Opinion of the European Economic and Social Committee on "PRISM 2002"
Date: 2003-05-14
Institutions: European Economic and Social Committee
Subjects: database, enlargement of the Union, services contract, single market

3.9.2003

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II

(Preparatory Acts)

ECONOMIC AND SOCIAL COMMITTEE

399th PLENARY SESSION, 14 AND 15 MAY 2003

Opinion of the European Economic and Social Committee on ‘PRISM 2002’

(2003/C 208/01)

On 17 January 2002, the European Economic and Social Committee, acting under Rule 29(2) of its Rules
of Procedure, decided to draw up an opinion on ‘PRISM 2002’.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 4 April 2003. The rapporteur was
Mr Pezzini.

At its 399th plenary session on 14 and 15 May 2003 (meeting of 14 May), the European Economic and
Social Committee adopted the following opinion by 87 votes to one with 1 abstention.

1.

Introduction

In its third review of the internal market strategy (1),
1.1.
the Commission reviewed progress since last year. What
emerged was a discouraging picture. The success rate for
completing target actions stands at just over 50 % — which is
about the same as last year. Despite some notable achieve-
ments, the overall pace of delivery is still too slow.

1.2.
The Single Market Observatory (SMO) contributes to
the completion of the internal market, which has yet to
become a reality for many citizens and for the majority of the
EU’s small and medium sized businesses.

Enlargement is an important milestone for the EU and
1.3.
its institutions. The SMO will seek to assist applicant countries
to adapt as best they can to the internal market.

PRISM (Progress Report on Initiatives in the Single
1.4.
Market: http://www.esc.eu.int/omu–smo/prism), is central to
achieving the above objectives, in the context of the SMO’s
role. The information contained in the database helps both to
boost understanding of the European system and to resolve
the difficulties faced by citizens and businesses concerning the
internal market.

The services offered to businesses and individuals by
1.5.
institutions, organisations and specialists are undoubtedly an
important tool for developing the single market. The SMO
must therefore help to promote and enhance them, via PRISM
and other channels.

1.6.
Completion of the single market is also aided by
increased familiarity with and access to Court rulings and
jurisprudence on the part of European citizens and businesses.
If they were adequately informed, they could cite the principles
laid down by the Court of Justice to defend their rights. During
the week of 4-9 November 2002, the General Secretariat of
the Commission (2) dealt with twelve written questions from
parliamentarians concerning the internal market. The Com-
petitiveness Council of 14 November 2002 called on the

( 1) COM(2002) 171 final, 11.4.2002 — Communication of the
Commission to the Council, the European Parliament, the Econ-
omic and Social Committee and the Committee of the Regions on
the 2002 Review of the Internal Market Strategy — Delivering
the Promise.

(2) SP(2002) 3637 of 11.11.2002 — Directorate E/2.

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Commission to continue to be active and rigorous in ensuring
full compliance with Community law across the EU, and asked
Member States to fully and swiftly comply with the judgments
passed by the European Court of Justice with regard to the free
movement of services and freedom of establishment and to
ensure appropriate monitoring.

of instruments that European institutions can set up and offer
to Member States and their citizens, and to the applicant
countries, using the coordinated approach characteristic of the
EU process.

2. Outline of the opinion

This document is essentially divided into two parts.
2.1.
The first part describes the PRISM and SOLVIT systems and
highlights the differences between the two (point 3).

PRISM (Progress Report on Initiatives in the Single
3.2.
Market) is the interactive information network of the SMO,
accessible to all via the Internet, containing a collection of
information compiled by EESC members, their organisations
and other ‘users’ of the single market. PRISM pools together
good practices applied EU-wide in order to face the new
challenges of the single market. This has helped raise awareness
and promote such initiatives which deserve to be more widely
used in the context of the single market since they help expand
the market, create synergies and foster complementarity. The
long-term aim of the Observatory is to identify the best way
to promote these initiatives, and thereby influence the priorities
for action concerning the single market set out by the
European Commission, the Parliament and the Council.

