Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - A single market for citizens - Interim Report to the 2007 Spring European Council
Date: 2007-02-21
Institutions: European Commission
Subjects: European Commission, deepening of the European Union, report, single market

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.2.2007 
COM(2007) 60 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

A SINGLE MARKET FOR CITIZENS 

Interim report to the 2007 Spring European Council 

EN 

   EN 

 
 
 
  
 
TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

Introduction .................................................................................................................. 3 

A vision for the 21st century......................................................................................... 4 

Delivering the single market vision ............................................................................. 7 

Conclusion.................................................................................................................. 10 

Annex: Achievements of the single market to date.................................................................. 11 

EN 

2 

   EN 

 
"Europe will not be built at a stroke, nor constructed in accordance with some overall plan; 
it will be built on concrete achievement" (Robert Schuman) 

1. 

INTRODUCTION 

The  single  market  is  one  of  the  European  Union's  concrete  successes.  For  individuals,  it 
means the right to live, work, study or retire in another EU country. For consumers, it means 
higher  quality  and  safety  standards,  and  a  wider  choice  of  products  and  services  at  lower 
prices.  For  business,  it  means  operating  on  a  common  set  of  rules  and  enjoying  access  to  a 
domestic  market  of  500  million  consumers.  For  Europe  as  a  whole,  it  means  a  more  open 
society and a more competitive economy in which new opportunities are created, social rights 
are respected and high standards of health, safety and the environment prevail. 

Since the Commission launched the internal market initiative in 1985, the single market has 
come a long way in turning the four freedoms enshrined in the Treaty - the free movement of 
people,  goods,  services  and  capital  -  into  reality.  This  has  enabled  the  creation  of  a  single 
currency and has brought tangible gains for European citizens and businesses - the abolition 
of border controls, a more competitive business environment, the ability to pursue studies or 
work in another Member State, cheaper air flights and mobile communications, to name just a 
few1.  

The single market has also been the source of sizable benefits for the EU economy as a whole: 
over the period 1992-2006, the estimated gains of the single market amount to 2.2% of the EU 
GDP  and  2.75  million  extra  jobs.  The  single  market  initiative  was  much  more  than  just  an 
economic policy decision. From the beginning, it was accompanied by a social and regional 
policy agenda, backed up by EU structural funds, which allowed citizens in all regions to be 
linked up to and benefit from market opening. 

Across  the  world,  together  with  the  Euro,  the  single  market  has  become  a  symbol  of  the 
willingness of the EU's Member States to work together, in full respect of the rule of law and 
with  mutual  respect  and  trust.  As  a  result,  the  EU  has  led  by  example,  often  setting  global 
standards, demonstrating that competitive open markets can go hand in hand with high social, 
environmental and health standards. 

The single market is dynamic, constantly evolving and adapting to new realities. As such it 
will  never  be  "finalised"  or  "complete".  In  most  areas,  a  solid  regulatory  framework  is  in 
place  but  gaps  remain  and  the  rules  are  not  always  fully  implemented  and  enforced.  New 
types  of  barriers  emerge  as  markets  evolve.  The  benefits  of  the  single  market  to  consumers 
and small businesses must be preserved, with gains being fully passed on to them. New forms 
of mobility emerge and rules governing free movement of workers need to be modernised.  

While the initial focus of the single market exercise was on removing the main cross-border 
obstacles  facing  businesses,  the  single  market  of  the  21st  century  should  evolve  to  make 
markets  work  better  and  deliver  even  more  tangible  benefits  for  European  citizens, 
entrepreneurs, workers and consumers alike in an enlarged EU.  

1 

The annex provides further illustrations of the achievements of the singe market to date.  

EN 

3 

   EN 

 
                                                 
To achieve that, the single market of the 21st century needs to face the changes of: 

•  Globalisation  which  offers  many  opportunities  but  which  has  intensified  the 
competitive  pressure  faced  by  European  business  and  increasingly  blurs  the 
distinction between the internal and external markets;  

•  Structural changes, with the rise of the knowledge economy, the growing role of 
services  in  the  economy,  increased  energy  dependency,  climate  change  and  an 
ageing population;  

•  A larger, more diverse EU, which has grown from a Community of 12 to a Union 

of now 27. 

