WRITTEN QUESTION E-2175/03 by Christopher Huhne (ELDR) to the Commission. Trade in services.
Date: 2003-06-30
Institutions: European Parliament, Provisional data
Subjects: NAFTA, economic forecasting, economic statistics, freedom to provide services, impact study, intra-EU trade, liberalisation of trade, production statistics, tertiary sector, trade volume

C 33 E/230

Official Journal of the European Union

EN

6.2.2004

The Commission considers that the current

flexible framework under which Community rural
2.
development policy is implemented, which gives a high degree of subsidiarity to Member States, already
provides sufficient scope for those Member States or regions who so wish to target the measures within
their programmes on the specific needs of rural areas in the vicinity of urban conurbations.

3.
The Commission agrees with the Honourable Member that rural areas on the urban fringe often face
specific problems different from those in remote rural areas. They may for example experience difficulties
caused by population inflow with consequent pressure on the natural environment, service facilities and
land and property prices. The Commission agrees that it is important to strike the right balance between
urban and rural needs in order to permit the sustainable development of rural areas close to urban centres.

To find out more about the difficulties facing ‘suburban’ rural areas, in September 2002 the Commission
launched a special study entitled ‘Urban-rural relations in Europe’ under the ESPON programme (European
Spatial Planning Observatory Network).

(1) COM(2003) 23 final.
(2) OJ L 160, 26.6.1999.

(2004/C 33 E/235)

WRITTEN QUESTION E-2175/03

by Christopher Huhne (ELDR) to the Commission

(30 June 2003)

Subject: Trade in services

1. Will the Commission estimate the potential trade that could be done in services between the Member
States and the impact that would have on growth of output and employment?

2. Will the Commission particularly take into account any evidence of service trade in more integrated
areas such as Canada and the United States?

Answer given by Mr Bolkestein on behalf of the Commission

(4 August 2003)

The Honourable Member asks whether the Commission will estimate the potential for intra-Union trade in
services and its impact on growth of output and employment. In preparation of its legislative response
concerning the Internal Market for services, the Commission is currently drafting an impact assessment
which will seek to explain the potential increase in cross-border service activities that could result from the
elimination of existing Internal Market barriers.

However, given the fact that statistics in this area suffer from severe measurement problems and that there
the
do not currently exist
recognised macro-economic forecasting models
Commission would find it difficult to provide a detailed quantitative forecast of potential
intra-Union
trade and investment in services and their impact on output and employment. The measurement and
modelling complexity is further heightened by the fact that much trade in services is hidden in statistics on
trade in goods. It should also be noted that much internationalisation of services is based on foreign direct
investment so an exclusive focus on services trade could underestimate the true potential of a properly
functioning Internal Market for services.

service activities,

for

The Commission will make best efforts in its impact assessment, on the basis of existing statistics and
information provided by stakeholders, to explain in more qualitative terms and on the basis of a micro-
economic approach the potential impacts that could arise in the form of cost savings, growth in intra-
Union services activities and growth in Union output and employment.

6.2.2004

EN

Official Journal of the European Union

C 33 E/231

In his second question, the Honourable Member queries whether the Commission will take account of
developments in services trade in more integrated areas such as Canada and the United States. The
Commission will, subject to the statistical limitations explained above, compare the performance of Union
service markets with those in North America in its impact assessment.

(2004/C 33 E/236)

WRITTEN QUESTION E-2178/03

by Christopher Huhne (ELDR) to the Commission

(30 June 2003)

Subject: Obstacles to services trade

Will the Commission state what it believes to be the key obstacles to the growth of services trade in the
European Union, particularly affecting small and medium-sized enterprises? What measures is it bringing
forward to tackle these problems? How will it measure its own success in doing so?

Answer given by Mr Bolkestein on behalf of the Commission

(7 August 2003)

The Honourable Member queries about what the Commission considers to be the key obstacles for growth
of trade in services in the Union, in particular affecting small and medium-sized enterprises (SMEs), what
measures it will propose to remove these obstacles and how it will measure the impact of the proposals.

Concerning the first part of the question, the Commission would like to refer the Honourable Member to
the Commission report on the ‘state of Internal Market for services’ (1) of 30 July 2002, which presents an
indicative list of problems that companies encounter at different stages of their business process when
undertaking business across the Internal Market. This concluded that barriers were horizontal in nature
affecting diverse service activities. The accumulation of the numerous barriers that occur throughout the
business process have a profound negative impact on the growth and productivity of service activities in
the Union. It also concluded that SMEs are hit much harder by these barriers than their larger rivals. In
particular micro- and small companies are often not able to cover the required legal search and advice
costs arising from the regulatory fragmentation that currently exists. The few that do are then forced to
adjust their preferred business model to the differing national requirements. These may either dissuade
them to proceed or may result in short-lived entry into other Member States. The fact that SMEs are the
primary victims of
fragmentation is particularly worrisome since service activities are
dominated by micro- and small enterprises.

the current

In response to the Honourable Member’s second question, in line with the Commission publication on ‘an
Internal Market strategy for services’ (2) of 29 December 2000, the Commission is currently examining
how to resolve unjustified and disproportionate barriers that hamper the Internal Market for services. It
intends to present a horizontal legislative instrument before the end of 2003, as called for by both the
Parliament in its report on ‘the 2002 review of the Internal Market strategy (cid:1) delivering the promise’ of
29 January 2003, and the Member States at the Competitiveness Council of November 2002 and the
European Council of March 2003.

This future proposal will be accompanied by an impact assessment,
in line with the Commission
Communication on impact assessment (3) of 5 June 2002, which will propose indicators on which the
future monitoring of the impact of the proposal will be based.

In addition and as a complement
the Commission will present a
Communication on ‘the competitiveness of business-related services and their contribution to the
performance of European enterprises’.

legislative proposal

to this

(1) COM(2002) 441 final.
(2) COM(2000) 888 final.
(3) COM(2002) 276 final.