markets and of 
telecommunications, preparing for the information society, accelerating work on Trans-Euro­
pean Networks, assisting Central and Eastern Europe to adapt to Single Market requirements 
and ensuring equivalent enforcement. 
To this list must now be added the challenge of streamlining the regulatory requirements 
imposed on businesses and individuals, in order to establish an effective, single economic and 
civic area without internal frontiers. There must be less but better regulation at all levels: local, 
regional and national as well as the Community level. 
26. We must all step up our efforts. The Commission has done so in 1995, and now looks to 
the Council and the Pariiament for decisions on the proposals already before them, to Member 
States for effective application of Single Market law, and to all interested parties for continued 
support for and commitment to the goal of a Single Market. 
THE SINGLE MARKET IN 1995 
Section 2 - Managing the single market 
§ 1 - Implementation of Community law: transposai 
27. For the Council meeting on the Internal Market on 20 November 1995 the Commission 
has prepared its latest report on the state of play in national transposai of the White Paper 
measures and other legislation that is critical for the functioning of the internal market (14). 
The report includes, for the first time, comprehensive information on the new Member States, 
including Austria. 
28. Transposing Community directives into national legislation in all 15 Member States 
proceeded steadily in 1995. Taken overall, by December 1995 the Member States had adopted 
93.4% of the national measures required in order to implement the Community's Single Market 
legislation. Member States levels of transposition of Single Market legislation vary consider­
ably: Denmark, the Netherlands, Spain and Sweden are substantially above the Community 
average of 93.4%; Greece, Germany and Austria are substantially below. Regrettably, imple­
mentation of agreed Community law remains seriously flawed in some key sectors as it was 
last year (notably public procurement, intellectual property and insurance). Failure by Member 
States to honour their commitments is all the greater cause for concern the longer they persist 
(see table I). 
As in past years, most infringements result from failure to notify national measures, sometimes 
because the deadline for their adoption has not been met. The delay is often because of the 
legislation's technical complexity, combined with procedural problems specific to the deci­
sion-making process in each Member State. In the new Member States, delays sometimes 
occurred because their national authorities needed first to devise appropriate working methods. 
Once a directive has entered into effect, the Commission routinely monitors its implementation 
at national level. Increasingly, it is also assessing measures adopted which are notified to it, 
with a view to improving the quality of transposai. This may result in the Commission undertak­
ing consultations with Member States that have failed to comply fully with the requirements, 
and instituting infringement proceedings where it considers this necessary. 
29. With regard to the new Member States, a large proportion of the directives relating to the 
internal market were already included in the Agreement on the European Economic Area and 
subsequently in the EEA Joint Committee's Decision No 7/94 amending Protocol 47 and certain 
Annexes to the EEA Agreement (15). The transposition measures for these directives were 
therefore to be notified to the EFTA Surveillance Authority, which initiated infringement 
proceedings where it found this to be necessary. These procedures were transferred to the 
competence of the Commission (art 172 para 2 of the Treaty of Accession). 
In respect of Community measures that were not included in the Agreement, the Commission 
will examine on a case by case basis whether or not to initiate infringement procedures.. 
(14) As in its previous reports, the Commission used a different statistical basis for assessing the transposai of the White 
Paper measures. This is to reflect the changes over the years to the 282 measures: ones that became obsolete were 
abandoned or replaced. Furthermore, each measure proposed did not necessarily lead to the adoption of a single 
piece of legislation: in some cases several pieces of legislation were adopted in order to implement just one measure, 
while in other instances the converse was true. In total, 276 pieces of legislation have now been adopted in 
implementation of the White Paper. 
(15) Decision of the EEA Joint Committee No 7/94 of 21 March 1994 amending Protocol 47 and certain Annexes to the 
EEA Agreement (OJ No L 160,28.6.1994). 
THE SINGLE MARKET IN 1995 
10 SECTION 2 - MANAGING THE SINGLE MARKET 
TABLE I 
State of Implementation of the White Paper Measures 
276 provisions in force / 222 requiring national implementing measures 
Breakdown of Situation by Member State # 
(31 December 1995) 
OK 
NL 
E 
S 
L 
P 
UK 
F 
FIN 
B 
1 
IRL 
EL 
D 
A Measures 
notified 
217 
214 
211 
203 
207 
207 
210 
209 
193 
200 
198 
198 
193 
194 
184 Not applicable 
3 
2 
1 
4 
6 
3 
2 
1 
6 
2 
4 
4 
3 
3 
3 Derogations 
0 
0 
2 
7 
0 
3 
0 
0 
4 
0 
0 
0 
3 
0 
7 Measures not 
notified 
1 
5 
4 
7 
9 
7 
3 
7 
10 
11 
15 
16 
21 
11 
18 partial 
notification 
1 
0 
1 
1 
0 
0 
4 
3 
9 
2 
2 
2 
1 
4 
10 Infringement for non­
conformity 
0 
1 
3 
0 
0 
2 
3 
2 
0 
7 
3 
2 
1 
10 
0 
# The situation regarding transposition in the new Member States is being reviewed in the light of bilateral meetings in early 1996. 
O Derogations 
• Not applicable 
O Measures notified 
OK 
NL 
E 
S 
L 
P 
UK 99.1% 
97.3% 
96,4% 
96,4% 
95.9% 
95.9% 
95.5% 
94.6% FIN 
B 
I 
IRL 
EL 
O 91.4% 
91.0% 
91.0% 
91.0% 
89.6% 
88,7% 
87.4% 
0EU 93.4% 220 il 
200 4 
180 J 91 11 Si a 
a 
DNESLPUFFIBIME1.DA0E 
K L K N L Th U 
O Infringement for non-conf ormity 
• partial notification 
O Measures not notified 
DKNLESt.PUKFFieilRei.OA EU 
THE SINGLE MARKET IN 1995 
SECTION 2 - MANAGING THE SINGLE MARKET 11 
30. The extent of transposai also varies between sectors (see table II). Those in which there 
are considerable delays include: 
• Insurance: the persistent delays are not in the new Member States, where transposi­
tion is proceeding fairly satisfactorily. But some progress is being made in transposing 
the "third generation" Directives establishing a single market in insurance: Directives 
92/49/EEC* (non-life) and 92/96/EEC* (life). Greece is now the only Member State 
not to have notified measures transposing these Directives. However, this is not to 
say that their transposai elsewhere is full and satisfactory in all cases: there have 
been several instances of incomplete notification and incorrect transposition, and the 
Commission has already initiated some infringement proceedings against the Member 
States concerned. 
It should also be noted that the Court of Justice found against Greece for 
non-transposal of Directives 90/618/EEC* (freedom to provide services in respect of 
motor insurance), 88/357/EEC* (second non-life Directive) and 90/619/EEC* (second 
life Directive) (16). 
• Public procurement: the deadlines for transposai are rarely met and there have 
been several cases of incorrect transposai. Measures are regularly notified several 
months late or more. There are currently 15 instances of directives not yet having 
been transposed despite the deadline having passed, in some cases years ago. This 
is particularly true of the services Directive (92/50/EEC*), the new supplies Directive 
(93/36/EEC*) and the new excluded-sectors Directive (93/38/EEC*), which remain 
untransposed by five, five and four Member States respectively. In 1995, some 26 
infringement cases have resulted from failure to notify national measures adopted in 
implementation of the Directives. In addition, examination of the measures notified 
has resulted in 14 further infringement cases for incorrect transposai, making a total 
of 30 such cases currently under consideration. Some of these are so fundamental as 
to call into question the openness of public contracts already awarded in the Member 
States concerned. 
• New technologies and services: the relevant Directives have been transposed with 
considerable delay and often after infringement proceedings were instituted. In some 
cases, there are genuine problems of interpretation: for example, Directive 
90/387/EEC* was long regarded by a number of Member States as a framework 
directive that did not have to be transposed. Also, several Member States that are 
currently in the process of overhauling their general regulatory framework for tele­
communications have chosen to transpose the complex Directives (91/263/EEC* and 
92/44/EEC*) in a piecemeal fashion. This approach can give rise to ambiguities owing 
to a lack of consistency between the various national measures chosen to transpose 
one and the same Directive. On the whole, telecommunications law has not been 
satisfactorily implemented, causing delays in the achievement of the general objec­
tives of European telecommunications policy. Various actions are being taken by the 
Commission in order to improve the state of implementation, and to ensure that 
application by Member States is more correct and effective. This includes both 
stricter application of internal operating procedures and reinforcement of necessary 
bilateral contacts, as well as efforts to increase (through specific workshops) aware­
ness of the need for full implementation of telecommunications legislation and to 
stress also in this context the importance of the direct effect principle as a remedy 
against both the failure to implement, and incorrect implementation of Community 
telecommunications directives. 
• Intellectual and industrial property: transposai is subject to quite significant delays 
and often follows the institution of infringement proceedings. More particularly, the 
delay in transposing Directive 89/104/EEC* on trade marks was influenced by the 
adoption of the Regulation on the Community trade mark. 
(16) Joined Cases C-109/94, C-209/94 and C-225/94; judgment delivered on 29 June 1995. 
THE SINGLE MARKET IN 1995 
12 SECTION 2 - MANAGING THE SINGLE MARKET 
TABLE II 
State of Implementation of the White Paper Measures 
Situation by sector 
(31 December 1995) 
physical barriers 
veterinary controls 
plant health controls 
controls on individuals 
specific controls (fuel tanks, waste) 
technical barriers 
special arrangements 
(arms, cultural works) 
new approach (standards) 
motor vehicles 
tractors and agricultural machines 
foodstuffs 
pharmaceuticals 
chemical products 
construction and construction Hems 
technical harmonization (other items) 
banks 
insurance 
transactions in securities 
new technologies and services 
transport 
company law 
intellectual and industrial property 
company taxation 
public procurement 
free movement of persons 
tax harriers 
VAT 
excise duties 100% ; 
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 
THE SINGLE MARKET IN 1995 
SECTION 2-MANAGING THE SINGLE MARKET 13 
§ 2 - Enforcement of Community law 
A. Cooperation on enforcement of Internal Market rules 
31. Homogeneous enforcement of Community rules on the internal market across the Union 
remained a high priority for the Commission during 1995. The main tool used to achieve this 
was the promotion of mutual confidence between national enforcement authorities by helping 
them to operate in partnership with one another and with the Commission. 
32. Under the Council Resolution of 16 June 1994 on the development of administrative 
cooperation in the implementation and enforcement of Community legislation in the Internal 
Market (17) the Commission had been called upon to play a leading role in the practical organi­
zation of cooperation between the competent administrations of the Member States and the 
Commission to this effect. The Member States, for their part, had been called upon to notify to 
the Commission by the end of 1994 contact points and essential information on their adminis­
trative structures (for enforcement of the rules). The Member States and the Commission were 
called upon to pursue actively their programme of discussions aimed at identifying needs and 
agreeing on practices sector-by-sector. 
This exercise concentrated initially on eighteen priority areas and contact points for the vast 
majority of these areas were notified by the Member States during 1995. However, very little 
information on enforcement structures was provided. The Commission incorporated this infor­
mation into a database and distributed the lists for each area of legislation to the Member 
States' representatives on the committees and working groups concerned. 
The programme of discussions has continued and the practices employed in those sectors 
where cooperation was already well developed, such as veterinary and foodstuffs controls, 
customs and taxation, have been examined to see whether aspects of them could be trans­
ferred to other sectors. In particular, the introduction of computerized networks, including the 
use of electronic mail, has become more widespread. This was given a further impetus by the 
agreement in the Council on a Decision adopting a multiannual Community programme to 
support the implementation of trans-European networks for the interchange of data between 
administrations (IDA) (Decision 95/468/EC*). This decision, which was to be adopted early in 
November 1995, will provide funding for a number of enforcement networks, including the 
SHIFT system for veterinary controls on the external frontiers. 
The Commission services have prepared a progress report(i8) which addresses the questions 
of: 
• completing the notifications of contact points and administrative structures as soon as 
possible and keeping them up to date; 
• investigating the use of online versions of the lists (with suitable security measures), 
and monitoring the use of the contact points for cooperation on enforcement; 
• the establishment by the Member States of contact points for the public, especially 
small and medium-sized enterprises (in line with the Council Resolution of 10 October 
1994 (19)), in order for the system of inter-administration contact points to yield its full 
benefits; 
• the provision of further support measures for cooperation, including seminars and 
exchanges between enforcement officials, such as are currently provided under the 
Karolus and Matthaeus programmes. 
(17) OJ No C 179, 1.7.1994, p. 1. 
(18) COM (96) 20, 29.01.1996 
(19) Council Resolution of 10 October 1994 on giving full scope to the dynamism and innovatory potential of small and 
medium-sized enterprises, including the craft sector and micro-enterprises, in a competitive economy, OJ No C 294, 
22.10.1994- last dash of section III, p.7. 
THE SINGLE MARKET IN 1995 
14 SECTION 2 - MANAGING THE SINGLE MARKET 
33. The customs, indirect taxation and veterinary sectors have programmes of exchanges 
between enforcement officials in their areas (Matthaeus, Matthaeus-Tax and the veterinary 
exchange programme). The Karolus programme applies to other areas of internal market 
legislation, for which priorities are fixed in annual decisions. 
Two successive reports were received on the programme from the European Institute for Public 
Administration in Maastricht, which holds a contract for administration of the programme. 
These reports indicated that considerable benefit had been gained by those taking part, among 
which the acquisition of contacts in the host administrations were particularly mentioned. 
By December 1995, 193 exchanges had taken place since the programme began in 1993, the 
largest numbers being of officials concerned with supervising the award of public procurement 
contracts and with foodstuffs control. This was less than the number planned, and discussions 
were held in October 1995 with the Karolus Committee and other interested parties to see if the 
aims of the programme, which are to promote more even-handed enforcement, would be better 
served if the rules were changed. In particular, the use of Karolus funds for training activities 
such as seminars was discussed. 
34. In the customs field, the Commission put forward a proposal in April 1995 for a Decision 
of the European Parliament and the Council on an action programme for Community customs 
(Customs 2000) (20). The objective of the proposal is to establish a framework for the devel­
opment and modernisation of customs administrations over a five-year period. It would support 
the actions undertaken by the Member States to strengthen the essential cooperation between 
their customs administrations and between them and the Commission in order to ensure uni­
form application of Community law at every point on the external border. The Council's com­
mon position was adopted on 21 December 1995. 
B Penalties for infringements of Community law 
35. By adopting, on 3 May 1995, a communication on the role of penalties in implementing 
Community internal market legislation (21), the Commission called on the Council and the 
European Parliament to support the work being undertaken with a view to improving the trans­
parency and ensuring the effectiveness and efficiency of the penalties imposed in the event of 
infringement of the common rules 
The Council responded very positively to that request by adopting, on 29 June 1995, a resolu­
tion on the effective uniform application of Community law and on the penalties applicable for 
breaches of Community law in the internal market (22). 
In essence, the Commission communication highlighted the following: without excluding the 
possibility of proposing that common penalties be laid down where necessary, the Commission 
confirms that the principle of recourse to national systems of penalties should be retained. 
There was no apparent reason to suppose that national penalties imposed in respect of Com­
munity or national rules would not be effective and proportionate and act as a deterrent, since it 
was in each Member State's interest to ensure that the rule of law was properly upheld on its 
territory so that it did not lose the confidence either of its own citizens or of the general public 
elsewhere in the Union. 
36. Nevertheless, given the - in some cases - significant differences noted by the Commis­
sion when examining the transposai and application of the common rules, particularly as 
regards public procurement, it stressed the importance of ensuring a degree of transparency in 
the national penalty systems, in order to confirm that they were effective, proportionate and a 
sufficient deterrent. To that end, the communication sets out the Commission's intention of 
(20) COM (95) 119 final, OJ No C 301, 13.11.1995 as amended by COM (95) 451 final, OJ No C 327, 7.12.1995 as 
amended by COM (95) 576 final, not yet published. 
(21 ) COM (95) 162 final of 30.5.1995. 
(22) OJ No C 188, 22.7.1995, p. 1. 
THE SINGLE MARKET IN 1995 
SECTION 2 - MANAGING THE SINGLE MARKET 15 
including in future proposals for regulations and directives a clause expressly requiring notifica­
tion of the penalties to be applied in the event of a breach of the internal-market rules. 
By means of the communication, the Commission called on the Council and Parliament to: 
• take note of its initial guidelines on penalties in the internal market field; 
• confirm the need for national systems of penalties in this area to be transparent; 
• give a firm commitment to supporting work on penalties, particularly in respect of 
public procurement and customs legislation; 
• undertake to discuss openly and constructively the sectoral proposals which the 
Commission will be bringing forward during the coming months in order to ensure that 
penalties for breaching the internal-market rules are effective and proportionate and 
have deterrent effect. 
In its resolution of 29 June 1995, the Council responded favourably to the above requests. 
37. The Commission services continued their work on penalties in the customs field, on the 
basis FO the mandate which they had received, which covers the examination of the range, 
classification and degree of gravity of customs infringements, taking account of the provisions 
of the Community Customs Code. 
§ 3 - Access to justice and judicial cooperation 
A. Training and information provided for the legal professions in the field of 
Community law 
38. Within the framework of the Strategic Programme "Making the Most of the Internal Mar­
ket" (23), the Commission organised in March and October 1995 two meetings of experts 
(judges, lawyers and academics from every Member State) to discuss possible initiatives to be 
launched in order to improve the training and information of all legal practitioners in order to 
improve the application of Community law within national jurisdictions. 
As a direct result of these meetings, the Commission is now preparing a new targeted action 
plan called the "Robert SCHUMAN Action", which will encourage the teaching of Community 
law in the educational establishments which have responsibility for the initial or continuing edu­
cation of judges, magistrates or lawyers. The Action will also seek to develop all means of 
information in Community law in the places where legal practitioners carry out their duties 
(Courts, Bars, vocational schools etc.). 
B. Access to justice for consumers 
39. As regards access of consumers to justice and the settlement of consumer disputes in 
the Single Market, the Commission developed a balanced approach as a follow-up to the 
Green Paper published on 16 November 1993 (24). 
40. The envisaged initiatives mainly focus on self-regulation and cross-border cooperation, 
accompanied by possible legislation on some specific problems of infringement of Community 
law. 
(23) COM (93) 632 final of 22.12.93. 
(24) COM (93) 576 final of 16.11.1993. 
THE SINGLE MARKET IN 1995 
16 SECTION 2 - MANAGING THE SINGLE MARKET 
These initiatives aim to simplify the settlement of cross-border individual disputes by promoting 
the creation of out-of-court procedures and better cooperation between the existing relevant 
bodies. 
41. Some legally binding measures may also be envisaged in order to ensure that swift and 
effective remedies exist, throughout the European Union, against certain unlawful cross-border 
practices which are detrimental to the interests of consumers as well as to the proper function­
ing of the Single Market. 
C. Free movement of judgements 
42. Further progress has been made towards the adoption of two conventions dealings with 
jurisdiction, recognition and enforcement of judgements relating to bankruptcy and divorce, 
annulment and legal separation. These two areas were excluded from the scope of the 1968 
Brussels Convention. The Bankruptcy Convention was initialed by all the Member States on 
25 September 1995 and signed by twelve of them on 23 November. The remaining Member 
States, Ireland, the Netherlands and the United Kingdom, are due to sign by 23 May 1996. As 
regards family law, working groups have continued to work on the draft text of a convention. 
43. Negotiations started on the text of a convention on the simplification of the transmission 
of legal documents. The aim of the convention is to provide for the direct transmission of legal 
documents between Member States. 
§ 4 - Evaluation of the effectiveness of the legislation 
44. As requested by the Council in 1992 and as foreseen in the Strategic Programme for the 
Internal Market of 1993, the Commission is carrying out a major evaluation of the impact and 
effectiveness of single market legislation. Over 40 independent studies got under way during 
1995 and these will form the basis for a report in 1996. This analysis will permit the Commis­
sion to orientate its single market strategy in the last years of the century and to fine-tune the 
legislative framework. It will include: 
• a business survey of 12,000 EU companies 
• a business survey among representatives of European associations of manufacturing 
industry and service sectors 
• a series of studies into trade barriers (technical barriers, public procurement, customs 
and fiscal formalities, industrial property protection) 
• studies into trade and investment (foreign direct investment flows, intra and inter­
industry flows, competitiveness/trade creation and diversion, external market access) 
• studies of competition and economies of scale effects (pan-European markets, com­
petition in the internal market, economies of scale, intangible investments) 
• studies into the effects of regional policy, social and labour policy, capital market lib­
eralisation, multi-currency management and macro-economic modelling 
• sectoral studies (food, drink & tobacco, pharmaceuticals, textiles & clothing, construc­
tion site equipment, chemicals, motor vehicles, processed foodstuffs, télécoms 
equipment, insurance, banking, air transport, distribution, road freight, liberalised tele-
corns services, advertising, audiovisual services, information services, energy and 
the cost of inadequate transport infrastructure). 
The results of the survey are expected to be published in the last quarter of 1996. 