The EU single market gives Europeans a solid foundation on which to adapt to these changing 
realities. But it needs to evolve and adapt in order to retain its relevance and its contribution to 
economic growth and social cohesion. It needs to position itself, by fostering the development 
of  quality  rules  and  standards  which  shape  global  norms,  to  allow  European  citizens  and 
businesses to take advantage of the opportunities of globalisation. 

This  interim  report  sets  out  a  vision  for  the  single  market  of  the  21st  century.  It  will  be 
followed by a full review of the single market and proposals for further action in the autumn 
of 2007. 

It builds on the findings of a public consultation, several "Eurobarometer" polls and a public 
hearing2,  as  well  as  inputs  from  other  EU  institutions3.  Its  objective  is  to  present  first 
orientations for the on-going review and to sketch out a new vision for the single market of 
the future.  

2. 

A VISION FOR THE 21ST CENTURY 

21st  century  Europe  is  indivisible  from  the  world  economy.  Its  prosperity  has  and  will 
continue to flow from dismantling barriers and creating open markets. This openness has been 
made possible and facilitated by a strong regulatory framework. The single market principles 
remain sound. The challenge of the 21st century is to adapt the application of these principles: 
to secure the right regulatory framework, to ensure that markets function properly, to promote 
competitiveness and to respond to the dynamism and change that flows directly from Europe's 
engagement with the world economy. The goal of the 21st century single market is to make 
markets  work  better  for  the  benefit  of  European  citizens,  consumers  and  businesses,  and  to 
promote a more competitive and sustainable Europe. The EU has to ensure that the opening of 
markets  and  increasing  competition  results  in  fair  commercial  practices,  so  as  to  maximise 
consumers' welfare and continues to contribute to economic growth and jobs. The EU also has 
to  equip  itself  to  effectively  handle  the  security,  health  and  safety  risks  inherent  in  an  open 
economy. 

This fully functioning single market, supported by a sound but flexible regulatory framework 
and  a  stable  currency,  is  a  means  to  many  ends.  It  is  key  to  improving  the  quality  of  life, 

2 
3 

Documents and findings are available at: http://ec.europa.eu/internal_market/strategy/index_en.htm 
See  Opinion  of  the  Economic  and  Social  Committee  of  17  January  2007  on  the  Review  of  the  single  market 
INT/332 – CESE 89/2007 EN/o. 

EN 

4 

   EN 

 
                                                 
fostering  innovation,  facilitating  growth  and  jobs  and  generating  benefits  for  European 
consumers.  It  is  a  means  to  respond  to  and  shape  the  forces  of  globalisation.  It  fosters  the 
internal competition essential for external competitiveness. It stimulates a common approach 
to standards for safety, health, the workplace and the environment required for a single market 
without  distortions  –  standards  which  partners  worldwide  then  have  to  meet  if  they  are  to 
benefit  from  the  single  market.  Through  the  EEA  and  increasingly  through  the  European 
neighbourhood policy the rules and standards of the single market stretch beyond the borders 
of the EU. Frequently the  world looks to  Europe and adopts the standards that are set here. 
This works to the advantage of those already geared up to meet these standards, and should 
contribute to improving the living and working conditions worldwide. 

The single market of the 21st century will be:  

•  A  single  market  for  consumers  and  citizens:  the  single  market  generates 
benefits for consumers by enlarging choice and lowering prices and protects them 
through  food  and  product  safety  standards,  substantial  privacy  rights  and 
guarantees  against  unfair  competition  and  trading.  The  single  market  was 
particularly effective in bringing down prices and increasing choice in areas such 
as  air  transport,  telecommunications  and  cross-border  payments  in  Euro.  It  has 
generated job opportunities, allowed greater movement of persons and facilitated 
student exchange.  

Yet more should be done to make its benefits even more tangible across a range of 
economic  activities  and  to  improve  confidence  in  the  quality  of  products  and 
services.  This  applies  not  only  to  domestic  products  and  services  but  also  to 
imports. It applies to emerging sectors of importance such as health services.   

In  addition,  the  rise  of  e-commerce  and  cross-border  shopping  has  made  it 
particularly  important  to  empower  consumers  effectively  and  to  reduce  the 
fragmentation of consumer protection rules. 

•  A single market for an integrated economy: a well-functioning, more integrated 
single  market  and  a  fair  and  effective  competition  framework  are  essential  to 
ensure  a  level-playing  field  among  enterprises  across  the  EU  and  to  encourage 
them,  in  particular  SMEs,  to  engage  more  in  cross-border  activities.  With  the 
momentum towards a European labour market, new forms of mobility emerge and 
rules governing the free movement of workers need to be modernised.  