The second part contains the proposal for a 2003

2.2.
work programme centred on two aspects in particular:

3.2.1.
initiatives under four categories:

The PRISM database brings together single market

— the possibilities for linking PRISM and SOLVIT;

— the Commission’s Internal Market Strategy for 2003, with
particular reference to the recognition of professional
qualifications and the action plan for financial services,
which require further consideration (points 4 and 5).

a)

Information and support;

b)

Problem-Solving Process;

c)

Partnerships;

3. PRISM and SOLVIT

two important

The PRISM and SOLVIT systems, of the EESC and the
3.1.
Commission respectively, represent
instru-
ments available to the EU public and business sector. Together
with other initiatives, such as the European Ombudsman
Office, Euro Info Centres, Europe Direct, Innovation Relay
Centres, Business and Innovation Centres and Dialogue with
Business (1), these programmes represent a fundamental sup-
port to completing the single market. Each of these measures,
with their own specific features, offers a complementary
service to provide a swifter and better response to questions.
Therefore it is important to maintain and enhance the diversity

( 1) The websites for the initiatives mentioned are as follows:

— www.euro-ombudsman.eu.int
— www.europa.eu.int/comm/enterprise/networks/eic/eic.html
— www.europa.eu.int/europedirect
— www.irc.cordis.lu/
— www.cordis.lu/innovation-smes
— www.europa.eu.int/business

d) Agreements and Codes of Conduct.

3.2.2.
The PRISM search engine enables the user to select
data by selecting one of the above categories. The search can
be narrowed down by selecting the country involved in the
initiative and making a subject-based search using key words.

PRISM is a useful tool for applicant countries since it fosters
understanding of the single market and can thus help them to
adjust to the EU situation.

SOLVIT (2) is a network providing informal solutions
3.3.
to cross-border problems concerning the single market. It was
set up by the European Commission to tackle problems
resulting from misapplication of single market provisions by
public administrations. Since it offers a mediative approach to
problem solving, SOLVIT cannot deal with issues that are

(2) Commission Recommendation of 7.12.2001 on the principles
for using SOLVIT — the network for solving problems regarding
the single market.

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before the Community or national courts. However the user is
free to commence legal proceedings at any time, thereby
closing the case with the SOLVIT network.

3.4.
The difference between PRISM and SOLVIT lies in the
fact that PRISM is a database pooling best practices regarding
single market legislation, which can be accessed instantly via
Internet at any time and in any place. SOLVIT, on the other
hand,
is a consultative system that proposes solutions to
problems regarding cross-border issues which are not already
to legal proceedings and which concern specific
subject
problems faced by individuals or businesses in their dealings
with public administrations.

4. Proposal for work in 2003 on PRISM and SOLVIT

The following three conditions are essential to glean
from the opportunities offered by

4.1.
the maximum benefit
PRISM:

a)

b)

it should be more widely publicised and marketed to the
public and to businesses in both EU and applicant
countries;

the database should include more examples of good
the single
practices implemented in the context of
market, for instance by increased relations with relevant
organisations,
in particular those representing service
industries;

c)

it should be made more accessible and user-friendly for
consumers, businesses and consultants.

4.1.1.
Regarding points a) and b), and with a view to
cooperation with EU institutions, the proposal to integrate the
work of
the two systems set up by the EESC and the
Commission is bound to be beneficial to the single market and
to European citizens and businesses. To this end, it is important
to find simple and straightforward methods of accessing both
systems and exploiting available information (1).

( 1) Therefore, internet access to PRISM should be promoted with
information and links to the system available via, at minimum,
the main portals currently in use, starting with Europa (www.euro-
pa.eu.int) which is yet to provide access. Research has shown that
access to information contained in PRISM is available via the
following portals: Yahoo, Tiscali, Libero/Arianna, Virgilio, Google
and Altavista. Selecting information from the PRISM database of
the SMO proves difficult since the user would have to already
know that the system existed in order to filter out other sites with
the same name.

4.1.2.
Since PRISM is a collection of good practices
implemented within the single market, it could also include
cases submitted to and solved by the SOLVIT network. Of
course, these would omit any names or specific details in order
to respect the parties’ privacy. In turn, information available
on PRISM could support the SOLVIT network if users could
weed out requests that have already been solved. This would
provide a more efficient and rapid service for European citizens
and businesses.

4.1.3.
One practical proposal could be to insert reference
links in both websites and on home pages of EESC and EU
sites to enable users to view and use the other system with
ease. This would help increase the visibility of both PRISM and
SOLVIT amongst users of either system.

It would also be useful for the PRISM database to
4.1.4.
include information on markets and services (together with
details of any single market exemptions for the applicant
countries) and on Court of Justice judgments regarding the
single market.

5.