THE SINGLE MARKET IN 1995 
SECTION 2 - MANAGING THE SINGLE MARKET 17 
§ 5 - Statistics 
45. The need for reliable statistics on the Single Market is influencing the statistical work of 
Eurostat, both in the short and long term. 
46. The short term objective relates to the need to provide unbiased and reliable data for the 
1996 review. Quantitative as well as qualitative data either from Eurostat directly or from the 
Member States was prepared for the "1996 study" between January and October 1995, col­
lected from existing databases at Eurostat and in the Member States and from a longitudinal 
study at enterprise survey in the pre-95 Member States. 
47. The long term goal is to improve current data collection. This concerns above all in a 
series of service industries, where more detailed information would help administrations and 
economic agents to assess the development and to make efficient use of the Single Market. 
§ 6- Regulatory policy and simplification 
A. Regulatory policy and simplification of legislation 
48. Throughout 1995, increasing interest was evident on the part of business, administrations 
and the Community institutions in ensuring better and simpler regulation, both in the prepara­
tion of new regulation and in evaluating the appropriateness of existing legislation. 
49. The Commission prepared General Guidelines on Regulatory Policy (25) which have 
been issued to all Commission services. They emphasise the need for adequate consultation, 
impact evaluation, ensuring coherence between different Community policy objectives and 
consideration of the proposal in the light of the principles of subsidiarity and proportionality. 
50. The report of the Group on Legislative and Administrative Simplification (26), chaired by 
Mr. Bernhard Molitor, made many specific recommendations on possible simplification of 
Community legislation. In its comments on the report, published in November (27), the Com­
mission broadly welcomed the general recommendations of the report, which favoured an 
approach to new legislation similar to that which is now set out in the General Guidelines, 
insisted on the need for timely and correct transposai of Directives by Member States and 
advocated greater efforts towards the consolidation of Community law. However, the Commis­
sion indicated that it would have welcomed more commitment from the Group in analysing and 
assessing the impact of national legislation. The UNICE Regulatory Report (28), prepared with 
financial assistance from the Commission, confirmed that much of the regulatory burden on 
business is the responsibility of Member States rather than of the Community. 
51. The Commission's report to the European Council, "Better Law-making? (29) deals with 
developments in 1995 and priorities for 1996 with regard to the application of the principles of 
subsidiarity and proportionality, simplification and consolidation The Committee on Improving 
and Simplifying the Business Environment will also be involved in following up some of the 
recommendations of the Molitor Report, where they impinge on small and medium sized enter­
prises. 
(25) SEC (95) 2255.17.01.1996. 
(26) COM(95) 288 final/2, 21.06.1995. 
(27) SEC(95) 2121, 29.11.1995. 
(28) "Releasing Europe's Potential through targeted Regultory Reform" - Brussels, 1995. 
(29) Doc. No CSE (95) 580. 
THE SINGLE MARKET IN 1995 
18 SECTION 2 - MANAGING THE SINGLE MARKET 
B. Legislative and declaratory consolidation 
52. Technical advances and a new accelerated working method, which was adopted in the 
Intennstitutionai agreement of 20 December 1994, are contributing to progress in the area of 
legislative and declaratory consolidation. Some 10 proposals for formal consolidation were 
adopted by the Commission in 1995, including areas such as telecommunications, animal 
health, animal feedingstuffs and seeds and plants. Work is well advanced on further proposals, 
including those on banking, life- and non-life insurance and stock-exchanges and securities, 
which will be presented in 1996. 
53. Intensified work on informal consolidation has resulted in the consolidation of some 140 
sets of legislation, combining nearly 1500 original instruments. These texts will be available 
through the Publications Office and its distribution network early in 1996. 
§ 7- Communication and information policy 
54. The effective operation of the single market requires adequate flows of information 
between the Community institutions, Member States and participants in the single market. In 
1995, the Commission undertook a number of actions designed both to promote awareness of 
single market opportunities among individuals and enterprises and to inform itself of their views 
and experiences. 
55. Following the success of the internal market weeks organised in the then twelve Member 
States in 1994, similar events were held in the three new Member States in 1995. These events 
provided opportunities for Commission officials, representatives of national administrations and 
single market participants to exchange views on the situation with regard to the single market in 
each of the countries concerned. 
56. The Commission continued to publish a number of periodicals relevant to the single 
market, including DG XV News, now redesigned with a wider circulation under the title Single 
Market News. 
57. Another survey of the experiences of SMEs (30) in the single market was carried out with 
the aid of the Euro-Info Centre Network. 
58. The Commission increasingly explored the potential of electronic media. It produced a 
first CD-ROM (31) on the Internal Market based on the 350 Questions and Answers on the 
Internal Market contained in the Database Info 92. The possibility of a more comprehensive 
CD-ROM publication is being examined. As a first step towards making single market informa­
tion available on the Internet, the Commission created a window on this topic on the Europa 
server (32). 
59. In his speech before the European Parliament in January 1995, President Santer put 
forward the idea of an initiative designed to demonstrate the advantages and opportunities of 
the single market - the key achievement of Community integration to date - for individual citi­
zens: hence the title of the initiative, "Citizens First!". 
Substantial preparatory work was carried out in 1995 with a view to launching the exercise next 
year. Several guides will be produced to help individuals towards an awareness of their single 
market rights, the means of exercising them in each Member State and the avenues for obtain­
ing redress if they are denied. 
(30) May be obtained on request from DG XV. 
(31 ) "The Internal Market - Everybody's business!". This may be obtained on request from DG XV, unit A1. 
(32) WWW address: http://www.cec.lu/. 
THE SINGLE MARKET IN 1995 
l°l 
Section 3 - Free movement of persons 
§ 1 - Abolition of controls at internal frontiers 
60. There still remain gaps in the complete implementation of an essential objective of the 
Treaty, the free movement of people. However, the Commission has for its part, decided to 
submit to the Council and the European Parliament the last proposals that complete those 
which are already on the Council table. If these gaps are not closed, they could damage the 
political credibility of the European Union. 
61. While many problems remain regarding border controls on individuals, the Commission 
has noted some advances under the Schengen agreements. Seven of the Member States of 
the Union (Germany, Belgium, Spain, France, Luxembourg, the Netherlands and Portugal), 
have applied between them, in an irreversible way, from 1 July 1995, the Schengen Conven­
tion aimed at the abolition of all controls on people crossing their common borders (33). The 
implementation of the Convention represents an important stage in the completion of the 
objective of article 7A* of the EC Treaty. 
62. in parallel, the Commission adopted, on 12 July 1995, three proposals for Directives 
aiming at the abolition of controls on people on crossing internal borders throughout the Euro­
pean Union as a whole. In the opinion of the Commission, the internal market must function 
under the same conditions as a national market, where intra-Community journeys should be 
undertaken just like journeys between regions or provinces of a Member State. But until the 
internal frontier controls are abolished, the internal market will not be a reality for Community 
citizens. Of course, the abolition of the internal frontier controls should in no way involve a 
reduction in the safety of the European citizen. On the contrary, it is specifically provided for in 
the proposals that the abolition of the controls will not enter into force unless the essential sup­
porting measures to ensure the maintenance of a high safety level in the area without frontiers 
is definitively adopted and satisfactorily implemented. All these measures are on the Council 
table. 
The first of the new proposals gives concrete expression to the abolition of controls, and clari­
fies the scope of the prohibition on carrying out controls and on imposing formalities at internal 
borders (34). This proposal confirms that all persons, whatever their nationality, are the benefi­
ciaries of the abolition of internal frontier controls. A "safeguard clause" is envisaged for when a 
Member State is confronted with a sufficiently serious material threat to public order or safety. 
A second proposal for a directive aims to modify secondary legislation in the field of free 
movement of people so as to eliminate from these texts any provision making it possible to 
carry out controls on persons at the time of crossing an internal border (35). 
Lastly, a third proposal aims to grant to nationals of third countries, who are legally in a Mem­
ber State, the right to make a short visit to the territory of the other Member States if they are 
equipped with a residence permit or a visa valid for all the Member States of the Union (36). 
This is also an inseparable supplement to the proposals that the Commission submitted in 
(33) However, France has applied the safeguard clause allowing the temporary reinstatement of border controls for 
reasons of public order and national security. 
(34) COM (95) 346 final, OJ No C 306,17.11.1995. 
(35) COM (95) 347 final, OJ No C 289, 31.10.1995. 
(36) COM (95) 348 final, OJ No C 307,18.11.1995. 
THE SINGLE MARKET IN 1995 
20 SECTION 3 - FREE MOVEMENT OF PERSONS 
December 1993 as regards crossing external borders (37), by envisaging equivalence between 
a residence permit and a visa delivered by a Member State, as well as the mutual recognition 
of visas. By this measure, several million foreign residents will be able to go to different coun­
tries of the Union without being forced to equip themselves with a visa beforehand, which will 
encourage tourism and cross border acquisition of goods and services. 
63. The Council adopted this year two regulations, that of 29 May 1995 establishing a model 
type of visa (Regulation (EC) 1683/95*), and that of 25 September 1995 determining the list of 
third countries whose nationals must have a visa to enter Community territory (Regulation (EC) 
2317/95*). 
§ 2 - Free movement of persons in the Community 
Right of residence 
64. Letters of formal notice were sent to 9 Member States regarding their incorrect transpo­
sition of some or all of the three directives on rights of residence. 
B. Recognition of qualifications 
65. Between 1991 and the end of 1994 nearly 10,000 European citizens obtained recognition 
of their diplomas under Directive 89/48/EEC* and a further 5,000 or so each year take advan­
tage of the sectoral directives (for doctors, dentists, veterinary surgeons, nurses responsible for 
general care, midwives, pharmacists and architects). 
66. However, 1995 witnessed a marked increase in the number of complaints registered by 
the Commission from migrants who had encountered difficulties in obtaining recognition of their 
diplomas. It is impossible to judge whether this increase reflects a real deterioration by 
comparison with previous years or whether it is caused by a greater awareness on the part of 
would-be migrants of their rights under Community law. 
The majority of the complaints concern the general system for the recognition of diplomas and 
professional qualification established by Council Directives 89/48/EEC* and 92/51 /EEC*. In 
some cases difficulties can be attributed to the absence of implementing legislation, particularly 
in relation to the latter directive which should have been transposed by 18 June 1994 but which 
is only fully operational in seven Member States. As regards Directive 89/48/EEC*, one Mem­
ber State, namely Belgium, has, nearly five years after the deadline for implementation, still to 
take any effective measures in national law. Other problems stem from difficulties encountered 
in interpreting the basic concepts contained in the directives (such as "diploma", "higher educa­
tion", "regulated profession") and the application of the recognition mechanism itself. 
67. To remedy this situation the Commission will seek to ensure that those responsible for 
applying the directives arrive at a better understanding of them and that those who seek to rely 
on the general system are made fully aware of their rights. 
68. In order to make Community legislation clearer and simpler, the Commission will shortly 
present a proposal for a directive aimed at consolidating the main provisions of 35 existing 
directives concerning professional activities and creating a recognition mechanism for diplomas 
relating to those activities not covered by other directives. 
(37) COM (93) 684 final, OJ No C 11, 15.1.1994. 
THE SINGLE MARKET IN 1995 
SECTION 3 - FREE MOVEMENT OF PERSONS 21 
C. Employment services in cross-border regions 
69. 1995 was the first full year of operation of the EURES network, which was launched in 
November 1994 with the objective of facilitating the free movement of workers within the Euro­
pean Economic Area. EURES is a partnership made up of the Commission, public employment 
services and representatives of the social partners in cross-border regions. During the year, it 
has facilitated the exchange of experience and good practice between network members. 
Cooperation between public employment services is already beginning to go beyond what was 
foreseen at the outset. 
THE SINGLE MARKET IN 1995 

22> 
Section 4 - Free movement of goods 
Instruments provided for by Community law for ensuring free 
movement of goods 
§ 1 - Articles 30 to 36* of the EC Treaty 
A. Introduction 
70. Articles 30 et seq.* of the EC Treaty prohibit quantitative restrictions on imports and 
exports, as well as measures which have an equivalent effect. Actions undertaken by the 
Commission to check Member States' adherence to these articles aim to eliminate obstacles to 
trade, in particular by a dialogue with the Member States. 
71. In 1995 the Commission recorded 258 new cases, which were either detected in the 
course of the Commission's work, or resulted from complaints by economic operators or 
professional associations. The increase in comparison to 1994 can be explained mainly by the 
accession of Finland, Austria and Sweden. 
During the same period, 238 files were terminated. It should also be noted that only two were 
the subject of a referral to the Court of Justice, confirming that the partnership advocated by 
the Commission with the aim of finding non-contentious solutions to cases submitted to it has 
proved profitable. This year, meetings were organised in Spain, in France, in Italy, in the 
Netherlands, Germany, Greece and for the first time, in Belgium. This exercise will be 
extended to the new Member States, Austria, Finland and Sweden. These "package meetings" 
give the framework necessary for a detailed dialogue between the Commission and Member 
State departments, and made it possible to find a solution for 60 files. 
B. The main fields in which the Commission acted to eliminate obstacles to 
trade in 1995 
72. As can be seen from the statistics appearing in the table III extracted from the 258 new 
files registered, the main areas in which government measures are likely to have the objective 
or the effect of restricting intra-Community trade are those of road vehicles, food, chemicals, 
and pharmaceutical and medical products. 
As in 1994, the most numerous difficulties were noted in the food and road vehicles sectors. 
THE SINGLE MARKET IN 1995 
24 SECTION 4 - FREE MOVEMENT OF GOODS 
TABLE III - COMPLAINTS CONCERNING OBSTACLES TO TRADE RECORDED IN 1995 (ARTICLES 30 ET SEQ.) 
Member 
State 
B 
DK 
D 
EL 
E 
F 
IRL 
I 
L 
NL 
O 
P 
FIN 
S 
UK 
TOTAL Road vehicles 
6 
2 
4 
2 
4 
23 
0 
10 
3 
1 
1 
2 
2 
7 
4 
71 Foodstuffs 
6 
0 
21 
3 
7 
10 
0 
5 
0 
3 
1 
1 
1 
8 
0 
66 Chemicals 
1 
1 
4 
1 
1 
1 
0 
1 
0 
0 
2 
0 
0 
3 
0 
15 Pharmaceutical 
& medical 
products 
1 
1 
0 
2 
1 
0 
0 
3 
0 
0 
1 
0 
0 
0 
1 
10 Telecom­
munications 
0 
0 
2 
1 
0 
1 
0 
3 
0 
2 
0 
0 
0 
0 
0 
9 Construction 
1 
0 
2 
0 
0 
0 
0 
0 
0 
0 
2 
0 
1 
0 
0 
6 Other 
2 
1 
21 
0 
13 
13 
0 
10 
0 
9 
3 
2 
1 
1 
5 
81 TOTAL 
17 
5 
54 
9 
26 
48 
0 
32 
3 
15 
10 
5 
5 
19 
10 
258 
73. All the Member States, except for Ireland, are involved. It is significant in this respect 
that the situation of the new Member States, Austria, Finland and Sweden, reflects the general 
situation found in the other Member States. Indeed, the majority of the complaints concerning 
these three countries concern regulations relating to the registration of the vehicles, the market­
ing of food and the marketing of pharmaceutical products. The nature of the obstacles encoun­
tered by economic operators and the objectives pursued by the Member States vary from one 
sector to another, but are not markedly different from the obstacles which the Commission 
identified in previous reports. 
a) Road Vehicles 
74. It is in the road vehicle sector that the Commission recorded most cases this year. These 
difficulties, which mainly concern vehicles which have previously been registered in another 
Member State, as in 1994, originate primarily in the non-application of the principle of mutual 
recognition by vehicle inspectors and national technical standards, as well as the non-recogni­
tion of documents delivered in another Member State, despite their containing the necessary 
information. The Commission is therefore paying particular attention to this situation, which in 
many cases challenges a right that the Internal Market grants to the Community citizen. 
Examples of the results obtained following the intervention of the Commission are the greater 
flexibility introduced by France on registration procedures for second-hand vehicles, and by 
Spain on its regulation on individual approval of right hand drive cars. 
In order to make the national authorities aware of their obligations regarding the registration of 
vehicles and to inform the general public of the rights and guarantees they enjoy under 
Community law, the Commission adopted on 20 December 1995 an interpretative notice 
regarding the procedures for the type approval and registration of vehicles previously regis­
tered in another Member State (38). The main aim of the new notice adopted by the Commis­
sion is to explain the principles and procedures which national authorities should follow so that 
motor vehicles previously registered in a different Member State can be registered simply and 
efficiently in their countries. The notice provides a clear account of the practical consequences 
for national authorities and private individuals flowing from both the introduction of EC type 
approval for vehicles and the Court's decisions. 
(38) SEC(95) 2262, not yet published. 
THE SINGLE MARKET IN 1995 
SECTION 4-FREE MOVEMENT OF GOODS 25 
b) Food 
75. The Commission noted that in 1995, as in 1994, the principle obstacles lie in national 
procedures requiring prior authorisation aimed at checking the composition of food, and par­
ticularly the presence of food supplements (nutrients, vitamins) and/or additives. In this respect, 
and in order to be in a position to better guarantee compliance with Community rules on the 
matter, the Commission asked the authorities of the Member States to provide it with details on 
the national procedures currently in force. 
The Commission stressed that the imperative requirement of consumer protection does not 
involve the banning of products on the grounds of national "quality". Thus, for example, follow­
ing the intervention of the Commission, Greek authorities amended the regulation in force in 
order to make possible the marketing of certain drinks containing a low fruit juice content, as 
long as their labelling specifies this content. 
c) Chemical products 
76. Some of the obstacles about which the 15 complaints were received derive from prohibi­
tions on the importation or use of products which the Member States consider as posing a risk 
for public health and for consumers. But most are related to the authorisation procedures for 
marketing and, in the case of parallel imports, to the procedures for verifying that the imported 
product is identical with the products the marketing of which has already been authorised. 
d) Pharmaceutical and medical products 
77. The barriers to the free movement of pharmaceutical products mainly have to do with the 
procedures for authorisation of the marketing and difficulties related to parallel imports. The 
Commission has intervened on many occasions to facilitate the parallel importation of products 
manufactured in another Member State and already marketed, or of medicines with therapeutic 
characteristics identical to medicines existing on the market (39). 
e) Other types of obstacle 
78. The Commission noted in 1995 as regards commercial regulation an upsurge in regula­
tions necessitating the use of the national language for certain information found on the label­
ling of products. Thus, for example, the Commission stated that the obligation to ensure that 
bottles carry the indication "no deposit" in Dutch as well as a logo indicating a separate collec­
tion of these bottles was a disproportionate, excessive obligation in comparison to what the 
consumer needed to know. 
79. The Commission also had to examine certain regulations relating to the marking of place 
of origin leading to barriers to trade. For example, following a complaint against the require­
ment by Danish legislation for clothing imported and sold under the name of a Danish company 
or under a Danish mark to carry labelling mentioning that they were imported or their country of 
origin, the Commission concluded these requirements as regards labelling for imported clothing 
were equivalent to a restriction on trade between Member States, contrary to the rules of the 
EC treaty (Article 30*). 
(39) Communication on parallel imports in the pharmaceutical specialities sector, 0J No C 115, 6.5.1982. 
THE SINGLE MARKET IN 1995 
26 SECTION 4 - FREE MOVEMENT OF GOODS 
C. Action by the Court of Justice 
80. The jurisprudence of the Court of Justice is an important instrument for the uniform and 
effective application of the Community rules in the area of Article 30 et seq.* of the EC Treaty, 
as the concept of "measures having an equivalent effect to a quantitative restriction" is not 
defined by the Treaty. 
81. The following were among the main judgements of the Court of Justice in 1995: 
• Television advertising for goods on behalf of the distribution sector (40) 
Article 30* of the Treaty does not apply to a case where a Member State prohibits by 
legislative or regulatory means the dissemination of advertising messages on behalf 
of the distribution sector of the economy. Such a measure is not intended to regulate 
the exchange of goods between the Member States but concerns methods of sale, 
and applies to all economic operators without distinguishing between products and 
does not affect the sale of products coming from other Member States differently 
from that of home products. 
• Setting of maximum levels for pesticide residues (41) 
Directive 90/642/EEC* of the Council, of 27 November 1990, regarding the setting of 
maximum levels for pesticide residues on and in certain products of plant origin, does 
not prevent national regulations from setting the maximum levels authorised for resi­
dues of chlorpropham and propham and the methods for monitoring compliance with 
these levels. The Court nevertheless made it clear that such a regulations should 
respect the provisions of Articles 30 and 36* of the Treaty. 
• Importation of a drug (diamorphine) (42) 
A prohibition on importation could not be allowed on the basis of Article 36* if justified 
on the grounds of the need to ensure the survival of a business. On the other hand it 
can benefit from the derogation provided for in Article 36* when the protection of the 
health and life of people is in question and this objective cannot be achieved as 
effectively by measures less restrictive of intra-Community trade. 