The spread of the use of the Euro, which will progressively become the currency 
of  most  Member  States,  will  also  be  essential  to  maximise  the  benefits  of  the 
single  market,  allowing  it  to  reach  its  full  potential.  The  single  currency  brings 
transparency  to  the  single  market,  allowing  consumers  to  compare  the  prices  of 
goods and services directly, and firms to compare costs more easily. 

By creating deeper, more flexible and diversified pan-European financial markets, 
the  single  market  and  the  single  currency  together  improve  financing  conditions 
for  both  private  citizens  and  businesses  and  enhance  the  resilience  of  the  EU  to 
external  financial  shocks  The  pursuit  of  investment  in  trans-European  networks 
and  market  opening  in  network  industries  should  also  contribute  to  the  further 
integration of the EU economy. 

EN 

5 

   EN 

 
 
 
 
 
 
•  A single market for a knowledge society: the single market should increasingly 
focus  on  making  markets  for  knowledge  and  technology  intensive  goods  and 
services  work  better,  encouraging  dynamic  fast-growing  sectors  and  creating 
market  conditions  which  stimulate  innovation  through  the  emergence  of  lead 
markets. 

Markets are still too fragmented in areas of crucial importance to the knowledge 
economy,  such  as  telecoms.  Important  obstacles  remain  also  in  other  services 
sectors. Improving the cost-effectiveness, quality and legal certainty of the system 
of  intellectual  property  rights  and  spreading  the  use  of  new  information  and 
communication technologies on a pan-European basis will be essential to tap our 
research and innovation potential. 

At the same time, the regulatory framework will need to be administratively light, 
flexible and forward-looking, so as to anticipate and facilitate change. 

•  A single market for a well regulated Europe: The success of the single market 
has depended in part on the establishment of a consistent and effective set of rules. 
The  single  market  exercise  was  an  exercise  of  simplification,  replacing  national 
rules and regulations in many areas with a common set of Community wide rules. 
The dismantling of barriers went hand in hand with the establishment of new rules 
through harmonisation or mutual recognition of national legislation, including the 
respect  of  labour  rights  and  the  adoption  of  laws  on  health  and  safety  and 
environmental protection. 

With the passage of time and experience gained, it is timely to examine how these 
laws  are  being  implemented  and  if  they  are  generating  the  impacts  originally 
foreseen. The benefits of the single market will not materialise if the rules are not 
correctly  applied,  if  laws  are  not  implemented,  if  the  rights  created  are  not 
satisfactorily upheld and redressed, if regulations prove too costly to apply, or if 
rules are abused, for instance by anti-competitive behaviour or illegal trafficking.

This requires an ongoing effort to improve the implementation of laws. It requires 
close  coordination  between  the  national  and  the  EU  levels  and  reinforced 
administrative cooperation between the Member States, including through the use 
of  information  technology,  in  fields  such  as  financial  services,  competition  and 
consumer  law,  justice,  tax,  customs  and  policing.  It  also  requires  a  critical 
assessment  of  how  existing  laws  can  be  improved  to  see  what  works  and  what 
does not, to explore how administrative burdens can be reduced – and to make the 
changes  needed,  including  through  simplification  and/or  repeal  of  legislation. 
Better implementation and enforcement is essential to provide the legal stability, 
predictability  and  stability  needed  by  consumers  and  businesses  in  the  single 
market. 

•  A  single  market  for  a  sustainable  Europe:  the  single  market,  with  the  four 
freedoms, is a catalyst for change, driving innovation and productivity growth that 
in turn creates the jobs and prosperity on which wellbeing and a better quality of 
life  depend.  But  in  recent  years  many  European  citizens  have  raised  concerns 
about  the  perceived  disruptive  impacts  of  globalisation.  Anticipating  and 

EN 

6 

   EN 

 
 
 
 
 
 
 
 
 
 
accompanying  change  for  the  people  and  sectors  directly  affected  by  market 
opening is essential; it is a matter of social justice. 

Concerns  have  also  been  raised  about  the  increasing  pressure  on  the  natural 
environment,  resulting  from  globalisation  and the  emergence  of rapidly growing 
economies  around  the  world.  Ensuring  that  the  single  market  sustains  and 
promotes  high  levels  of  environment  protection  is  also  necessary.  Environment 
standards in turn have prompted the development and deployment of environment 
technologies which have given European entrepreneurs a 'first mover' competitive 
edge in global markets. 

