Opinion of the Committee of the Regions on the "Internal Market Strategy for the period 2003-2006"
Date: 2003-02-12
Institutions: European Committee of the Regions
Subjects: domestic market, economic development, regional development

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3.6.2.
The period over which the Strategy will be operable
is not defined. Ideally it should extend well into the future, at
ten years, allowing for longer-term planning and a
least
commitment
to move from mere protection to eventual
remediation and to the preparation of further supporting
advisory or regulatory material
in the light of emerging
monitoring results and analysis of action effectiveness. A mid-
term review would therefore clearly be necessary for a ten-year
strategy.

3.6.3.
A strategic framework for soil protection leading to
longer term soil remediation will provide applicant countries
with the mandate to preserve what is ecologically valuable in
their soil and land management practices and, at the same
time, prevent any risk of deterioration through increased rates
of development following entry to the European Union.
Applicant countries also have significant historical soil con-
tamination and degradation problems which will need to be
confronted and addressed in a rolling risk-based programme
over many years.

Brussels, 12 February 2003.

The President

of the Committee of the Regions

Albert BORE

Opinion of the Committee of the Regions on the ‘Internal Market Strategy for the period 2003-
2006’

(2003/C 128/08)

THE COMMITTEE OF THE REGIONS,

having regard to the Commission’s request that it draw up an opinion on the future multi-annual internal
market strategy to be submitted in spring 2003;

having regard to the decision of its Bureau of 9 October 2002, in accordance with the fifth paragraph of
Article 265 of the Treaty establishing the European Community, to instruct the Commission for
Economic and Social Policy to draw up an opinion on the subject;

having regard to its opinion on the Communication from the Commission to the European Parliament,
the Council, the Economic and Social Committee and the Committee of the Regions on the 2000 Review
of the Internal Market Strategy (CdR 311/2000 fin) (1);

having regard to its opinion on the Communication from the Commission to the European Parliament
and the Council on A Strategy for the Internal Market of services (CdR 134/2001 fin) (2);

having regard to its opinion on the Communication from the Commission to the Council, the European
Parliament, the Economic and Social Committee and the Committee of the Regions — Working together
to maintain momentum — 2001 Review of the Internal Market Strategy (CdR 200/2001 fin) (3);

having regard to its opinion on the Commission Communication on Productivity:
competitiveness of European Economies and Enterprises (CdR 224/2002 fin);

the key to

(1) OJ C 148, 18.5.2001, p. 16.
(2) OJ C 357, 14.12.2001, p. 65.
(3) OJ C 107, 3.5.2002, p. 68.

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having regard to the draft opinion (CdR 341/2002 rev.) adopted by the Commission for Economic and
Social Policy on 6 December 2002 (rapporteur: Mrs Ulrike Rodust, Member of the Schleswig-Holstein
Landtag, D/PES),

adopted the following opinion at its 48th plenary session on 12 and 13 February 2003 (meeting of
12 February).

1. Views of the Committee of the Regions

Prospects after ten years of the internal market

The Committee of the Regions

1.5.
concurs with the need for the concept of the internal
market to be enlarged. It considers that over the next few years
an internal market strategy must develop solutions to this end,
which are primarily geared to the requirements of the market,
while at the same time emphasising the economic-policy
responsibilities and initiatives of Member States and regional
and local authorities and the quality of the European social
model.

1.1.
welcomes the European Commission’s plan to call on
all interested parties to make strenuous efforts to complete the
internal market and its intention to present a medium-term
strategy or programme in April 2003, probably for a three
year-period, in order to develop the internal market further.
Compared to earlier strategy documents, this one is to be more
focused, ambitious and coherent, focusing in particular on
competitiveness in an enlarged Europe and better functioning
of product and services markets.

