COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Towards a Single Market Act  For a highly competitive social market economy  50 proposals for improving our work, business and exchanges with one another
Date: 2010-10-27
Institutions: European Commission
Subjects: EU employment policy, citizens' Europe, common commercial policy, competitiveness, economic growth, market economy, reflation, single market

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EUROPEAN COMMISSION 

Brussels, 27.10.2010 
COM(2010) 608 final 

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

Towards a Single Market Act 

For a highly competitive social market economy 

50 proposals for improving our work, business and exchanges with one another 

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   EN 

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

Towards a Single Market Act 

For a highly competitive social market economy 

50 proposals for improving our work, business and exchanges with one another 

(Text with EEA relevance) 

INTRODUCTION 

The construction of one big market is at the heart of the European project envisaged by the 
founding fathers. They had understood how important it was to come together, trade and work 
together while organising a richer, more creative, more intelligent, fairer and stronger society 
in  the  world.  Sharing  a  common  economic  and  social  space  while  respecting  diversity,  the 
wish to be  nourished together and  consolidated by the  wisdom of standing together:  that 
was, and still is, the aim of the big European market. 

Common  Market,  Single  Market,  Internal  Market:  the  changes  to  the  name  over  the  years 
reflect the dual phenomena of the deepening and enriching of the big European market. While 
it  deepened  around  the  four  major  freedoms  of  movement  of  persons,  goods,  services  and 
capital,  it  was  also  complemented  and  enriched  by  the  consolidation  of  economic 
integration, the creation of a single currency and the development of the cohesion policy. A 
cohesion policy to support the single market is essential to ensure that all citizens, regardless 
of where they live, can benefit from and contribute to it. 

Almost 60 years after the creation of the European Coal and Steel Community, there can be 
no denying the contribution made by the single market. During the past two decades, the 
creation of the single market and the opening of borders have been two of the main driving 
forces  behind  growth  in  Europe.  The  Commission  estimates  that  the  combined  effect  of 
internal market integration, in particular through the liberalisation of network industries, and 
enlargement has been to create 2.75 million additional jobs and growth of 1.85% in the period 
1992–2009.  

Europe has become the world's biggest economy. Even excluding trade within Europe, we are 
also  the  world's  biggest  importers  and  exporters.  The  single  market  is  an  important  factor 
enhancing our international competitiveness. Without it, we would not count for so much in 
the international balance of economic power at a time when new powers are emerging.  

But  first  and  foremost,  the  single  market  creates  advantages  for  businesses  and  citizens  in 
their day-to-day activities. Intra-European trade currently accounts for 17% and 28% of world 
trade in goods and services respectively. The 70% fall in mobile phone call charges and the 
40% reduction in airfares are concrete examples of this. 

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Through the de facto solidarity it creates between Europeans, and thanks to its capacity for 
renewal, deepening and enrichment over the years, our big European market has remained the 
cornerstone of the European project for almost 60 years.  

But  the  world  has  moved  on  since  1985,  when  the  Commission  proposed  the  thorough 
overhaul that led to the creation of the single market on 1 January 1993. 

The  world  has  changed.  Globalisation  has  increased  the  pace  of  trade  and  technological 
change  and  has  opened  the  way  for  new  competitors  prepared  to  challenge  us  even  in  our 
areas  of  greatest  expertise:  goods  and  services  with  high  added  value.  This  has  created  two 
challenges  for  Europe:  to  work  even  harder  on  developing  our  skills  in  high-value-added 
sectors and pursue policies to help European companies, and SMEs in particular, to seize the 
huge opportunities that are being created by these new areas of growth. 

Europe itself has changed. It has been reunified, enlarged and deepened. 

The repercussions of the financial crisis and the economic crisis have been felt in all of our 
economies and in all sectors. They have made both entrepreneurs and workers vulnerable and 
reduced the spending power of millions of European consumers. The single market is helping 
us to deal with the crisis and has alleviated its effects. It will also help us to emerge from the 
crisis and is essential to our future success. 

For  all  these  reasons,  President  Barroso  asked  Mario  Monti  to  submit  a  report  on  the 
relaunch  of  the  single  market.  As  Mario  Monti  states  in  his  report,  'achieving  a  deep  and 
efficient  single  market  is  a  key  factor  determining  the  EU's  overall  macroeconomic 
performance'1.  He  goes  on  to  say  that  although  it  is  'less  popular  than  ever,  yet  it  is  more 
needed  than  ever'2  His  report  therefore  proposes  "a  new  strategy  to  safeguard  the  single 
market  from  the  risk  of  economic  nationalism,  to  extend  it  into  new  areas  key  for  Europe's 
growth and to build an adequate degree of consensus around it."3. 

In its 2010 report, the European Parliament stressed that ‘ single market integration is not 
an irreversible process, and the continued existence of the single market should not be 
taken for granted’. 

This observation is already a reason for more ambitious single market policies to promote 
'a  highly  competitive  social  market  policy'  in  order  to  restart  an  unfinished  process  of 
integration and realise our potential for growth in the service of human advancement; regain 
confidence, together, in our social market economy model, by placing Europeans at the heart 
of the market once again; propose a new global approach to the single market that embraces 
all of the players in the market; and increase understanding of and respect for single market 
rules in the Union and apply them in our day-to-day activities.  

This is a social market economy approach, based on the assumption that a single market needs 
to  enjoy  the  support  of  all  market  players:  businesses,  consumers  and  workers.  In  this  way, 
the single market will allow Europe to become collectively competitive. 

1 

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3 

Report by Mario Monti to the President of the European Commission: "A new strategy for the single 
market" of 9 June 2010, page 9. 
Report by Mario Monti referred to above, page 24. 
Report by Mario Monti referred to above, page 9. 

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Because the single market can offer even more growth and jobs. Full use has yet to be 
made  of  its  potential.  For  example,  cross-border  procurement  accounted  for  only  around 
1.5% of all public contracts awarded in 2009. Despite the significant progress achieved in the 
single  market  for  services,  cross-border  services  account  for  only  5%  of  the  EU's  GDP, 
compared  with  17%  for  manufactured  goods  traded  within  the  single  market.  Only  7%  of 
consumers used the Internet to make cross-border purchases in 20084.  
The  Commission  estimates5  that  completing,  deepening  and  making  full  use  of  the  single 
market,  in  particular  by  means  of  the  measures  proposed  in  this  Communication,  would 
potentially produce growth of about 4% of GDP over the next ten years6. 

Furthermore,  the  single  market  is  not  an  end  in  itself.  It  is  a  tool  for  implementing  other 
policies.  All  of  the  public  and  private  measures,  the  responses  to  the  challenges  concerning 
growth, social cohesion and employment, security and climate change, will be more likely to 
succeed if the single market works as it should. 

The relaunch of the single market is therefore an essential element of the EU 2020 strategy, 
which  proposes  seven  flagship  initiatives:  (i)  an  innovation  Union,  (ii)  youth  on  the  move, 
(iii) a digital agenda for Europe, (iv) a resource-efficient Europe, (v) an industrial policy for 
the globalisation era, (vi) an agenda for new skills and jobs and (vii) a European platform to 
tackle poverty. An up-to-date single market is the common foundation of all these structures. 
It  is  the  tool  that  will  help  them  create  growth  and  employment  and  in  so  doing  give  new 
impetus to intelligent, sustainable and inclusive growth, thereby increasing synergies between 
the  various  flagship  initiatives.  Certain  elements  of  the  flagship  initiatives  will  help  to 
structure the operation of the single market and are therefore measures for its relaunch. These 
measures  are  therefore  included  both  in  this  Communication  and  the  flagship  initiatives,  in 
particular the digital agenda for Europe, the Union of innovation and an industrial policy 
for the globalisation era.  

The  relaunch  must  open  up  new  opportunities  without  imposing  new  restrictions.  By 
drawing  up  and  effectively  implementing  common  rules,  the  single  market  must  serve  as  a 
relay for structural growth. This competitive space will act as the base camp for Europeans in 
a  globalised  world.  It  must  remain  open  to  the  world  without  naivety  and  encourage 
cooperation with our trading partners, in particular to ensure greater convergence of the rules 
and standards in force on the different world markets in order to produce mutual benefits. It is 
therefore important to remember that the success of the European model depends on its ability 
to combine economic performance with social justice and to involve economic operators and 
the social partners in achieving this goal.  

Our  priority  must  therefore  be  to  focus  our  efforts  on  the  driving  force  of  the  European 
economy: Europe’s 20 million businesses, especially the small and medium-sized ones run by 
entrepreneurs  and  other  creative  spirits,  workers,  students,  craftsmen  and  businessmen,  who 

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Sources: European Commission. 
Based on the "QUEST" model. 
Sources:  European  Commission.  This  estimate  focuses  on  a  number  of  measures,  some  of  which  are 
included  in  this  Communication  (in  particular  measures  to  reduce  the  administrative  and  regulatory 
burden  and  promote  open  public  procurement).  Since  a  significant  portion  of  this  effect  would  result 
from the implementation of the Services Directive and it is difficult or impossible to assess the impact 
of a significant number of the measures, which are therefore not included in this estimate, the figure of 
4% may be regarded as a conservative estimate.  

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are  all  players  in  the  single  market  and  who  need  funding  to  innovate,  increase  their 
competitiveness and create jobs. 

In order to restore confidence, it is also important to reach out to consumers as players in 
the single market to enable them to buy, invest, receive care or obtain an education anywhere 
in Europe. All European consumers must be guaranteed access to products that are safe and 
reliable,  comply  with  standards  and  are  competitively  priced.  This  applies  equally  to 
agricultural and food products and manufactured goods. It must also apply - and be perceived 
to  apply  -  in  many  other  areas,  such  as  services,  including  services  of  general  economic 
interest and retail financial services.  

To  meet  these  challenges  and  restore  confidence  and  to  relaunch  growth  that  is  both 
sustainable and fair, Europe must equip itself to act with strength and determination. This will 
require  collective  commitment  at  European  level,  with  all  of  the  players  -  European, 
national  and  regional,  public  and  private,  economic  and  social  -  making  these  goals  and 
means their own. 

This is the very essence of this Act, which the Commission is now putting forward for public 
discussion. Its implementation will make it possible to exploit the considerable opportunities 
for growth presented by the digital economy, the services sector and developments associated 
with  the  environment  and  climate  change,  and  to  produce  a  consensus  in  their  favour  by 
meeting the concerns expressed by Mario Monti7. The Commission hopes that the relaunch of 
the  single  market  will  become  the  subject  of  a  wide-ranging  public  debate  for  four  months 
throughout Europe. After this discussion, the Commission will invite the other Institutions 
to give their formal agreement to the final version of the Act. 

The  adoption  of  the  Single  Market  Act  will  be  a  dynamic  way  of  commemorating  the 
20th anniversary of the single market at the end of 2012. 

This  Act  is  being  adopted  at  the  same  time  as  the  EU  Citizenship  Report  2010: 
Dismantling the obstacles to EU citizens' rights, which focuses on eliminating obstacles 
encountered by the citizens of Europe in their day-to-day lives, for example when they 
travel,  study,  get  married,  retire,  buy  or  inherit  property  or  vote  in  another  Member 
State. 

The  Single  Market  Act  and  the  Citizenship  Report  complement  each  other,  being 
intended to overcome the continuing fragmentation of the European Union in areas of 
direct interest to citizens and in so doing give concrete form to the commitment to create 
a people's Europe and an efficient single market to meet the needs and expectations of 
citizens and businesses. 

7 

Report referred to above, page 38. 

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1. 

STRONG, SUSTAINABLE AND EQUITABLE GROWTH FOR BUSINESS 

There are 20 million businesses in the EU, providing 175 million jobs and supplying the EU’s 
500 million consumers and many more worldwide with goods and services. A key factor in 
the  competitiveness  of  these  businesses  is  the  single  market.  Its  role  is  to  provide  an 
environment that is conducive to developing, buying, selling and investing freely throughout 
Europe  and  beyond.  Small  and  medium-sized  enterprises  offer  the  highest  potential  for 
employment and are therefore worthy of special attention in the single market, as well as 
targeted measures to reflect their concerns.  

The free movement of goods and services are two of the fundamental freedoms enshrined in 
the Treaties. The free movement of goods was one of the early success stories of the single 
market.  Boosted  by  the  abolition  of  borders  within  the  single  market  in  1993,  it  has 
considerably widened the choice of goods available at the lowest price to consumers within 
the EU. In order to maintain this choice, EU policies aim to ensure that no barriers inhibit the 
free movement of goods. At the same time, they seek to guarantee that goods circulating in 
the single market are safe to consume. This requires close surveillance of product markets and 
a greater focus on the fight against piracy and counterfeiting. 

Businesses  often  cite  the  fragmentation  of  the  single  market  as  a  handicap  to  their 
competitiveness  and,  indeed,  the  variety  of  different  national  regulations  places  a 
considerable  burden  on  them,  delaying  investment,  limiting  economies  of  scale  and 
synergies  and  raising  barriers  to  market  entry.  It  is  therefore  important  for  markets  to  be 
integrated  and  obstacles  removed  by  precisely  identifying  the  areas  where  a  lack  of 
coordination and harmonisation are hampering the proper functioning of the single market.  

Competition  on  world  markets  has  become  fiercer.  The  European  economy  must  face  up  to 
new challenges and seize these new opportunities if it is to achieve sustainable development. 
Its strengths must be consolidated and it must be able to meet these challenges on a level 
playing field. 

Industrial  policy  needs  a  better-constructed  market  and  a  proper  framework  to  create  and 
develop  the  supply  of  European  goods  and  services.  Europe  must  be  able  to  maintain  its 
strong competitive position in the world market. A properly-constructed market, support for 
research and innovation, the development of the digital agenda, online trading and funding are 
essential  for  strengthening  our  industries  and  improving  the  European  supply  of  goods  and 
services in general across the value chain. 

Since the start of the crisis, the European Union has taken urgent measures to enable financial 
markets  to  operate  again  and  to  make  them  stable.  Nevertheless,  further  measures  must  be 
taken  to  ensure  that  the  financial  system  is  not  just  stable,  but  that  it  also  works  to  the 
benefit  of  the  real  economy  and  encourages  sustainable  economic  growth.  There  are 
numerous measures currently awaiting adoption or under discussion on market transparency, 
surveillance, financial stability, responsibility, consumer protection for financial products and 
crisis prevention. The European Union has undertaken to adopt all the proposals for reform in 
this  area  by  the  end  of  2012.  A  European  framework  must  be  constructed  to  develop  long-
term  investment  and  additional  measures  will  be  taken  to  channel  private  funding  towards 
such investment. 