• Presentation of a product which might limit the freedom to set resale prices and mis­
lead the consumer (43) 
A prohibition on the putting into circulation in a Member State of products carrying the 
same advertising references as are used in other Member States is of a kind that 
hinders intra-Community trade because it may force the importer to adapt the presen­
tation of the products in a different way depending on the place in which they are 
offered for sale and to incur additional packaging and advertising costs . 
(40) Case C-412/93; judgement delivered on 9 February 1995. 
(41 ) Joined cases C-54/94 and C-74/94; judgement delivered on 23 February 1995. 
(42) Case C-324/93; judgement delivered on 23 March 1995. 
(43) Case C-470/93; judgement delivered on 6 July 1995 (not yet published). 
THE SINGLE MARKET IN 1995 
SECTION 4 - FREE MOVEMENT OF GOODS 27 
§ 2 - Technical harmonization and standardization 
A. Adoption and implementation of legislation in the various sectors 
a) Agricultural products 
Veterinary and zootechnical legislation 
82. Important decisions were taken during 1995 in the area of veterinary and zootechnical 
legislation. These include Directive 95/29/EC* on the protection of animals during transport, 
three decisions on salmonella tests for certain animals and animal products destined for 
Finland and Sweden (Decisions 95/409/EC*. 95/410/EC* and 95/411/EC*) and modifying direc­
tives on trade in fresh meat and on trade in cattle and pigs (Directives 95/23/EC* and 
95/25/EC*). 
83. The Commission also submitted proposals to the Council on a number of matters, includ­
ing meat-based products and protective measures against certain zoonoses. 
84. The Commission adopted several implementation measures regarding the measures 
adopted to complete the single market. It also adopted decisions to harmonise the conditions 
for the importation of fish products and live bivalve molluscs (Council Directive 95/22/CE*), the 
provision of Community financing for the eradication of animal diseases and restraining the 
development of such diseases, with particular regard to classic swine fever in Germany and 
foot-and-mouth disease in Greece (44). Safeguard clauses were implemented to avoid the intro­
duction of disease into the Community, particularly on the appearance of foot-and-mouth 
disease in Russia and of dourine in Mexico. 
85. The Commission organised a major conference in Brussels at the beginning of Decem­
ber, in order to review the scientific evidence and evaluate the present state of knowledge on 
the use of growth activators in meat production. 
Plant health and other legislation relating to crop products and animal nutrition 
86. These are areas which has been subject to harmonised legislation for many years and 
where there is a high level of administrative cooperation between the Member States and the 
Commission. There have been no serious problems in 1995. 
• Plant health - Certain "protected zones" were recognised under Commission Directive 
95/40/EC* as being exposed to particular plant health risks and accorded special pro­
tection, while Commission Directive 95/44/EC* detailed derogation provisions from 
the Community plant health regime for trials, scientific and varietal selection work. 
Consolidation of Council directive 77/93/EEC* is due to be completed in 1996. 
• Seeds and Propagating Material - The Council has not yet adopted the proposal to 
update the 7 basic seeds directives (45) to ensure total compatibility with the internal 
market and the opinion of the European Parliament is still awaited. It is unlikely the 
proposal will be adopted before mid 1996. Consolidation of these 7 basic directives is 
also due to be completed in 1996. 
• Pesticide residues - The Council adopted two new directives (Directives 95/38/EC* 
and 95/61/EC*) which provide for the fixing of maximum pesticide residue levels in a 
wide range of agricultural products for seven additional pesticides not previously cov­
ered by Community legislation. 
(44) Not yet published. 
(45) COM (93) 598 final, published in OJ C 39, 31 /1 /94. 
THE SINGLE MARKET IN 1995 
28 SECTION 4 - FREE MOVEMENT OF GOODS 
Plant variety rights 
87. The Community Plant Variety Rights Office began functioning at a provisional address in 
Brussels, in the absence of agreement on a permanent site. The Commission adopted three 
implementing measures relating to plant variety rights under the basic Regulation (EC) No. 
2100/94* (46). 
Complaints 
88. The main obstacles to free movement of agricultural products reported to the Commis­
sion in 1994 were technical barriers, such as the Italian authorities' new maximum limits on 
pesticide residues in lemons, or their stepping-up of point-of-arrival checks for salmonella in 
fresh meat from other Member States. 
The problems in trade reported to the Commission were in areas in which the Community rules 
are not yet complete or the harmonizing directive has not yet come into effect. 
b) Capital goods 
89. In the field of capital goods, the Commission has pursued its activities on the establish­
ment and application of the regulatory framework covering the various sectors. The transposi­
tion period for 92 directives in such sectors as mechanical and electrical engineering, personal 
protection equipment, gas, pressure vessels, prepackaging, legal metrology, and medical 
devices will have expired before 31 December 1995. Among these, the directives of the "new 
approach" type are of a special importance, from both a legal and a economic point of view. 
The transposition rate is good, in view of the objective complexity of the transposition of the 
directives in this field. In view of the pre-existence in the Member States of detailed legislation 
on the matters covered by the directives, often in connection with other objectives 
(e.g.installation rules, social security), the insertion of the principles of the "new Approach" in 
the national systems can prove complex, requiring interaction between the Community provi­
sions and the national systems. 
c) Foodstuffs 
90. In the foodstuffs sector, the adoption by the European Parliament and the Council on 20 
January 1995 of Directive 95/2/EC* on additives other than colorants and sweeteners 
completes the harmonisation of the basic rules on food additives within the Community. The 
implementation of the new rules will make a major contribution to the operation of the internal 
market in this sector. In addition, the Commission adopted two directives establishing the 
criteria of purity for colorants (Directive 95/45/EC*) and sweeteners (Directive 95/31/EC*) 
respectively. Further substantial progress was made with the adoption by the Council of 4 
common positions on the labelling of foodstuffs, novel foods, flavours and natural mineral 
waters respectively. The Commission forwarded three new proposals to the Council relating to 
additives, two of which provide for the technical updating of the existing regulation, while the 
third establishes the list of traditional foods in which Member States may restrict the use of 
authorised additives (47). In addition, the services of the Commission undertook the first control 
missions to Member States in the framework of Directive 93/99/EEC* on additional measures 
for the official control of foodstuffs, while there was an increase in the range of tasks subject to 
scientific cooperation between the Commission and Member States. 
(46) Three implementing measures publised in OJ Nos L 121,1.6.1995, pp. 31 and 37, and L 173, 25.7.1995, p. 14. 
(47) COM (95) 126 final, OJ No C 134, 1.6.1995. 
THE SINGLE MARKET IN 1995 
SECTION 4-FREE MOVEMENT OF GOODS 29 
d) Pharmaceutical products 
91. There were significant developments in the pharmaceutical products sector in 1995. The 
new Community system for the authorization of medicines for human use and veterinary use 
came into effect on 1 January 1995. This system sets up two new procedures, a centralized 
procedure, at the end of which a marketing authorization valid for all the territory of the Com­
munity is issued, and a decentralized procedure, based on the principle of the mutual recogni­
tion, with Community arbitration in the event of disagreement. The requests for centralized 
authorization and for arbitration are examined by the European Agency for the Evaluation of 
Medicines, which opened at the beginning of 1995, and decided on by the Commission at the 
end of a comitology procedure. So far, three Community marketing authorisations have been 
granted for highly innovative pharmaceutical products. 
e) Chemicals 
92. The internal market for chemicals works relatively well. The marketing and use of 
dangerous substances is, however, the principal sector where Member States request deroga­
tions under article 100 A § 4* of the EC treaty in order to apply stricter internal measures for 
environmental protection and health reasons. In 1995 the Commission received requests from 
the Netherlands, Germany and Denmark regarding creosote, which is subject of directive 
94/60/EC* (14th amendment of directive 76/769/EEC* on the limitations of the marketing and 
use of dangerous substances). 
f) Motor vehicles 
93. The internal market in the motor vehicles sector is based on a number of Directives 
designed to replace the national technical regulations concerning the construction and opera­
tion of motor vehicles. This Community technical harmonization, based on safety and environ­
mental considerations, consists of a series of individual directives covering the various compo­
nents and entities of a vehicle and a framework directive organizing the overall type-approval 
procedure (Directive 70/156/EEC*), which is destined to substitute for all national procedures. 
The application of this system enables a vehicle validly provided with a Community type-
approval certificate to be sold and registered in any Member State, without no further formali­
ties of a technical nature. This system, which has until now been optional for manufacturers, 
will become obligatory as regards personal vehicles from 1 January 1996. The same will apply 
to other categories of vehicles as from the adoption of the last individual directives concerning 
them. 
94. It should be noted that this system is intended not only to facilitate the marketing and 
registration of new vehicles, but also generally to facilitate the free movement of vehicles 
within the Union. Any vehicle which has received type-approval and has been registered in one 
Member State should be able to obtain type-approval and registration in another Member State 
automatically on the basis of its Community type-approval certificate. 
95. Besides progress with regard to technical harmonization, it is clear that the operation of 
the internal market for motor vehicles requires further action particularly with regard to the tax 
aspects, which may cause significant disturbances in the normal operation of the internal mar­
ket. The Commission is currently examining the possibility of moving towards the beginning of 
harmonization with regard to registration and road taxes. 
THE SINGLE MARKET IN 1995 
30 SECTION 4- FREE MOVEMENT OF GOODS 
B. Special free movement arrangements 
a) Dual-use goods 
96. The integrated system of export controls on dual-use goods (Council Regulation No. 
(EC) 3381/94*), adopted by the Council on 19 December 1994, became applicable on 1 July 
1995. The key element of the system is that, by harmonising the requirements and establishing 
a common licence procedure for exports from the Community, free movement is established 
for the vast majority of dual-use goods within the Community. Although a limited number of 
highly sensitive items will still be controlled when transferred inside the Community, this will be 
done without the use of border controls. Article 5 still leaves room for national action. Thus, the 
principle of free movement in the Community is established in a sector which had previously 
remained an exception to the rules of the single market, although a good deal of work remains 
to be done to complete and finalize these rules. 
b) Agricultural products 
97. The proposals for new common organisations of the market for potatoes (48) as well as 
the proposal to include certain agricultural products of lesser importance (honey, chicory, pine­
apples, coffee, non-wine vinegar, cork) within the scope of Council Regulation (EEC) No. 
827/68* on the common organisation of the market in certain products listed in Annex II to the 
Treaty (49) ("catch-all" regulation) are still being deliberated upon at the Council. 
C. Standardization policy 
98. The Commission has prepared a report (so) on the progress of European standardization, 
as announced at the meeting of the Industry Council in November 1995. This has revealed 
some interesting data, and confirms the impression that in the areas of the New Approach and 
public procurement, significant progress has been achieved, though much remains to be done. 
99. In both these areas mandates continue to be issued for new work, though to some extent 
in these areas European standardization has entered upon a period of consolidation. It may be 
observed that with the development of the internal market, European standardization has 
begun to reach a critical mass in relation to national and international standardization. While 
significant progress has been made in efficiency, and output is impressive, it remains true that 
delivery of standards is still too slow and further improvement is needed. 
100. The Commission is undertaking a review of policy in European standardization. Of par­
ticular importance is the area of information technology and telecommunications in which a 
major review of activity is already underway following the issue of the Bangemann Report on 
the Global Information society and the outcome of the conference in Genval, Belgium, in 
November 1994. As the economy in this sector is integrated at world level, both the Commis­
sion and the industry recognise that international standards must have priority. 
(48) COM (92) 185 final, OJ No C 333,17.12.1992. 
(49) COM (91) 328 final, OJ No C 263, 9.10.1991, p.5. 
(50) SEC (95) 2104 of 28.11.95. 
THE SINGLE MARKET IN 1995 
SECTION 4 - FREE MOVEMENT OF GOODS 31 
D. Quality, certification, and conformity marking policy 
101. The Commission is pursuing its work on the implementation of its policy of quality; the 
Commission departments gathered the elements for the preparation of a Communication to the 
Council and the European Parliament on a European Policy on the Promotion of Quality. The 
Industry Council of 6 November confirmed its interest in this initiative. 
1995 saw the entry into force of the directive on the EC mark (Council Directive 93/68/EC*): 
since 1 January Member States have been required to accept on their tem'tory any product 
conforming to the new harmonized rules. 
102. Work on the consolidation of the internal system, i.e. coordination of notified bodies, 
organisation of an accreditation system through EOTC, has been accompanied by the opening 
of negotiations aimed at reaching agreements on mutual recognition with six other countries 
(USA, Canada, Australia, New Zealand, Japan, Switzerland). Under such agreements, tests 
and certificates of conformity issued by recognised bodies in those countries with regard to the 
requirements of Community directives will be recognised in the Community. Similarly, confor­
mity assessment carried out by Community bodies with regard to third country requirements will 
be recognised by the country concerned. These arrangements will eliminate much of the dupli­
cation and delays associated with testing and certification of products being traded. 
103. Quality policy for agricultural products and foodstuffs - The Commission studied the 
proposals of the Member States regarding European protection for geographical indications 
and designations of origin recognised by the Member States before the entry into force of this 
system of protection (Regulation (EC) No 2081/92*) with the help of the ad-hoc Scientific 
Committee, and prepared the list of such indications and designations as a basis for the regis­
tration decision to be taken by the ad-hoc Regulatory Committee. 
§ 3 - Prevention and control instruments 
Prevention of new obstacles - Procedure 83/189/EEC* 
104. The information procedure provided for by Directive 83/189/EEC*. in particular with 
regard to the notification by the Member States of their draft technical legislation, continues to 
be a fundamental instrument for the prevention of obstacles to trade. Despite the completion of 
the internal market at the end of 1992, Member States continue to adopt a multiplicity of tech­
nical regulations concerning products. 
Year 
1992 
1993 
1994 
1995(52) Notifications (51 ) 
362 
385 
389 
438 Observations 
MS 
184 
134 
161 
102 COM 
165 
139 
222 
114 Reasoned opinions 
MS 
66 
75 
85 
60 COM 
121 
137 
99 
57 Directive intended 
43 
10 
9 
6 
The analysis of these national regulations raises questions regarding their effects on the single 
market. Indeed, they risk endangering the maintenance of this market and the integrity of the 
benefits it confers on economic operators. 
(51) Data for 1992, 1993 and 1994 is for 12 Member States. If Austria, Finland and Sweden are included, the figures 
become 466 in 1992,438 in 1993 and 442 in 1994. Data for 1995 is for the 15 Member States. 
(52) The figures for reactions to the notifications cover those for which the deadline was 8 January; the last date for 
reaction on 95 Notifications being 31 March 96. 
THE SINGLE MARKET IN 1995 
32 SECTION 4 - FREE MOVEMENT OF GOODS 
105. In the agricultural sector, 61 draft technical regulations were notified by Member States 
and by EFTA countries. The analyses of the draft legislation notified led the Commission to 
request in most cases that amendments be made to ensure that its adoption did not create new 
obstacles to the free movement of goods. 
B. Enforcement of the mutual recognition principle 
106. The proposal for a European Parliament and Council Decision establishing a procedure 
for the exchange of information on national measures derogating from the principle of the free 
movement of goods within the Community (Council Decision 95/3052/EC*) was adopted by the 
Council at its Internal Market meeting on 23 November 1995. 
In essence, the Decision provides for the implementation, from 1 January 1997, of a procedure 
whereby Member States have to notify the Commission of any measure preventing the free 
movement of a particular model or type of product lawfully produced or marketed in another 
Member State where the direct or indirect effect of the measure is a general ban on the goods, 
a refusal to allow the goods to be placed on the market, the modification of the model or type of 
product concerned, or its withdrawal from the market 
This transparency will enable problems connected with the free movement of goods to be 
settled more quickly, either by adjusting the national rules, or - if necessary - by amending 
existing Community legislation. 
On the basis of this notification, the cooperation established between the Member States, with 
the support of the Commission, will also help to ensure that Community action does not exceed 
what is necessary to attain the objective of free movement. 
THE SINGLE MARKET IN 1995 
33 
Section 5 - Freedom to provide services and right of establish­
ment 
§ 1 - Services in general 
107. The rights, recognized by the EC Treaty, of freedom of establishment and the free 
movement of services within the European Union, as interpreted by the Court of Justice, may 
be asserted directly by economic operators. The many approaches, requests for information 
and above all complaints made directly to the European Commission are therefore a partial but 
significant pointer to the way in which the Internal Market is working in some areas. 
108. In 1995, the Commission had to deal with a growing number of complaints from firms 
which, when supplying services in another Member State, had been faced with barriers con­
cerning the secondment of staff who were third-country nationals, but whose employment was 
perfectly in order. 
109. The fairs and exhibitions sector was the subject of a specific check concerning free 
movement of services and goods and right of establishment, the results of which will be the 
subject of a forthcoming interpretative Communication. 
§ 2 - Financial services 
Credit institutions 
a) Derivatives 
110. Derivatives are financial contracts whose value depends on the value of one or more 
underlying assets, on a reference rate or on an index. Though used both for risk-hedging and 
speculation for over twenty years, recent events, such as the Barings Pic case, have focused 
attention on derivative products and markets. 
The report of the Bank of Englands' Board of Banking Supervision on the Barings case (53) did 
not suggest additional regulation. However, in view of public interest and debate, Commis­
sioner Monti sent communication to his colleagues on derivatives and capital movements 
which was published on 12 April 1995. 
Existing Community legislation already covers many of the supervisory problems and concerns 
raised by derivatives. In particular, the Solvency Ratio Directive (Council Directive 
89/647/EEC*); which has been in force since 1991, and the Capital Adequacy Directive ("CAD") 
(Directive 93/6/EEC*), which is to be implemented by 1 January 1996, require banks and 
investment firms to hold own funds against credit risks and market risks inherent in their 
derivatives activities. 
(53) HMSO - published London 18.7.1995. 
THE SINGLE MARKET IN 1995 
34 SECTION 5 - FREEDOM TO PROVIDE SERVICES AND RIGHT OF ESTABLISHMENT 
In addition, the CAD together with the Investment Services Directive (Directive 93/22/EC*), 
which is also to be implemented by 1 January 1996, oblige institutions to have adequate risk 
monitoring systems in place. 
111. However, legislation must keep pace with the development of markets. Therefore, 
responding to needs highlighted again in the European Parliament's report on financial deriva­
tives of 22 September 1995, further legislative refinements of the supervisory treatment of 
derivatives are under way: 
• the Council adopted a common position in September 1995 on a draft directive which 
would allow Member States to recognise so-called bilateral netting agreements (54), 
considerably reducing the credit risks of derivatives traded outside recognised 
exchanges ("over-the-counter derivatives"); 
• the Commission is preparing a draft directive which would extend the capital require­
ments for credit risks so as to cover all types of over-the-counter derivatives and 
prohibit the use of certain types of relatively high risk over-the-counter derivatives for 
institutions which do not have adequate risk controls in place; 
• in consultation with the Member States, the Commission is also examining the 
national accounting standards for derivatives activities of financial institutions. 
to) Interpretative communication on the interest of the general good 
112. In its contacts with economic operators, the Commission has noted that there are still 
differing interpretations and uncertainties as regards what constitutes provision of services and 
the scope of the general good clause in the Second Banking Directive (89/646/EEC*). This is 
jeopardizing freedom to provide services in banking. 
113. It has prepared a draft communication on these two points, which has been published for 
consultation in the Official Journal (55), in order to clarify the grey areas which remain. 
• Cross-border services - In particular, the draft Communication defines the precise 
scope of Article 20 of the Directive, concerning the obligation on credit institutions 
wishing to provide cross-border services to notify to home Member State authorities 
the list of services they intend to offer for the first time in other Member States. It 
clarifies the difference between provision of services and establishment, and elabo­
rates on a number of situations where it is difficult to distinguish between the two 
concepts. It then gives the Commission's views on the nature of the notification 
procedure laid down in Article 20 and on the legal implications of failing to comply 
with the procedure. Lastly, it clarifies the Commission's view that as soon as a credit 
institution has notified the home Member State authorities of its intention to provide 
services, it can commence operations by way of the freedom to provide services, 
without waiting for confirmation of receipt of the notification from the host Member 
State authorities. 
• General good -: The draft Communication analyses the concept of "general good" 
from two key perspectives. First, the Commission gives its opinion that the host 
Member State is not required to communicate its "general good" rules to a credit insti­
tution wishing to open a branch in its territory. Second, in the light of the case-law of 
the Court of Justice, the text analyses the applicability of Member States' rules 
adopted in the interest of the "general good" to Community credit institutions carrying 
on within their territory banking activities enjoying mutual recognition. On this point, 
the draft Communication notes that the principle of mutual recognition should be 
applied irrespective of whether credit institutions are operating by way of the freedom 
to provide services or through a branch. 
(54) Common Position No. EC 21/95. Passed by Parliament 4th December 1995: PE decision No. A4 -0309. 
(55) OJ No C 291, 4.11.1995. 
THE SINGLE MARKET IN 1995 
SECTION 5 - FREEDOM TO PROVIDE SERVICES AND RIGHT OF ESTABLISHMENT 35 
In addition, the Communication describes the legal framework in which the host country's 
"general good" rules can still be applied against a Community credit institution. 