Recognising both the social and environment aspects of the single market are key 
conditions  for  gaining  public  confidence  in  the  single  market  as  a  means  to 
improve  the  quality  of  life,  and  they  are  both  investments  in  the  future.  Market 
opening  must  therefore  be  accompanied  by  regional  development,  employment, 
lifelong  learning,  social  and  environment  policies  that  equip  people,  businesses 
and territories to adapt to and benefit from change. 

•  A single market, open to the world, acting as a global standard setter. The EU 
cannot secure prosperity by looking inwards – it needs to exploit and build on its 
internal  strengths  in  the  world  economy.  The  single  market  makes  Europe 
attractive for investors and companies from across the world. 

It  has  spurred  the  development  of  rules  and  standards  in  areas  such  as  product 
safety, the environment, securities and corporate governance which inspire global 
standard setting. It gives the EU the potential to shape global norms and to ensure 
that fair rules are applied to worldwide trade and investment. The single market of 
the future should be the launch pad of an ambitious global agenda. 

3. 

DELIVERING THE SINGLE MARKET VISION 

Dismantling barriers without developing an EU-wide regulatory framework to preserve public 
interests will not lead to lasting integration. 

A  range  of  instruments  in  various  policy  domains  (internal  market,  competition,  tax  and 
customs  to  name  a  few)  has  been  used  to  create  and  sustain  the  single  market.  These  tools 
need  to  be  used  more  effectively  and  coherently.  Recent  efforts  in  applying  "Better 
Regulation"  principles,  namely  in  conducting  impact  assessments,  carrying  out  stakeholder 
consultations, and seeking practical solutions to implementation issues (for example, "hands 
on"  preventive  or  problem-solving  approaches  and  tools  such  as  SOLVIT  and  assistance 
networks  such  as  the  European  Consumer  Centres)  need  to  be  continued.  The  integrated 
market base which has been established for goods will continue to be strengthened. Existing 
laws and regulations in all sectors will be systematically reviewed and revised to ensure that 
they  are  having  the  desired  impacts  and  to  ensure  that  their  application  does  not  entail 
unnecessary administrative costs or burdens.  

Given the maturing of the single market, new approaches are needed which are:  

•  More  impact-driven  and  result-oriented:  Whereas  traditionally,  single  market 
policy  was  aimed  at  removing  cross  border  barriers,  mainly  through  regulatory 

EN 

7 

   EN 

 
 
 
 
 
 
 
means,  the  emphasis  for  the  future  will  be  on  ensuring  a  better  functioning  of 
markets  for  the  benefit  of  citizens,  consumers  and  entrepreneurs,  with  a  view  to 
promoting  a  competitive  business  environment,  which  respects  consumer  choice 
and is socially and environmentally responsible. The EU should act when markets 
do not deliver and where it will have maximum impact. It should be better able to 
anticipate structural adjustment and assess its consequences. This requires:  

– 

– 

– 

improved  assessment  of  citizens',  consumers'  and  business'  needs,  not 
just  from  an  economic  perspective,  but  in  terms  of  choice  and 
satisfaction;  

closer  monitoring  of  market  functioning  and  performance,  both  at  a 
sectoral  and  economy-wide  level,  including  through  sector-specific 
enquiries; 

improved assessment of the social impact of further integration and of the 
opening up of sectors to competition, and of the ways in which national 
and  EU  cohesion  programmes  can  help  assist  the  anticipation  and 
adaptation to changes linked to economic integration. 

•  More effective: Using instruments consistently and effectively in a Europe of 27 
is  not  any  easy  task.  The  Commission  will  continue  to  play  its  key  role  as 
guardian  of  the  Treaty,  using  all  the  instruments  at  its  disposal,  acting  as  the 
guarantor of the bargain of trust between the Member States. In playing this role it 
will  need  to  take  account  of  the  increased  diversity  in  a  Union  of  27  Member 
States  and  to  find  ways  to  build  on  best  practice  and  foster  trust  on  which  the 
system  of  mutual  recognition  is  built.  At  the  same  time,  the  regulatory 
environment  has  to be  flexible enough to respond  to the  ever increasing  pace of 
change. Therefore, a diverse and flexible mix of instruments should be employed. 
This includes: 

– 

– 

– 

– 

– 

finding the right balance between harmonisation and mutual recognition 
of  rules  and  between  the  use  of  directives  and  regulations,  tailoring  the 
instrument to the desired result; 

developing  tools  that  complement  legislation,  such  as  the  work  of 
agencies, guidance, exchange of best practice, self- and co-regulation; 

stepping  up  efforts  to  simplify  and  modernise  existing  rules,  including 
through the screening of national legislation and cooperation mechanisms 
such as those provided for in the services directive; 

pro-active enforcement of competition rules; 

improved application of and enforcement of EU law through i.a. a more 
efficient  management  of  infringement  procedures  and  the  fostering  of 
non-judicial, problem-solving mechanisms. 