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The goals of the European Union 2020 Strategy for modernising the European economy will 
entail  considerable  investment.  The  European  Union  can  start  supporting  these  projects 
already,  by  providing  consistent  strategic  guidelines  for  investors  taking  decisions  whose 
effects will be felt over several decades, and by creating an appropriate regulatory framework. 
The  budgets  of  the  European  Union  and  the  European  Investment  Bank  can  help  to  attract 
private funding to these projects. 

In a complex, changing world, Europe is the right level for thinking and acting in terms of 
globalisation.  Markets  are  global:  Europe  must  defend  its  interests  and  values  with  greater 
confidence, in a spirit of reciprocity and mutual benefit. European policies must aim to ensure 
the  greater  convergence  of  rules  and  standards  at  international  level.  And  to  meet  the 
imperative  for  global  competitiveness,  European  businesses  must  be  able  to  use  the  single 
market as a ‘base camp’ in which they can equip themselves before going on to trade with the 
rest of the world. 

The single market must become a reality so that creators, producers and consumers have the 
continental scale they need to ensure that the economy develops. Only sustainable growth can 
guarantee the creation of sustainable jobs. Free movement and healthy and open competition 
are  also  indispensable  to  growth  and  progress,  and  are  a  valuable  tool  for  tackling 
demographic, environmental and social challenges. 

1.1. 

Promoting and protecting creativity 

To  improve  the  way  in  which  they  face  international  competition,  our  businesses,  inventors 
and creators must be able to develop within a single market that is as conducive as possible to 
innovation and creativity. 

They  must  also  have  access  to  effective  protection,  in  particular  against  counterfeiting  and 
piracy.  

Proposal  No  1:  The  European  Parliament  and  the  Council  should  take  the 
necessary  steps to  adopt the  proposals for the EU patent, its languages and 
the unified patent litigation system. The aim is for the first EU patents to be 
issued in 2014.  

The  continued  fragmentation  of  the  patent  system  is  seriously  hampering  innovation  and 
access  to  effective  patent  protection  for  European  enterprises,  in  particular  SMEs,  research 
centres  and  inventors.  Unnecessarily  complex  and  costly  patent  protection  is  making 
European research and innovation lag behind other parts of the world, such as the USA and 
Japan. The lack of uniform patent protection across the internal market and the high costs of 
patent protection are leading to a system of fragmented protection. At the same time, the high 
cost  of  multiple  patent  litigation  in  several  Member  States  is  hampering  access  to  justice. 
Divergent rulings in the different Member States are causing a lack of legal certainty, making 
cross-border  commerce  more  difficult  and  costly.  The  introduction  of  an  EU  patent  and  a 
unified  patent 
to  stimulate  European 
competitiveness  and  boost  research  and  innovation  in  Europe  by  reducing  the  costs  and 
complexity of obtaining and enforcing the relevant rights throughout Europe. 

litigation  system 

is  of  utmost 

importance 

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Proposal  No  2:  In  2011  the  Commission  will  submit  a  proposal  for  a 
framework  Directive  on  the  management  of  copyrights,  with  the  aim  of 
opening  up  access  to  online  content  by  improving  the  governance, 
transparency and electronic management of copyright. The Commission will  
also be proposing a Directive on orphan works. 

The absence of a European framework for the efficient management of copyright across the 
EU  is  significantly  complicating  the  process  of  making  knowledge  and  cultural  goods 
available  online.  In  order  to  create  a  single  European  digital  market,  the  potential  of  online 
distribution must be used effectively by enhancing the availability of creative content while at 
the  same  time  ensuring  that  right-holders  obtain  adequate  remuneration  and  protection  for 
their  works.  The  Commission  is  aware  that  different  national  systems  for  private  copying 
levies  are  affecting  cross-border  sales  services  and  the  production  of  support  media.  The 
Commission will take account of the dialogue between the various interested parties in order 
to find paths to a sound solution. 

It  is  also  important  to  make  the  single  market  accessible  to  those  Europeans  who  are  most 
used  to  spending  time  and  money  online.  The  generations  that  have  grown  up  with  the 
internet would not accept the benefits of the single market being exclusive to physical goods. 
The  freedoms  of  the  single  market  must  therefore  be  extended  to  online  services  while 
maintaining a high level of protection for creativity and intellectual property. 

Proposal No 3: In 2010 the Commission will propose an action plan against 
counterfeiting  and  piracy,  including  both  legislative  and  non-legislative 
measures.  Furthermore,  in  2011  it  will  make  legislative  proposals,  in 
particular to adjust the legislative framework to meet the needs generated by 
the  development  of  the  Internet  and  to  enhance  customs  work  in  this  area, 
and  it  will  re-examine  its  strategy  on  the  implementation  of  intellectual 
property rights in third countries.  

Counterfeiting and piracy are costing the European economy billions of euro and thousands of 
jobs  every  year.  The  OECD  has  estimated  that  trade  in  counterfeit  goods  may  have  been 
worth as much as EUR 188 billion in 20078. A Eurobarometer study in February 2009 found 
that between a quarter and a third of EU citizens believe it is justifiable, for various reasons, 
to  purchase  counterfeit  products9.  Despite  some  improvements,  a  lack  of  sufficiently  strong 
and  coordinated  IPR  enforcement  policies  and  measures  have  hampered  the  fight  against 
counterfeiting and piracy. 

1.2. 

Promoting new approaches towards sustainable development 

Major  challenges  to  society,  such  as  climate  change,  security  of  energy  supply  and 
demographic  changes  are  creating  opportunities  for  significant  growth  by  European 
businesses as a result of the future international demand for solutions to these problems and 
the technology to apply them. The  Single Market  Act  should be used as a tool for grasping 
these  opportunities.  Initiatives  to  create  a  more  effective  system  of  standards,  a  more 
consistent approach to energy taxation throughout the market, continued development of the 

8 
9 

OECD (2007), The Economic Impact of Counterfeiting and Piracy, Paris. 
http://ec.europa.eu/public_opinion/flash/fl_263_en.pdf 

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single  markets  for  services  and  defence  and  development  of  the  supply  of  high-quality 
environmental products seem particularly promising. These measures could be implemented 
as  part  of  the  wider  initiative  on  industrial  policy,  the  flagship  initiative  of  the  EU  2020 
agenda  soon  to  be  undertaken  by  the  Commission.  The  ‘mutual  evaluation’  process  of  the 
services Directive will also be continued with the aim of further developing this sector, which 
is  crucial  to  the  European  economy.  Furthermore,  the  Report  on  the  distribution  services 
sector  has  produced  important  findings  on  the  way  in  which  the  market  for  services 
operates10. In addition, as the Commission's ‘Digital Agenda’ has highlighted, it must be 
ensured that the potential for growth and the wide range of goods and services that the 
digital  market  can  provide  are  fully  exploited.  Finally,  what  is  true  of  the  services 
Directive  as  a  general  legal  instrument  is  also true  of  specific  sectors,  such  as  the  transport 
services sector, which is the 'nervous system' of the single market. 

Proposal  No  4:  The  Commission  and  the  Member  States  will  cooperate  in 
continuing  to  develop  the  internal  market  in  services  on  the  basis  of  the 
'mutual  evaluation'  process  set  out  in  the  Services  Directive  and  currently 
implemented  by  the  Member  States  and  the  Commission.  In  2011,  the 
Commission  will  indicate  specific  measures  to  this  end,  including  in  the 
business services sector.  

The services economy is a crucial sector for Europe's economic recovery. It accounts for over 
70%  of  all  jobs  and  for  all  net  job  creation  in  the  single  market.  A  well-functioning  single 
market for services will help citizens and businesses, in particular SMEs, to benefit from the 
single market by providing them with better services at prices and on markets that are more 
competitive.  The  Services  Directive  has  been  an  important  step  towards  the  creation  of  a 
genuine single market for services. One recent study found that the EU-wide economic gains 
of the Directive could range between EUR 60-140 billion, representing a growth potential of 
0.6-1.5% of GDP at conservative estimates11.  

The results of the mutual evaluation process have for the first time provided an X-ray showing 
the  way  in  which  a  substantial  part  of  the  internal  market  for  services  operates  (since  the 
Directive  concerns  activities  accounting  for  40%  of  European  GDP  and  jobs).  This  huge 
exercise has proven the need for the Commission and the Member States to work together to 
take a closer look at the way in which the regulatory framework applicable to certain growth 
sectors  operates  in  practice.  They  must  work  together  to  create  a  'performance  test  for  the 
internal market' in order to ensure that it delivers all that it should in terms of growth, jobs and 
innovation. The tools of transparency and dialogue with Member States set out in the Services 
Directive must also be used to achieve these ends. It is also necessary to consider the need for 
a special initiative to enable the rights of service providers and consumers to be asserted more 
effectively and practically in the single market. A further example of an area requiring further 
consideration  is  the  business  services  sector,  which  is  a  major  factor  in  ensuring  the 
competitiveness of European industry. 

10 
11 

http://ec.europa.eu/internal_market/retail/docs/monitoring_report_en.pdf. 
‘Expected  economic  benefits  of  the  European  Services  Directive’,  Netherlands  Bureau  for  Economic 
Policy Analysis (CPB), November 2007. 

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Proposal  No  5:  By  the  end  of  2011,  the  Commission  will  take  initiatives  to 
develop  electronic  commerce  in  the  internal  market.  It  will  concentrate  in 
particular  on  problems  faced  by  consumers  in  the  digital  economy.  These 
initiatives  will  include  a  Communication  on  the  operation  of  electronic 
commerce  and  guidelines  for  the  Member  States  to  guarantee  the  effective 
application  of  provisions  in  the  Services  Directive  to  combat  discrimination 
against  recipients  of  services  because  of  their  nationality  or  place  of 
residence. 

In order to create an internal market that makes full use of its potential for growth while at the 
same  time  meeting  citizens'  expectations,  it  is  essential  to  deal  with  the  problem  of  the 
underdevelopment  of  electronic  commerce.  Electronic  commerce  currently  accounts  for 
between  only  2%  and  4%  of  all  trading,  with cross-border  trading  constituting  only  a  small 
portion of this percentage. The digital single market is one of the sectors in which consumer 
confidence (and purchasing) is still at a very low level. Too often, consumers who try to buy 
products  or  services  offered  online  by  economic  operators  in  other  Member  States  are 
prevented  from  doing  so  or  are  discriminated  against  on  the  grounds  of  their  nationality  or 
place of residence. This situation is not just a sign of a poorly functioning market. Even more 
importantly,  it  causes  frustration  among  citizens  and  undermines  their  confidence  in  the 
opportunities  presented  by  the  single  market.  The  Services  Directive  forbids  retailers  from 
treating consumers differently on the grounds of their nationality or their place of residence – 
even  in  an  online  environment  –  without  'objective  justification',  such  as  differences  in 
transport  costs.  New  guidelines  to  help  the  national  authorities  implement  this  non-
discrimination clause contained in the Services Directive (Article 20) will be adopted in the 
second half of 2011 and will provide details of how such objective reasons might be invoked. 
But  the  problem  of  equal  access  by  European  consumers  to  electronic  commerce  in  other 
Member States can be only part of a wider policy for the development of electronic commerce 
to  give  citizens  greater  access  to  commerce  in  general.  In  the  first  half  of  2011,  the 
Commission will adopt a Communication intended to discuss the barriers to the development 
of  electronic  commerce,  offer  possible  courses  of  action  and  evaluate  the  Electronic 
Commerce Directive. In parallel, the Commission will set out in an understandable way the 
rights  of  the  users  of  online  services  by  publishing  by  2012  a  code  of  online  rights  in  the 
EU12.  

Proposal  No  6:  The  Commission  will  propose  a  legislative  reform  of  the 
standardisation  framework  in  2011  to  make  standard-setting  procedures 
more  effective,  efficient  and  inclusive  and  to  extend  the  scope  of  the 
procedures from goods to services. 

The introduction of product standards at European level has been a key tool for ensuring that 
citizens  are  offered  high-quality  goods  and  services  that  are  not  harmful  to  health  and  that 
businesses can use innovative and internationally recognised standards without difficulty. Yet 
there  is  further  scope  for  the  development  of  the  existing  standards  system  in  consultation 
with  national  standards  bodies  to  enable  standards  to  be  set  more  quickly  in  line  with 
technological developments and to ensure that all stakeholders (businesses, consumers, public 
authorities)  can  fully  participate  in  the  standard-setting  process.  A  clearer  framework  may 

12 

As announced in the Digital Agenda for Europe and the report on the citizenship of the Union 2010. 

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also  be  required  for  services  standardisation  to  ensure  a  consistent  approach  to  services 
standards across the single market. 

Proposal  No  7:  In  2011  the  Commission  will  adopt  a  White  Paper  on 
Transport  Policy,  which  will  propose  a  series  of  measures  intended  in 
particular  to  remove  the  remaining  obstacles  identified  between  means  of 
transport and between national systems of transport. 

That  transport  is  the  nervous  system  of  the  entire  economy  was  perfectly  illustrated  by  the 
effect on the economy of the transport problems following the eruption of the Eyjafjallajökull 
volcano in April 2010. Indeed, one of the most important pillars of a modern economy is the 
capacity of its transport system to convey goods and passengers as smoothly as possible to the 
necessary or desired place at the desired time. More than ever before, therefore, the strategic 
importance  of  transport  services  in  reconciling  supply  and  demand  is  making  them  play  an 
essential part in economic growth and job creation. At the same time, by improving access to 
certain areas and bringing people together, they are a key ingredient of a better quality of life. 
A single, interconnected and efficient European transport system is therefore essential to the 
smooth movement of goods, people and services – the essential and underlying freedoms of 
the single market. The creation of a single transport system is still being delayed by a number 
of  technical,  administrative  and  regulatory  obstacles  that  have  been  hampering  the 
competitiveness  of  the  single  co-modal  transport  market  in  particular  and  holding  back 
economic growth in Europe in general. 