B. Insurance services 
114. The Third Insurance Directives (Life 92/96/EEC* and Non-Life 92/49/EEC*) set out to 
achieve greater choice of products, lower prices for consumers, and more competition between 
insurance companies and insurance markets in Europe. The Single Market for insurance has 
now been operational for just over one year and these effects can already be observed in the 
marketplace. 
For example, in Germany consumers are now benefiting from increased competition amongst 
insurers selling motor insurance. Price and product deregulation have led to a much wider 
choice of motor insurance, at a lower premium, than was available only less than a year ago. 
Belgian customers are now buying capitalisation life insurance products marketed by French 
insurance companies. As Belgian insurers have always been restricted by law from selling 
these products, this type of life insurance has never been available for Belgian consumers. The 
single licence introduced by the Third Directives has changed this and has started to generate 
healthy competition between insurance markets in Europe. 
115. In the field of insurance of large industrial and corporate risks, the single market came 
into being earlier (1.1.1990) and there is concrete evidence of increased competition. Risks that 
would have traditionally been underwritten by insurance companies from an enterprise's own 
Member State have been seen to be placed with foreign insurers, simply because those insur­
ers offer better terms. In some markets insurance brokers are witnessing that because of 
increased competition between insurers clients are more assertive in negotiating contractual 
terms and premiums with insurance companies. 
Where they see longer term opportunities in foreign markets, insurance companies are also 
gradually beginning to position themselves in other EU Member States too. A German com­
pany has acquired a health insurance company in the Netherlands. A British insurer has 
announced that it intends to sell motor insurance through direct telephone selling in Italy. These 
instances, unthinkable until only very recently, are evidence that change is slowly but gradually 
occurring in Europe's traditionally closed insurance markets. 
116. These encouraging observations may be made notwithstanding the problems with trans­
position referred to in Section 2 above. Even in the case of the "third" directives, transposition 
of which has been achieved in all Member States except Greece, transposition is not always 
complete and satisfactory. The number of complaints addressed to the Commission as well as 
cases detected by the Commission has increased considerably in the field of insurance. 
117. In October 1995, the Commission adopted a proposal for a Directive on the monitoring of 
insurance companies forming part of a group (56). The proposal aims to prevent double-count­
ing of the own funds of an of insurance group, to establish a check on the transactions taking 
place inside the group and to improve the competent authorities access to information concern­
ing insurance companies. The proposal stipulates that the provisions are to be transposed by 
1 January 1997 and implemented as from 1 July 1997. 
(56) COM (95) 406 final, OJ No C 343, 21.12.1995. 
THE SINGLE MARKET IN 1995 
36 SECTION 5 - FREEDOM TO PROVIDE SERVICES AND RIGHT OF ESTABLISHMENT 
Cross-border credit transfers 
118. In December 1995 the Council reached a common position on the proposed directive on 
cross-border credit transfers (57). The directive establishes rules on transparency and perform­
ance of cross-border transfers, to remedy shortcomings which had resulted in calls for Com­
munity action from business and consumers. The Council decided that the directive should 
apply to cross-border credit transfers in the currencies of the Member States and the ECU for 
amounts lower than 25.000 ECU. Coverage would be extended to transfers lower than 30.000 
ECU two years after the date set for implementation by Member States. 
The directive will require an institution to provide its customers with written and easily compre­
hensible information indicating the time that will be taken to execute the transfer, the manner of 
calculation of rates and charges, an indication of the value date if any and information on 
redress procedures. Customers are also entitled to receive specified information following a 
transaction. 
Institutions will have to execute a credit transfer within the time scale agreed with the customer. 
In the absence of such an agreement, funds are to be credited to the beneficiary's institution no 
later than 5 banking business days after acceptance of the order and made available to the 
beneficiary no later than the next banking business day. Interest is due to the customer for fail­
ure to execute the transfer on time. Charges not authorised by the originator of the transfer 
may not be made, and compensation is payable if they are. Where transfers fail to reach the 
beneficiary's bank, the originator is to be reimbursed up to 10.000 ECU, plus interest, charges 
and commissions. 
Member States must also ensure that adequate and effective procedures exist to deal with cus­
tomer complaints. 
The directive should enter into force no later than 30 months after its definitive adoption, which 
the Commission hopes will be achieved by mid-1996, after the Second Reading by Parliament. 
(57) Common Position reached 4.12.1995, contained in a Communication from the Commission to the Parliament: SEC 
(95) 1976 final. 
THE SINGLE MARKET IN 1995 
n-\i& 
Section 6 - Free movement of capital 
119. The monitoring by the Commission of the movement of capital and the freedom of pay­
ments within the Union has shown that the situation in this area is, in general, satisfactory. 
Community law has been transposed by Member States and transitional derogations have 
lapsed. 
120. There remain, however, a number of impediments to the free movement of capital. 
Although they do not take, in most cases, the form of outright restrictions their impact on the 
effective capital mobility and financial integration may be important. Such impediments can 
take the form of conditions for the admission of foreign securities in the domestic capital 
markets not applied to domestic securities, provisions in privatization laws aimed to maintain 
control over privatised companies, constraints on investment abroad by institutional investors 
not justified by prudential rules, tax rules favouring investment in domestic financial instru­
ments and restrictions on the physical transfer of funds. Procedures have been initiated by the 
Commission to eliminate such impediments. Such action has resulted in the improvement of 
the situation in some cases while in others the procedures are at an advanced stage. 
121. The available data show that there has been in recent years a considerable increase in 
capital flows within the EU and vis-à-vis the rest of the world. There was, in particular, a sharp 
increase in direct and portfolio investment capital, a sign that investors, individuals and 
companies, are profiting from the opportunities offered by the free movement of capital and the 
Single Market. The growth of portfolio capital gives a measure of the integration of financial 
markets. It reflects also the increasing sophistication and attractiveness of national equity and 
bond markers, notably government bond markets. For example the share of government paper 
held by non-residents rose between 1987 and 1993 from 3 to 31% in France, from 21 to 34% in 
Germany from 36 to 51% in Denmark, from 9 to 16% in the Netherlands and from 2 to 4% in 
Italy. The need to tap the international markets had beneficial effects on the domestic financial 
markets: extensive reforms have been introduced and the liquidity, transparency and efficiency 
of the markets were improved 
122. The volatility of foreign exchange markets has focused attention on some of the less 
desirable effects of capital movements, often associated with trading in derivatives markets, 
and a debate has taken place, in several fora, about the appropriate policy response. Among 
the proposals advanced the most notable were i)the taxation of international capital flows and 
ii)the imposition of reserve requirements. The Commission had the opportunity to express its 
views on the above issue in public hearing at EP committees and in a Communication by the 
competent Commissioner. The Communication stated that the free movement of capital is 
guaranteed by the Treaty and, in consequence, any measures involving restrictions on the 
movement of capital not provided for in the Treaty are excluded. It also stated that sound eco­
nomic and financial policies are the best way to limit destabilizing capital flows. Technical 
measures which fail to address the fundamental problems which lie at the origin of currency 
instability would be ineffective. 
THE SINGLE MARKET IN 1995 

31 
Section 7 - Taxation 
§ 1 - Indirect Taxation 
123. The Commission's objective in this area (as in others) continues to be to consolidate the 
internal market in accordance with the rules of the Treaty by guaranteeing fiscal neutrality in 
commercial trade and thereby creating a genuine single market. Its assessment of three years 
of operation of the new indirect tax arrangements is positive insofar as the setting up and 
implementation of the new rules is concerned. 
124. Nevertheless as regards Value Added Tax (VAT), experience has shown that traders are 
often not in a position to benefit from all the advantages that a single market has to offer 
because of the problems associated with implementing the requirements of the tax system -
e.g. the need to distinguish between domestic and intra-Community sales, the problem of veri­
fying the status of customers in other Member States, the difficulty of obtaining proof of trans­
port to other Member States, the different declarations and formalities that must be completed 
for tax and statistical purposes, in every Member State in which the trader carries out a taxable 
transaction etc. These problems are often exacerbated by the different ways by which Member 
States authorities have chosen to transpose Community rules in national legislation particularly 
where Community law offers them the possibility of selecting from various options when 
implementing these rules. 
125. In this connection, a survey of 182 companies in 15 Member States undertaken by the 
Euro Info Centres in 1995 revealed that 85% of the enterprises surveyed were satisfied with the 
working of the transitional VAT regime although some problems still need to be solved in order 
to increase their competitiveness. The main advantages cited by the respondents were money 
and time savings , easier and faster circulation of goods, better access to new markets. As for 
areas where the companies still have difficulties, INTRASTAT, fiscal representation, recupera­
tion and reclaiming of VAT, getting approval of a VAT number and triangular transactions were 
mentioned. 
126. However, the real difficulties underlying these problems stem from structural deficiencies 
in the nature of the VAT itself. The Commission has analysed these deficiencies and has 
concluded that they cannot be resolved within the framework of the principles of the present 
VAT system. The Commission has tried therefore to take account of these difficulties in its 
preparations for the introduction of the definitive VAT regime. It has concluded that any attempt 
to solve the underlying difficulties will require fundamental changes to the present VAT system 
as a whole so as to enable traders and business to treat domestic and intra-Community sales in 
the same way for VAT purposes while at the same time ensuring that Member States' VAT 
revenues continue to remain at their current levels. 
As part of these preparations, the Commission adopted a proposal in December 1995 to fix the 
minimum and maximum levels of standard-rate VAT at 15% and 25% respectively for the 
period 1 January 1997 to 31 December 1998. This will not result in the need for any Member 
State to change its existing rates, but will ensure that the range will not grow wider, thereby 
facilitating the strict alignment of rates that will be needed under the definitive regime. 
127. On the positive side, the abolition of frontier-related fiscal formalities within the Commu­
nity has meant that Member States are making increasing use of the possibilities offered by 
Community arrangements for administrative cooperation and mutual assistance to help them to 
control VAT, including VAT on intra-community trade. Exchanges of information and other help 
THE SINGLE MARKET IN 1995 
40 SECTION 7 - TAXATION 
between the competent authorities of the Member States have become an integral part of 
Member States' VAT control strategy and have played a key role in ensuring the smooth appli­
cation of VAT to commercial transactions within the internal market. The Commission and the 
Member States are continuing to work closely together in the Standing Committee on Adminis­
trative Cooperation to monitor and develop the effectiveness of these arrangements. The habit 
of working together has been assisted by the Community programme of training for indirect tax 
officials known as Matthaeus Tax. 
128. In the area of excise duties, the Commission carried out the first biennial review of the 
minimum rates of duty which were introduced on 1 January 1993. The findings of this review 
were presented in a report to the Council and the European Parliament on 13 September 1995 
The review considered the proper functioning of the Internal Market, the real value of the rates 
of duty and the wider objectives of the Treaty. It identified a number of potential problem areas, 
most notably - from an internal market viewpoint - in the cases of products subject to excise 
duty which compete with products which do not attract the duty. The Commission also noted 
that even comparatively minor adjustments within the system could have significant implica­
tions for other policy areas. 
129. In addition to the problems identified in the report, it is clear that, at a more general level, 
there are differing views as to what the excise system introduced on 1 January 1993 represents 
- for some, it gives full effect to an Internal Market for excisable goods whereas others argue 
that it is simply a first step towards a market which more closely resembles a national market.. 
130. In the circumstances, the Commission chose not to make any proposals for change in its 
report; rather it was felt that wide-ranging consultation with national administrations, trade 
representative bodies, and other interest groups was necessary, prior to any legislative 
initiative. The purpose of this consultation would be to allow all parties to give all their views on 
the basis of having operated the Internal Market for over two years, and to react to the 
description of the situation as presented in the Commission report. In addition, it would assist in 
greater analysis of the interaction between excise duties and other policy areas, such as health, 
agriculture, environment, energy and transport. 
During the last quarter of 1995, the Commission launched such a consultation process. As a 
focal point, it arranged a conference in Lisbon on 13,14 and 15 November, which was attended 
by over three hundred representatives of national administrations, industry, consumer and 
other interest groups. The conference examined each product sector from the viewpoint of the 
functioning of the Internal Market, the role of excises as a source of revenue and the interaction 
with other policy areas in a series of workshops. As a follow up to the conference, and another 
key element of the consultation process, all interested parties were invited to make detailed 
written submissions. 
The views expressed at the Lisbon Conference, as well as those put forward in submissions, 
will be taken into consideration by the Commission during its work on excise duties in 1996, 
and in particular in the preparation of the second review of excise duty rates which is due by 
31 December 1996. 
Already, as a result of the discussions in Lisbon, it has been decided to hold a special seminar 
early in 1996 for the mineral oil sector, which will bring together specialists from the trade and 
national administrations. This seminar will consider ways of improving the control and 
movement of mineral oils circulating in the Internal Market, and of reducing the potential for 
fraud. 
§ 2 - Direct Taxation 
131. Diverging national tax rules are becoming an increasingly important obstacle to the 
smooth functioning of the single market, as other regulatory and economic barriers are 
progressively removed. Citizens, small and medium-sized enterprises and multinational 
companies are equally concerned by the continuing hindrances to the free movement of serv-
THE SINGLE MARKET IN 1995 
SECTION 5 - FREEDOM TO PROVIDE SERVICES AND RIGHT OF ESTABLISHMENT 41 
ices, labour and capital and the freedom of establishment which result from existing distortions. 
For example: 
• non-residents are often discriminated against; 
• the location of savings and investments is distorted; 
• the cross-border provision of services is hampered; 
• cross-border income flows suffer from double taxation and/or cash flow losses. 
132. Very little progress was made in improving this situation in 1995. Commission proposals 
remain blocked in the Council as a result of the difficulty of reaching agreement under the 
unanimity voting principle. For example, discussions in the Council on the taxation of savings 
and the introduction of a common withholding tax among Member States have not yet resulted 
in agreement. The Commission continues to advocate a general withholding tax, at a low level, 
on non-residents within the Union as being technically the simplest solution and the one which 
is the easiest for other OECD partners to adopt. The only success at Council level was the 
signing in the Council of a Convention on the accession of Austria, Finland and Sweden to the 
Arbitration Convention, a Convention establishing binding arbitration in cases of transfer pricing 
disputes between Member States (58), at the end of December. The Accession Convention will 
enter into force, as between the States which have ratified it, after ratification by Austria, Fin­
land and Sweden and one other Member State. It will enter into force for each State subse­
quently ratifying it. 
133. Tax competition, for business activities or for capital, continues to pose a particular 
threat to the international tax system and to Member States' tax revenues. The Commission is 
committed to the consistent application of the Treaty competition rules in the tax area. An 
example of the seriousness with which the Commission views the dangers of fiscal degradation 
from special regimes is demonstrated by its decision of 12 April in the case of the Trieste 
scheme (59), on tax concessions for investments in Eastern Europe via Trieste. The Commis­
sion's approval of this scheme contains conditions in five key areas: a time limit of 5 years; the 
scheme will also be open to Italian residents; there will be a ceiling on the amount of loans or 
investments which can benefit from the advantageous tax treatment; there will be a ceiling on 
the amount of tax benefits given, defined as the difference between tax paid and the tax which 
would have been paid under normal Italian rules; and the Italian authorities will institute control 
procedures to ensure that funds are not directly or indirectly reinvested outside Eastern Europe. 
The last three conditions are all new elements in dealing with fiscal state aids. 
134. Even in those areas where the Commission is seeking to promote common approaches 
through voluntary cooperation between national tax authorities, progress has been slow. Thus, 
for example, while there is agreement on the principle of the direct application of reduced rates 
of withholding tax on interest (60) (as opposed to a system of later reimbursement), the practical 
arrangements for implementing this principle have yet to be agreed, including a common 
approach to the certification of residence. 
135. As the Council is not able to reach agreement on legislative measures, taxpayers are 
increasingly addressing the Court of Justice to find solutions for their cross-border tax prob­
lems. In 1995, the Court gave two important rulings on the taxation of cross-border workers, in 
February 1995 in the case of Schumacker (C-279/93) (61), and in August in the case of 
Wielockx (C-80/94). The Court ruled that a non-resident taxpayer, whether employed or self-
employed, who receives all or almost all of his income in the State where he works is objec­
tively in the same situation in so far as concerns income tax as a resident of that State who 
does the same work there. If such a non-resident taxpayer is not given the same tax treatment 
as regards deductions from his taxable income as a resident, his personal situation will be 
(58) Convention on the elimination of double taxation in connection with the adjustment of profits of associated 
enterprises, O.J. 20 August 1990, n" L 225, p. 19. 
(59) Commission decision of 12 April 1995 on State aid in the form of tax concessions to undertakings operating in the 
Centra di Servizi Finanziari ed Assicurativi di Trieste pursuant to Article 3 of the Italian Law No 19 of 9 January 1991, 
OJ. n° L 264,7 November 1995, p. 30. 
(60) See 1994 Report, para. 235. 
(61 ) See 1994 Report, para. 238. 
THE SINGLE MARKET IN 1995 
42 SECTION 7 - TAXATION 
taken into account neither by the tax authorities of the State where he works - because he is 
not resident there - nor by the State of residence - because he receives no income there. Con­
sequently his overall tax burden will be greater and he will be at a disadvantage compared to a 
resident. Therefore, the Court ruled that such a taxpayer suffers discrimination, for which there 
is no justification. These decisions confirmed the principles which the Commission had laid 
down in its Recommendation 94/79/EC* of December 1993. The necessary changes to the tax 
legislation of the Member States are under discussion with the Heads of National Tax Admini­
strations with a view to a coordinated approach in all Member States, some of which have 
decided to modify their legislation as a consequence. 
THE SINGLE MARKET IN 1995 
^3 
Section 8 - The business environment 
§ 1 - Intellectual and industrial property 
136. The Community has a number of tasks to perform in this field: ensuring free movement 
of goods and services protected by such rights, and providing a level playing field and a high 
level of protection within the internal market. A number of Community measures are as yet 
under discussion in Council and Parliament, while others have been adopted to ensure that the 
regulatory environment keeps pace with technical progress, such as developments in the 
information society. 
A. Intellectual property 
137. In July 1995, the Council reached a common position on the proposal for a directive on 
the legal protection of databases (62), which seeks to harmonise the copyright law applicable to 
database structures, in whatever form. It also envisages the introduction of a new economic 
right which would protect the substantial investments of database makers. Considering the 
important investment of human, technical and financial resources necessary to create a data­
base, and given that the databases could be copied at a much lower cost than that of their 
development, such provisions are important. This proposal, once adopted, will be an important 
step forward for intellectual property rights owners in the context of the Information Society. 
138. However, there are many other issues arising in this field. For this reason, the Commis­
sion published a "Green paper on copyright and related rights in the Information Society" (63) in 
July 1995. This Green Paper examines a range of issues arising from the impact of new tech­
nologies and the Information Society on copyright and related rights, particularly as regards the 
effects of measures in this area on the free movement of information society services. It will 
generate a wide debate with all interested parties, which should permit the Commission to 
define its working programme for the future. By outlining key questions, it offers a basis for 
reflecting on the pertinent issues not only within the European Union, but also at international 
level. 
B. Industrial property 
139. An important step was taken towards to opening of the Office of Harmonisation in the 
internal market (trademarks and designs), situated in Alicante, Spain, with the adoption of the 
implementation regulations of the Community Trademark regulation of 1994. These arrange­
ments are necessary to enable the OHIM to start its operations at the beginning of 1996; once 
(62) COM (92) 24 final, OJ No C 156, 23.6.1992 as amended by COM (93) 464 final, OJ No C 308, 15.11.1993 
Common position No 20/95, OJ No C 288, 30.10.1995. 
(63) COM (95) 382 final of 19.7.1995. 
THE SINGLE MARKET IN 1995 
44 SECTION 8 - THE BUSINESS ENVIRONMENT 
open, the Office will be competent for receiving applications for Community Trademarks which 
will be valid for the entire Community when they are granted (64). 
140. In July 1995, the Commission adopted a Green Paper on Utility Models (65) which calls 
for a wide consultation of all interested circles on this specific form of industrial property 
protection for technical inventions. Utility model protection, a form of industrial property protec­
tion at a lower level than patents, is often used as a relatively quick and cheap means to pro­
tect technical inventions which are not particularly innovative (such as mechanisms or tools). 
This is done to improve innovative activity throughout the Community. SMEs are particularly 
encouraged to comment on this document. 
141. At the end of the year, the Commission adopted a new proposal for a directive on the 
legal protection of biotechnological inventions (66), after the rejection of the first proposal by the 
European Parliament in March. The important decision to present a new proposal was taken 
after a in-depth analysis of the consequences of the absence of a legal framework for these 
inventions in the European Union. All concerns which were expressed during the discussions 
on the first proposal were carefully taken into account in the drafting of the new proposal. 
142. This year, the United Kingdom has deposited its instrument of ratification of the Com­
munity Patent Convention (67) of 1989, bringing the number of Member States having made 
this formality to eight. The Community Patent is an important element for the completion of the 
Single Market and Member States which have not yet done so were encouraged to start without 
delay internal ratification procedures so as to make the Community Patent available to users as 
soon as possible. 