•  More  decentralised and network-based: The EU institutions cannot deliver an 
effective  single  market  on  their  own.  We  need  to  rethink  how  to  involve  all 

EN 

8 

   EN 

 
relevant  actors  and  to  improve  ownership  of  the  single  market  in  the  Member 
States. This may include: 

– 

– 

strengthening  the  role  of  national  regulators  and  improving  the 
cooperation  and  networking  of  Member  States'  administrative,  judicial 
and regulatory authorities; 

promoting a better coordination between the authorities in charge of the 
various aspects of the single market at national level, as well as between 
the national and the EU levels. 

•  More  responsive  to  the  global  context:  The  EU  must  think  globally  –  a  well 
functioning  single  market  is  needed  to  allow  Europe  to  compete  in  the  global 
market  place  and  to  exploit  globalisation  to  Europe's  advantage.  A  European 
Globalisation  Adjustment  Fund  has  been  put  in  place  to  cushion  the  impact  of 
changes  in  world-trade  patterns.  Single  market  priorities  must  be  linked  to  the 
global agenda, including the Doha trade negotiations and the recent set of bilateral 
trade negotiations. It should also: 

– 

– 

– 

– 

– 

– 

extend aspects of single market policy through the neighbourhood policy;  

increase  benchmarking  of  EU  rules  against  practices  in  non-EU 
countries; 

do  more  systematic  monitoring  of  imports  and  consumption  prices  to 
check  if  benefits  of  openness  to  global  markets  are  being  passed  on  to 
consumers; 

promote  greater  global  regulatory  convergence  -  including  where 
appropriate the adoption of European standards - internationally through 
international organisations and bilateral agreements; 

support  European  supervisors  and  private  regulators  in  deepening  their 
international cooperation; 

reinforce  bilateral  regulatory  cooperation  with  the  EU's  main  trading 
partners. 

•  More  accessible  and  better  communicated:  Citizens,  companies,  local  and 
regional  authorities  must  be  able  to  understand  and  invest  in  the  many 
opportunities the single market can offer. They should find clear answers to their 
questions  or  problems.  A  lot  can  be  done  to  improve  communication  and  to 
publicise  the  opportunities  offered  by  a  more  integrated  Europe.  This  may 
include:  

– 

– 

encouraging the Member States and regional/local authorities to develop 
information plans;  

rationalising  single  market  information  sources  and  better  publicising 
their role;  

– 

facilitating one-stop-shop access for SMEs;  

EN 

9 

   EN 

 
– 

– 

– 

empowering  consumers  to  obtain  redress  collectively  when  the  costs 
outweigh the benefits at the level of the individual;  

conducting targeted training of key officials at national level;  

revisiting  the  role  of  the  Commission's  Representation  Offices  in  the 
Member States.  

4. 

CONCLUSION 

The single market is essential to opening opportunities that will allow Europeans to meet the 
challenges of the 21st century and fully reap the benefits of a more globalised world. The new 
approaches for implementing the vision of the 21st century single market will be explored in 
more depth in the months to come.  

A full review of the internal market will be finalised in the autumn of 2007. It will consist of 
an assessment of the achievements of the single market to date, an examination of what has 
worked well but also of areas and issues which have prevented it from delivering full benefits 
to citizens. An important part of the review will focus on what needs to be changed or done 
differently to ensure that future single market policy is designed to take advantage of and to 
influence  globalisation  in  the  direction  supported  by  EU  citizens.  Wherever  possible  the 
review will be accompanied by practical proposals, if needed legislative proposals. Where this 
is not immediately possible the review will indicate the steps and timing which will lead to 
concrete proposals. 