Proposal No 8: In 2011, the Commission will be adopting a proposal to revise 
the Energy Tax Directive so as to better reflect the EU's climate and energy 
objectives in the fiscal context, by lowering the minimum duty rates on CO2 
emissions and on energy content. 

Council  Directive  2003/96/EC  of  27  October  2003  establishes  the  European  framework  for 
the  taxation  of  energy  products  and  electricity  and  is  intended  mainly  to  ensure  the  proper 
functioning of the single market and thereby avoid distortion of competition between energy 
consumers.  However,  it  fails  to  fully  reflect  the  EU's  goals  concerning  the  fight  against 
climate change and more efficient energy use. It therefore does not enable Member States to 
make optimum use of taxation as a tool. The proposal is intended, in particular, to ensure the 
consistent treatment of energy sources in the Directive and therefore truly equal treatment for 
energy consumers, regardless of the source of the energy being consumed. By doing so, it will 
also  ensure  an  appropriate  balance  between  the  taxation  of  energy  and  the  EU's  greenhouse 
gas emission quotas trading scheme while avoiding overlap between the two systems.  

Proposal No 9: The Commission will propose an initiative to establish a High 
Level  Group  on  services  to  businesses  in  order  to  study  deficiencies  in  the 
market  and  issues  of  standardisation,  innovation  and  international  trade  in 
installations  management,  marketing  and 
sectors  such  as 
advertising13.  

logistics, 

13 

Communication on industrial policy - COM(2010) 614, 27.10.2010. 

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Creating  a  single  market  for  business  services  is  still  a  challenge,  despite  the  Services 
Directive. The report "Towards more efficient and fairer retail services in the internal market 
for 2020”14 illustrates this. In this context, the coexistence of an array of divergent rules laid 
down at national level with a view to regulating this sector, in particular with regard to unfair 
practices,  can  creates  serious  obstacles  to  the  smooth  operation  of  the  retail  market.  An 
initiative geared towards business-to-business relations would make it possible to protect the 
different  operators  in  the  supply  chain  while  enabling  the  gradual  emergence  of  a  more 
efficient  and  fairer  single  wholesale  and  retail  market  while  meeting  consumers'  and 
manufacturers'  expectations  regarding  competitive  prices.  The  Commission’s  work  on  the 
competitiveness  of  the  agri-food  industry  has  shown  that  there  is  a  need  for  action  in  this 
respect. 

Proposal No 10: Before 2012, the Commission will look into the feasibility of 
an initiative on the Ecological Footprint of Products to address the issue of 
the  environmental  impact  of  products,  including  carbon  emissions.  The 
initiative  will  explore  possibilities  for  establishing  a  common  European 
methodology to assess and label them.  

Some  industrial  sectors  and  Member  States  have  developed  their  own  standards  to  measure 
environmental  impact,  resulting  in  an  array  of  diverging  and  incompatible  standards  across 
the EU, which threaten to create barriers to the free movement of goods and services in the 
single market and impose multiple requirements upon companies, with high associated costs. 

Proposal  No  11:  The  Commission  will  present,  in  early  2011,  an  energy 
efficiency  plan  to  exploit  the  potential  for  significant  energy  savings  by 
complementing existing policies in all sectors where energy is consumed.  

It is possible that the ecodesign framework will be revised in order to ensure that the demands 
of the single market for products are applied throughout the European Union. Approaches to 
improve  the  targeting  and  use  of  public  funds  and  procurement  procedures,  which  would 
stimulate  development  of  the  energy  efficiency  markets  in  the  EU,  particularly  as  regards 
building  renovations  and  sustainable  urban  mobility,  would  also  need  to  be  developed.  The 
plan would also focus on the need for a common European framework that would define the 
active  role  that  energy  suppliers  could  take  concerning  energy  savings  for  their  customers, 
and  would  support  the  development  of  European  markets  in  energy  services.  It  could  also 
propose  strengthening  European  policies  in  support  of  sustainable  energy-supply  solutions 
(co-generation, heating and cooling). 

1.3. 

For small and medium-sized enterprises 

European SMEs are not just a source of innovation and jobs, but are also the large businesses 
of the future. Therefore, the single market must in particular create a legal environment that is 
favourable to the creation and development of SMEs. In this respect, the matter of access to 
financing appears to be crucial. 

14 

Report of 5.7.2010. See http://ec.europa.eu/internal_market/retail/docs/monitoring_report_en.pdf. 

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Proposal  No  12:  The  Commission  will  adopt  an  action  plan  for  improving 
SME access to capital markets in 2011. This will include measures to make 
investors  more  aware  of  SMEs,  to  develop  an  efficient  stock  exchanges 
network or specific regulated markets focussing on SMEs and to make listing 
and disclosure requirements more adapted to SMEs.  

Poor  access  to  capital  is  one  of  the  main  problems  which  SMEs  face  in  expanding  their 
businesses. It is often the decisive factor preventing the launch of new products, the extension 
of production facilities and the employment of more workers. However, equity capital is often 
concentrated in very large stocks, to the detriment of smaller firms seeking to raise funds. The 
reasons for this are manifold: often SMEs are not sufficiently visible to potential investors, or 
may find the listing requirements on capital markets disproportionately complex. Improving 
SME access to finance is a key political priority and rendering the SME segment of capital 
markets  more  dynamic  is  a  central  part  of  this.  This  initiative  will  be  developed  in  close 
association with the SME Finance Forum. 

Proposal No 13: The Commission will assess the Small Business Act by the 
end of 2010 with the aims of ensuring that the ‘Think Small First’ principle 
is implemented in both policy and the legislative procedure in order to closely 
link the Small Business Act with the Europe 2020 Strategy.  

The  Small  Business  Act  is  the  main  instrument  for  promoting  SMEs’  competitiveness  and 
entrepreneurship  within  the  Single  Market  and  beyond.  Its  review  will  consolidate  the 
implementation  of  its  measures  (in  particular  the  'Think  Small  First'  principle)  and  bring  it 
into  line  with  the  Europe  2020  Strategy  by  suggesting  new  measures  in  areas  such  as  the 
internationalisation of SMEs. 

Proposal  No  14:  The  Commission  will  propose  a  review  of  the  accounting 
Directives  in  2011  to  simplify  financial  reporting  obligations  and  to  reduce 
the administrative burden, especially for SMEs. 

The current rules on accounting are outdated and contain requirements that are an unnecessary 
administrative burden, particularly for SMEs and micro-enterprises. 

1.4. 

Funding innovation and long-term investment 

Access  to  funding  is  essential  for  innovation  and  sustainable  growth.  Equally,  businesses 
should  be  able  to  develop  long-term  strategies.  Finally,  it  should  be  possible  to  mobilise 
private savings – where necessary in cooperation with public investments – towards massive 
investment in the infrastructures that are central to the success of the Europe 2020 strategy. 
The financial markets play a key role in this respect and the regulatory environment  should 
not  have  a  noticeably  negative  effect  on  long-term  investment.  Implementation  of  the 
Commission Communication of 2 June 2010 on Regulating Financial Services for Sustainable 
Growth15 should strengthen the role of these markets in serving the real economy. However, 
new  ways  must  be  sought  to  develop  alternative  forms  of  corporate  governance,  innovative 

15 

COM(2010) 301. 

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incentives for certain types of investment and even efficient methods of cooperation between 
the private and public sectors that will help to broaden the horizons of investment policy. 

Proposal No 15: The Commission will consider encouraging the creation of 
project bonds to finance European projects.  

One important way to mobilise private investment in support of the objectives of the Europe 
2020 strategy would be to bridge the gaps in private financing by making even more use of 
the  EU  budget  than  is  currently  the  case  today.  The  budgetary  revision  proposed  possible 
means  of  increasing  the  impact  of  the  budget.  With  innovative  financial  instruments, 
European funds could be used in partnership with the banking and private sectors, specifically 
through the European Investment Bank (EIB). They would become the norm for projects with 
long-term commercial potential. One important initiative is the ‘project bonds’ scheme: these 
bonds  would  be  issued  by  the  private  sector  and  the  European  budget  would  be  used  to 
improve  their  rating  in  order  to  attract  funding  through  the  EIB,  from  other  financial 
institutions  and  from  private  investors  on  the  capital  market  such  as  pension  funds  and 
insurers. 

Proposal No 16: The Commission will explore measures with the potential to 
encourage  private  investment  –  particularly  in  the  long  term  –  to  make  a 
more active contribution towards achieving the objectives of the Europe 2020 
strategy. These measures might concern the reform of corporate governance 
and  create  incentives  for  the  long-term,  sustainable  and  responsible 
investment required by smart, green and inclusive growth. Moreover, by 2012 
the Commission will ensure that venture capital funds set up in any Member 
State  can  operate  and  invest  freely  in  the  European  Union  (if  necessary  by 
adopting a new legislative framework). It will endeavour to eliminate any tax 
treatment that disadvantages cross-border activities. 

The conditions need to be created for a more active mobilisation of private savings in support 
of  investment  and,  in  particular,  investment  contributing  more  effectively,  by  the  criteria  it 
meets, to achieving the objectives of the Europe 2020 strategy. Lack of access to finance is 
one of the reasons most often cited by businesses as an obstacle to growth and to the creation 
of jobs. It is particularly necessary not only to improve SME access to financing, but also to 
create  incentive  mechanisms  encouraging  all  forms  of  sustainable  investment  or  investment 
supporting  a  long-term  strategy.  Adequate  funding  for  the  European  infrastructures 
underlying  the  success  of  the  Europe  2020  strategy  is  also  imperative.  To  this  end,  the 
Commission  will  explore  the  extent  to  which  the  reform  of  corporate  governance,  the 
development of investment labels or assessment methods that are independent of investment 
can contribute to achieving these objectives. 

Venture  capital  is  an  essential  source  of  finance,  in  particular  for  innovative  start-up 
businesses.  Nevertheless,  access  to  venture  capital  in  the  EU  is  complicated  by  fragmented 
and underperforming venture capital markets. What is needed is a regulatory environment that 
permits venture-capital funds to operate across the EU, and coordination of taxation rules to 
avoid double-taxation risks. 

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Proposal No 17: After the currently ongoing assessment of European public 
procurement  legislation,  and  based  on  wide-ranging  consultation,  the 
Commission will make legislative proposals in 2012 at the latest with a view 
to  simplifying  and  updating  the  European  rules  to  make  the  award  of 
contracts more flexible and to enable public contracts to be put to better use 
in support of other policies. 

Goods and services procured by public authorities account for approximately 17% of the EU’s 
GDP.  EU  public  procurement  legislation  seeks  to  create  an  open  and  competitive  pan-
European  procurement  market  for  large  procurement  contracts,  saving  taxpayers  several 
billion euro each year. At the same time, public procurement can be an important source of 
support for innovation, environmental protection and  employment,  to  name  some  examples. 
The  complex  interaction  between  EU  rules  and  national  rules  often  results  in  extremely 
cumbersome administrative procedures for public procurement. The levels of participation by 
firms from other Member States in procurement procedures remain very low16. 

Proposal No 18: In 2011 the Commission will adopt a legislative initiative on 
services  concessions.  Clear  and  proportionate  rules  will  improve  market 
access for EU undertakings by ensuring transparency, equal treatment and a 
level  playing  field  for  economic  operators.  They  will  also  promote 
public/private partnerships and boost the potential for delivery of better value 
for money for users of services and for contracting authorities.  

Services  concessions  represent  60%  of  public-private  partnership  contracts  (accounting  for 
EUR 118.8 billion in 2006). Improving the competitive conditions for the award of services 
concessions  and  reducing  legal  uncertainties  would  provide  a  favourable  environment  for 
infrastructures  to  operate  efficiently.  Public-private  partnerships,  and  in  particular  services 
concessions, enable the mobilisation of long-term investment in sectors such as energy, waste 
management and transport infrastructure. The Commission's legislative initiative will aim to 
create a supportive EU framework for this type of public-private partnership without placing 
an excessive burden on local authorities. 

1.5. 

Creating a business-friendly legal and fiscal environment 

For  our  businesses  to  benefit  from  all  of  the  opportunities  offered  by  the  single  market, 
including  freedom  of  establishment,  the  rules  on  which  that  market  is  based  need  to  be 
straightforward and geared towards dealing with the problems they encounter in their day-to-
day operations. The measures proposed in this sector envisage, inter alia, a reduction of the 
administrative  and  regulatory  burden,  with  positive  consequences  for  growth  and  job 
creation17. Very practical initiatives will therefore be taken to ensure the linking of company 
registers and the mutual recognition of e-identification and e-authentication in the European 
Union. Taxation issues are also crucial. Initiatives relating to the corporate tax base or to VAT 
will be designed to limit the administrative burden on businesses and to promote cross-border 

16 

17 

Cross-border  procurement  accounted  for  only  around  1.5%  of  all  public  contracts  awarded  in  2009. 
Trade  intensity  in  public  procurement  markets  is  much  lower  than  in  private  procurement  markets, 
suggesting that the full benefits of cross-border trade and competition are not being fully reaped. 
A  10%  reduction  in  the  administrative  burden  on  businesses  would  generate  an  additional  0.6%  of 
GDP. 

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activity.  Defence  and  security,  high-technology  sectors  characterised  by  innovation  and 
know-how,  can  trigger  development  and  growth  throughout  the  economy  and  are  therefore 
also deserving of attention.  

Proposal No 19: The Commission will take steps to improve the coordination 
of  national  tax  policies,  notably  by  proposing  a  Directive  introducing  a 
common consolidated corporate tax base (CCCTB) in 2011.  

The current existence of 27 highly disparate corporate tax systems in the single market means 
that companies are faced with significant tax obstacles which discourage, if not impede, their 
cross-border  activities.  Such  fragmentation  gives  rise  to  significant  market  distortions  and 
compliance costs. It particularly affects SMEs, which often lack the resources to resolve these 
inefficiencies  and  may  even  be  discouraged  from  expanding  across  borders  at  all.  The 
introduction  of  a  common  consolidated  corporate  tax  base  is  intended  to  tackle  fiscal 
impediments to growth. Groups of businesses would have to apply a single set of tax rules and 
deal with only one tax administration across the EU (one-stop-shop). Accordingly, revenues 
would be consolidated at the group level and profits would be set off against losses without 
any border barriers. Furthermore, there would be no intra-group transfer pricing compliance 
transaction-by-transaction  adjustment  of  pricing  between  associated 
obligations  (i.e. 
companies).  Double  taxation  or  double  non-taxation  as  a  result  of  the  current  disparities  or 
mismatches  among  national  tax  rules  would  also  be  eliminated  intra-group.  Uncoordinated 
national action would continue to replicate the current situation in that companies would still 
need to apply as many tax systems as Member States in which they operate. The initiatives to 
be put forward by the Commission will not have the objective of harmonising corporate tax 
rates.  