§ 2 - Company law and financial information 
143. The European Company Statute, still not adopted by the Council, would be an important 
instrument for the completion of the single market, since it offers companies from different 
Member States a means of restructuring their business and a mobility within the Community, 
neither of which are available to them under individual national laws. There is still considerable 
pressure from business for the adoption of the regulation, and the Competitiveness Advisory 
Group, chaired by Mr Ciampi, stated in its report to the Cannes European Council: 
"One major advance would be the adoption of the European Company Statute. 
Even more important than the potential cost savings involved, the ease for both 
smaller and larger companies to expand Europe-wide would greatly stimulate inte­
gration. In fact, the internal market will remain unfinished business so long as 
European companies cannot operate across the Union in a more flexible and effi­
cient way". 
The Council has still not reached a common position on the proposed regulation on the statute 
for a European Company, due largely to persistent differences of opinion on the involvement of 
the employees in such a company. However, the Commission is hopeful that Directive 
94/45/EC*, which provides for the establishment of European Works Councils or procedures in 
Community scale undertakings and groups of undertakings, can act as the basis for a resolution 
of this issue and lead to the adoption of the regulation in the near future. 
It is hoped that a resolution of the issues which have held up the adoption of the European 
Company Statute will also lead to a rapid adoption of the 10th company law directive (68) on 
cross-border mergers of public limited companies. 
(64) See 1994 Report, para. 210. 
(65) COM (95) 370 final of 19/7/95. 
(66) COM (95) 661 final, not yet published. 
(67) OJL401 of 31/12/89. 
(68) COM (84) 727. 
THE SINGLE MARKET IN 1995 
SECTION 8 - THE BUSINESS ENVIRONMENT 45 
144. The Commission is considering the preparation of a proposed directive governing the 
transfer of the seat of a company from one Member State to another. This would enable such a 
transfer to take place without the necessity (as at present) for the company concerned to 
undergo the complex and costly formalities of liquidation in its state of original incorporation 
and re-incorporation, as a new legal entity, in the state to which it wishes to transfer, and would 
represent an important contribution to the free movement of companies within the single 
market. 
145. The Commission has also been following closely the current debate on wider issues of 
corporate governance which is being conducted within the business community at a European 
and international level, and remains vigilant for opportunities for simplification in this area. In 
accordance with the principle of subsidiarity, however, many of the issues involved can most 
appropriately be settled at national level. 
146. Large European companies with an international vocation, the so-called global players, 
are faced with the problem that the accounts which they prepare on the basis of their national 
legislation following from the Accounting Directives are not considered satisfactory when they 
seek capital on the international capital markets. As a result, these companies are required to 
prepare two sets of accounts, one set which satisfies domestic requirements and another set 
which satisfies the requirements of the international capital markets. 
The Commission has been seeking a solution for this problem which affects the competitive­
ness of European business. After extensive consultations with Member States and with inter­
ested parties, it has submitted a Communication to the Council in November 1995 which 
contains a number of proposals for a new accounting strategy (69). This strategy is fully in line 
with the principles of subsidiarity and proportionality. 
Rather than amend the existing Directives, the Commission proposes to improve the present 
situation by associating the EU with the efforts undertaken by the International Accounting 
Standards Committee and the International Organisation of Securities Commissions towards 
international harmonisation of accounting standards. At the same time, it is proposed to 
improve the coordination of the activities carried out by the various bodies in Member States 
which deal with accounting standards. Such coordination will allow the EU to adopt positions on 
accounting issues with a view to the further enhancement of the comparability of financial 
information within the Union and the defence of those positions internationally. 
As an immediate step, the Commission has decided to set up a working party with Member 
States which will examine the compatibility between International Accounting Standards and 
the Accounting Directives. 
§ 3 - Commercial communication 
147. During 1995 work has continued on a Green paper which will cover all forms of market­
ing communications including advertising, direct marketing, sponsorship, sales promotions and 
public relations. Based on a wide-scale consultation undertaken by the Commission at the end 
of 1994 and the beginning of 1995, the Green Paper, which should be published in early 1996, 
will provide an analysis of the current state of the Internal Market in this domain, and will make 
suggestions as to the needs for the Community's future policy in this area. 
(69) COM (95) 508 final of 14.11.1995. 
THE SINGLE MARKET IN 1995 
46 SECTION 8 - THE BUSINESS ENVIRONMENT 
§ 4 - Media 
Media ownership 
148. During the first half of 1995, the European institutions, the Member States and interested 
parties were consulted by the Commission on a possible initiative on media ownership. The 
results of this consultation indicate a shift towards a rather more positive position in favour of a 
Community initiative. In the light of the outcome of this consultation, the Commission may 
present during the first months of 1996 a proposal for a directive on media ownership, which 
would establish an equivalent level of protection of pluralism throughout the Community, by 
harmonizing some of the specific national rules on access to media ownership. 
B. Legal protection of encrypted services 
149. As stated in the Communication "Europe's way to the Information society: an Action 
plan" (70) of July 1994, the Commission is currently preparing a Green Paper on the legal 
protection of encrypted services in the Internal Market. Working within the perspective of the 
Information Society, the Green Paper will examine to what extent the operation of the Internal 
Market, and more particularly the free movement of goods and services, is impeded by dispari­
ties between national regulatory approaches to the legal protection of encrypted services 
against illicit reception. In 1995 a wide range consultation with the interested parties was under­
taken. On the basis of this consultation the Green Paper, which could be published in early 
1996, will examine options for Community action. 
C. Audiovisual policy 
150. On 22 March 1995 the Commission adopted a proposal for a Directive amending Direc­
tive 89/552/EEC* on television without frontiers (71). Its purpose is to provide a stable legal 
framework conducive to the development of television broadcasting activities in the Union. The 
proposal clarifies the rules determining which legal system is applicable to broadcasters, the 
rules on the protection of minors and on the promotion of European works, and takes account 
of the new economic realities of the industry. It does not cover certain new "point-to-point" 
services such as video-on-demand (VOD), which will be the subject of a Green Paper on the 
development of new broadcasting services. 
151. In February the Commission adopted a Communication with the aim of creating an envi­
ronment which will stimulate dynamic growth in the European programme industry (72). It is 
accompanied by two proposals for Council Decisions, one on a training programme for profes­
sionals in the European audiovisual programme industry and the other on a programme to 
promote the development and distribution of European audiovisual works. The two 
programmes are intended to run for five years from 1 January 1996. In July 1995 the Council 
adopted the Decision on the "development and distribution" section of the programme, which 
will be given a budget of ECU 265 million over five years; under the cooperation procedure it 
approved and forwarded to Parliament its common position on the "training" section of the 
Programme for which the budget is set at ECU 45 million. 
(70) COM (94) 347 final of 19.7.1994. 
(71) COM (95) 86 final, OJ No C 301,13.11.1995. 
(72) COM (94) 523 final of 8.2.1995. 
THE SINGLE MARKET IN 1995 
SECTION 8 - THE BUSINESS ENVIRONMENT 47 / q.& 
152. As regards the technological aspects, in June the Commission approved the first annual 
report (73) on progress in implementing the Action Plan for the introduction of advanced 
television services in Europe (74), the objectives of which are to encourage the emergence of 
a critical mass of advanced television services in the 16:9 format and a sufficient volume of 
programming in the 16:9 format and with high technical quality. 
§ 5 - Protection of personal data 
153. The Council and the European Parliament adopted Directive 95/46/CE* of 24 October 
1995 on the protection of individuals with regard to the processing of personal data and on the 
free movement of such data. 
This Directive is a contribution to the smooth functioning of the internal market which is particu­
larly important at a time when view data services, such as teleshopping, home banking or 
insurance services, distance education, and interactive video and audio services are develop­
ing in the context of the information society. 
154. Differences in national laws in this area may create barriers to the free flow of data since 
a Member State could legitimately oppose the free movement of data on the grounds of inade­
quate or non-existent protection in the Member States of origin or destination. 
Such barriers would have been particularly detrimental to the functioning of the internal market, 
one effect of which is precisely to generate flows of personal data. Aligning national laws on the 
text of the Directive will mean that the rights of individuals will have an equivalent level of 
protection throughout the Community, with Member States being prevented from erecting 
barriers to the circulation of data. 
155. The Member States have a period of three years from the adoption of the Directive to 
transpose it into national law. The Commission is also to report on its implementation at regular 
intervals. 
Its report could be accompanied by proposals for further harmonization. As a framework 
instrument leaving the Member States a degree of leeway, the Directive might require further 
legislation in particular areas, taking account of how the internal market functions. 
§ 6 - Information Society Services 
156. As explained in a Communication by Messrs Bangemann, Monti and Oreja of 22 March 
1995 to the Commission, the regulatory framework for Information Society Services has to be 
anchored in the well proven principles of the Internal Market. While it is important to avoid any 
over-regulation at Community level, it is also vital to prevent any future fragmentation of the 
Internal Market arising from disparities between national laws. In this respect work was 
launched on a regulatory transparency mechanism, which should guarantee that future national 
legislation will not create new obstacles to the free circulation of such services. 
(73) COM (95) 263 final of 16.6.1995. 
(74) JO No L 196, 5.8.1993, p. 48. 
THE SINGLE MARKET IN 1995 

L\C\ 
Section 9 - Public procurement 
157. During the year, the application of the public procurement rules intensified considerably 
because the rate at which Community texts were transposed into national laws improved and 
potential complainants were more familiar with their rights. A major step was taken towards the 
completion of the internal market in the field of public procurement. 
The Commission also made proposals to amend the public procurement directives following 
the Agreement on Government Procurement. 
§ 1 - Application of the Community rules 
158. As well as continuing to investigate cases in which transposai measures had not been 
communicated or were incorrect (see section 2.1), the Commission stepped up its checks on 
application of the rules by contracting authorities and contracting entities in each of the Mem­
ber States. 
159. It also dealt with infringements, discovered as a result of complaints or through its own 
investigations, in the application of the rules of Community law that can be relied on in the pub­
lic procurement field (directives and Treaty articles). There are now 214 cases in which an 
infringement procedure for misapplication of the directives has been opened (see table below). 
TABLE IV - INFRINGEMENTS FOR MISAPPLICATION OF PUBLIC PROCUREMENT DIRECTIVES: 214 
THE SINGLE MARKET IN 1995 
50 SECTION 9 - PUBLIC PROCUREMENT 
Action by the Commission 
160. Of the 244 cases dealt with in 1995 (including 92 new cases opened), the Commission 
settled matters with the Member State concerned in 38 cases before the infringement proceed­
ings had run their full course. To that end, it set up procedures for dialogue and consultation (in 
particular through bilateral meetings with individual Member States to discuss a range of 
issues) in order to offer Member States the legal and technical assistance they need and to 
endeavour to find mutually acceptable solutions to disputes in accordance with Community law. 
161. A few examples are worth mentioning: 
• Two municipalities in the Netherlands had stated in contract notices concerning the 
development of specialized transport systems that suppliers of services must be 
members of the Dutch transport organization and that the training of their employees 
must meet the requirements laid down by that organization. These two conditions 
contravened Community provisions and were dropped following requests by the 
Commission. 
• An Italian law (75) contained a provision which required contractors to accept a 
reduction in remuneration during the contract if they did not wish to be excluded from 
other contracts or risk the termination of the contract. The law also provided that 
maximum reference prices were to be observed for all future public contracts. Follow­
ing intervention by the Commission, these provisions, which infringed the general 
principles of proportionality, legitimate expectation and non-discrimination as well as 
several provisions of the public procurement directives, were repealed and replaced 
by a new set of provisions which complied with Community law. 
• A public hospital in Greece launched a procedure for the supply of oil during which, at 
the stage of awarding the contract, it rejected a supplier's tender because he had not 
presented certificates relating to his own suppliers. Rejection of the tender when it 
was being evaluated ignored the distinction made by the directives between the 
selection and award stages. Following contacts made by the Commission, the Greek 
authorities undertook to adopt general measures to prevent the recurrence of this type 
of difficulty, which is fairly frequent in Greece. 
B. Decisions by the Court of Justice 
162. The following decisions by the Court of Justice may be noted: 
• As regards admissibility of review, for the first time the Court decided, in its judge­
ment of 24 January 1995 (76) (Commission v. Kingdom of the Netherlands), on the 
possible impact of the procedure laid down by Article 3 of the Review Procedure 
Directive 89/665/EEC* on the procedure laid down by Article 169* of the Treaty. The 
Court stated that this procedure was a preventive measure which could not derogate 
from or replace the powers of the Commission under Article 169* of the Treaty, which 
gives the Commission discretion to refer the matter to the Court when it considers 
that a Member State has failed to fulfil an obligation under the Treaty and that the 
Member State concerned has not complied with the reasoned opinion of the Com­
mission. The Court confirmed this principle in its judgement of 4 May 1995(77) 
(framework agreement for the supply of dressing material (Commission v. Republic of 
Greece)) 
(75) Law N° 537/93, Art. 6. 
(76) Case C-359/93; judgement delivered on 24 January 1995. 
(77) Case C-79/94; judgement delivered on 4 May 1995. 
THE SINGLE MARKET IN 1995 
SECTION 9-PUBLIC PROCUREMENT 51 
Failure to transpose Directives 89/440/EEC* and 88/295/EEC*: before the expiry of 
the period set in the reasoned opinion, Directives 89/440/EEC* et 88/295/EEC* had in 
Germany been the subject only of administrative rules. The Court reiterated its case 
law concerning the transposition of directives: the need for a full application of the 
Directive in a sufficiently clear and precise manner, so that, where the Directive is 
intended to create rights for individuals, the persons concerned can ascertain the full 
extent of their rights and, where appropriate, rely on them before the national courts. 
§ 2 - Development of Community legislation 
163. The new World Trade Organization Agreement on Government Procurement requires 
limited amendments to Community Directives on public procurement to avoid reverse discrimi­
nation which would penalize European firms and operators and to make the Directives easier to 
apply following the Agreement. 
These amendments were the subject of two draft proposals for European Parliament and 
Council Directives, one amending Directives 92/50/EEC*. 93/36/EEC*. and 93/37/EEC*, and 
the other amending Directive 93/38/EEC* (78). These drafts were adopted by the Commission 
on 29 March 1995 and are under discussion in Parliament and the Council. 
§ 3 - Other activities 
"SIMAP" project 
164. An important development in the public procurement area during 1995 was the launch of 
two pilot projects as part of "SIMAP" (Système d'Information pour les Marchés Publics or 
Information System for Public Procurement). 
In the first pilot project, 75 contracting entities designated by the Member States will use elec­
tronic mail to send notices of tender opportunities and contracts awarded for publication in the 
Official Journal of the EU and in its on-line equivalent TED (Tenders Electronic Daily). 
The second pilot project will provide tools to give suppliers easier on-line access to information 
on tender opportunities and contracts awarded, plus other information already available in the 
Member States which can help them respond more competitively to public procurement oppor­
tunities. Examples of such information include tenders with a value lower than the thresholds 
specified in EU legislation, environmental issues, information on local conditions and practices, 
price levels, help for business in finding local partners when bidding for contracts in other 
Member States, help in the translation of calls for tender, standards and electronic product 
catalogues. 
All Member States, with the exception of Belgium and Italy, are participating in the first of the 
two pilot projects. Norway and Iceland, as EEA members, are also participating, and interest 
has also been expressed by Switzerland. 
The Commission is disappointed about the lack of participation in the second pilot project, for 
which only three Member States have proposed participants. The Commission emphasizes the 
importance of this project: suppliers often complain about the inadequacy of the tender infor­
mation which is available to them, and this pilot project is intended to develop and test ways of 
providing better and more reliable data, thus contributing to more efficient public purchasing. 
(78) COM (95) 107/1 & 12 final, OJ No C 138, 3.6.1995. 
THE SINGLE MARKET IN 1995 
52 SECTION 9-PUBLIC PROCUREMENT 
B. Improvement of participation of SMEs in public procurement 
165. Following an exhaustive analysis of actions to support SMEs, the Commission will shortly 
be in a position to present a Communication setting out a range of practical measures that 
might be taken. No simple solution exists which would enable SMEs to get the best out of the 
opening up of public procurement. It is advisable, rather, to rely on containing action in a range 
of areas in order to help those SMEs with the necessary dynamism to take advantage of the 
opportunities open to them. This will imply a concerted approach by all the actors involved: the 
Commission, the Member States, contracting authorities, the enterprises themselves and 
others. 
Defence Procurement 
166. In reaction to the international developments in recent years, all Member States have 
decided to cut their defence budgets. This has created renewed interest in applying good 
procurement practices also to defence purchasing, in order to get the best value out of reduced 
military budgets. 
167. In June 1995 an informal study group consisting of representatives from the Western 
European Union (WEU), the Western European Armaments Agency (WEAG) and the Euro­
pean Commission submitted a final report, which included recommendations to open up Euro­
pean defence markets to competition and suggested EU procurement rules be adopted to real­
ize that objective. 
THE SINGLE MARKET IN 1995 
£3 
Section 10 - Transport, Energy and Telecommunications 
§ 1 - Transport 
168. The basic legal framework of the Internal Transport Market is in place and the rules are 
being incorporated in national legislation. However, some of the most important measures are 
only gradually being phased in. This is particularly the case in the cabotage field where air 
transport cabotage will be fully liberalised by 1 April 1997 and road haulage cabotage on 1 July 
1998. Maritime cabotage has a number of transitional rules: for example, liberalisation of a 
very substantial part of domestic Greek services will only take place on 1 January 2004. 
169. Certain issues of secondary importance which were not included in the 1992 priority 
programme or which were not anticipated will have to be addressed and some existing meas­
ures require follow-up actions. This is particularly the case in the railway field where the first 
liberalisation step is being followed by technical and non-technical measures required to 
encourage the development of railways in the Internal Market. 
170. While some progress has been made with regard to the external dimension of transport 
services, widespread reluctance by Member States means that overall progress is unsatisfac­
tory. Substantial work and political will is needed to achieve a balance between intemal 
achievements and hitherto unsatisfactory implementation of the external dimension. 
A. Air transport 
171. Member States and airlines have reacted positively to the Third Package of liberalisa­
tion (79), which has implemented, since January 1993, the freedom to provide services in the 
field of airtransport. In 1995, the Commission has received few complaints. The most notable 
case concerned again the traffic distribution rules at Orly: the Commission decided, in March 
1995, that the new rules were compatible with Community law, with the exception of some dis­
proportionate provisions (so). 
172. The progress of the intemal market in the air transport sector has been thoroughly 
analysed in the British Civil Aviation Authority's last report The Single European Aviation 
Market: Progress So Far (September 1995) (81). The survey shows that important competitive 
developments have taken place since 1993. Although there is stilll room for more competition, 
it concludes that the practical success achieved in implementing liberalisation through the Third 
Package is cause for optimism about the future of airline competition in the EU, particularly 
after 1997, when domestic cabotage is fully liberalised. In particular, the CAA study positively 
acknowledges the effectiveness of the action undertaken by the Commission to enforce internal 
market legislation. 
(79) OJ No L 240, 24.8.1992. 
(80) OJ No L 162,13.7.1995. 
(81) CAP 654. 
THE SINGLE MARKET IN 1995 
54 SECTION 10 - TRANSPORT. ENERGY AND TELECOMMUNICATIONS 
The Council and Parliament are discussing the Commission's proposal of December 1994 on 
the liberalisation of groundhandling services (82), which are often the monopoly of the national 
carrier or of the airport authority at Community airports. 
B. Road transport 
173. Here a number of Member States have taken encouraging action to improve compli­
ance with common rules. This will improve the functioning of the internal market, enhance road 
safety and bring conditions of competition closer together, especially through the stepping-up of 
checks. 
In consultation with government experts, the Commission also embarked upon measures to 
improve access to the trade of road haulage. This should lead to a proposal for legislation, the 
main aim of which should be to improve the quality of services supplied. 
C. Inland waterways 
174. In September 1995 the Council had a preliminary discussion of the proposal for a 
Regulation for Community rules of access to inland waterway transport between Member 
States (83), implementing the principles of freedom to provide services. The discussion showed 
that the Council was broadly in favour of the proposal. 
The Commission submitted to the Council on 23 May 1995 comprehensive proposals on inland 
waterway transport, in particular with regard to a progressive liberalization of the market by the 
year 2000 and a new scrapping action for reducing the existing structural overcapacity in this 
sector. With a view to promoting inland waterway transport, the Commission also proposed 
enabling Member States to co-finance investment in terminals, and fixed and mobile 
equipment needed for loading and unloading. The Council agreed in principle on 7 December 
1995 on the Commission's approach. 
D. Maritime Transport 
175. The first report on the application of the single market rules on maritime cabotage 
(Regulation (EEC) 3577/92*) was adopted by the Commission in September 1995. It shows that 
the economic effects of the liberalisation, have, up to now, been inconclusive. Only 6% of the 
22 million tonnes of cargo which was liberalised was transported on ships flying other than 
national flags. This volume represents only 1% of the total cabotage trade of the southern 
Member States. Nevertheless, the more the sector is liberalised, the more it will be possible to 
increase the efficiency and the future role of short sea shipping in Europe. 