Further areas for development in 2003

5.1.
The Internal Market Council concluded in March 2001
that ‘improving the internal market in services is a crucial
strategic challenge for the Community. Competition should be
reinforced in services sectors, supported by the removal
of barriers to cross-border trade and market entry’. The
Commission launched the Services Strategy in January
2001 (2). Under the Strategy, the Commission sought during
2001 to resolve problems in specific areas (e.g. recognition of
qualifications and sales promotions); it also carried out a survey
to identify persistent barriers to cross-frontier movement of
services. For 2002, the Commission set precise deadlines for
Member States to dismantle the identified barriers concerning
service provision, present non-legislative supporting measures
(codes of conduct) and propose rules for service provision
where strictly necessary, and only after harmonisation. A
horizontal directive for services is still foreseen for the end of
2003.

5.1.1.
There are many reasons why the Council highlighted
the crucial strategic challenge posed by the EU’s services

(2) COM(2000) 888 final, 29.12.2000 — Communication of the

Commission on an internal market strategy for services.

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sectors. The Commission has provided evidence (1) of the
importance of services in creating employment in the EU.
Regional data show that services were clearly the real engine
of employment growth throughout the Community in the late
1990s.

A survey on business services carried out for the Commission
showed that eliminating barriers to cross-border trade in
business services would increase current EU GDP by between
1,1 % and 4,2 %. However, since business services represent
only a third of all services, the impact of integrating all EU
service markets could be even larger (2).

According to data provided by Eurostat (3), gross value added
in the EU of 15 in 2000, as a percentage of the total economy,
was distributed as follows:

— agriculture

— manufacturing industry

— construction

— financial and business services

— public services

— trade, transport and communications

2,2

22,9

5,3

30,4

27,2

21,4

21,0

69,6

The figures for employment, as a percentage of the total
economy, were distributed as follows:

— agriculture

— manufacturing industry

— construction

— financial and business services

— public services

— trade, transport and communications

4,4

19,7

7,3

31,4

13,9

29,3

25,4

68,6

5.1.2.
Completing the single market is a process requiring
a range of actions to solve persisting problems in its many
constituent sectors, including:

— financial services in the single market;

— recognition of professional qualifications.

5.2. The single market in financial services

The European Council of Barcelona confirmed the
5.2.1.
crucial
importance of integrating capital markets in order
to obtain sound results regarding economic growth and
employment creation, stabilising the financial sector and
enabling consumers and businesses to take full advantage of
the euro.

As stated by the European Commission (4), there is a
5.2.2.
clear link between an efficient and integrated financial sector
on the one hand and economic growth and employment
creation on the other. A study commissioned by the European
round table on financial services estimated that integration
could add between 0,5 and 0,7 % to the EU’s GDP per annum,
which is equivalent to EUR 43 billion per year (5).

These potential benefits highlight the urgent need to
5.2.3.
complete the Financial Services Action Plan (FSAP) (6) by 2005
(but before 2003 for securities and venture capital). In order
to implement the decision taken at the Lisbon European
Council, which anticipated a mid-term stage in 2005 and a
final stage in 2010, the following must be completed by 2003:

— a new framework for communication services;

— rules governing VAT and e-commerce;

— a new EU legislation impact assessment system;

— integrated venture capital markets;

— opening the rail transport market in trans-European

networks;

( 1) Employment in Europe 2001, Recent

trends and prospects,

Directorate-General for employment (July 2001).

( 2) COM(2001) 736, 7.12.2001 — Communication of the Com-
mission on Economic Reform: Report on the functioning of
Community product and capital markets.

( 3) Source: Eurostat — Economic situation in Europe in 2000, March

2002.

(4) COM(2002) 267 final, 3.6.2002 — Report of the Commission to
the Council and the European Parliament on the 6th progress
report on implementing the action plan for financial services.
(5) The Benefits of a Working European Retail Market for Financial

Services, www.zew.de/erfstudyresults/

(6) COM(1999) 232 final, 11.5.1999.

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— a mid-term review of social policy;

— programming new Structural Funds.

Out of the 42 measures planned for the FSAP,
5.2.4.
approximately 30 have already been adopted. Six out of the
eight measures planned for 2002 have been adopted (1).
Decisions are pending on:

— mutual recognition of qualifications;

— European rules for taxation on savings.

The EESC calls for a concerted drive by the institutions to
adopt without delay the directive on pension funds and to
finally finish work on the prospectuses directive.