Proposal No  20:  The  Commission  will  publish  a  new  VAT  strategy  in  2011 
on the basis of a Green Paper conducting a fundamental review of the VAT 
system, planned for 2010.  

The  VAT  system  as  currently  designed  has  limitations  in  a  number  of  areas,  leading  in 
particular to a disproportionate administrative burden for businesses. The complex system of 
rates and exemptions, the derogations and options offered to Member States and the special 
rules for cross-border transactions are harmful to the operation of the internal market and to 
the  competitiveness  of  EU  enterprises,  as  they  involve  considerable  compliance  costs 
particularly  for  businesses  operating  in  several  Member  States.  While  the  technological  and 
economic  environment  has  significantly  changed  since  the  introduction  of  VAT,  the  VAT 
system, and particularly the reporting obligations of businesses and the way in which the VAT 
is collected, have remained largely unchanged. In addition, the current system is susceptible 
to  fraud:  about  12%  of  VAT  is  uncollected  owing  to  fraud,  evasion,  avoidance  or 
insolvencies. The future VAT strategy will highlight the priorities to be put forward through 
legislative proposals in order to create a more robust and efficient VAT system for the single 
market. 

Proposal  No  21:  In  2011  the  Commission  will  propose  legislation  to 
introduce the linking of company registers.  

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The absence of a network of national company registers complicates access to information on 
businesses in other Member States, which results in a considerable administrative burden and 
significant costs for businesses involved in cross-border activities, and a lack of transparency 
for other businesses, consumers and public authorities.  

Proposal No 22: By 2012 the Commission will propose a Decision to ensure 
mutual  recognition  of  e-identification  and  e-authentication  across  the  EU 
based on online authentication services to be offered in all Member States. In 
2011  the  Commission  will  propose  a  revision  of  the  Directive  on  electronic 
signatures  with  a  view  to  providing  a  legal  framework  for  international 
interoperability and recognition of e-authentication systems.  

As highlighted in the Commission's Communication on the digital agenda, in order to ensure 
the proper functioning of the single market, instruments such as the Services Directive or the 
e-procurement  action  plan  require  businesses  to  be  able  to  interact  electronically  with  the 
authorities,  including  across  borders.  Interoperability  and  mutual  recognition  of  national 
arrangements  for  e-identification  and  e-authentication  are  prerequisites  for  using  public  e-
services without problems across borders.  

1.6. 

Being competitive in global markets 

European businesses are successful in selling their goods and services throughout the world, 
taking  advantage  of  the  open  and  integrated  nature  of  world  trade.  The  single  market 
comprises a kind of vital "base camp" that allows European companies to prepare themselves 
better  for  international  competition  and  the  conquest  of  new  markets.  This  makes  it  all  the 
more  important  to  guarantee  that  our  internal  and  external  policies  are  coherent  and 
complementary. 

The  EU  is  the  greatest  exporter  of  goods  and  services  in  the  world  and  one  of  the  major 
recipients  of  foreign  direct  investment.  We  should,  however,  not  be  naive.  Europe  must 
defend its interests and its values with greater self-confidence and in a spirit of reciprocity and 
mutual  benefit.  Free  trade  agreements  may  guarantee  access  for  European  companies  to  the 
most significant markets and intensify regulatory cooperation with our major trading partners. 
Moreover, trading partnerships must be based on reciprocal interests and advantages, together 
with  a  recognition  that  both  the  EU  and  its  partners  have  both  rights  and  obligations.  The 
Commission will continue to be vigilant in its defence of European interests and jobs and will 
use all appropriate means to combat unfair trading practices.  

Greater convergence of international rules will certainly benefit EU countries, particularly by 
reducing the costs incurred by having to adapt to rules or standards which are different from 
those  which  apply  in  Europe.  It  is  also  very  important  to  ensure  that  EU  businesses  have 
access  to  external  markets,  and  in  particular  public  procurement,  on  fair  terms.  The  single 
market  must  also  remain  attractive  to  potential  candidates  for  accession  to  the  European 
Union  and  to  neighbouring  countries.  The  Commission  will  consider  continuing  to  extend 
single market rules, taking account of the extent of regulatory convergence and the capacity of 
the countries concerned to implement the relevant rules efficiently. 

The  single  market  must  also  remain  attractive  to  the  candidate  countries  and  to  potential 
candidates  for  European  Union  membership,  as  well  as  to  neighbouring  countries.  The 
Commission will plan to continue to extend the rules of the single market, taking into account 

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the  degree  of  regulatory  convergence  and  the  capacity  of  the  countries  concerned  to 
effectively implement the relevant rules. 

Proposal  No  23:  The  Commission  will  further  develop  regulatory 
cooperation  with  its  main  trading  partners,  both  bilaterally,  in  the  form  of 
regulatory  dialogues,  and  multilaterally,  for  example  within  the  G20.  The 
twofold objective is to promote regulatory convergence, including promoting 
equivalence  of  third-country  regimes  where  possible,  and  to  push  for  wider 
adoption of international standards. On this basis it will pursue negotiations 
for  international  trade  agreements  (both  multilateral  and  bilateral)  with  a 
focus  on  both  market  access  and  convergence  on  regulatory  issues, 
particularly for services, IPR and subsidies. 

The lack of regulatory convergence internationally is a major obstacle to international trade. 
In  order  to  prevent  friction  and  regulatory  arbitrage,  the  European  Commission  is  actively 
engaged in regulatory cooperation both multilaterally and bilaterally. The G20 Process is of 
paramount importance in this context, and the EU will continue to take a leading role in this 
process in order to further the financial reform process at global level, strive for high-quality 
regulation and push for the wider adoption of international standards. Alongside this, the EU 
is also engaged in regulatory dialogues with a number of strategic partners, notably the US, 
Japan, China, Russia, India and Brazil, but more needs to be done to deepen and extend these 
dialogues.  With  the  economic  and  financial  crisis,  protectionist  trends  are  latent.  These 
negotiations aim to foster regulatory convergence, including on sensitive issues such as IPR 
protection and subsidies, and to offer a range of new market opportunities to EU businesses. 

Proposal No 24: In 2011, the Commission will present a legislative proposal 
in favour of a Community instrument drawing on the implementation of the 
European  Union’s  international  commitments  in  order  to  enhance  its 
capacity to ensure improved symmetry in access to public procurement in the 
industrialised nations and the major emerging economies.  

There is a discrepancy between the relative openness of the EU procurement market and the 
lack  of  access  to  the  procurement  markets  of  our  trading  partners.  The  EU's  international 
market access commitments (GPA, FTAs) are not implemented in a uniform manner across 
the EU. This results in an uneven playing field for EU businesses both in the EU and abroad, 
and  unfair  competition  between  EU  and  foreign  businesses.  Externally,  the  EU  finds  it 
difficult  to  obtain  better  market  access,  as  it  has  limited  leverage  in  trade  negotiations  with 
GPA partners and/or in bilateral FTA negotiations. 

2. 

RESTORING  CONFIDENCE  BY  PUTTING  EUROPEANS  AT  THE  HEART  OF  THE  SINGLE 
MARKET 

‘Reconciling the market and the social dimension’: Mario Monti is proposing a real option for 
boosting the single market and Europe itself. Although it has proved it can withstand a crisis, 
it is still a matter of concern. We need to put the people of Europe at the heart of this large 
market and return to ‘a highly competitive social market economy’. 

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A good social system,  educational systems and vocational training that are effective, quality 
employment,  and  a  demanding  policy  on  health  and  safety  in  the  workplace  contribute  to 
efficient  markets  and  help  to  create  wealth  and  growth.  These  increase  a  country's 
attractiveness,  create  social  ties  and,  like  other  structural  factors  such  as  the  quality  and 
density of infrastructure, are key factors in global competitiveness.  

On  the  other  hand,  poverty,  unemployment,  exclusion  and  fear  of  the  future  are  all 
economic  burdens  on  society.  This  has  been  clearly  understood  by  EU  businesses, 
throughout  Europe  and  the  world,  which  help  to  develop  their  environment  by  investing  in 
foundations,  civil  society,  their  elected  representatives,  their  suppliers  or  customers,  in 
partnerships intended to secure sustainable and inclusive development.  

The  single  market  also  helps  to  develop  the  identity  of  each  citizen:  language  learning  at 
school, travel, study abroad, the use of the Euro, the diversity of products on offer, and so on, 
are  all  day-to-day  aspects  which  mean  that  all  of  us,  irrespective  of  whether  we  are 
consumers,  workers,  students,  savers,  entrepreneurs,  users  of  public  services,  patients, 
pensioners,  etc.  are  Europeans!  However,  Europeans  are  seeing  this  area  shrink  as  they  get 
older:  in  working  life,  in  consumption  patterns  and  in  health  and  pension  issues,  European 
opportunities are becoming less accessible. 

While  respecting  the  social  protection  systems  which  are  the  responsibility  of  the  Member 
States,  there  are  many  areas  in  which  the  human  dimension  of  the  'social'  market  economy 
must  help  to  build  confidence  within  and  ensure  the  good  performance  of  the  large 
internal market. We must also stress the importance of the role of the social partners, both 
nationally  and  at  European  Union  level,  where  they  have  an  acknowledged  role  in  giving 
voice to the aspirations of the different sectors of the economy in dialogue that can sometimes 
lead to Europe-wide agreements. 

There  are  also  a  number  of  legal  instruments  that  more  expressly  authorise  the  European 
institutions to return to this social field and incorporate social and general interest investments 
in the economic and financial recovery. 

The  Charter  of  Fundamental  Rights  reaffirms  and  raises  the  profile  of  a  series  of  economic 
and social rights. In accordance with the Treaty on European Union, the Union recognises the 
rights, freedoms and principles laid down in the Charter, which has the same legal value as 
the  Treaties.  The  Commission  is  committed  to  ensuring  that  the  Charter  will  be  taken  into 
consideration  when  EU  policies  are  drawn  up18.  The  ‘horizontal  social  clause’19,  which  is 
henceforth enshrined in the Treaty on European Union and serves to assess the relevance of 
all policy measures based on their social impact, must become operational and be used as a 
basis for all of our deliberations.  

A new objective is to use efficient markets to support the creativity and dynamism of EU 
businesses and, at the same time, to restore the faith of Europeans in their single market. 
European policies will have to become more sustainable by anticipating and mitigating crises, 
and  consolidating  the  EU's  economic,  social  and  territorial  cohesion.  Reinforcing  cohesion, 
particularly its territorial aspect, remains a prerequisite for the smooth operation of the single 
market.  It  is  in  this  connection  that  the  Commission  will  shortly  present  its  proposals  to 

18 

19 

"Strategy  for  the  effective  implementation  of  the  Charter  of  Fundamental  Rights  by  the  European 
Union" - COM(2010) 573, 19.10.2010. 
Treaty on the Functioning of the European Union, Article 9. 

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19 

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improve the impact of the cohesion policy, to steer it more towards results and performance, 
to render its implementation more demanding and to concentrate European resources on the 
major priorities. It will also look into the possibilities of improving the infrastructures of the 
single market by, among other things, encouraging the use of public-private partnerships. 

This  Single  Market  Act  concerns  citizens  as  active  participants  in  the  economy.  Issues 
relating to citizens' non-economic rights in the single market are dealt with at the same time in 
the  ‘EU  Citizenship  Report  2010:  Dismantling  the  obstacles  to  EU  citizens'  rights’, 
adopted simultaneously by the European Commission. 

2.1. 

Improving public services and key infrastructure 

While the European project relies on market forces, which ensure that citizens have access to 
the  widest  possible  choice  of  goods  and  services,  at  the  lowest  price,  and  encourage 
innovation, it nevertheless considers the EU's social and territorial cohesion to be a primary 
concern  and  recognises  that  market  forces  alone  do  not  adequately  address  all  collective 
needs.  

For this reason the European Union recognises, for example in Article 14 of the TFEU and in 
Protocol  No  26  to  the  Treaties,  the  social  usefulness  and  economic  value  of  services  of 
general economic interest and, in accordance with the principle of subsidiarity, confirms the 
possibility of public authorities providing, executing and  organising  these  services  in  a way 
that  meets  users'  needs.  It  is  also  for  this  reason  that  the  EU  ensured  that  the  progressive 
liberalisation of the large network industries, which ensures a more competitive EU economy, 
was  backed  up  by  the  stipulation  of  strict  public  service  obligations  for  all  citizens.  This  is 
also why the EU is working on the development of efficient trans-European infrastructure by 
identifying  the  missing  links  in  the  various  sectors  and  using  incentives  to  encourage  their 
development. 

A  number  of  activities  carried  out  daily  by  public  services  are  economic  in  nature  and 
therefore  fall  within  the  scope  of  EU  law.  In  particular,  it  falls  within  the  exclusive 
competence of the Commission, in accordance with Article 106 of the TFEU, to ensure that 
compensation, inasmuch as it constitutes State aid, is compatible with the internal market. The 
Commission will continue to evaluate and possibly revise the decision and the framework on 
public service compensation (often referred to as ‘the Altmark package’) .  

The application of European rules in the area of public services raises a number of practical 
questions for the competent public authorities and for certain players in the sector, specifically 
in the area of social services. The EU and its Member States therefore need to guarantee the 
existence  of  a  regulatory  framework  that  allows  public  services  to  perform  their  tasks  and 
meet the needs of all citizens. The EU also needs to fulfil a new ambition in identifying and 
helping to quickly establish the infrastructure that is most essential to the fluidity of the single 
market and to the development of new services for Europeans. In particular, the Europe 2020 
strategy  provides  for  the  development  of  infrastructures  enabling  high-speed  internet  access 
for all in 2013. The aim of this strategy is for all Europeans to have access to much higher 
internet  speeds  (30  Mbps  or  above)  by  2020,  with  50%  or  more  of  European  households 
subscribing to internet connections above 100 Mbps. 