176. Infringement procedures were continued against different Member States for breach of 
Regulation (EEC) 4055/86*: these infringements concerned mostly cargo-sharing arrangements 
in bilateral agreements with third countries. 
E. Railways 
177. The progressive application of the principle of freedom to provide services in the rail­
way sector, under Directive 91/440/EEC* created rights of access which open the possibility of 
new enterprises entering the market and of several enterprises using the same infrastructure. 
The Community therefore considered it necessary to define the general conditions for applying 
the access rights and, in June 1995, adopted two complementary directives: the first on the 
licensing of railway enterprises and the second on the allocation of railway infrastructure and 
the charging of infrastructures fees (Directives 95/18 EC* and 95/19 EC* respectively). 
(82) COM (94) 590 final, OJ No C 142, 8.6.1995. 
(83) COM (95) 167 final, OJ No C 164, 30.6.1995. 
THE SINGLE MARKET IN 1995 
SECTION 10 - TRANSPORT, ENERGY AND TELECOMMUNICATIONS 55 
178. The Commission now believes that it is time to take a second step in creating an inte­
grated market, while fully recognising the specific character of the railways. In a communication 
to the Council, adopted in July, it proposed the extension of these access rights to cover inter­
national passenger services and all freight services, domestic and international. It considers 
that this extension will help increase competitiveness of rail transport, particularly at Commu­
nity level, by attracting new capital and enterprises to the sector. 
§ 2 - Energy 
A. New Internal Energy Market Legislation 
179. Since early 1994 the Council has been discussing the amended proposal for the internal 
market for electricity (84). In November 1994, the Council requested the Commission to exam­
ine the possibilities of co-existence and reciprocity between the Single Buyer and the Commis­
sion's negotiated Third Party Access approaches. The Commission prepared a Working Paper 
on the organisation of the Internal Electricity Market which was adopted on 22 March 1995 (85). 
It concluded that there could be no reciprocity between the two approaches unless substantial 
modifications were made to the Single Buyer Model. 
180. The Commission, also at the request of the Council, prepared a Working Paper on small 
and very small electricity systems in the Internal Electricity Market, which was adopted on 10 
May 1995 (86). It concluded that small systems do not need special treatment because of their 
size. 
The Energy Ministers Council of 1 June 1995 followed the Commission's Working Paper 
conclusions agreeing that there can be no coexistence between the negotiated TPA and the 
Single Buyer approaches unless changes are made in the Single Buyer model. 
Under the Spanish Presidency the Council intensified its discussions and, whilst it was not 
possible to reach a common position at the Energy Council on 20 December 1995, consider­
able progress was made. The negotiations on the Directive have reached the final stage with 
the key issue to be resolved being the inclusion of distributors as eligible customers. It is hoped 
that sufficient progress can be made on this issue to enable a common position to be adopted 
under the Italian Presidency in 1996. 
B. Free Movement of Goods 
181. The Commission has directly applied Treaty rules in parallel with the legislative 
approach. Thus in the field of free movement of goods, the Court of Justice is still examining 
the infringement procedures against five Member States for electricity and gas import and 
export monopolies, on the basis of Articles 30*. 34* and 37* of the Treaty of the European 
Union. 
(84) COM (91 ) 548 final, OJ No C 65,14.3.1992 as amended by COM (93) 643 final, OJ No C 195,18.7.1994. 
(85) Doc. SEC (95) 464 final. 
(86) Doc. SEC (95) 685 final. 
THE SINGLE MARKET IN 1995 
56 SECTION 10 - TRANSPORT, ENERGY AND TELECOMMUNICATIONS 
C. Transposition 
182. In comparison with the previous year, the level of transposition of Directives in the 
energy sector into national law has improved. The percentage of transposition has reached 
89%. 
One of the central issues in 1995 has been the transposition of the Hydrocarbons Directive, 
which so far has been transposed in six Member States. Within the framework of this Directive 
some Member States have published rules on exploration areas and authorisation procedures. 
D. Standardisation 
183. The Commission has adopted a communication on the broader use of standardisation in 
community policy. Concerning Energy policy, the communication stated that energy efficiency 
would become an essential requirement in the so-called "new approach Directives". This would 
permit the Commission to give mandates to the new European standardisation organisations in 
order to establish standards limiting the energy consumption and improving the energy effi­
ciency of the electricity consuming appliances. The aim is to avoid national regulations affect­
ing free movement of goods in the intemal market. 
§ 3 -Telecommunications 
184. The publication at the beginning of the year of the "Green Paper on the liberalisation of 
telecommunications infrastructure and cable television networks" (87) is an important contribu­
tion to the setting up of the regulatory framework for telecommunications which is due on 1 
January 1998. 
The views expressed in the ensuing consultation have resulted in a speeding up of the liberali­
sation of infrastructure. The Commission has adopted a Directive allowing the use of cable 
television infrastructure to deliver liberalised telecommunications services from 1 January 
1996. It has also published for consultation a draft directive liberalising mobile communica­
tions (88), which would enable competitive provision of infrastructure for mobile networks from 
1996, and another one providing for the full liberalisation of telecommunications services and 
infrastructure by 1998, also including liberalisation of alternative infrastructure for liberalised 
services from 1996 as one element of the general amendment of the 1990 Services Directive 
to prepare for 1998. 
185. A new proposal for the open network provision (ONP) voice telephony directive which 
had been rejected by the Parliament last year in the codecision procedure, was presented in 
1995 by the Commission (89). This proposal is the first step towards the creation of a framework 
for interconnection, as well as establishing a consensus around the basic elements of a univer­
sal service in the Union. Parliament has proposed an amendment requiring national regulators 
to ensure compensation where quality criteria set out in the contracts are not met. 
186. The Commission made a proposal in July 1995 for a Directive on Interconnection in 
Telecommunications (90) ensuring universal service and interoperability through application of 
(87) COM (94) 440 final of 24.10.1994. 
(88) Draft Directive of 24.06.95, amending 90/388/EEC, published in OJ No C 197,1.8.1995. 
(89) Common Position No. 17/95, adopted 12.7.1995. 
(90) COM (95) 379 final, OJ No C 313, 24.11.1995. 
THE SINGLE MARKET IN 1995 
SECTION 10 - TRANSPORT, ENERGY AND TELECOMMUNICATIONS 57 1 S3? 
ONP principles. The terms and cost of interconnection will be the major commercial issue 
brought before national regulators over the next few years. 
187. The Commission has prepared a proposal for a Directive on a common framework for 
general authorisations and individual licences in the field of telecommunications services (91). 
This proposal would lighten the regulatory burden on operators, service providers and on busi­
ness in general, as general authorisations would become the norm, individual licences being 
needed only in exceptional situations. 
188. With the new proposal by the Commission for a Decision on an action at Union level in 
the field of satellite personal communications services (92), a significant step will be taken 
towards a truly global information structure. 
189. The future regulatory framework should aim at the extension of competition to the whole 
telecommunications sector on the basis of efficient economic conditions and at the delivery and 
development of universal service within the Union and at the establishment of rules of inter­
connection. A hearing on universal service was held by the Commission in October and a 
communication is being prepared with a view to adoption early in 1996. 
§ 4 - Trans-European Networks (93) 
190. The interconnection and interoperability of trans-European networks are vital for improv­
ing the functioning of the Internal Market and sustaining competitiveness, jobs creation, and 
cohesion in the European Union. 
191. Progress has been made since the Essen European Council, but there remain substantial 
problems related to the prioritisation of TEN projects and their financing that require greater 
effort. The Commission's work has shown that Member States are undervaluing the benefits of 
TEN projects using current cost/benefit methods. The benefits for all Member States in fact 
justify more priority for TEN projects in national plans. Further progress concerning environ­
mental projects will depend on the political will of the Member States to involve the EU in such 
projects. 
192. On their financing, there need to be more efforts to introduce private/public partnerships 
for TEN projects, which are vital if the TEN are to be accelerated. The Commission has taken 
measures including the setting-up of a One-Stop Help Desk on its application of the EU 
competition and public procurement rules. It calls on the Member States also to encourage the 
change in attitudes that are needed both in the public and in the private sectors. As far as the 
Community budget for the transport TEN is concerned, requests far exceed available resources 
and financial shortfalls are apparent for several priority projects. These factors must be taken 
into account by the appropriate authorities when taking the necessary decisions, requested at 
Essen, to top up funds currently available for the TEN. 
(91 ) COM (95) 545 final, not yet published. 
(92) COM (95) 529 final, not yet published. 
(93) See Report on this subject to the European Council:CSE (95) 571. 
THE SINGLE MARKET IN 1995 

s^ 
Section 11 - The Internal Market and other Community policies 
§ 1 - Competition policy 
193. Experience of applying competition policy shows that in many sectors national markets 
still prevail. 
In some sectors this is due to national preferences based on cultural differences or to transport 
costs, and cannot therefore be considered to reflect a lack of a single market framework. 
However, for a number of sectors the reasons for the absence of competition in national 
markets are different: on the one hand slow progress in opening up the national regulatory 
frameworks in a number of sectors (telecommunications, energy, postal services) and on the 
other hand the time it takes for firms to adjust to the new possibilities created by the elimination 
of national barriers in sectors where the internal market legislative programme has been 
completed. Some firms may try to slow down the process by anti-competitive behaviour. Most 
will try to take advantage in pro-competitive ways but need time to find suitable partners and 
trade channels abroad. 
194. The following recent competition policy developments and decisions especially relevant 
to the achievement of the internal market are worth individual mention: 
• Restrictive agreements (Articles 85/86*) - The Commission adopted a new block 
exemption for certain categories of motor vehicle distribution and servicing agree­
ments. The aim of the regulation is to intensify competition at the distribution stage by 
giving dealers greater commercial independence vis-à-vis manufacturers, by giving 
independent spare part manufacturers and distributors easier access and by improv­
ing the position of consumers in accordance with the principles underlying the intemal 
market. The new regulation took effect on 1 October 1995, although for existing con­
tracts the old regulation will apply until 1 October 1996. 
The Commission has received numerous complaints from individual citizens in the 
EU, mostly from Austria, Germany and France, who have been prevented from 
purchasing a car in Italy and Spain where prices were relatively low. Any policy to 
prevent or obstruct consumers from buying at the location they consider most advan­
tageous runs the risk of being incompatible with the block exemption and may lead to 
loss of the benefit of the exemption. 
The Commission adopted guidelines for the application of the competition rules to 
cross-border credit transfer systems. The guidelines assist banks when implementing 
the directive on cross-border credit transfers (94). The aim is to allow more efficient 
ways of handling cross-border credit transfers without unduly restricting competition. 
• Monopolies (Article 90*) - The liberalisation of traditionally monopolised markets, such 
as utilities, is an essential step in the establishment of an internal market (95). The 
Commission has pursued its efforts to open up these markets to competition and 
intra-Community trade while ensuring that the measures proposed or adopted are 
compatible with the maintenance of universal service. 
(94) See para. 118 
(95) See also Section 10. 
THE SINGLE MARKET IN 1995 
6Q SECTION 11 - THE INTERNAL MARKET AND OTHER COMMUNITY POLICIES 
Progress can be observed in the telecommunications sector with the adoption of 
directives and draft directives aiming at the liberalisation of the use of cable tv 
networks for the provision of telecommunication services, the liberalisation of mobile 
communications and the full liberalisation of telecommunication infrastructures and 
services (including voice telephony) by 1 January 1998. These initiatives are funda­
mental steps towards the information society. 
The Commission also proposed a draft directive to the Council and the Parliament 
and adopted a draft Commission notice, both aiming at a progressive liberalisation of 
the postal sector (96). 
The situation in the energy sector is less satisfactory. No agreement has been 
reached so far in the Council on the draft directives presented by the Commission for 
the internal market for electricity and gas (97), despite the fact that the Commission 
has already modified its original proposals in order to meet the concerns expressed 
by some Member States. 
Mergers - As described above the internal market stimulates firms to look for cross-
border cooperation and mergers. In this light the Commission started reviewing a 
possible lowering of the notification thresholds under the merger regulation, which is 
now the subject of a Green paper (98). 
In a number of cases the Commission decided that in view of preferences for the 
own-country product, differences in technical standards and (safety) regulations etc. 
the markets investigated are still national in character. Examples are the markets in 
Germany for buses (Mercedes-Benz/Kâssbohrer case) (Decision 95/354/CE*) and for 
rail transport equipment (ABB/Daimler-Benz case) (99). 
State aid - The obligation imposed upon Member States by the Treaty to notify aid 
projects and the prohibition on granting the aid before approval by the Commission is 
intended to prevent aid incompatible with the internal market from being granted. The 
Commission recalled in a communication to Member States on 10 May 1995 (100) its 
intention to make use of all its powers under the Treaty to oblige Member States to 
comply with these obligations. National courts have an important role to play in 
protecting the rights of competitors of recipients of aid granted unlawfully. The 
Commission adopted a notice on 31 October 1995 (101) explaining how national 
courts apply the rule that Member States are not allowed to give state aid before it 
has been notified and approved. The notice also offers assistance to national judges 
who deal with such cases. The judge may, in appropriate cases, order the Member 
State to pay damages to a party who has suffered as a result of the illegal aid. 
§ 2 - Social dimension of the internal market 
195. Social policy remains integral to the completion of the internal market. The progressive 
economic integration of the Union, and the completion of the internal market, raise a wide 
range of social issues, in particular regarding their impact on citizens' living and working condi­
tions. Progress has been made on these issues, and in April the Commission adopted a 
medium term Social Action Programme, which sets out its detailed work programme in the 
social field for the period 1995-1997(102). However, but the Commission regrets that during 
1995 a number of proposals remained blocked in the Council, and that the level of 
(96) COM (95) 227 final, OJ No C 322, 2.12.1995. 
(97) COM (91) 548 final, OJ No C 65,14.3.1992 as amended by COM (93) 643 final, OJ No C 195,18.7.1994. 
(98) COM(96) 19, 31.01.1996 
(99) Not yet published. 
(100) OJ No C 156, 20.6.1995. 
(101) C (95) 2436 final. 
(102) COM (95) 134,12.04.1995 
THE SINGLE MARKET IN 1995 
SECTION 11 - THE INTERNAL MARKET AND OTHER COMMUNITY POLICIES 61 
communication by Member States of national measures implementing EU health and safety 
legislation (75% by October 1995) is lagging behind that of other legislation. 
196. Equality- The Fourth Equal Opportunities Action Programme (103) sets out the general 
framework for action in this key area for the period 1996-2000. In February 1995, the 
Commission launched consultations with the social partners under the Agreement on Social 
Policy to consider the possibility of negotiating an agreement on reconciliation of professional 
and family life. The aim would be to promote equal opportunities and to introduce new flexible 
models better suited to the changing needs of European society. On 6 November 1995 the 
social partners announced a pre-agreement which is favourable to such an approach. 
The Commission has also launched consultations with the social partners on possible action on 
the burden of proof in possible discrimination cases. Following this consultation under the 
Agreement on Social Policy, the Commission will take steps to carry the process forward in line 
with Article 3 of the Agreement. 
Concerning equal treatment in occupational social security schemes, on 16 May 1995 the 
Commission presented a proposal (104) for a Council Directive modifying Directive 
86/378/EEC*. This would bring it into conformity with Article 119* of the Treaty as interpreted 
by the judgement of the Court of Justice in the Barber case of 17 May 1990 (105) and in sub­
sequent cases. This would avoid confusion in the application of Community law. 
The Commission has also launched a number of technical studies to test the neutrality of taxa­
tion systems on the individual autonomy of women. Further technical studies will follow on the 
costs and consequences for different social security regimes and benefits of treating each 
member of a couple as an individual, rather than the couple as a single unit. Studies will also 
consider the implications of this for part-time and full-time work. 
197. Labour law - The Commission has launched consultations under the Agreement on 
Social Policy relating to flexibility of working time and security in employment in order to obtain 
the social partners' views on the desirability of measures in favour of equal treatment between 
full-time, part-time and temporary workers. The Commission also presented the Fourth Health 
and Safety Action Programme (106), covering the period 1996-2000, setting out a range of 
measures to safeguard the working environment. 
§ 3 - Consumer policy 
A. Consumer behaviour - cross-border purchasing 
198. The willingness of consumers to shop across frontiers in another Member State was 
examined in a Eurobarometer survey in the Spring of 1995. The number of consumers making 
purchases across frontiers in another EU Member State is now 24%. 
199. The range of goods and services which consumers purchased across borders may be 
illustrated as follows: 
• 12.3% of EU Adults purchased clothing, footwear, etc.; 
• 11% of EU Adults purchased travel related services; 
• 5.5% of EU Adults purchased financial services; 
• 3.8% of EU Adults purchased durable goods (TVs, cars, washing machines, etc.); 
(103) COM (95) 381, 19.07.1995 
(104) COM (95) 186 final of 16/5/95. 
(105) Case C-262/88; judgement delivered on 17 May 1990. 
(106) COM(95) 282,12.07.1995 
THE SINGLE MARKET IN 1995 
62 SECTION 11 - THE INTERNAL MARKET AND OTHER COMMUNITY POLICIES 
• 0.6% of EU Adults purchased property (fixed); 
• 7.1% of EU Adults purchased something else (food, drink, etc.). 
200. The table below shows the percentage of consumer in each Member State who had 
engaged in cross-border shopping in the year to April 1995: 
L 
69.4% NL 
44.4% D 
37.5% B 
35.6% S 
33.7% DK 
31.6% A 
29.6% UK 
27.2% FIN 
22.7% IRL 
18.8% F 
17.5% I 
11.4% P 
10.1% E 
8.8% EL 
8.9% EU 
24.0% 
This reflects awareness of single market opportunities and confidence in the arrangements 
made by the EU to protect consumers and indicates that consumer demand is potentially 
mobile. 
B. Consumer policy priorities 1996-1998 
201. In October, the Commission adopted a Communication on the priorities for Consumer 
Policy 1996-1998(107). The aim of this communication is to indicate the orientation of con­
sumer policy for the next three years. 
202. Ten priorities for action have been identified: 
Intensify efforts to improve the education and information of consumers; 
Complete, revise and update the framework required to ensure that the interests of 
consumers are fully taken into account in the internal market; 
Consumers and financial services; 
Protect the interests of consumers in the supply of essential public utility services; 
Take steps to allow consumers to benefit from the advantages of the information 
society; 
Take steps to increase the confidence of consumers in foodstuffs; 
Encourage the adoption of sustainable consumption behaviour; 
Strengthen and increase the representation of consumers; 
Assist the countries of Central and Eastern Europe to draw up policies in favour of 
consumers; 
Reflections on the question of consumer policy in the developing countries. 
§ 4 - Environmental policy 
203. Environmental policy is an essential component of the creation of the internal market. An 
integrated approach, to enable a more sustainable path of social and economic development, 
is not only vital for the environment itself but also for the long-term success of the Internal Mar­
ket. Its success is dependent on the sustainability of the policies pursued in the fields of indus­
try, energy, transport, agriculture and tourism, which must take into account the capacity of the 
environment to sustain them. Moreover, effective environmental protection, which goes beyond 
national borders, can only be achieved in the framework of a functioning intemal market and 
common environmental rules. 
(107) COM(95) 519 final of 31.10.1995. 
THE SINGLE MARKET IN 1995 
SECTION 11 - THE INTERNAL MARKET AND OTHER COMMUNITY POLICIES 63 
A. Integration of environment and single market policy 
204. In the context of the follow-up to the Strategic Programme and the White Paper on 
Growth, Competitiveness and Employment, the Commission has prepared draft general guide­
lines on regulatory policy (108). These guidelines aim to ensure wide consultation and appro­
priate evaluation of costs and benefits including environmental ones and will help ensure 
consistency between different policy objectives, including single market and environmental 
policy. 
205. Examples of efforts to take account of the environmental dimension in single market 
policy may be found in the field of insurance. In order to encourage the integration of the envi­
ronment into insurance policy, in 1994 the Commission proposed to the Insurance Committee 
that, due to the evolution of the market, a separate class of risk should be introduced into the 
annex of the First Directive on non-life assurance, for the approval of companies proposing the 
insurance of risks of damage to the environment. Although it was positively received, the 
implementation of this measure depends on a fundamental reform of the classification of types 
of risk. 
B. Approximation of laws and other Community legislation in the environ­
mental field 
206. A substantial number of product-related harmonisation measures have been introduced 
to achieve an environmental objective. They have been based on Article 100a* or Article 
130s*. The positive impact on the complexion of the Internal Market is clear, as there is less 
need for Member States to adopt unilaterally environmental standards which could became 
barriers to trade. 
207. Pesticides are regulated by directive 91/414/EEC*. whose annexes were modified during 
1995. The proposal for a Council directive on biocides (109) has as objective to assure a single 
market for biocides (Biocidal products comprise a wide range of products necessary for the 
control of organisms that are harmful to human or animal health). Council Regulation (EEC) 
793/93* of 23 March 1993 covers the evaluation and control of the risk of existing substances. 
As regards Directive 67/548/EEC* on classification, packaging and labelling of dangerous 
substances, works aimed to maintain classification updated continued during 1995. 