Concerning the wholesale market for financial services,
5.3.
ministers at the informal ECOFIN meeting in Oviedo on
13 April 2002 welcomed the Commission strategy drafted to
help avoid cases such as Enron occurring in the EU. This
strategy focuses on five aspects: financial information, legal
auditing, corporate management, transparency of the inter-
national financial system, financial analysts and credit rating
agencies.

Concerning transparency,

5.3.1.
in line with the FSAP,
the EU Council of Ministers reached a significant political
agreement on 5 November 2002 in Brussels concerning the
proposal for a directive on prospectuses (2). A prospectus is a
legal document containing essential financial and non-financial
information published by businesses for potential investors
when they issue securities (shares, bonds etc.) in order to
acquire capital and/or when they list their own securities for
trading on a regulated market.

The single market must enable all EU citizens to
5.3.2.
operate in all Member States indiscriminately, on the same
terms as they operate in their home country. Consequently,
general and common rules must be proposed and implemented
wherever possible. The 2003 deadline which the FSAP set for
publication of the prospectuses directive must be respected.

Implementation of the FSAP will bring about two
5.4.
significant changes regarding the single market
for retail
financial services: consumers and SMEs will benefit not only
from a more reliable and efficient payment system, but also
from greater opportunities for trading and more competition,
due to the lower financial costs involved in trading (3).

Although the reform of the financial markets represents a
crucial step towards completing the single market, one must
not underestimate the importance of the mutually supportive
development that will occur as ethical financial instruments
begin to operate on a transnational level.

Consumer and business uncertainty about the scope
5.4.1.
for appeal in the case of a cross-border contract-related dispute
is one of the most significant obstacles to a single financial
market.

5.4.2.
Legal proceedings are often complicated, lengthy and
costly, which regularly dissuades citizens from pursuing their
rights, especially when only small amounts are involved. This
breeds mistrust in the single market, which is perceived as
remote and alien. This is clearly a failing of the single market.

FIN-NET — an extra-judicial procedure for the
5.4.3.
financial services sector — is a cooperation network of current
national systems for settling disputes. It has three specific aims:

— to provide consumers with easy and informed access to

extra-judicial arbitration of cross-border disputes;

— to ensure efficient information exchange between Euro-
pean systems, so that cross-border disputes can be settled
as swiftly, efficiently and professionally as possible;

— to ensure that national systems of extra-judicial dispute
resolution involving Member States of the European
Economic Area apply a set of common minimum stan-
dards.

5.4.4.
The SMO welcomes the success of the FIN-NET
initiative, and endorses the Commission’s view that the FIN-
NET network must be monitored to ensure greater visibility
and efficiency of the system and that European consumers
must be able to contribute in a more structured and effective
manner to the Community decision-making process in the
field of investor protection (4). To this end, the SMO could

( 1) IAS Regulation (International Accounting Standards)

— Directive on financial collateral
— Directive on distance e-commerce of financial services
— Directive on insurance intermediaries
— Directive on financial conglomerates
— Directive on market abuse

( 2) IP/02/1607, IP/02/1209.

(3) COM(2001) 736 final, 7.12.2001 on the Commission Communi-
cation on Economic Reform: Report on the functioning of
Community product and capital markets.

(4) COM(2002) 267 final.

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explore in 2003 the possibility of contributing to the dissemi-
nation and use of the FIN-NET network within the single
market, and could assess the potential for improving consumer
use of this instrument.

administrative barriers that prevent the achievement of an
effective single market in the Member States is to conduct a
major cultural and organisational campaign that galvanises all
strands of society.

5.5. Recognition of professional qualifications

Regarding the recognition of professional qualifications, as
previously mentioned, it is essential to pursue the objectives
laid down in the proposed directive (1), as well as the rec-
ommendations made by the EESC (2), by means of:

a clearer procedure to codify and simplify existing
directives on professional qualifications and diplomas;

increased involvement of the specialist skills, at EU and
national level, of organisations representing professional
groups and associations, by holding consultations at
European level;

1)

2)

3)

6.2.
In conjunction with and in support of the PRISM
project launched on 1 January 2001 (referred to frequently in
this opinion), the SMO has drafted several own-initiative
opinions on cross-border and regional
issues, liasing with
various representatives of organised civil society from a
number of Member States (France, Sweden, Belgium, Spain,
Italy and the Netherlands), two applicant countries (Hungary
and Poland), and the countries of the European Economic Area
(EEA), who met in Oslo, Norway (4).