Proposal  No  25:  The  Commission  undertakes  to  adopt,  by  2011,  a 
Communication and a series of measures on services of general interest. 

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The EU and its Member States must ensure that the public services, including social services, 
that  meet  the  needs  of  the  people  of  Europe  are  easier  to  operate  at  the  appropriate  level, 
adhere to clear financing rules, are of the highest quality and actually accessible to all. To this 
end, the Commission’s initiative will have three main components.  

Firstly,  it  will  provide  public  authorities  with  a  ‘tool-kit’  that  is  effective  and  easy  to  use, 
covering  all  relevant  issues  (such  as  financing,  public  procurement  or  cooperation  between 
public authorities) and allowing them to offer, within their respective areas of competence and 
with a considerable degree of autonomy, high-quality local public services that meet citizens' 
needs. It should also help them to evaluate the quality of these services and make sectoral and 
transnational comparisons.  

Secondly, it will allow Europeans to judge the evolution of the quality of services provided, in 
particular  under  the  reforms  to  liberalise  the  large  network  industries  (transport  services, 
postal services, energy). 

Thirdly,  it  will  be  more  responsive  to  the  requirement  of  universal  access  to  the  services 
which  Europeans  consider  essential  to  their  daily  lives  (for  example  postal  services),  given 
that the quality of public services also implies accessibility, also in terms of price. An in-depth 
analysis of possible obstacles to high-quality universal services should be carried out on the 
basis  of  experience  in  the  field.  With  a  view  to  meeting  the  needs  of  all,  it  will  also  be 
necessary to conduct a dynamic assessment of the needs of Europeans, which evolve in line 
with rapid changes in society and in social practices. 

In particular, the Commission undertakes to: 

– 

– 

– 

continue  to  provide  up-to-date  answers  to  the  practical  questions  raised  by  citizens 
and  public  authorities  concerning  the  application  of  EU  law  (State  aid  and  public 
procurement) to services of general interest; 

implement measures enabling better evaluation and comparison at European level of 
the  quality  of  the  services  of  general  interest  on  offer,  particularly  on  the  basis  of 
experience in the field; and 

examine the suitability and possibility of extending universal service obligations into 
new  areas  in  the  light  of  changes  to  the  essential  needs  of  European  citizens, 
potentially on the basis of Article 14 of the TFEU. 

The  proposals  concerning  the  assessment  and  review  of  the  rules  applicable  to  public 
procurement  –  including  cooperation  between  the  public  authorities  and  a  directive  on 
concessions  –  have  the  same  logical  basis,  since  they  are  also  intended  to  supplement  the 
‘tool-kit’ available to the public authorities on this subject. Furthermore, it should be stressed 
that  the  initiatives  aimed  at  modernising  the  infrastructure  of  the  large  network  industries 
referred to above (energy, transport services and electronic communications) also reflect the 
EU’s ambition to meet the challenge of modernising our infrastructures of general interest. 

Proposal  No  26:  In  2011  the  Commission  will  adopt  a  revision  of  the 
Community guidelines for the development of the trans-European transport 
network, and a proposal on a global framework for the funding of transport 
infrastructure.  

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Despite  significant  investment,  the  European  Union  does  not  currently  have  a  network  of 
interconnected  cross-border  transport  infrastructure  that  is  sufficiently  interoperable  and 
efficient.  Yet  transport  infrastructure  is  essential  in  order  to  guarantee  the  operation  of  the 
single market, and must promote sustainable growth and development. In addition to the lack 
of  coordination  between  Member  States  in  the  areas  of  project  management,  planning  and 
funding, the absence of a global framework for funding at European level that can target the 
most  significant  shortcomings  in  the  single  market  is  a  major  obstacle.  This  funding 
framework  will  be  defined  on  the  basis  of  the  upcoming  multiannual  financial  framework, 
expected in mid-2011. 

Proposal  No  27:  The  Commission  will  adopt  a  Communication  on  energy 
infrastructure  priorities  up  to  2020/2030  in  order  to  contribute  to  the 
development  of  a  fully  operational  internal  energy  market  by  tackling 
missing  infrastructure  links  and  facilitating  the  integration  of  renewable 
energy.  The  tools  necessary  for  implementation  will  be  proposed  in  a  new 
European instrument for energy security and infrastructure, to be tabled in 
2011.  

The creation of a real European energy market requires a modern infrastructure. The Union's 
core  policy  objectives  of  competitive,  sustainable  and  secure  energy  supply  require  energy 
infrastructure  that  better  interconnects  national  energy  networks,  is  capable  of  integrating 
increasing  shares  of  renewable  energy,  and  enables  the  diversification  of  supplies.  To  meet 
these  challenges,  existing  energy  infrastructures  need  rapid  modernisation,  upgrading  and 
unification.  A  new  EU  energy  infrastructure  policy  is  required  to  change  the  way  in  which 
networks are planned and developed in the EU. Major missing links will have to be addressed 
such as offshore power grids in the North Sea or the Southern European gas corridor. Grids 
need  to  become  smarter  so  that  energy  is  used  and  transported  more  efficiently.  Issuing 
permits  must  become  more  efficient  and  transparent,  and  new  financing  solutions  must  be 
found to deliver huge investments of over EUR 200 billion in major European electricity and 
gas  supply  networks20  over  the  coming  decade,  to  which  must  be  added  some  EUR 400 
million  for  the  maintenance,  modernisation  and  extension  of  the  national  distribution 
networks.  

Proposal No 28: The Parliament and the Council should adopt the proposed 
Decision  establishing  a  European  Radio  Spectrum  Action  Programme  for 
more efficient management and use of the radio spectrum. 

Europe's radio spectrum needs to be used efficiently and in a harmonised and coordinated way 
so that enough spectrum is available to meet the needs of EU citizens and businesses. If the 
same spectrum bands are made available under the same flexible technical conditions across 
the EU, the economies of scale obtained will result in cheaper communication for all users. 

2.2. 

Increasing solidarity in the single market 

According  to  Mario  Monti,  the  sense  of  disillusionment  felt  by  some  towards  the  internal 
market  may  also  be  the  result  of  the  perception  that  successive  liberalisations  have  been 

20 

Source: DG ENER. 

EN 

22 

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carried out at the cost of the social rights acquired by various economic operators. The Lisbon 
Treaty, and the affirmation of the concept of a 'highly competitive social market economy' as 
one of its key objectives, require us to adopt a more all-embracing view of the single market. 
Economic freedoms and freedoms of collective action must be reconciled. New life must be 
breathed into the social dialogue, making it more likely to lead to legislation 'by and for' the 
social partners, as explicitly provided for by the Lisbon Treaty. 

The  freedoms  afforded  by  a  single  market  must  benefit  both  the  strongest  and  the  weakest. 
Everyone should be able to take advantage of the opportunities afforded by the single market, 
including those with disabilities and the elderly. Particular attention must be paid to the access 
of people with visual and hearing impairments to goods and services, especially in the cultural 
sphere;  for  instance,  through  the  development  of  suitable  technological  tools  (automatic 
subtitling or special broadcasts on public channels). 

Proposal No 29: Pursuant to its new strategy for the effective implementation 
of  the  Charter  of  Fundamental  Rights  by  the  European  Union21,  the 
Commission will ensure that the rights guaranteed in the Charter, including 
the  right  to  take  collective  action,  are  taken  into  account.  The  Commission 
will  first  of  all  conduct  an  in-depth  analysis  of  the  social  impact  of  all 
proposed legislation concerning the single market. 

Proposal  No  30:  In  2011,  the  Commission  will  adopt  a  legislative  proposal 
aimed at improving the implementation of the Posting of Workers Directive, 
which  is  likely  to  include  or  be  supplemented  by  a  clarification  of  the 
exercise  of  fundamental  social  rights  within  the  context  of  the  economic 
freedoms of the single market.  

Exercising the freedom to provide services means being able to send staff to another Member 
State. The posting of workers therefore constitutes an important aspect of the internal market 
for  services.  At  European  level,  in  order  to  adequately  guarantee  the  rights  of  the  workers 
concerned,  the  Posting  of  Workers  Directive  lays  down  a  core  of  provisions  protecting  the 
host  country  which  must  also  apply  to  posted  workers.  Moreover,  complex  national 
administrative  procedures  as  well  as  double-taxation  problems  continue  to  complicate  the 
posting of workers, making it more difficult to exercise the freedom to provide services. The 
implementation,  application  and  enforcement  of  this  Directive  could  be  improved  and  its 
interpretation clarified.  

Proposal  No  31:  The  Commission  will  re-examine  the  Directive  on  the 
activities  and  surveillance  of  pension  funds  in  2011  and  will  develop  other 
proposals  based  on  the  July  2010  Green  Paper  on  pensions,  inter  alia  in 
order  to  remove  obstacles  encountered  by  mobile  workers  when  making 
arrangements for their retirement. 

21 

"Strategy  for  the  effective  implementation  of  the  Charter  of  Fundamental  Rights  by  the  European 
Union" - COM(2010) 573, 19.10.2010. 

EN 

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Workers should  be  able to benefit from their pension rights  with  a view to their retirement. 
Given  the  ageing  population  and  the  impact  of  the  economic  and  financial  crisis  on  public 
finances and financial stability, there is work to be done in this area. The Green Paper of July 
2010 launched the debate on the challenges which must be met in order to enable Europeans 
to benefit from pensions which are adequate and guaranteed in the long term. 

Proposal No 32: The Commission will launch a consultation with the social 
partners in order to create a European framework for the advance planning 
of industrial restructuring. 

Beyond  purely  reactive  approaches  to  the  economic  and  financial  crisis,  pre-emptive 
strategies  have  allowed  businesses  to  ward  off  industrial  disputes  through  the  proactive  and 
negotiated  management  of  restructuring  operations.  This  constitutes  a  precondition  for 
economic success and is a social requirement, since it enables resources to be redistributed to 
emerging sectors and opens new windows of opportunity for workers when their jobs are at 
risk. A European framework for restructuring exercises would make for an environment based 
on mutual trust.  

2.3. 

Access to employment and lifelong learning 

Employment  is  rightly  at  the  heart  of  Europeans'  concerns.  The  single  market  represents  a 
tremendous  opportunity  –  which  has  not  yet  been  fully  exploited  –  to  make  the  best  use  of 
training and qualifications and to respond to job offers in other Member States. Specific tools 
must be proposed to promote and facilitate the flow of skills within the single market. 

The opportunity to train in another European country is one of the most appealing aspects of 
the freedoms and opportunities afforded by the single market. However, the chance to study 
and undergo training in another Member State is not just about personal development, rather it 
permits  the  lifelong  acquisition  of  new  skills  which  will  help  to  build  the  knowledge-based 
economy of tomorrow. 

Proposal No 33: In 2012 the Commission will propose a legislative initiative 
to reform the systems for the recognition of professional qualifications, based 
on an evaluation of the acquis in 2011, in order to facilitate the mobility of 
workers and adapt training to current labour market requirements. As part of 
this proposal, the possibility of a professional card will be evaluated. 

The right to pursue a profession in another Member State is one of the fundamental freedoms 
guaranteed by the Treaty. It is of crucial importance to citizens and to the free movement of 
workers,  the  freedom  of  establishment  and  the  freedom  to  provide  services,  which  may  be 
restricted by requirements concerning the recognition of professional qualifications obtained 
in  another  Member  State.  There  are  4 600  regulated  professions  in  the  Union.  Many 
professionals  today  still  face  lengthy  and  cumbersome  procedures  before  having  their 
qualifications  recognised,  and  the  recognition  of  qualifications  still  accounts  for  20%  of 
SOLVIT cases. A 2005 Directive introduced some simplifications, with a view to facilitating 
above  all  the  temporary  mobility  of  professionals.  The  current  system  must  be  evaluated  in 
order  to  verify  whether  full  use  has  been  made  of  all  the  opportunities  offered  by  that 
Directive. For example, it raised the idea of using a professional card without setting out any 
specific  details.  Such  a  card  could  provide  added  value  for  some  professions  and  interested 

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citizens.  Moreover,  in  future,  as  the  active  population  declines,  it  will  become  increasingly 
difficult  to  meet  the  already  growing  need  for  a  qualified  workforce.  The  system  must  also 
take account of the considerable changes that have occurred in the Member States' educational 
and training systems with the aim of facilitating access and a return to the labour market. For 
this  reason  the  Commission  has  begun  work  on  evaluating  the  2005  Directive  which  will 
culminate in a Green Paper in 2011 and a revision of the Directive in 2012. 

Proposal  No  34:  The  Commission  will  develop,  in  cooperation  with  the 
Member States, a ‘Youth on the Move card’ helping all young people to move 
to  another  Member  State  to  study.  It  will  expand  its  ‘Youth  on  the  Move’ 
Internet site by providing information on distance learning and opportunities 
to study and train in Europe.  

A period spent abroad should become a standard part of the training of all young Europeans, 
enabling  them  to  subsequently  find  a  fulfilling  job,  having  acquired  new  skills,  including 
language skills. As part of the ‘Europe 2020’ strategy, the Commission proposed a number of 
measures  in  its  Communication  ‘Youth  on  the  Move’  aimed  at  helping  young  people  to 
acquire  the  knowledge,  skills  and  experience  they  need  to  find  their  first  job.  One  such 
measure currently being evaluated by the Commission is the possibility of creating European 
student  mobility  loans  to  give  more  young  Europeans,  in  particular  the  most  disadvantaged 
among  them,  the  opportunity  to  experience  a  period  of  study,  training  or  job  placement  in 
another country. 

implement 

Proposal  No  35:  The  Commission  will 
the  European 
qualifications  framework  in  partnership  with  the  Member  States.  It  will 
propose a Council Recommendation to promote and validate training outside 
the  classroom  (non-formal  and  informal  learning).  It  will  also  propose  the 
creation  of  a  ‘European  Skills  Passport’  enabling  individuals  to  record  the 
knowledge  and  skills  they  have  acquired  throughout  their  lives.  It  will 
establish a bridge between the European Qualifications Framework and the 
nomenclature of occupations in Europe.  