208. Directive 94/62/EEC* on packaging and packaging waste aims to harmonise national 
measures concerning the management of packaging and packaging waste in order, on the one 
hand, to prevent any impact thereof on the environment of all Member States, thus providing a 
high level of environment protection and, on the other hand, to ensure the functioning of the 
internal market and to avoid obstacles to trade, distortion and restriction of competition within 
the Community. It should be brought into force by Member States before June 1996. 
209. A political agreement on the proposal to regulate the trade in wildlife was reached in 
June 1995. If this proposal is adopted, it could enter into force on 1 January 1997. 
210. The Ecolabel, awarded to products with reduced impact on the environment, was 
expanded in 1995 to include laundry detergents. This allows the consumer to identify environ­
mentally friendly products throughout Europe, irrespective of the country of origin. 
211. In order to insure that the Internal Market is accomplished in the framework of a sustain­
able transport policy, Community legislation sets limits values for polluting emissions such as 
hydrocarbons (HC), carbon monoxide (CO), nitrogen oxides (NOx), benzene (Bz) and evapora­
tive VOC emissions from transport and storage of petrol. The last directive on car emissions is 
(108) Doc. SEC (95) 2255. 
(109) COM (93) 351 final, OJ No C 239, 3.9.1993 as amended by COM (95) 387 final, OJ No C 261,6.10.1995. 
THE SINGLE MARKET IN 1995 
64 SECTION 11 - THE INTERNAL MARKET AND OTHER COMMUNITY POLICIES 
Directive 94/12/EC* which sets differentiated emissions standards for petrol and diesel cars to 
come into force for all new vehicles in 1997. The Commission has made a proposal for a direc­
tive on the assessment and management of air quality (no). Regarding C02 emissions, the 
Community committed itself under the UN Framework Convention on climate change to stabi­
lizing its C02 emissions by the year 2000 at the level of its emissions in 1990. There is a 
particular cause of concern as C02 emissions from traffic are growing substantially in line with 
traffic growth which jeopardizes the Community's C02 stabilization target. 
212. Council Regulation (EEC) No. 259/93 on the supervision and control of shipments of 
waste within, into and out of the European Community became of application in 1994. During 
1995, however, the functioning of the system laid down by this Regulation which provides for 
extensive authorization and monitoring procedures for shipments of waste has improved and 
has become more operational. This was mainly due to the fact that since 1 February 1995 all 
planned shipments of waste have to be notified by means of a standard consignment note, 
which consists of a notification form and a movement/tracking form. Implementation problems 
were discussed by a group of correspondents of the Commission and the Member States which 
meets twice a year. 
213. The Commission plans to publish a Communication in 1996, suggesting a framework for 
the use of environmental levies and charges in Member States. The objective of the Communi­
cation is to clarify how such levies and charges can be used efficiently by Member States, while 
also respecting legislation on the internal market and other relevant EU legislation. 
214. Austria, Finland and Sweden have a transitional period of four years from their accession 
to the Union during which they can apply their more stringent national provisions on environ­
mental standards. The agreement reached strives to reconcile the requirements of free circula­
tion of goods with the legitimate insistence of the new Member States on avoiding a lowering of 
their environmental standards. 
§ 5 - Small and medium-sized enterprises 
215. The Commission's Integrated Programme in Favour of SMEs and the Craft Sector (111) 
implements the measures necessary to achieve the objectives set out in the Commission's 
White Paper on Growth, Competitiveness and Employment (112). This highlighted the need to 
create as favourable as possible a business environment, particularly for SMEs, recognizing 
the crucial contribution they would make towards economic growth and employment creation. 
The Integrated Programme reinforces the coordination of national/regional and Community 
policies which could have a positive impact on SMEs. Concerted actions with both Member 
States and the Business Community have already started. 
216. A Forum was organised in June 1995 in Paris, under the auspices of the Committee on 
the Simplification of the Business Environment, to examine legislative and administrative 
constraints confronting entrepreneurs in setting up a business and getting through the first few 
years of existence. This will be followed-up by workshops to consider the issues more 
thoroughly, and ultimately to decide on the best practice which might be taken up by Member 
States. 
217. A second concerted action involving Member States' authorities and European Business 
Organisations was held in Madrid on 16 and 17 November 1995 which exchanged views and 
ideas based on best practice in respect of support measures for business start-ups and for 
enterprises in the first few years of their development. Again, the intention will be to benchmark 
best practice and consider how this can be put into effect by other Member States. 
(110) COM (94) 109 final, OJ No C 216, 6.8.1994 as amended by COM (95) 312, OJ No C 238,13.9.1995. 
(111) COM (94) 207 final of 3.6.1994. 
(112) Commission White Paper on Growth Competitiveness and Employment, December 1993. 
THE SINGLE MARKET IN 1995 
SECTION 11 - THE INTERNAL MARKET AND OTHER COMMUNITY POLICIES 65 
218. The Community supports SMEs wanting to grow and take advantage of the opportunities 
provided by the single market through a variety of instruments under the umbrella of the 
1993/1996 Multi-Annual Programme for SMEs, including the business information network (the 
Euro-Info-Centres) and the transnational co-operation networks and programmes, (BC-Net, 
BCC, Europartenariat and Interprise). 
219. In 1995, the Euro-Info-Centre network has been extended to the new Member States and 
Correspondence Centres have been opened in some Central and Eastern European countries 
and in the Mediterranean region. 
"Europartenariats", designed to encourage contact and co-operation between businesses from 
less developed regions or regions in industrial decline and enterprises from other Member 
States or non-Community countries, were held in Dortmund and Lisbon. Over 40 smaller 
"Interprise" events will have taken place in 1995 by the end of the year. 
As requested by the European Council at its Cannes meeting in June, the Commission 
prepared a report on SMEs (113) as a dynamic source of employment, growth and competitive­
ness in the EU for submission to the European Council at its December meeting in Madrid. It 
covers proposals on such areas as the tax and administrative environment of SMEs, labour 
legislation, better access to financing, new technologies and training. The Community contribu­
tion to the creation and development of SMEs will be reinforced through a new Multi-Annual 
Programme for SMEs and the craft sector (1997/2000) which the Commission will propose in 
1996, by reviewing priorities in existing policies, and by proposing complementary measures, in 
particular to help SMEs to exploit the potential of the Internal Market and to enhance their 
competitiveness in international markets. 
§ 6 - Education and Training 
220. Action by the Commission in the area of education and professional training this year has 
concentrated on developing the conclusions of the Essen European Council, according to which 
qualifications and access to life-long training are essential to the mastery of technological 
development and individual employment potential. 
221. The White Paper on Education and Training (114) identifies the initiatives to be imple­
mented up to the end of the century: 
• opening up new methods for the recognition of competences, whether obtained 
through training certified by a diploma or in the course of professional life; 
• bringing school closer to business, particularly by developing apprenticeship at Euro­
pean level; 
• fighting against exclusion, by offering young people who have failed in the context of 
the traditional teaching system a second chance at school; 
• promoting the mastery of three European languages, to be encouraged by a quality 
label for "European classes"; 
• ensuring equal treatment for physical investment and investment in training. 
The preparation of the European year of lifelong education and training, currently in preparation 
for 1996, also constitutes an important initiative in this area. 
222. Finally, the work has continued on the implementation of the three recently adopted 
programmes, SOCRATES, LEONARDO and YOUTH FOR EUROPE III. SOCRATES empha­
sises the deepening of the European dimension at all levels of education, for example by 
promoting the teaching of languages and the mobility of teachers and students. Under 
(113) CSE(95)2087. 
(114) COM (95) 590 final, not yet published. 
THE SINGLE MARKET IN 1995 
66 SECTION 11 - THE INTERNAL MARKET AND OTHER COMMUNITY POLICIES 
LEONARDO, the objectives pursued include greater convergence of the objectives of profes­
sional training in the Member States towards the framework outlined for the Union and the 
improvement of training structures. YOUTH FOR EUROPE III continued to support participa­
tion, initiative and solidarity among young people, by involving them, particularly the less-
favoured, in the process of European construction. 
§ 7 - Research 
223. 1995 was marked by the rapid implementation of the specific programmes of research 
and technological development (RTD) of the fourth framework programme adopted in 1994. 
The calls for proposals for Community research projects were a considerable success among 
economic operators, with a general increase in the number of proposals, an improvement in 
their quality and greater participation of industry. The new emphasis of the Specific 
Programmes on user and market needs, on SMEs participation and on exploitation and transfer 
of results has improved significantly the impact and relevance of these programmes for indus­
try, citizens and public users. 
224. The setting up of operational "Task Forces", as announced to the Council in March, is 
designed to improve the effectiveness of RTD actions by concentrating efforts on common 
projects of industrial and public interest. The Task Forces cover areas of general interest for 
the Union, such as "vaccines and viral diseases". Those on "the car of the future", "intermodal 
transport", "maritime systems of the future", "the new generation of aircraft", "the train of the 
future and railway systems" will help to respond to the mobility requirements of European citi­
zens. That on "multimedia educational software" will facilitate communication and access by 
citizens to the new information technologies. 
THE SINGLE MARKET IN 1995 
61 
Annexes 
1 - Abbreviations and acronyms 
2 - Community provisions cited 
- EC Treaty 
- Official Journal - references 
3 - Judgements of the Court of Justice cited 
4 - Recent reports, studies and surveys on the single market 
THE SINGLE MARKET IN 1995 

« 
Annex 1 - Abbreviations and acronyms 
BCC 
Bc-Net B 
Business Cooperation Centre 
Business Cooperation Network 
CAA 
CAD Civil Aviation Authority 
Capital Adequacy Directive 
ECU 
EEA 
EEC 
EFTA 
EIC 
Eurostat European Currency Unit 
European Economic Area 
European Economic Community 
European Free Trade Association 
European Information Centre 
Statistical Office of the European Communities 
GATS 
GATT 
IDA General Agreement on Trade in Services 
General Agreement on Tariffs and Trade 
I 
Interchange of Data between Administrations 
M 
Matthaeus Tax Programme for the exchange of indirect taxation officials 
NATO N 
North Atlantic Treaty Organization 
OECD 
OHIM 
OJEC 
ONP Organisation for Economic Co-operation and Development 
Office of Harmonisation in the Internal Market 
Official Journal of the European Communities 
Open network provision 
SHIFT 
SIMAP 
SMEs System to assist the Health controls of Imports of items at Frontier inspection 
posts from Third countries 
Information system on public procurement 
Small and medium-sized enterprises 
TED 
TEN Tenders Electronic Daily 
Trans-European Networks 
THE SINGLE MARKET IN 1995 
ANNEX 1 C*\ 
TPA Third Party Access 
U 
UNICE Union des Confédérations de l'Industrie et des Employeurs d'Europe (Union 
of Industrial and Employers' Confederations of Europe) 
VAT value added tax 
VOD Video-on-demand 
W 
WEU Western European Union 
WEAG Western European Armaments Agency 
THE SINGLE MARKET IN 1995 
To 
Annex 2 - Community provisions cited 
A. EC Treaty (1 > 
PRINCIPLES 
Article 2 
The Community shall shave as its task, by establishing a common market and an economic and mone­
tary union and by implementing the common policies or activities referred to in Articles 3 and 3a, to 
promote throughout the Community a harmonious and balanced development of economic activities, 
sustainable and non-inflationary growth respecting the environment, a high degree of convergence of 
economic performance, a high level of employment and of social protection, the raising of the standard 
of living and quality of life, and economic and social cohesion and solidarity among Member States. 
Article 7a 
The Community shall adopt measures with the aim of progressively establishing the internal market over 
a period expiring on 31 December 1992, in accordance with the provisions of this Article and of Arti­
cles 7b, 7c, 28, 57(2), 59, 70(1), 84, 99, 100a and 100b and without prejudice to the other provisions of 
this Treaty. 
The internal market shall comprise an area without internal frontiers in which the free movement of 
goods, persons, services and capital is ensured in accordance with the provisions of this Treaty. 
COMMUNITY POLICIES - FREE MOVEMENT OF GOODS -
ELIMINATION OF QUANTITATIVE RESTRICTIONS BETWEEN MEMBER STATES 
Article 30 
Quantitative restrictions on imports and all measures having equivalent effect shall, without prejudice to 
the following provisions, be prohibited between Member States. 
Article 34 
1. Quantitative restrictions on exports, and all measures having equivalent effect, shall be prohibited 
between Member States. 
2. Member States shall, by the end of the first stage at the latest, abolish all quantitative restrictions 
on exports and any measures having equivalent effect which are in existence when this Treaty enters into 
force. 
Article 36 
The provisions of Articles 30 to 34 shall not preclude prohibitions or restrictions on imports, exports or 
goods in transit justified on grounds of public morality, public policy or public security; the protection of 
health and life of humans, animals or plants; the protection of national treasures possessing artistic, 
historic or archaeological value; or the protection of industrial and commercial property. Such prohibi­
tions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised 
restriction on trade between Member States. 
(1 ) As amended by the Treaty on European Union. 
THE SINGLE MARKET IN 1995 
ANNEX 2 M 
Article 37 
1. Member States shall progressively adjust any State monopolies of a commercial character so as 
to ensure that when the transitional period has ended no discrimination regarding the conditions under 
which goods are procured and marketed exists between nationals of Member States. 
The provisions of this Article shall apply to any body through which a Member State, in law or in fact, 
either directly or indirectly supervises, determines or appreciably influences imports or exports between 
Member States. These provisions shall likewise apply to monopolies delegated by the State to others. 
2. Member States shall refrain from introducing any new measure which is contrary to the principles 
laid down in paragraph 1 or which restricts the scope of the Articles dealing with the abolition of customs 
duties and quantitative restrictions between Member States. 
3. The timetable for the measures referred to in paragraph 1 shall be harmonized with the abolition 
of quantitative restrictions on the same products provided for in Articles 30 to 34. 
If a product is subject to a State monopoly of a commercial character in only one or some Member 
States, the Commission may authorize the other Member States to apply protective measures until the 
adjustment provided for in paragraph 1 has been effected; the Commission shall determine the condi­
tions and details of such measures. 
4. If a State monopoly of a commercial character has rules which are designed to make it easier to 
dispose of agricultural products or obtain for them the best return, steps should be taken in applying the 
rules contained in this Article to ensure equivalent safeguards for the employment and standard of living 
of the producers concerned, account being taken of the adjustments that will be possible and the spe­
cialization that will be needed with the passage of time. 
5. The obligations on Member States shall be binding only in so far as they are compatible with 
existing international agreements. 
6. With effect from the first stage the Commission shall make recommendations as to the manner in 
which and the timetable according to which the adjustment provided for in this Article shall be carried 
out. 
COMMUNITY POLICIES - COMMON RULES ON COMPETITION, TAXATION AND 
APPROXIMATION OF LAWS - RULES ON COMPETITION - RULES APPLYING TO UNDERTAKINGS 
Article 85 
1. The following shall be prohibited as incompatible with the common market: all agreements 
between undertakings, decisions by associations of undertakings and concerted practices which may 
affect trade between Member States and which have as their object or effect the prevention, restriction or 
distortion of competition within the common market, and in particular those which: 
(a) directly or indirectly fix purchase or selling prices or any other trading conditions; 
(b) limit or control production, markets, technical development, or investment; 
(c) share markets or sources of supply; 
(d) apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing 
them at a competitive disadvantage; 
(e) make the conclusion of contracts subject to acceptance by the other parties of supplementary 
obligations which, by their nature or according to commercial usage, have no connection with the 
subject of such contracts. 
2. Any agreements or decisions prohibited pursuant to this Article shall be automatically void. 
3. The provisions of paragraph 1 may, however, be declared inapplicable in the case of: 
- any agreement or category of agreements between undertakings; 
- any decision or category of decisions by associations of undertakings; 
- any concerted practice or category of concerted practices; 
which contributes to improving the production or distribution of goods or to promoting technical or eco­
nomic progress, while allowing consumers a fair share of the resulting benefit, and which does not: 
THE SINGLE MARKET IN 1995 
ANNEX 2 \2-
(a) impose on the undertakings concerned restrictions which are not indispensable to the attainment 
of these objectives; 
(b) afford such undertakings the possibility of eliminating competition in respect of a substantial part 
of the products in question. 
Article 86 
Any abuse by one or more undertakings of a dominant position within the common market or in a sub­
stantial part of it shall be prohibited as incompatible with the common market in so far as it may affect 
trade between Member States. 
Such abuse may, in particular, consist in: 
(a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions; 
(b) limiting production, markets or technical development to the prejudice of consumers; 
(c) applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing 
them at a competitive disadvantage; 
(d) making the conclusion of contracts subject to acceptance by the other parties of supplementary 
obligations which, by their nature or according to commercial usage, have no connection with the 
subject of such contracts. 
Article 90 
1. In the case of public undertakings and undertakings to which Member States grant special or 
exclusive rights, Member States shall neither enact nor maintain in force any measure contrary to the 
rules contained in this Treaty, in particular to those rules provided for in Article 6 and Articles 85 to 94. 
2. Undertakings entrusted with the operation of services of general economic interest or having the 
character of a revenue-producing monopoly shall be subject to the rules contained in this Treaty, in par­
ticular to the rules on competition, in so far as the application of such rules does not. obstruct the per­
formance, in law or in fact, of the particular tasks assigned to them. The development of trade must not 
be affected to such an extent as would be contrary to the interests of the Community. 
3. The Commission shall ensure the application of the provisions of this Article and shall, where 
necessary, address appropriate directives or decisions to Member States. 
COMMUNITY POLICIES - COMMON RULES ON COMPETITION, TAXATION 
AND APPROXIMATION OF LAWS - APPROXIMATION OF LAWS 
Article 100a 
1. By way of derogation from Article 100 and save where otherwise provided in this Treaty, the fol­
lowing provisions shall apply for the achievement of the objectives set out in Article 7a. The Council 
shall, acting in accordance with the procedure referred to in Article 189b and after consulting the Eco­
nomic and Social Committee, adopt the measures for the approximation of the provisions laid down by 
law, regulation or administrative action in Member States which have as their object the establishment 
and functioning of the internal market. 
2. Paragraph 1 shall not apply to fiscal provisions, to those relating to the free movement of persons 
nor to those relating to the rights and interests of employed persons. 
3. The Commission, in its proposals envisaged in paragraph 1 concerning health, safety, environ­
mental protection and consumer protection, will take as a base a high level of protection. 
THE SINGLE MARKET IN 1995 
ANNEX 2 T-3 
4. If, after the adoption of a harmonization measure by the Council acting by a qualified majority, a 
Member State deems it necessary to apply national provisions on grounds of major needs referred to in 
Article 36, or relating to protection of the environment or the working environment, it shall notify the 
Commission of these provisions. 
The Commission shall confirm the provisions involved after having verified that they are not a means of 
arbitrary discrimination or a disguised restriction on trade between Member States. 
By way of derogation from the procedure laid down in Articles 169 and 170, the Commission or any 
Member State may bring the matter directly before the Court of Justice if it considers that another Mem­
ber State is making improper use of the powers provided for in this Article. 
5. The harmonization measures referred to above shall, in appropriate cases, include a safeguard 
clause authorizing the Member States to take, for one or more of the non-economic reasons referred to in 
Article 36, provisional measures subject to a Community control procedure. 
COMMUNITY POLICIES - SOCIAL POLICY EDUCATION VOCATIONAL 
TRAINING AND YOUTH - SOCIAL PROVISIONS 
Article 119 
Each Member State shall during the first stage ensure and subsequently maintain the application of the 
principle that men and women should receive equal pay for equal work. 
For the purpose of this Article, 'pay' means the ordinary basic or minimum wage or salary and any other 
consideration, whether in cash or in kind, which the worker receives, directly or indirectly, in respect of 
his employment from his employer. 
Equal pay without discrimination based on sex means: 
(a) that pay for the same work at piece rates shall be calculated on the basis of the same unit of 
measurement; 
(b) that pay for work at time rates shall be the same for the same job. 
COMMUNITY POLICIES - ENVIRONMENT 
Article 130r(2) 
Community policy on the environment shall aim at a high level of protection taking into account the 
diversity of situations in the various regions of the Community. It shall be based on the precautionary 
principle and on the principles that preventive action should be taken, that environmental damage should 
as a priority be rectified at source and that the polluter should pay. Environmental protection require­
ments must be integrated into the definition and implementation of other Community policies. In this 
context, harmonization measures answering these requirements shall include, where appropriate, a 
safeguard clause allowing Member States to take provisional measures, for non-economic environmental 
reasons, subject to a Community inspection procedure 
Article 130s 
1. The Council, acting in accordance with the procedure referred to in Article 189c and after consult­
ing the Economic and Social Committee, shall decide what action is to be taken by the Community in 
order to achieve the objectives referred to in Article 130r. 
2. By way of derogation from the decision-making procedure provided for in paragraph 1 and without 
prejudice to Article 100a, the Council, acting unanimously on a proposal from the Commission and after 
consulting the European Parliament and the Economic and Social Committee, shall adopt: 
provisions primarily of a fiscal nature; 
measures concerning town and country planning, land use with the exception of waste manage­
ment and measures of a general nature, and management of water resources; 
measures significantly affecting a Member State's choice between different energy sources and 
the general structure of its energy supply. 