The  review  will  be  underpinned  by  a  number  of  Commission  studies  and  analyses.  The 
preparatory process will include an examination of the instruments and working methods used 
to build the single market so far, to evaluate their effectiveness and to consider what changes 
might  be  needed  in  the  future.  Ways  to  improve  market  monitoring  will  be  thoroughly 
examined. Several initiatives in the field of consumer law, health services, product markets, 
intellectual  property  rights  and  standardisation  bodies  are  also  under  way.  They  are  being 
shaped as part of this review and will be fully coherent with the vision set out in this interim 
report. 

The proposed timing has been chosen to allow sufficient time for in-depth discussions in the 
different Council formations and between the EU institutions, so that clear policy conclusions 
can be drawn by the 2008 Spring European Council. The findings and proposals of the report 
and  those  of  the  social  reality  stock-taking  should  also  feed  into  the  reassessment  of  the 
European guidelines for growth and jobs, in the context of the Lisbon Strategy.  

The single market is a means; it is not an end. It is a means to enable everyone in the EU - 
individuals, consumers and businesses - to make the most of the opportunities offered to them 
by a more open and integrated EU. It is a means to advance the interests of European citizens 
in an era of globalisation, by giving Europe more strength and influence on the world stage. It 
is a means to steer economic growth and to achieve a competitive and open Europe, a Europe 
of  buoyant  markets  and  healthy  trading  relations,  which  can  deliver  solidarity,  full 
employment,  universal  access  to  services  of  general  interest,  high  social  and  environmental 
standards, and high levels of investment in research and education to prepare for the future. 
The report of the Commission this autumn will translate these objectives into an operational 
strategy to deliver the single market of the 21st century. 

EN 

10 

   EN 

 
ANNEX: ACHIEVEMENTS OF THE SINGLE MARKET TO DATE 

Since its inception, the European Community had been working towards a single market. A 
full customs union - the abolition of all tariffs on trade between Member States - was the first 
step, achieved in July 1968.  

Building  on  these  initial  achievements,  the  single  market  project  really  began  with  the 
Commission's blueprint of 1985, endorsed by the Member States in the Single European Act 
of 1986, which set 31 December 1992 as the target date for removing internal frontiers within 
the EU, allowing people, goods, services and capital to circulate freely.  

Ten  years  on,  the  Commission  produced  a  detailed  evaluation  which  retraced  the  progress 
made  since  the  opening  up  of  frontiers  on  1  January  1993  and  offered  a  round-up  of  the 
achievements of the EU internal market in the decade 1992-2002 - SEC(2002) 1417.  

The  analysis  of  the  economic  impact  of  the  single  market  was  updated  recently  by  a 
publication  of  the  Commission's  Directorate  General  for  Economic  and  Financial  Affairs 
(European  Economy  Economic  Papers,  No  271,  January  2007).  Recent  Eurobarometer 
surveys have also highlighted the opinions and experiences of EU citizens and business. 

The  following  provides  illustrations  of  the  benefits  derived  from  the  completion  of  the 
European single market. 

(1) 

Living in the European single market – benefits for the citizens  

•  an increase in welfare of 480€ per head in 2006 compared to a situation without 
the single market, corresponding to a 2.2% increase of GDP over the period 1992-
2006. 

•  the  possibility  to  study  abroad,  which  is  considered  positive  by  84%  of  EU 
citizens. 1.2 million young people have completed part of their studies in another 
Member State with the help of the Erasmus programme. 

•  the  ability  to  travel  in  another  Member State.  Compared  with  ten  years  ago,  the 
majority of citizens (72%) of Member States find travelling within the EU easier, 
notably in those countries having signed the Schengen agreement. 

•  the  right  to  work  and  live  abroad:  although  temporary  restrictions  remain,  the 
possibility  to  work  in  another  Member  State  is  seen  as  positive  for  70%  of 
European citizens. More than 15 million EU citizens have moved across borders 
to work or to enjoy their retirement. They can vote and stand for office where they 
live.  EU  migrant  workers  enjoy  the  right  to  equality  of  treatment  as  regards 
employment, remuneration and other conditions of work, as well as social and tax 
advantages.  They  can  be  accompanied  by  their  family  members,  irrespective  of 
their  nationality.  The  creation  of  the  European  Health  Insurance  Card  has 
facilitated  reimbursement  of  health  care  during  a  temporary  stay  in  another 
Member State. Several legislations and programmes are in place to facilitate the 
mobility of researchers and guarantee automatic recognition of diplomas in a wide 
range of professions such as architect, midwife, pharmacist, doctor, nurse, dentist 
and veterinary surgeon.  