In spite of the success of programmes such as Erasmus, the academic recognition of diplomas 
and periods of training in another Member State remains problematic22. In order to promote 
mobility, the transferability of skills and knowledge must be guaranteed. 

2.4. 

New resources for the social market economy 

This chapter sets out three proposals for a single market based on a 'highly competitive social 
market economy'. Firstly, the Social Business Initiative must enable the reserves of talent and 
financial  resources  already  available  in  the  Member  States  to  be  tapped  into  by  bringing 
together, within the single market, management and finance professionals and entrepreneurs 
with socially innovative projects which stimulate growth. The second proposal on legal forms 
sets out initiatives for improving the legal environment within which some market economy 
activities  are  organised.  Lastly,  the  third  proposal  concerning  corporate  governance  and 

22 

As part of its ‘Youth on the Move’ programme, the Commission has adopted a proposal for a Council 
Recommendation - COM(2010) 478, 15.9.2010 - in order to remove these obstacles. 

EN 

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corporate social responsibility sets out an initiative to redefine the role of businesses in today's 
economy. 

Proposal  No  36:  In  2011  the  Commission  will  propose  a  Social  Business 
Initiative  in  order  to  support  and  accompany  the  development  of  socially 
innovative  corporate  projects  within  the  single  market  by  means  of  in 
particular  social  ratings,  ethical  and  environmental  labelling,  revised  rules 
on  public  procurement,  and  by  introducing  a  new  investment  fund  regime 
and tapping into dormant savings. 

Over recent years, entrepreneurs acting individually or large companies have set up projects 
which  were  very  innovative  from  a  social  viewpoint.  This  first  decade  of  the  2000s  has 
revealed  across  Europe  and  the  world  the  huge  innovative  potential  of  the  social  economy 
sector.  Without  necessarily  being  non-profit-driven,  these  projects  are  the  brainchild  of  a 
person or group of people who have come up with creative solutions to major socio-economic 
problems  often  caused  by  exclusion  (access  to  agri-food  products,  accommodation, 
healthcare,  the  labour  market,  banking  services,  services  enabling  better  integration  of 
disabled people, etc.) as well as by the ageing of the population. The innovation introduced by 
these  new  models  generates  economic  growth  and  has  a  positive  impact  on  all  stakeholders 
(entrepreneurs,  employees,  consumers,  investors  and  other  financial  partners,  etc.).  The 
organisation  of  public  and  private  procurement  (private  sector  procurement  policies  and 
corporate  social  responsibility),  better  access  to  finance  (through  banking  or  the  financial 
markets, including through the use of dormant savings), the introduction of a new investment 
fund  regime  for  the  financial  industry  and  consumers  of  financial  products,  in  order  to 
promote and enhance the liquidity of investment in projects with a strong element of social, 
economic  and  technological  innovation,  and  the  implementation  of  ad  hoc  communication 
tools will be triggers for action. 

Proposal  No  37:  For  several  reasons  relating  mainly  to  the  nature  of  its 
financing  and  the  preference  of  shareholders  or  stakeholders  who  support 
projects  with  a  strong  element  of  social,  economic  and  sometimes 
technological innovation, the market economy is structured around a variety 
of  different  types  of  legal  status  (foundations,  cooperatives,  mutual 
associations,  etc.).  The  Commission  will  propose  measures  enabling  the 
quality of the legal structures concerned to be improved in order to optimise 
their functioning and facilitate their development within the single market.  

The following initiatives will be proposed: 

- The Commission will present a regulation on a European Foundation Statute by the 
end of 2011. 

Foundation  activities  have  undergone  significant  developments  over  recent  years  and  they 
enable ambitious objectives to be achieved in areas where European creativity and innovation 
have become crucial to the competitiveness of the single market in a global world, particularly 
in  the  area  of  research.  Administrative  costs,  registration  in  another  country,  the  burden  of 
proof imposed on foundations from a Member State seeking to become established in another 
Member  State,  and  the  problems  involved  in  pooling  financial  resources  on  a  cross-border 

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basis  within  the  EU,  are  obstacles  which  today  impede  the  development  of  foundations  in 
Europe and which a Regulation on a European Foundation Statute would address. 

-  The  Commission  will  propose  a  public  consultation  (Green  Paper)  on  the 
implementation of the Regulation on the Statute for a European Cooperative Society 
and will take measures following the adoption of its evaluation report in 2012.  

Cooperatives play a key role in the structure and dynamism of the economy. Moreover, they 
offer  their  members  unique  solidarity  mechanisms,  creating  solid  ownership  structures 
conducive to a strong group ethos, shareholding and long-term investments.  

- In 2011 the Commission will launch a study on the situation of mutual associations 
in all Member States to examine in particular their cross-border activities.  

Mutual associations exist, albeit to varying degrees, in most European countries. For instance, 
more  than  120 million  Europeans  are  affiliated  to  a  mutual  health  association  in  Europe.  In 
the  insurance  sector  and  in  the  financial  intermediation  services  sector,  mutual  associations 
account for a significant share of employment.  

Proposal No  38: The Commission will launch a public consultation (Green 
Paper) on corporate governance. It will also launch a public consultation on 
possible  ways  to  improve  the  transparency  of  information  provided  by 
businesses  on  social  and  environmental  matters  and  respect  for  human 
rights. These consultations could lead to legislative initiatives. 

It is of paramount importance that European businesses demonstrate the utmost responsibility 
towards  not  only  their  employees  and  their  shareholders  but  also  towards  society  at  large. 
Their governance could be improved particularly as regards the composition and diversity of 
boards  of  directors,  including  the  representation  of  women,  long-term  shareholder 
commitment  and  employee  shareholding  schemes.  In  order  to  strengthen  corporate 
governance and corporate social – and even societal – responsibility, attention will have to be 
focused on improving transparency, particularly in the areas of human rights and sustainable 
development,  and  on  ways  to  enhance  corporate  functioning,  with  the  specific  goal  of 
increasing employee involvement, improving relations with shareholders and facilitating more 
accurate valuation of businesses by the financial markets. 

2.5. 

A single market serving consumers 

In the minds of European consumers, the single market must constitute added value, offering 
them a wide variety of high-quality goods and services. Special emphasis must be placed on 
banking  products,  which  to  a  large  extent  constitute  a  prerequisite  for  moving  or  working 
within the single market. Lastly, supervisory authorities must ensure that European consumers 
are afforded a high level of protection against any risk linked to the quality of products and 
services offered. 

Consumers often lack information to be able to find a good price or make an informed choice 
of  product,  as  information  can  be  presented  in  a  way  which  makes  comparison  difficult  or 
ambiguous. This is particularly the case for cross-border offers and delivery charges. Today, 
consumers  do  not  have  all  the  information  at  hand  to  make  informed  choices.  The 
Commission will evaluate existing practices where price comparison websites are concerned 

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and will draw up guidelines for food price comparison websites, based on best practices and 
the experience of the Member States. 

Proposal No 39: In 2011 the Commission will draw up a multiannual action 
plan  for  the  development  of  European  market  surveillance.  In  addition,  in 
relation to the customs services and the market surveillance authorities of the 
Member States, the Commission will draw up guidelines for customs controls 
in  the  area  of  product  safety  in  2011.  The  Commission  will  also  propose  a 
revision of the general product safety Directive in order to ensure a coherent 
and effective framework for the safety of consumer goods in the EU. 

European  citizens  require  their  health  and  their  rights  to  be  protected  throughout  the  EU, 
particularly when it comes to threats or risks that they cannot deal with individually. To meet 
this  requirement  the  Commission  will  step  up  market  surveillance  for  product  safety  in  the 
EU. The objective will be attained by means of an action plan beginning in 2011. This will 
involve  improving  coordination  among  national  market  surveillance  authorities  in  order  to 
ensure that goods moving freely within the single market are safe and reliable for consumers. 
This will guarantee a level playing field and enable serious businesses to take full advantage 
of  the  opportunities  offered  by  a  market  of  500  million  consumers.  Furthermore,  the 
Commission  will  propose  a  revision  of  the  general  product  safety  Directive,  in  order  to 
develop  a  coherent  and  effective  framework  for  market  surveillance  in  the  interests  of  the 
safety of consumer goods in the EU. 

Proposal No 40: The Commission will adopt a legislative initiative on access 
to certain basic banking services at the start of 2011. It will also call on the 
banking  sector  to  submit  a  self-regulatory  initiative  geared  towards 
improving the transparency and comparability of bank charges by the end of 
2011. 

Citizens,  particularly  students,  face  problems  when  opening  a  bank  account  or  obtaining  a 
payment card in a Member State to which they have recently moved or in which they are not 
resident.  Financial  institutions  justify  turning  them  down  by  arguing  that  certain  groups  of 
potential consumers represent a higher risk for a bank and must therefore be subject to closer 
scrutiny.  They  also  argue  that  they  are  unable  to  build  up  a  clear  picture  of  the  borrower’s 
loan  repayment  record.  However,  in  many  cases,  the  refusal  to  open  an  account  cannot  be 
considered  objectively  justified  and  proportionate.  Furthermore,  the  lack  of  transparency 
surrounding bank charges is a major stumbling block in the field of retail financial services. 
Clients are unable to understand and compare the costs associated with their bank accounts, 
which discourages them from switching to cheaper ones. Consumers in those Member States 
where  bank  charges  are  complex  and  opaque  thus  pay  higher  charges  than  they  should. 
Greater  transparency  is  also  a  prerequisite  for  cross-border  transactions  and  the  successful 
operation of the single euro payments area (SEPA). A study of 224 banks, covering 81% of 
the retail banking market in terms of customer deposits, estimated that 66% of their internet 
sites  required  additional  information  in  order  to  calculate  the  cost  of  a  bank  account.  The 
study also showed that bank account tariffs varied far more widely at European Union level 
than those of other services. 

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Proposal No 41: By February 2011 the Commission will propose a Directive 
geared  towards  the  creation  of  a  single  integrated  mortgage  market  with  a 
high level of consumer protection.  

Consumers  are  still  not  in  a  position  to  derive  full  benefit  from  the  retail  financial  services 
market. They are often reluctant to change service-provider or have insufficient information 
for a comparison of the options available. These difficulties tend to increase when the search 
goes beyond national borders. In parallel with the structural reforms underway in the financial 
sector,  reforms  must  continue  in  order  to  increase  consumer  confidence  in  retail  financial 
markets. These obstacles are amongst those with the greatest impact on citizens in their daily 
lives. European mortgage markets are of vital importance for millions of European citizens: 
the  decision  to  take  out  a  mortgage  is  one  of  the  most  important  financial  decisions  an 
individual  can  make,  resulting  in  a  financial  commitment  spanning  several  decades. 
Irresponsible  conduct  by  operators  can  shake  the  foundations  of  the  financial  system,  with 
potentially  serious  social  and  economic  repercussions.  The  integration  of  the  mortgage 
markets also remains limited. Levels of direct cross-border lending remain low and there are 
still major disparities between the Member States in terms of prices, choice of products and 
approaches to the regulations applicable to the various operators concerned, such as non-bank 
lenders and credit intermediaries. Lenders and credit intermediaries are faced with obstacles 
that prevent them from doing business in another Member State or disproportionately increase 
their  costs.  Citizens  are  also  faced  with  obstacles  when  attempting  to  obtain  a  mortgage  in 
another Member State, or even from a lender in the same Member State for a property situated 
elsewhere  in  the  EU,  and  are  frequently  refused  credit.  The  search  for  the  best  tariff  or 
product  in  different  Member  States  is  also  made  difficult,  if  not  impossible,  by  the  lack  of 
comparable information. Integrating the European mortgage markets would promote financial 
stability  and  would  result  in  considerable  benefits  to  consumers,  ultimately  rendering 
mortgage-lenders more efficient and making a wider range of products available. 

Proposal No 42: The Commission will adopt a Communication by the end of 
2010  aimed  at  identifying  and  eliminating  the  tax  obstacles  still  facing 
European citizens. 

Some of the obstacles preventing citizens from being able to move, set up home and acquire 
goods  and  services  freely  throughout  the  EU  stem  from  taxation  problems.  These  problems 
may consist of difficulties in obtaining relief for double taxation because of the limited scope 
or  complete  absence  of  agreements  on  double  taxation,  discriminatory  taxation  rules  and 
overlapping of different tax systems, as well as difficulties dealing with the tax legislation of 
two  or  more  Member  States  and  claiming  tax  reductions  or  reimbursements  from  another 
Member State. Cross-border workers in particular can face difficulties in relation to car tax, 
pension tax and inheritance tax.  

Proposal No 43: In 2012 the Commission will adopt a proposal amending the 
regulation  on  the  rights  of  air  passengers,  particularly  in  the  light  of  the 
crisis triggered by the recent volcanic eruption in Iceland, and – should the 
legislative  proposal  on  the  road  transport  sector  (buses  and  coaches)  be 
adopted – a Communication on the rights of passengers using all means of 
transport.  

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In spite of the legislation already in place, particularly for the air, rail and - in the near future - 
sea transport sectors, passengers’ rights still vary depending on the means of transport chosen, 
and  are  not  always  respected  by  operators.  This  situation  presents  a  risk  of  distorting 
competition  in  the  internal  market  and  undermines  the  objective  of  ensuring  a  suitably 
uniform  level  of  quality  of  services,  in  the  interests  not  only  of  citizens  but  also  of  the 
European economy as a whole. 

3. 

DIALOGUE, PARTNERSHIP, EVALUATION: THE KEYS TO GOOD GOVERNANCE OF THE 
SINGLE MARKET 

The  single  market  is  not  owned  by  the  European  institutions  or  by  a  handful  of  major  pan-
European groups: it is built up every day by every European who works, saves, purchases and 
invests.  The  development  and  use  of  the  single  market  is  in  the  hands  of  Europeans 
themselves. 

The sole purpose of this Act is to propose a new framework for dialogue in order to ensure 
that the texts are debated and implemented in a way that benefits all Europeans: by proposing, 
promoting  and  providing  a  space  for  dialogue  and  discussion,  the  Commission  aims  to 
restore  meaning  to  the  single  market  to  give  it  real  value  for  the  public.  The  European 
Parliament and the Council, fulfilling their respective roles, will decide what action needs to 
be taken as regards the Member States. 

Nevertheless,  this  Single  Market  Act  is  doomed  to  fail  if  the  proposing,  decision-making, 
implementing and monitoring process is not opened up to the other partners further upstream. 