THE SINGLE MARKET IN 1995 
ANNEX 2 
The Council may, under the conditions laid down in the preceding subparagraph, define those matters 
referred to in this paragraph on which decisions are to be taken by a qualified majority. 
3. In other areas, general action programmes setting out priority objectives to be attained shall be 
adopted by the Council, acting in accordance with the procedure referred to in Article 189b and after con­
sulting the Economic and Social Committee. 
The Council, acting under the terms of paragraph 1 or paragraph 2 according to the case, shall adopt the 
measures necessary for the implementation of these programmes. 
4. Without prejudice to certain measures of a Community nature, the Member States shall finance 
and implement the environment policy. 
5. Without prejudice to the principle that the polluter should pay, if a measure based on the provi­
sions of paragraph 1 involves costs deemed disproportionate for the public authorities of a Member 
State, the Council shall, in the act adopting that measure, lay down appropriate provisions in the form of: 
temporary derogations and/or 
financial support from the Cohesion Fund to be set up no later than 31 December 1993 pursuant 
to Article 130d. 
INSTITUTIONS OF THE COMMUNITY - PROVISIONS GOVERNING THE INSTITUTIONS -
THE INSTITUTIONS - THE COURT OF JUSTICE 
Article 169 
If the Commission considers that a Member State has failed to fulfil an obligation under this Treaty, it 
shall deliver a reasoned opinion on the matter after giving the State concerned the opportunity to submit 
its observations. 
If the State concerned does not comply with the opinion within the period laid down by the Commission, 
the latter may bring the matter before the Court of Justice. 
B. Official Journal - references (2 > 
396E 
Council Directive 67/548/EEC of 27 June 1967 on the approximation of laws, regulations and adminis­
trative provisions relating to the classification, packaging and labelling of dangerous substances (OJ L 
196, 16/08/67) 
1968 
Council Regulation (EEC) No 827/68 of 28 June 1968 on the common organisation of the market in 
certain products listed in Annex II to the Treaty (OJ L 151, 30/06/68) 
1970] 
Council Directive 70/156/EEC of 6 February 1970 on the approximation of the laws of the Member 
States relating to the type-approval of motor vehicles and their trailers (OJ L 42, 23/02/70) 
1976; 
Council Directive 76/769/EEC of 27 July 1976 on the approximation of the laws, regulations and admin­
istrative provisions of the Member States relating to restrictions on the marketing and use of certain dan­
gerous substances and preparations (OJ L 262, 27/09/76) 
(2 ) To provide clarity, the references are cited in numerical order; regulations follow upon other types of measures. 
THE SINGLE MARKET IN 1995 -H 
ANNEX 2 T< 
[1977 | 
Council Directive 77/93/EEC of 21 December 1976 on protective measures against the introduction into 
the Member States of harmful organisms of plants or plant products (OJ L 26, 31/01/77) 
1983 
Council Directive of 83/189/EEC 28 March 1983 laying down a procedure for the provision of informa­
tion in the field of technical standards and regulations (OJ L 109, 26/04/83) 
mm 
Council Directive 86/378/EEC of 24 July 1986 on the implementation of the principle of equal treatment 
for men and women in occupational social security schemes (OJ L 225, 12/08/86) 
Council Regulation (EEC) No 3842/86 of 1 December 1986 laying down measures to prohibit the 
release for free circulation of counterfeit goods (OJ L 357, 18/12/86) 
Council Regulation (EEC) No 4055/86 of 22 December 1986 applying the principle of freedom to pro­
vide services to maritime transport between Member States and between Member States and third coun­
tries (OJ L 378, 31/12/86) 
1988 
Council Directive 88/295/EEC of 22 March 1988 amending Directive 77/62/EEC relating to the coordi­
nation of procedures on the award of public supply contracts and repealing certain provisions of Directive 
80/767/EEC (OJ L 127, 20/05/88) 
Second Council Directive 88/357/EEC of 22 June 1988 on the coordination of laws, regulations and 
administrative provisions relating to direct insurance other than life assurance and laying down provi­
sions to facilitate the effective exercise of freedom to provide services and amending Directive 
73/239/EEC (OJ L 172, 04/07/88) 
1989 
Council Directive 89/48/EEC of 21 December 1988 on a general system for the recognition of higher-
education diplomas awarded on completion of professional education and training of at least three years' 
duration (OJL 19, 24/01/89) 
First Council Directive 89/104/EEC of 21 December 1988 to approximate the laws of the Member 
States relating to trade marks (OJ L 40, 11/02/89) 
Council Directive 89/440/EEC of 18 July 1989 amending Directive 71/305/EEC concerning coordination 
of procedures for the award of public works contracts (OJ L 210, 21/07/89) 
Council Directive 89/552/EEC of 3 October 1989 on the coordination of certain provisions laid down by 
law, regulation or administrative action in Member States concerning the pursuit of television broadcast­
ing activities (OJ L 298, 17/10/89) 
Second Council Directive 89/646/EEC of 15 December 1989 on the coordination of laws, regulations 
and administrative provisions relating to the taking up and pursuit of the business of credit institutions 
and amending Directive 77/780/EEC (OJ L 386, 30/12/89) 
Council Directive 89/647/EEC of 18 December 1989 on a solvency ratio for credit institutions (OJ L 
386, 30/12/89) 
Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and 
administrative provisions relating to the application of review procedures to the award of public supply 
and public works contracts (OJ L 395, 30/12/89) 
1990 
Third Council Directive 90/232/EEC of 14 May 1990 on the approximation of the laws of the Member 
States relating to insurance against civil liability in respect of the use of motor vehicles (OJ L 129, 
19/05/90) 
Council Directive 90/387/EEC of 28 June 1990 on the establishment of the internal market for tele­
communications services through the implementation of open network provision (OJ L 192, 24/07/90) 
THE SINGLE MARKET IN 1995 
ANNEX 2 l<o 
Council Directive 90/618/EEC of 8 November 1990 amending, particularly as regards motor vehicle 
liability insurance, Directive 73/239/EEC and Directive 88/357/EEC which concern the coordination of 
laws, regulations and administrative provisions relating to direct insurance other than life assurance (OJ 
L 330, 29/11/90) 
Council Directive 90/619/EEC of 8 November 1990 on the coordination of laws, regulations and admin­
istrative provisions relating to direct life assurance, laying down provisions to facilitate the effective exer­
cise of freedom to provide services and amending Directive 79/267/EEC (OJ L 330, 29/11/90) 
Council Directive 90/642/EEC of 27 November 1990 on the fixing of maximum levels for pesticide resi­
dues in and on certain products of plant origin, including fruit and vegetables (OJ L 350, 14/12/90) 
1991 
Council Directive 91/263/EEC of 29 April 1991 on the approximation of the laws of the Member States 
concerning telecommunications terminal equipment, including the mutual recognition of their conformity 
(OJL 128, 23/05/91) 
Council Directive 91/414/EEC of 15 July 1991 concerning the placing of plant protection products on 
the market ( OJ L 230, 19/08/91) 
Council Directive 91/440/EEC of 29 July 1991 on the development of the Community' s railways (OJ L 
237,24/08/91) 
1992; 
Council Directive 92/44/EEC of 5 June 1992 on the application of open network provision to leased 
lines (OJ L 165, 19/06/92) 
Council Directive 92/49/EEC of 18 June 1992 on the coordination of laws, regulations and administra­
tive provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC 
and 88/357/EEC (third non-life insurance Directive) (OJ L 228, 11/08/92) 
Council Directive 92/50/EEC of 18 June 1992 relating to the coordination of procedures for the award of 
public service contracts (OJ L 209, 24/07/92) 
Council Directive 92/51/EEC of 18 June 1992 on a second general system for the recognition of pro­
fessional education and training to supplement Directive 89/48/EEC (OJ L 209, 24/07/92) 
Council Directive 92/96/EEC of 10 November 1992 on the coordination of laws, regulations and admin­
istrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 
90/619/EEC (third life assurance Directive) (OJ L 360, 09/12/92) 
Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of geographical indications and 
designations of origin for agricultural products and foodstuffs (OJ L 208, 24/07/92) 
Council Regulation (EEC) No 3577/92 of 7 December 1992 applying the principle of freedom to provide 
services to maritime transport within Member States (maritime cabotage) (OJ L 364, 12/12/92) 
1993 
Council Directive 93/6/EEC of 15 March 1993 on the capital adequacy of investments firms and credit 
institutions (OJ L 141, 11/06/93) 
Council Directive 93/22/EEC of 10 May 1993 on investment services in the securities field (OJ L 141, 
11/06/93) 
Council Directive 93/36/EEC of 14 June 1993 coordinating procedures for the award of public supply 
contracts (OJ L 199, 09/08/93) 
Council Directive 93/37/EEC of 14 June 1993 concerning the coordination of procedures for the award 
of public works contracts (OJ L 199, 09/08/93) 
Council Directive 93/38/EEC of 14 June 1993 coordinating the procurement procedures of entities 
operating in the water, energy, transport and telecommunications sectors (OJ L 199, 09/08/93) 
Council Directive 93/68/EEC of 22 July 1993 amending Directives 87/404/EEC (simple pressure ves­
sels), 88/378/EEC (safety of toys), 89/106/EEC (construction products), 89/336/EEC (electromagnetic 
compatibility), 89/392/EEC (machinery), 89/686/EEC (personal protective equipment), 90/384/EEC (non-
automatic weighing instruments), 90/385/EEC (active implantable medicinal devices), 90/396/EEC 
(appliances burning gaseous fuels), 91/263/EEC (telecommunications terminal equipment), 92/42/EEC 
(new hot-water boilers fired with liquid or gaseous fuels) and 73/23/EEC (electrical equipment designed 
for use within certain voltage limits) (OJ L 220, 31/08/93) 
THE SINGLE MARKET IN 1995 
ANNEX 2 YT 
Council Directive 93/99/EEC of 29 October 1993 on the subject of additional measures concerning the 
official control of foodstuffs (OJ L 290, 24/11/93 
Council Regulation (EEC) No 793/93 of 23 March 1993 on the evaluation and control of the risks of 
existing substances (OJ L 84, 05/04/93) 
1994 
Council Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council 
or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the 
purposes of informing and consulting employees (OJ L 254, 30/09/94) 
European Parliament and Council Directive 94/60/EC of 20 December 1994 amending for the 14th 
time Directive 76/769/EEC on the approximation of the laws, regulations and administrative provisions of 
the Member States relating to restrictions on the marketing and use of certain dangerous substances and 
preparations (OJ L 365, 31/12/94) 
European Parliament and Council Directive 94/62/EC of 20 December 1994 on packaging and pack­
aging waste (OJ L 365, 31/12/94) 
Commission Recommendation 94/79/CE of 21 December 1993 on the taxation of certain items of 
income received by non-residents in a Member State other than that in which they are resident (OJ L 39, 
10/02/94) 
Council Regulation (EC) No 2100/94 of 27 July 1994 on Community plant variety rights (OJ L 227, 
01/09/94) 
Council Regulation (EC) No 3381/94 of 19 December 1994 setting up a Community regime for the 
control of exports of dual-use goods (OJ L 367, 31/12/94) 
mm 
European Parliament and Council Directive 95/2/EC of 20 February 1995 on food additives other than 
colours and sweeteners (OJ L 61, 18/03/95) 
Council Directive 95/18/EC of 19 June 1995 on the licensing of railway undertakings (OJ L 143, 
27/06/95) 
Council Directive 95/19/EC of 19 June 1995 on the allocation of railway infrastructure capacity and the 
charging of infrastructure fees (OJ L 143, 27/06/95) 
Council Directive 95/22/EC of 22 June 1995 amending Directive 91/67/EEC concerning the animal 
health conditions governing the placing on the market of aquaculture animals and products (OJ L 243, 
11/10/95) 
Council Directive 95/23/EC of 22 June 1995 amending Directive 64/433/EEC on conditions for the pro­
duction and marketing of fresh meat (OJ L 243, 11/10/95) 
Council Directive 95/25/EC of 22 June 1995 amending Directive 64/432/EEC on health problems affect­
ing intra-Community trade in bovine animals and swine (OJ L 243,11/10/95) 
Council Directive 95/29/EC of 29 June 1995 amending Directive 91/628/EEC concerning the protection 
of animals during transport (OJ L 148, 30/06/95) 
Commission Directive 95/31/EC of 5 July 1995 laying down specific criteria of purity concerning sweet­
eners for use in foodstuffs (Text with EEA relevance) (OJ L 178, 28/07/95) 
Council Directive 95/38/EC of 17 July 1995 amending Annexes I and II to Directive 90/642/EEC on the 
fixing of maximum levels for pesticide residues in and on certain products of plant origin, including fruit 
and vegetables, and providing for the establishment of a list of maximum levels (OJ L 197, 22/08/95) 
Commission Directive 95/40/EC of 19 July 1995 amending Directive 92/76/EEC recognizing protected 
zones exposed to particular plant health risks in the Community (OJ L 182, 02/08/95) 
Commission Directive 95/44/EC of 26 July 1995 establishing the conditions under which certain harm­
ful organisms, plants, plant products and other objects listed in Annexes I to V to Council Directive 
77/93/EEC may be introduced into or moved within the Community or certain protected zones thereof, for 
trial or scientific purposes and for work on varietal selections (OJ L 184, 03/08/95) 
Commission Directive 95/45/EC of 26 July 1995 laying down specific purity criteria concerning colours 
for use in foodstuffs (OJ L 226, 22/09/95) 
European Parliament and Council Directive 95/46/EC of 24 October 1995 on the protection of indi­
viduals with regard to the processing of personal data and on the free movement of such data (OJ L 281, 
23/11/95) 
THE SINGLE MARKET IN 1995 
ANNEX 2 yg 
Council Directive 95/61/EC of 29 November 1995 amending Annex II to Directive 90/642/EEC relating 
to the fixing of maximum levels for pesticide residues in and on certain products of plant origin, including 
fruit and vegetables (OJ L 292, 07/12/95) 
Commission Decision 95/354/EC of 14 February 1995 relating to a proceeding pursuant to Council 
Regulation (EEC) No 4064/89 (Case No IV/M.477 - Mercedes-Benz/Kâssbohrer) (Only the German text is 
authentic) (OJ L 211, 06/09/95) 
Council Decision 95/409/EC of 22 June 1995 laying down the rules for the microbiological testing by 
sampling of fresh beef and veal and pigmeat intended for Finland and Sweden (OJ L 243, 11/10/95) 
Council Decision 95/410/EC of 22 June 1995 laying down the rules for the microbiological testing by 
sampling in the establishment of origin of poultry for slaughter intended for Finland and Sweden (OJ L 
243, 11/10/95) 
Council Decision 95/411/EC of 22 June 1995 laying down the rules for the microbiological testing for 
salmonella by sampling of fresh poultrymeat intended for Finland and Sweden (OJ L 243, 11/10/95) 
Council Decision 95/468/EC of 6 November 1995 on a Community contribution for telematic inter­
change of data between administrations in the Community (IDA) (OJ L 269, 11/11/95) 
Decision 95/3052/EC of the European Parliament and of the Council of 13 December 1995 establish­
ing a procedure for the exchange of information on national measures derogating from the principle of 
the free movement of goods within the Community (OJ L 321, 30/12/95) 
Council Regulation (EC) No 1683/95 of 29 May 1995 laying down a uniform format for visas (OJ L 164, 
14/07/95) 
Council Regulation (EC) No 2317/95 of 25 September 1995 determining the third countries whose 
nationals must be in possession of visas when crossing the external borders of the Member States (OJ L 
234, 03/10/95) 
THE SINGLE MARKET IN 1995 

Annex 3 - Judgements of the Court of Justice cited 
Judgement of the Court of 29 June 1995 § 30 
Joined Cases C-109/94, C-207/94 and C-22S/94 
Reports of cases 1995 pages 0000 
Commission of the European Communities v Hellenic Republic 
Failure of a Member State to fulfil its obligations 
Directives 618/EEC, 88/357/EEC and 90/619/EEC - Non-transposition - Insurances. 
Judgement of the Court of 9 February 1995 § 81 
Case 412/93 
Reports of cases 1995 pages 1-0179 
Société d'importation Edouard Leclerc-Siplec v TF1 Publicité sa and M6 Publicité sa 
Reference for a preliminary ruling: Tribunal de Commerce de Paris - France 
Televised advertising - Free movement of goods and services. 
Judgement of the Court of 23 February 1995 § 81 
Joined Cases C-54/94 and C-74/94 
Reports of cases 1995 pages 1-0391 
Criminal proceedings against Ulderico Cacchiarelli and Gino Stanghellini 
Reference for a preliminary ruling: Pretura circondariale di Macerata - Italy 
Council directives 76/895/EEC and 90/642/EEC - Maximum permissible levels of pesticide resi­
dues on or in potatoes. 
Judgement of the Court of 28 March 1995 § 81 
Case C-324/93 
Reports of cases 1995 pages I-0563 
The Queen v Secretary of State for Home Department, ex parte Evans Medical Ltd and McFarian 
Smith Ltd 
Reference for a preliminary ruling: High Court of Justice, Queen's Bench Division - United King­
dom 
Free movement of goods - Importation of a narcotic drug (diamorphine). 
Judgement of the Court of 6 July 1995 § 81 
Case C-470/93 
Reports of cases 1995 pages 0000 
Verein gegen Unwesen in Handel und Gewerbe Kôln e.V. v Mars GmbH 
Reference for a preliminary ruling: Landgericht Kôln - Germany 
Free movement of goods - Measures having an effect equivalent to quantitative restrictions -
Presentation of a product likely to restrict freedom to fix retail prices and mislead the consumer. 
Judgement of the Court of 14 February 1995 § 135 
Case C-279/93 
Reports of cases 1995 pages I-0225 
Finanzamt Kôln-Altstadt v Roland Schumacker 
Reference for a preliminary ruling: Bundesfmanzhof - Germany 
Article 48 of the EC Treaty - Principle of equal treatment - Taxation of the income of non-resi­
dents. 
Judgement of the Court of 11 August 1995..... § 135 
Case C-80/94 
Reports of cases 1995 pages 0000 
G.H.E.J. Wielockx v Inspecteur der directe belastingen 
Reference for a preliminary ruling: Gerechtshof s-Hertogenbosch - Netherlands 
Article 52 of the EC Treaty - Requirement of equal treatment - Tax on non-residents' income. 
THE SINGLE MARKET IN 1995 
ANNEX 3 gO 
Judgement of the Court of 24 January 1995 § 162 
Case C-359/93 
Reports of cases 1995 pages 1-0157 
Commission of the European Communities v Kingdom of the Netherlands 
Tender notices for public supply contracts 
Review procedure - Notification - Technical specifications. 
Judgement of the Court of 4 May 1995 § 162 
Case C-79/94 
Reports of cases 1995 pages 1-1071 
Commission of the European Communities v Hellenic Republic 
Failure of a Member State to fulfil its obligations 
Directive 77/62/EEC - Framework agreement for the exclusive supply of dressing material for use 
in Greek hospitals and by the Greek army. 
Judgement of the Court of 17 May 1990 § 196 
Case 262/88 
Reports of cases 1990 pages 1-1889 
Douglas Harvey Barber v Guardian Royal Exchange Assurance Group 
Reference for a preliminary ruling: Court of Appeal - United Kingdom 
Social policy - Equal payment for men and women - Compulsory redundancy - Early payment of 
retirement pension. 
THE SINGLE MARKET IN 1995 
frl 
Annex 4 - Recent reports, studies and surveys on the 
single market 
(The following list does not purport to be exhaustive. It is a selection of publications dealing with 
the practical operation of the single market in general which have been brought to the attention 
of the Commission during 1994. It does not include the many academic works which are pub­
lished regularly in this field). 
Reports of the Competitiveness Advisory Group (Ciampi Group), June and December 1995. 
Report of The Group of Independent Experts on Legislative and Administrative Simplification. (The 
"Molitor" Report). Office for Official Publications of the European Communities, 21.06.95; COM (95) 
288/2 final. 
Opinion on the Single Market in 1994. The Economic and Social Committee of the European Com­
munities. 23.11.95; CES (95) 1310. 
The European Observatory for SMEs. Comments of the Commission on the third Annual Report. 
Office of Publications of the European Communities; COM (95) 526 final. 
Releasing Europe's Potential though Targeted Regulatory Reform. Union of Industrial and Employ­
ers' Confederations of Europe. October 1995. 
A Europe that Works. The Confederation of British Industry, June 1995. 
Barriers to Trade in Chemicals in the Single Market. The UK Department of Trade and Industry, July 
1995. 
Single Market Implementation Monitoring Report. The UK Simpler Trade Procedures Board, June 
1995. 
Ireland, The European Union and Economic Integration: A Business Perspective. IBEC, May 1995. 
Generic Study on Standards, Testing and Certification Barriers in Non-Harmonised Areas of the Sin­
gle Market. The UK Department of Trade and Industry, 1995. 
THE SINGLE MARKET IN 1995 




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i . i COM(96) 51 final 
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