1.2.
welcomes this ambitious undertaking. However, the
CoR agrees with the European Commission that it is necessary
to link a new multi-annual
internal market strategy more
closely to the various economic processes and to orientate it
towards the single objective of making the Union the most
competitive and dynamic knowledge-based economy in the
world by 2010. These processes include in particular the 1997
Luxembourg process for the development of a European
employment policy, the 1998 Cardiff process for reform
of
the 2000 Lisbon process for
strengthening competitiveness and the 2001 Gothenburg
process on sustainability and the environmental dimension.
These processes have all been set in motion since a start was
made on internal market legislation in order to strengthen
individual segments of the European economy.

the European economy,

1.3.
supports the efforts made by the European Com-
mission in its summary reports to simplify the realisation of
the new internal market strategy, together with the other
aforementioned processes, by means of a single overall strategy
and to focus efforts on the common target for 2010.

1.4.
considers that the future multi-annual internal market
strategy must attach particular importance to further market
opening. Some of the European Union’s key economic sectors
are only beginning to open up to the internal market
(particularly the markets for energy, transport, finance and
services). Incorporating the whole business environment into
the internal market (e.g. company law, patent law, aid and
competition, services of general interest, tax harmonisation,
European employment market and pan-European compati-
bility of social security systems) has now become essential for
the internal market’s future prospects.

2. Recommendations of the Committee of the Regions

Bringing the various economic processes together

The Committee of the Regions

2.1.
considers it necessary to develop a long-term internal
market strategy for the period up to 2010 in order to gear its
objectives more closely than hitherto to the overarching 2010
objective and make it easier to tie in with the other economic
processes. Periodic fine-tuning of the strategy should continue
to be possible. In this way the various processes can be
brought together more effectively and greater transparency
and planning certainty can be achieved for all the players
involved.

2.2.
welcomes the introduction of more competition as the
guiding principle for further liberalisation measures in order
to open up markets, achieve competitiveness on European and
global markets and eliminate unnecessary separate regulation.
The CoR stresses, however, that competition may be the main
criterion, but must not be the sole criterion of the European
internal market. In applying the principle of competition as an
instrument
for harmonisation, careful account should be
taken of the boundaries drawn by European legislation, the
economic, social and territorial aspects of the principle of
cohesion, the application of the subsidiarity principle, the
external effects of economic activities, and the existence of
products and services produced or delivered in very limited
i.e. in areas with natural handicaps that increase
amounts,
costs (small
islands, mountain regions, remote areas) and
which cannot compete with more favoured areas.

stresses the importance of complying with European
2.3.
law as the internal market
is further developed in the
Member States. The Committee advocates neither the open
coordination method nor inter-state cooperation for ensuring
timely and uniform application in the Member States.

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Liberalisation and the business environment

The Committee of the Regions

2.4.
is aware that further market opening creates synergy
effects and that a multidimensional internal market also leads
to improved services. It suggests that, in the process of further
liberalising market segments and the business environment,
account be taken of the following suggestions in those sectors
of particular relevance to the regional and local authorities.

2.5.
stresses the link between liberalisation and territorial
cohesion. An important aspect of this is the planned opening
of the market in the transport sector (rail freight transport,
national and international local passenger transport). At the
same time the liberalisation policy must not limit the right of
Member States to determine which services at national level
are considered non-profit services of general interest or restrict
individual
the development opportunities of
or obstruct
regions or local authority areas. This is particularly true of
local public passenger transport. The two together are an
important component of services of general interest.

2.6.
believes that the liberalisation of the transport sector
should be based on the following key points: equal oppor-
tunities for all transport enterprises, controlled competition,
sufficient scope for entrepreneurial initiative, sufficiently long,
sensible and clearly specified transitional periods and periods
of validity for authorisations, no unnecessary social clauses or
bureaucracy for workers as well as making transport services
available to all citizens.

2.7.
welcomes the comprehensive action plan eEurope
2005 and calls for common rules and procedures for the use
of public-sector information services which guarantee equal
basic conditions for all players in the European information
market. Unjustified market distortions must be eliminated and
conditions of use made more transparent. Further technologi-
cal developments should not be used to introduce new
restrictions or encryption (e.g. digital television)
in cross-
border operations, in order to prevent the renationalisation or
restriction of the internal market.