Many aspects of this  Act  - for  example the measures  concerning public  services  or taxation 
issues - fall within the scope of the powers of the Member States and those of their local and 
regional authorities. It is for this fundamental reason that regional and local authorities at all 
levels must be involved with and participate fully in the governance of the single market, in 
line with their active participation in cohesion policy. 

This  Single  Market  Act  reflects  President  Barroso’s  wish  to  make  the  EU  2020  strategy 
more  viable  and  put  into  operation  the  main  recommendations  of  the  European 
Parliament and Mario Monti’s report. It binds the European Commission to obtain results, 
break down barriers to prepare for the future, and strengthen Europe to face its challenges.  

A strong willingness to enter into dialogue, establish partnerships with the stakeholders and 
objectively evaluate the results obtained will undoubtedly be the hallmarks of this Act and of 
its implementation. 

Influence  cannot  be  decreed:  it  must  be  built  up.  This  is  why  the  Commission  will  not  shy 
away  from  any  debate,  even  the  most  difficult  ones:  European  political  parties,  national 
governments  and  parliaments,  local  authorities,  civil  society,  trade  unions  and  businesses, 
consumers,  associations,  etc.,  working  closely  alongside  the  Committee  of  the  Regions  and 
the European Economic and Social Committee.  

This Act puts forward 50 proposals, with target dates for consultation, which the Commission 
will  conduct  in  accordance  with  the  principles  of  smart  regulation.  In  keeping  with  the 
principles  of  transparency  and  responsibility,  the  Commission  calls  on  each  of  its 
partners to prepare for these stages of dialogue, to make their contributions and take the 
future of our big single market into their own hands. 

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The Commission must continue to play its part in monitoring and enforcing the policies of the 
single market. It is aware of the efforts required of the Member States to work towards a more 
unified and competitive market. It will be sympathetic to their concerns, but will not lose sight 
of the objectives. 

Proposal  No  44:  The  Commission  and  the  Member  States  will  cooperate  in 
continuing  to  develop  the  internal  market  by  stepping  up  the  procedure  for 
evaluating the acquis, in particular using the 'mutual evaluation' process set 
out in the Services Directive and currently being implemented by the Member 
States  and  the  Commission.  The  experience  gleaned  from  the  mutual 
evaluation process of the Services Directive will also be applied to other key 
single market legislation.  

The  Commission  will  continue  its  evaluation  work,  based  on  the  specific  feedback  of 
experiences, trying out and reinforcing synergies between existing tools (market surveillance, 
sectoral surveys, consumer scoreboard, etc.). To this end, it will regularly draw up a list (‘Top 
20’)  of  single  market  actors'  wishes  (businesses,  consumers,  workers,  students,  pensioners). 
This  list  will  serve  as  a  barometer  for  the  state  of  the  single  market  and  its  operation  in 
practice.  

The Commission will regularly examine the state of the single market in partnership with the 
actors  concerned  by  organising  a  single  market  forum  with  the  European  Parliament  each 
year  involving  the  other  institutions,  representatives  of  the  Member  States  (including  at 
regional  and  local  level),  national  parliaments,  citizens  and  stakeholders.  The  first  forum  is 
expected to take place in 2011.  

Proposal  No  45:  In  early  2011  the  Commission  will  present  a  strategy  on 
extending the Internal Market Information system (IMI) to other legislative 
areas during 2011, with a view to creating a genuine face-to-face electronic 
network for European administrations. This strategy will be the subject of a 
legislative proposal.  

The Internal Market Information system (IMI) was designed as a flexible tool to sustain the 
administrative  cooperation  that  supports  sectoral  legislative  instruments.  It  is  currently  used 
for the Directive on professional qualifications and the services Directive. If IMI is to achieve 
its full potential, a clear strategy must be developed to extend it to other sectors and to create 
synergies between IMI and other information technology tools. This strategy will be set out in 
detail in a Commission Communication. The main obstacle to any extension of the IMI is the 
absence  of  a  legal  basis  that  would  fully  satisfy  the  European  and  national  data  protection 
authorities. With a view to resolving this situation, it will be discussed whether a proposal for 
a  Regulation  would  be  appropriate.  Such  a  proposal  would  lay  down  the  rules  for  data 
processing  and  other  conditions  for  the  use  of  IMI,  and  would  make  administrative 
cooperation possible in areas where it is necessary for the implementation of internal market 
law but not specifically provided for by existing legislation. 

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Proposal No 46: In 2011, the Commission will be submitting an initiative on 
the use of alternative dispute resolution in the EU. It will also be adopting a 
Recommendation  in  2011  on  the  network  of  alternative  dispute  resolution 
systems  for  financial  services.  The  aim  of  these  two  initiatives  is  to  ensure 
that  simple,  reasonably  priced  out-of-court  settlement  procedures  are 
established  to  deal  with  cross-border  consumer  disputes.  By  2012,  the 
Commission  will  be  proposing  a  European  system  for  the  settlement  of  on-
line  disputes  for  digital  transactions.  It  will  also  carry  out  a  public 
consultation on a European approach to collective redress in 2010-2011, in 
order  to  identify  arrangements  which  could  be  introduced  into  the  legal 
framework  of  the  European  Union  and  the  legal  systems  of  the  Member 
States.  

If consumers are to shop with confidence in other Member States and enjoy their rights under 
European  legislation,  they  need  reassurance  that  they  can  obtain  redress  in  the  event  of  a 
problem.  Rights  that  cannot  be  enforced  in  practice  are  worthless.  A  recent  study  estimated 
that  the  losses  incurred  by  European  consumers  through  problems  with  purchased  goods  or 
services amounted to 0.3% of Europe's GDP. Alternative methods of conflict resolution and 
assistance in the event of complaints, such as that offered by the European Consumer Centres, 
can provide a simple, quick and cheap solution for consumers and maintain relations between 
companies  and  their  customers.  However,  consumers  and  businesses  are  not  sufficiently 
aware of existing alternative dispute-settlement schemes, which still do not exist in a number 
of sectors. In the financial services sector, for example, consumers often have no choice but to 
enter into costly and protracted court cases. In some Member States, there are no out-of-court 
dispute  resolution  mechanisms.  Moreover,  the  existing  mechanisms  have  not  up  to  now 
proven suitably effective at dealing with cross-border disputes. There is thus a need to bridge 
the  gaps  in  the  geographic  and  sectoral  coverage  provided  by  the  FIN-NET  network. 
Moreover, it is not always easy to seek collective redress in the courts or by any other means. 
Businesses may suffer distortions of competition due to the absence of a level playing field. 
Opportunities  to  achieve  economies  of  scale  by  bundling  claims  are  being  lost.  Improving 
alternative dispute resolution mechanisms for disputes between businesses and consumers, in 
particular  in  the  field  of  financial  services,  would  bring  substantial  benefits  for  consumers, 
shore up consumer confidence and contribute to the development of the single market. 

Proposal No 47: The Commission will work in partnership with the Member 
States  to  develop  a  more  resolute  policy  to  enforce  the  rules  of  the  single 
market. The Commission undertakes to prepare transposition plans and draft 
correlation tables for the legislative proposals provided for in the Act and to 
reduce  the  average  time  taken  to  deal  with  infringement  files.  The 
Commission calls on the Member States to reduce their transposition deficit 
of the single market directives to 0.5% and to provide their correlation tables 
with the implementing measures. 

Considerable efforts have been and are still being made to strengthen the partnership between 
the  Commission  and  the  Member  States  in  the  management  of  the  internal  market, 

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specifically  through  the  implementation  of  the  2009  ‘Recommendation  on  Partnerships’23. 
The  constant  efforts  made  to  improve  the  implementation  of  the  rules  of  the  single  market 
have borne fruit, as demonstrated for instance by the low average transposition deficit on the 
most recent Internal Market Scoreboard24.  

Despite these efforts, it takes, on average, seven months longer than the deadline provided for 
in  directives  for  them  to  be  transposed  in  full25.  The  published  statistics  show,  for  2008,  a 
36% delay in the notification of transposition measures, a 31% delay in 2009 and a 30% delay 
in 201026. There are, however, still shortcomings, particularly the fact that national legislation 
does not always conform to the directives it transposes. The length of the official infringement 
procedures  initiated  by  the  Commission  and  the  considerable  delays  in  implementation  of 
Court  judgments  by  the  national  authorities  are  additional  challenges  that  have  yet  to  be 
addressed. There is also a need for closer attention to the matter of application when rules are 
being drawn up, evaluated and/or amended. The Commission will develop support tools, e.g. 
by systematically drawing up transposition plans for the legislative proposals identified in the 
Act. These plans will help transposition difficulties to be identified at an early stage. 

Renewed efforts must be made to implement and respect rules – all the more so because this 
is a prerequisite for the correct functioning of the single market, since the rules must be the 
same  for  all  parties.  This  will  require  solid  partnership  and  cooperation  with  the  Member 
States in order to further reduce the transposition deficit. Mutual commitment will be needed 
to verify the conformity of national legislation with the main regulations of the single market 
by  making  systematic  use  of  correlation  tables,  which  must  be  accessible  to  citizens  and 
businesses. These tables will be provided by the Commission to the Member States for each 
new  priority  Directive  contained  in  the  Act.  Joint  efforts  must  also  be  made  to  speed  up 
Commission  infringement  procedures  and  compliance  with  Court  judgments  by  setting 
ambitious  common  objectives,  and  to  increase  the  systematic  use  of  alternative  dispute 
resolution mechanisms such as SOLVIT and EU-PILOT.  

Proposal  No  48:  The  Commission  will  increase  consultation  and  dialogue 
with civil society in the preparation and implementation  of texts. Particular 
attention will be paid to taking into account the points of view of consumers, 
NGOs,  trade  unions,  businesses,  savers,  users  and  local  authorities  in  the 
consultations  prior  to  the  adoption  of  proposals  and,  in  particular,  with 
regard to the work of expert groups. 

Single  market  policy  can  only  be  enriched  by  the  contributions  of  a  wide  range  of 
stakeholders.  Only  a  small  part  of  the  contributions  received  by  the  Commission  currently 
come  from  parties  other  than  professionals  in  the  sectors  concerned.  Consumers,  small 
investors, small businesses, employee representatives, NGOs and representatives of local and 
regional  authorities  can  contribute  useful  views  on  the  implementation  of  measures  in  the 
field  and  help  determine  whether  the  policies  proposed  can  really  provide  added  value  for 
citizens.  

23 

24 
25 
26 

European Commission Recommendation on measures to improve the functioning of the single market 
(2009/524/EC), 29 June 2009. 
See Internal Market Scoreboard, No 21. 
See Internal Market Scoreboard, No 21. 
Figures  taken  from  a  number  of  infringement  proceedings  initiated  based  on  data  published  at: 
http://ec.europa.eu/community_law/directives/directives_communication_en.htm. 

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Proposal  No  49:  In  2010,  the  Commission  will  continue  to  promote  a  one-
stop  shop  to  provide  citizens  and  businesses  with  information  and  support 
concerning their rights in the single market, on the internet, by telephone or 
in person, by developing the ‘Your Europe’ internet portal and improving its 
coordination with ‘Europe Direct’. The Commission will also strengthen its 
partnerships  with  the  Member  States  with  a  view  to  ensuring  that 
information on national rules and procedures is also available through this 
one-stop shop.  

A number of reports have shown that citizens know little about their rights and do not know 
who to approach to exercise their rights in the event of a problem, in spite of the wealth of 
sources  of  official  information  and  support  systems  set  up  by  the  Commission.  This 
realisation  led  to  the  ‘Your  Europe’  portal  being  redesigned  as  a  one-stop  shop,  with  the 
information available completely rewritten from the users’ point of view. The goal over the 
coming months is to make Europeans aware of this and to add to the information available to 
make it even more useful, particularly by providing national information (specific situation in 
each Member State, necessary formalities, local contacts, etc.). This will be possible only with 
the active cooperation of the Member States. 

Proposal  No  50:  The  Commission,  in  partnership  with  the  Member  States, 
will strengthen informal problem-solving tools, specifically by consolidating 
and reinforcing the EU Pilot project, the SOLVIT network and the networks 
of  European  Consumer  Centres.  Based  on  an  assessment  in  2010,  it  will 
make specific proposals concerning SOLVIT in 2011. In the longer term, it 
will  examine  the conditions for potential further development of these tools 
and of the other alternative dispute-resolution mechanisms by forging closer 
ties between them, with a view to ensuring that they will eventually be able to 
better deal with all of the problems associated with the single market. 

Over  SOLVIT’s  eight  years  of  operation,  the  number  of  cases  handled  has  increased  more 
than tenfold, and the centres are called on to deal with an ever-growing variety of cases that 
occasionally fall outside their mandate. To ensure optimum operation of the network in future, 
discussions will need to address SOLVIT's mandate, the methods of guaranteeing the quality 
of its performance and its relationships with other problem-solving instruments. It will enable 
us to move beyond SOLVIT in the long term towards a system where a quick and informal 
dispute  resolution  scheme  would  be  available  for  each  problem  encountered  by  a  citizen  or 
business in the single market. The network of European Consumer Centres will be considered 
in an assessment to conclude, in 2011, with concrete proposals for its future development. The 
EU Pilot project, for its part, will ensure close cooperation with the Member States to resolve 
more  quickly  any  problems  in  the  application  of  single  market  law  without  the  need  for 
infringement procedures. The variety and number of persisting problems require this initiative 
to be stepped up. The Commission has launched an initiative to extend the coverage of this 
project from 24 to 27 Member States. 

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CONCLUSION: TOWARDS A PUBLIC DEBATE IN EUROPE 

This Act aims to renew  the  confidence pact between  Europeans  and  their  big  single  market 
with a view to restoring its status as a tool in the service of growth and enabling us to meet the 
challenges ahead.  

Above all, the Commission proposes to take a global approach: shoring up the social market 
economy by putting businesses and Europeans back at the heart of the single market in order 
to restore confidence; developing market policies in the service of sustainable and fair growth; 
and  laying  the  groundwork  for  good  governance,  dialogue, partnership and  evaluation.  This 
global  approach  will  require  coordination  of  the  work  of  the  Commission  and  the  other 
Institutions,  and  also  better  monitoring.  This  will  not  affect  the  monitoring  mechanisms 
established in the context of the flagship initiatives of the Europe Strategy.  