6.3. Moreover, at the specific request of Romano Prodi,
President of the European Commission, the SMO drew up two
opinions (5) on simplifying and improving legislation and is
working on another own-initiative opinion (6).

In addition, other opinions were drafted on electronic com-
merce, mutual recognition and the free movement of workers.

retention and further development of mechanisms that
have proved their effectiveness for the automatic recog-
nition of professional qualifications.

7.

Future work of the SMO

This is in order to respond, as swiftly as possible, to the need
expressed by 83 % of small businesses, 90 % of medium-sized
businesses and 92 % of large businesses, which is to be able to
operate in the single market using one set of rules instead of
fifteen (3), and to secure greater support for citizens, workers,
professionals and businesses that deal with and operate in the
single market on a daily basis.

In 2003, the SMO plans to focus its work on the following
main areas:

— contributing to the completion of the single market;

— supporting policies connected with EU enlargement;

— encouraging an improvement of existing legislation.

In this context, it would be useful to draw up opinions on:

6. Main activities from October 2001 to December 2002

— simplification;

6.1.
In close liaison with the European Commission, the
European Parliament and the Committee of the Regions, the
SMO has sought to increasingly involve organised civil society
in the Member States and in applicant countries in the
considerable efforts made by the European Union as a whole
to achieve an effective barrier-free market. The widespread
opinion is that the only way to eliminate the legal and

— annual review of the single market;

— impact assessment, of the effects on business, workers,

and individual citizens;

— co-regulation.

( 1) COM(2002) 119 final, 7.3.2002.
( 2) OJ C 61, 14.3.2003, p. 67.
( 3) MEMO/02/231 of 11.11.2002, as previously quoted.

(4) See the SMO Opinion on the Impact of the enlargement of the

European Union on the single market.

(5) OJ C 125, 27.5.2002, p. 105; OJ C 14, 16.1.2000, p. 1.
(6) INT/156 — CESE 1311/2002.

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Moreover, the SMO is well aware that, in the immediate future,
priority will be given to matters linked with, for example, the
accession of the new Member States, revision of the Treaties,
Europe’s increased role on the world stage (Lisbon 2000),
subsidiarity and simplification and food safety.

The SMO has already produced discussion documents on all
these matters and on many others of key importance, to which
the reader is referred for further information.

8. Appendices

The following documents are attached:

— opinions drawn up by the SMO between October 2000

and September 2002;

— details of hearings and conferences organised by the SMO

between October 2000 and September 2002;

— the PRISM report of 1 December 2002.

Brussels, 14 May 2003.

The President

of the European Economic and Social Committee

Roger BRIESCH

Opinion of the European Economic and Social Committee on the ‘Proposal for a Council
Regulation amending Regulation (EC) No 40/94 on the Community trade mark’

(COM(2002) 767 final — 2002/0308 (CNS))

(2003/C 208/02)

On 17 January 2003, the Council decided to consult the European Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the above-mentioned proposal.

The Section for the Single Market, Production and Consumption, which was responsible for preparing
the Committee’s work on the subject, adopted its opinion on 4 April 2003. The rapporteur was
Mrs Sánchez Miguel.

At its 399th plenary session on 14 and 15 May 2003 (meeting of 14 May), the European Economic and
Social Committee unanimously adopted the following opinion.

1.

Introduction

1.1.
As a unitary system of protection in the European
market, the European trade mark represented in legal terms a
just
major improvement over national trade marks, not
because it simplified the acquisition of exclusive rights over
distinctive marks for products and services, but also because it
brought benefits for the market and for consumers and users.

and users to trust certain brands, though not always to the
same extent. We nevertheless believe that this dual objective
of establishing an exclusive right of the trade mark proprietor
and identifying products and services is effectively achieved
with the Community trade mark.

1.2.
The Community trade mark has had a significant
impact on completion of the European single market. Making
Community products and services readily identifiable has
promoted the free circulation of goods. Compliance with
European safety regulations has made it easier for consumers

1.3.
The Commission and the Office for Harmonisation in
the Internal Market (OHIM) have together monitored the
development and impact of the Community trade mark so
that improvements can be made and the best possible results
achieved.
it has frequently consulted the
Member States and organisations concerned.

In this context