2.8.
considers that the rules applicable to various media
(Internet, analogue and digital television, UMTS) should be
better coordinated and interlinked in order to prevent market
distortions and allow the freedom to provide services. Uniform
minimum standards should be drawn up for advertising and
the protection of minors which should apply equally to all
media.

2.9.
urges that obstacles in the services sector be overcome.
In this context it calls for determined efforts to progress with
market liberalisation with the aim of achieving an internal
market for financial services.

2.10.
stresses that a European labour market is an essential
component of the internal market. Despite ten years of internal
market regulation, there are still practical problems with the
free movement of workers.

2.11.
stresses that labour market flexibility must be ensured,
paying particular attention to skills and mobility. It also calls
for further, more determined measures to remove obstacles to
mobility. This applies in particular to areas such as the
recognition of vocational qualifications, IT and communi-
cation technologies skills acquisition throughout Europe and
language skills.

calls for the inclusion in the new internal market
2.12.
strategy of the extension of the portability of social security
benefits at no extra cost to the Member States and their
regions. The CoR welcomes initiatives aimed at revising and
simplifying the coordinating social legislation, making them
more transparent and facilitating their use.

believes that cooperation between Member States on
2.13.
health systems, with the active participation of local and
regional authorities, must take account of patients and their
friends and relatives in order to facilitate free movement across
the borders and the operation of the internal market.

stresses the need to eliminate as quickly as possible
2.14.
the differences between the health systems of the EU’s current
Member States and the future Member States bordering on the
EU and to develop uniform initiatives and measures (best
practices, exchange of information, etc.) to this end.

2.15.
welcomes the European Commission’s plan to elimin-
ate legal uncertainty in relation to European services of general
interest. Such services should be retained as an important
component of the European model of society. In opening up
markets, care should be taken to safeguard and protect the
public interest but at the same time recognising the national
characteristics of Member States.

2.16.
quality services of general
available to ordinary citizens in an internal market.

stresses that a broad spectrum of affordable high-
interest must continue to be

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2.17.
shares the view that state aid can in the long-term
distort competition and be detrimental to the internal market,
and that it should be reduced. It would like to see state aid
used in a more focused way and targeted to a greater extent
on horizontal objectives and on cases where the market has
clearly failed.

2.18.
calls, in the framework of the new internal market
strategy, for a European policy on aid which takes account of
regional-policy objectives, allows scope for devolved regional-
policy initiatives and guarantees fair competition.

2.19.
stresses the importance of sustainability and the
drafting of Europe-wide standard criteria and norms in the
in order to balance economic,
field of the environment
environmental and social interests more effectively, as well as
the need for state support in this area. Even the introduction
of a de minimis rule and/or a specific exemption regulation in
this area would be helpful and it should also be included in the
applicant country agreements.

2.20.
considers that further development of the product-
based internal market to be essential, particularly with regard
to mutual recognition, a new approach to harmonisation,
EU trademarks, market supervision, the standardisation and
uniform application of such rules (especially in connection
with enlargement) and a European patent law with devolved
jurisdiction. The principle of mutual recognition has proved
to be particularly valuable in maintaining regional distinctions.
This approach should continue. Effective and regular price
comparisons are one of the instruments which can help
awaken a lasting interest in the internal market on the part of
consumers and firms. The price summaries produced by
Eurostat should be accordingly adapted and used.

Implementation of the future internal market strategy

The Committee of the Regions

2.21.
suggests that the implementation of the new, multi-
annual internal market strategy be brought to the forefront of
policy planning. In this connection it draws attention to the
proposals it has made in recent years. Thus, with a view to
reducing the glaring disparities in levels of internal market
knowledge from one Member State to another (internal market
scoreboard), the CoR proposed regional conferences of all
interested parties (round tables) to promote implementation
of
the internal market and to pave the way for further
legislation by means of exchange of experience.