EN 

11 

   EN 

 
•  a wider choice of high quality goods and services: 3 in 4 European citizens (75%) 
think  that  the  possibility  for  products  from  other  Member  States  to  be  marketed 
under  the  same  conditions  as  domestic  products  has  had  a  positive  impact.  73% 
consider that the single market has contributed positively to the range of products 
and  services  on  offer.  The  introduction  of  the  euro  has  made  easier  to  compare 
prices across borders. 

increased  competition 

•  in many cases, lower prices for goods and groceries thanks to the opening up of 
national  markets  and  the  resultant  increase  in  competition.  67%  of  European 
citizens  perceive 
transportation, 
telecommunications, banking and insurance services as a good thing. In the field 
of telecommunications, competition has stimulated the development of advanced 
innovative  services  and  the  deployment  of  broadband  networks,  which  are  now 
available  to  85%  of  the  EU  population.  Telephone  prices  charged  by  the  old 
national  monopolies  for  national  and  international  calls  have  been  reduced  by 
more than 40% on average between 2000 and 2006.  

in  areas  such  as 

•  shoppers have full consumer rights when shopping outside their own country. A 
majority  of  citizens  (53%)  consider  that  internal  market  rules  have  increased 
consumer protection within the EU. Specific European legislations are in place to 
ensure  high  levels  of  product  safety  requirements,  to  prevent  and  combat 
misleading advertising and unfair terms in contracts, to define air passenger rights 
or to open a bank account in another Member State. 

•  as a result of more open and competitive public procurement rules, governments 
save up money to spend on priorities such as health and education. For example, 
the price of railway rolling stock has dropped by 40%.  

(2)  Operating in the European single market – benefits for business 

•  a  single  market  of  close  to  500  million  people:  this  allows  larger  businesses  to 
benefit from enormous economies of scale. Meanwhile, new export markets have 
been  opened  up  to  small-  and  medium-sized  businesses  which  previously  would 
have been prevented from exporting by the cost and hassle.  

•  easier  cross-border  trade  within  the  EU:  the  absence  of  border  bureaucracy  and 
the  spread  of  the  euro  have  cut  delivery  times  and  reduced  costs.  Before  the 
frontiers came down, the tax system alone required 60 million customs clearance 
documents  annually:  these  are  no  longer  needed.  The  use  of  the  mutual 
recognition  principle  also  means  that  in  most  cases,  even  where  there  is  no 
harmonisation of technical specifications or other rules, companies need only one 
authorisation  -  from  their  home  Member  State  -  to  provide  a  product  or  service 
anywhere in the EU. Problem-solving tools such as SOLVIT provide answers to 
possible questions arising from cross-border trade. 

•  easier  ways  to  start  or  buy  a  business:  networks  such  as  the  European  business 
support networks provide assistance to new entrepreneurs to set up their business 
throughout Europe. The EU regional policy play a direct role in the development 
of  business  support  services  to  SMEs  in  areas  such  as  access  to  finance, 
management and marketing. The EU competition law provides for a level-playing 
field  in  terms  of  mergers  and  acquisitions  within  the  EU.  Mergers  among 

EN 

12 

   EN 

 
European  companies  registered  in  different  EU  countries  can  also  now  be 
simplified by creating a "European company".  

•  the  spread  of  EU  standards  and  labels:  thanks  to  the  efforts  of  technical 
harmonisation and the work of standardisation bodies, goods complying with the 
required  standards  can  then  move  freely  within  the  single  market.  This  gives 
companies EU-wide market access, simplifies procedures and cuts costs, as well 
as it ensures technical interoperability and a high standard of safety. 

•  new  sources  of  contracts  and  fundings:  companies  are  now  able  to  bid  for 
contracts  to  supply  goods  and  services  to  public  authorities  in  other  Member 
States, thanks to the opening up of public procurement. 

•  both  small  commercial  users  and  larger  businesses  have  benefited  from  lower 
telecommunications costs as well as from lower electricity costs in those Member 
States where these segments of the market have been opened up to competition.  

•  further  benefits  for  business  will  accrue  from  the  completion  of  the  financial 
services action plan, which will mean cheaper finance for businesses of all sizes 
and will liberate listed companies from having to comply with 27 divergent sets of 
national rules when they want to raise money.  

EN 

13 

   EN