2.22.
proposes that the new internal market strategy be
incorporated into a real action plan, based on the proposals of
the White Paper on European Governance, for the involvement
of the affected section of civil society and for better legislation.
In addition to the monitoring of implementation, this would
also include targeted information campaigns on internal
market law and the operation of the internal market in those

Member States whose citizens and enterprises were least
conversant with the internal market.
Involvement of the
regional and local level is essential here. Sectoral conferences
should help ensure systematic dialogue with the relevant
associations in order to ensure that, in developing internal
market legislation, account is taken of regional and local
experience
clear
priorities and greater transparency will contribute to better
legislation and greater planning certainty.

and conditions.

simplification,

Focus,

2.23.
suggests that, in tandem with the new internal market
strategy, a programme be submitted at long last for the
reduction and simplification of internal market law, as the
European Commission has long intended. The techniques
developed in the Simpler Legislation for the Internal Market
(SLIM) initiative should above all be used for this purpose.

proposes the publication of an internal market code.
2.24.
This should summarise the main provisions of the internal
market legislation in order to provide all players in business
and administration with a simple instrument for using the
internal market freedoms. Such a code should exist in all
EU languages and become common property in European
enterprises.

2.25.
welcomes the creation of Solvit by the European
Commission as a completely new and practically-oriented
instrument which enables enterprises to exercise their rights
quickly and unbureaucratically in the internal market. The
CoR calls on the Member States to offer the European
Commission their committed support throughout the Union
in establishing this instrument. The European Commission
should take up the regional and local authorities’ offer to raise
awareness of the internal market and provide information
about Solvit via a special programme. Unless there is wide-
spread knowledge on the ground of Solvit’s existence and role,
the new instrument will not be able to fulfil its tasks. This
knowledge can only be provided at a regional and local level.

2.26.
calls on the Member States to deal with the implemen-
tation and application of internal market legislation not only
in accordance with what is politically expedient or other
priorities. So far only five Member States satisfy the objective
set by the European Council in 2002 (Barcelona) of reducing
their transposition deficits to 1,5 % or less by spring 2003. In
view of the 1 500 Treaty infringement procedures still pending,
Member States must go about fulfilling their Treaty obligations
quite differently than in the past.

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3. Contribution of regional and local government

regards it as particularly urgent for a new internal
3.1.
market strategy to create more transparency in this field — a
central concern of better European governance — by working
together more closely with the relevant section of civil society
and public opinion and thus to create a better awareness of
the requirements of the internal market on all sides.

3.2.
advocates the direct involvement of regional and local
authorities in the development of the new strategy, since their
numerous responsibilities with regard to, for example, regional
and local economic and infrastructure policy, aid, local public
transport, the employment market, the service sector and
uniform access to and use of modern information and
communication technologies — to name but a few — are
highly relevant to the internal market. The procedures offered
by the CoR for these authorities’ involvement and the new ideas
on involving civil society in improving European governance
spring to mind in this context. Both avenues must be exploited.

market activities, but do not go far enough. For small and
medium-sized enterprises in particular, and for the various
operators in remote outlying areas, electronic access to data
banks and information networks presents a challenge which
still remains unsolved despite all
the successes in setting
up eEurope. Practical advice for small and medium-sized
enterprises at a local level about the application of the internal
market provisions is as vital as ever. The CoR would refer here
to its proposals for involving regional and local players more
closely than in the past in the development of the internal
market strategy and using these players to implement the
strategy, too. A new internal market strategy must allocate this
task above all to regional and local players.

3.4.
advocates that regional and local authorities play
particular attention, within the framework of bilateral and
multilateral cooperation with their partners in the future
Member States and their involvement in twinning projects, to
the problems of implementing and applying internal market
provisions. Above all, the extended Phare pre-accession strat-
egy on institution building should be used for this purpose.

underlines once again that the ideas and measures
3.3.
of
the European Commission with regard to interactive
information and problem-solving are indispensable for internal

3.5.
advocates that local and regional authorities contribute
to the internal market strategy by further opening their own
markets to competition as mentioned in point 1.4.

Brussels, 12 February 2003.

The President

of the Committee of the Regions

Albert BORE