It is a collective approach involving not only the Commission but also the Parliament and the 
Council, playing  their own parts and using their own procedures. The Economic and Social 
Council and the Committee of the Regions will open up the discussions to local and regional 
representatives, the social partners or economic players, associations and other actors in civil 
society. In addition, the Single Market Act will be discussed throughout Europe over the 
coming  months.  The  action  programme,  translated  into  the  languages  of  all  of  the  Member 
States,  will  be  sent  to  the  members  of  each  country's  parliament,  the  regional  authorities  –
 including those of the outermost regions, the economic and social players, and actors in civil 
society. Specific information tools will be made available to interested parties. 

The conditions for a genuine European public debate will thus be put in place, constructed 
around the challenges facing the highly competitive social market economy.  

All interested parties are invited to submit their views about the relaunch of the single market 
and,  in  particular,  on  the  50  measures  proposed  in  this  document,  to  the  following  address: 
http://ec.europa.eu/internal_market/smact.  Specific  information  tools  will  be  made  available 
to interested parties. 

Contributions should reach the Commission by 28 February 2011. On the basis of the replies 
received, the Commission will propose that the other Institutions agree a definitive version of 
the Act. 

Contributions  will  be  published  on  the  internet.  It  is  important  to  read  the  specific  privacy 
statement  on  the  above-mentioned  site  for  information  on  how  your  personal  data  and 
contribution will be handled.  

After this public debate, and based on the conclusions drawn from it, the Commission hopes 
that all of the European institutions will undertake, at the start of 2011, to make this Act and 
its  50  measures  into  the  definitive  policy  action  plan  for  2011-2012.  This  will  serve  as  a 
dynamic commemoration of the 20th anniversary of the single market at the end of 2012. 

The realisation of the initiatives in the Act in 2012 will provide an occasion to evaluate the 
implementation  and  the  results  obtained  in  terms  of  sustainable  growth  and  boosting  the 
confidence  of  European  citizens  in  the  single  market.  In  order  to  evaluate  the  results, 
indicators will be developed which could, for example, measure: 

–  trends in the cost of issuing a patent; 

–  the amount of goods traded between Member States as a percentage of the EU's GDP; 

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–  the  share  of  cross-border  services  as  a  percentage  of  the  EU's  GDP,  and  the  number  of 
businesses  established  in  a  Member  State  other  than  their  Member  State  of  main 
establishment; 

–  the number  of  public authorities interconnected  via the information  system  for  the  single 

market (the IMI) and the number of requests introduced, and 

–  the percentage of goods and services bought on-line in another country. 

On the basis of this evaluation, the Commission will plan a second phase to deepen the single 
market, on the occasion of which other sources of growth and trust in the new single market 
can  be  identified.  To  this  end,  the  Commission  will  carry  out  in-depth  research,  survey  and 
analysis work. 

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1. Sustainable and equitable growth for business 

1.1 Promoting and protecting creativity 

Proposal No 1 

Proposal No 2 

Proposal No 3 

Proposal No 4 

Proposal No 5 

The European Parliament and the Council should take the necessary steps to adopt the proposals for 
the  EU  patent,  its  languages  and  the  unified  patent  litigation  system.  The  aim  is  for  the  first  EU 
patents to be issued in 2014. 

No 
deadline 

Innovation Union 

In  2011  the  Commission  will  submit  a  proposal  for  a  framework  Directive  on  the  management  of 
copyrights,  with  the  aim  of  opening  up  access  to  online  content  by  improving  the  governance, 
transparency  and  electronic  management  of  copyright.  The  Commission  will  also  be  proposing  a 
Directive on orphan works. 

2011 

A Digital Agenda 
for Europe 

In 2010 the Commission will propose an action plan against counterfeiting and piracy, including both 
legislative and non-legislative measures. Furthermore, in 2011 it will make legislative proposals, in 
particular to adjust the legislative framework to meet the needs generated by the development of the 
Internet  and  to  enhance  customs  work  in  this  area,  and  it  will  re-examine  its  strategy  on  the 
implementation of intellectual property rights in third countries.  

2010/2011 An integrated 

industrial policy 

1.2 Promoting new approaches towards a sustainable economy 

The Commission and the Member States will cooperate in continuing to develop the internal market 
in  services  on  the  basis  of  the  'mutual  evaluation'  process  set  out  in  the  Services  Directive  and 
currently  implemented  by  the  Member  States  and  the  Commission.  In  2011,  the  Commission  will 
indicate specific measures to this end, including in the business services sector. 

2011 

By  the  end  of  2011,  the  Commission  will  take  initiatives  to  develop  electronic  commerce  in  the 
internal  market.  It  will  concentrate  in  particular  on  problems  faced  by  consumers  in  the  digital 
economy. These initiatives will include a Communication on the operation of electronic commerce 
and  guidelines  for  the  Member  States  to  guarantee  the  effective  application  of  provisions  in  the 
Services Directive to combat discrimination against recipients of services because of their nationality 
or place of residence. 

2011 

A Digital Agenda 
for Europe 

Report on 
citizenship 

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An integrated 
industrial policy 

Innovation Union  

A Digital Agenda 
for Europe 

An integrated 
industrial policy 

Proposal No 6 

The Commission will propose a legislative reform of the standardisation framework in 2011 to make 
standard-setting  procedures  more  effective,  efficient  and  inclusive  and  to  extend  the  scope  of  the 
procedures from goods to services. 

2011 

Proposal No 7 

Proposal No 8 

Proposal No 9 

Proposal No 10 

In 2011 the Commission will adopt a White Paper on Transport Policy, which will propose a series 
of  measures  intended  in  particular  to  remove  the  remaining  obstacles  identified  between  means  of 
transport and between national systems of transport. 

2011 

In  2011,  the  Commission  will  be  adopting  a  proposal  to  revise  the  Energy  Tax  Directive  so  as  to 
better reflect the EU's climate and energy objectives in the fiscal context, by lowering the minimum 
duty rates on CO2 emissions and on energy content. 

2011 

The Commission will propose an initiative to establish a High Level Group on services to businesses 
in order to study deficiencies in the market and issues of standardisation, innovation and international 
trade in sectors such as logistics, installations management, marketing and advertising. 

Before  2012,  the  Commission  will  look  into  the  feasibility  of  an  initiative  on  the  Ecological 
Footprint of Products to address the issue of the environmental impact of products, including carbon 
emissions. The initiative will explore possibilities for establishing a common European methodology 
to assess and label them. 

2012 

An integrated 
industrial policy 

Proposal No 11  

The  Commission  will  present,  in  early  2011,  an  energy  efficiency  plan  to  exploit  the  potential  for 
significant  energy  savings  by  complementing  existing  policies  in  all  sectors  where  energy  is 
consumed. 

2011 

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1.3 For small and medium-sized enterprises 

Proposal No 12 

The  Commission  will  adopt  an  action  plan  for  improving  SME  access  to  capital  markets  in  2011. 
This  will  include  measures  to  make  investors  more  aware  of  SMEs,  to  develop  an  efficient  stock 
exchanges  network  or  specific  regulated  markets  focussing  on  SMEs  and  to  make  listing  and 
disclosure requirements more adapted to SMEs. 

2011 

Innovation Union 

Proposal No 13 

The Commission will assess the Small Business Act by the end of 2010 with the aims of ensuring 
that the ‘Think Small First’ principle is implemented in both policy and the legislative procedure and 
linking the Small Business Act closely with the Europe 2020 Strategy. 

2010 

An integrated 
industrial policy 

Proposal No 14 

The  Commission  will  propose  a  review  of  the  accounting  Directives  in  2011  to  simplify  financial 
reporting obligations and to reduce the administrative burden, especially for SMEs. 

2011 

1.4 Funding innovation and long-term investment 

Proposal No 15 

The  Commission  will  consider  encouraging  the  creation  of  project  bonds  to  finance  European 
projects. 

An integrated 
industrial policy 

Proposal No 16 

The  Commission  will  explore  measures  with  the  potential  to  encourage  private  investment  – 
particularly in the long term – to make a more active contribution towards achieving the objectives of 
the  Europe  2020  strategy.  These  measures  might  concern  the  reform  of  corporate  governance  and 
create incentives for the long-term, sustainable and responsible investment required by smart, green 
and inclusive growth. Moreover, by 2012 the Commission will ensure that venture capital funds set 
up  in  any  Member  State  can  operate  and  invest  freely  in  the  European  Union  (if  necessary  by 
adopting  a  new  legislative  framework).  It  will  endeavour  to  eliminate  any  tax  treatment  that 
disadvantages cross-border activities. 

2012 

Innovation 
Union 

Proposal No 17 

After  the  currently  ongoing  assessment  of  European  public  procurement  legislation,  and  based  on 
wide-ranging consultation, the Commission will make legislative proposals in 2012 at the latest with 
a view to simplifying and updating the European rules to make the award of contracts more flexible 
and to enable public contracts to be put to better use in support of other policies. 

2012 

Innovation 
Union  

An integrated 
industrial policy 

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Proposal No 18 

In  2011  the  Commission  will  adopt  a  legislative  initiative  on  services  concessions.  Clear  and 
proportionate rules will improve market access for EU undertakings by ensuring transparency, equal 
treatment  and  a  level  playing  field  for  economic  operators.  They  will  also  promote  public/private 
partnerships and boost the potential for delivery of better value for money for users of services and 
for contracting authorities.  

2011 

Proposal No 19  

The  Commission  will  take  steps  to  improve  the  coordination  of  national  tax  policies,  notably  by 
proposing a Directive introducing a common consolidated corporate tax base (CCCTB) in 2011. 

2011 

1.5 Creating a business-friendly legal and fiscal environment 

Proposal No 20 

The Commission will publish a new VAT strategy in 2011 on the basis of a Green Paper conducting 
a fundamental review of the VAT system, planned for 2010. 

2011 

Proposal No 21 

In 2011 the Commission will propose legislation to introduce the linking of company registers. 

Proposal No 22 

By  2012  the  Commission  will  propose  a  Decision  to  ensure  mutual  recognition  of  e-identification 
and  e-authentication  across  the  EU  based  on  online  authentication  services  to  be  offered  in  all 
Member  States.  In  2011  the  Commission  will  propose  a  revision  of  the  Directive  on  electronic 
signatures  with  a  view  to  providing  a  legal  framework  for  international  interoperability  and 
recognition of e-authentication systems.  

2011 

2012 

A Digital 
Agenda for 
Europe 

1.6.  Being competitive in global markets 

Proposal No 23 

The  Commission  will  further  develop  regulatory  cooperation  with  its  main  trading  partners,  both 
bilaterally, in the form of regulatory dialogues, and multilaterally, for example within the G20. The 
twofold  objective  is  to  promote  regulatory  convergence,  including  promoting  equivalence  of  third-
country regimes where possible, and to push for wider adoption of international standards. On this 
basis  it  will  pursue  negotiations  for  international  trade  agreements  (both  multilateral  and  bilateral) 
with a focus on both market access and convergence on regulatory issues, particularly for services, 
IPR and subsidies. 

In progress  An integrated 

industrial 
policy 

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Proposal No 24 

In  2011,  the  Commission  will  present  a  legislative  proposal  in  favour  of  a  Community  instrument 
drawing  on  the  implementation  of  the  European  Union’s  international  commitments  in  order  to 
enhance  its  capacity  to  ensure  improved  symmetry  in  access  to  public  procurement  in  the 
industrialised nations and the major emerging economies. 

2011 

Communication 
on trade policy 

2. Restoring confidence by putting Europeans at the heart of the single market 

2.1 

Improving public services and infrastructure of general interest 

Proposal No 25 

The  Commission  undertakes  to  adopt,  by  2011,  a  Communication  and  a  series  of  measures  on 
services of general interest. 

Proposal No 26 

Proposal No 27 

In 2011 the Commission will adopt a revision of the Community guidelines for the development of 
the  trans-European  transport  network,  and  a  proposal  on  a  global  framework  for  the  funding  of 
transport infrastructure. 

2011 

The Commission will adopt a Communication on energy infrastructure priorities up to 2020/2030 in 
order  to  contribute  to  the  development  of  a  fully  operational  internal  energy  market  by  tackling 
missing infrastructure links and facilitating the integration of renewable energy. The tools necessary 
for  implementation  will  be  proposed  in  a  new  European  instrument  for  energy  security  and 
infrastructure, to be tabled in 2011. 

2011 

An integrated 
industrial 
policy 

An integrated 
industrial 
policy 

Proposal No 28 

The Parliament and the Council should adopt the proposed Decision establishing a European Radio 
Spectrum Action Programme for more efficient management and use of the radio spectrum. 

No deadline  A Digital 

Agenda for 
Europe 

2.2 Increasing solidarity in the single market 

Proposal No 29 

Pursuant to its new strategy for the effective implementation of the Charter of Fundamental Rights 
by  the  European  Union,  the  Commission  will  ensure  that  the  rights  guaranteed  in  the  Charter, 
including the right to take collective action , are taken into account. The Commission will first of all 
conduct  an  in-depth  analysis  of  the  social  impact  of  all  proposed  legislation  concerning  the  single 
market. 

2011 

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Proposal No 30 

Proposal No 31 

In 2011, the Commission will adopt a legislative proposal aimed at improving the implementation of 
the Posting of Workers Directive, which is likely to include or be supplemented by a clarification of 
the exercise of fundamental social rights within the context of the economic freedoms of the single 
market.  

The Commission will re-examine the Directive on the activities and surveillance of pension funds in 
2011 and will develop other proposals based on the July 2010 Green Paper on pensions, inter alia in 
order  to  remove  obstacles  encountered  by  mobile  workers  when  making  arrangements  for  their 
retirement. 

2011 

2011 

Proposal No 32 

The  Commission  will  launch  a  consultation  with  the  social  partners  in  order  to  create  a  European 
framework for the advance planning of industrial restructuring. 

2011 

An integrated 
industrial 
policy 

2.3 Access to employment and lifelong learning 

Proposal No 33 

Proposal No 34 

Proposal No 35 

In 2012 the Commission will propose a legislative initiative to reform the systems for the recognition 
of professional qualifications, based on an evaluation of the acquis in 2011, in order to facilitate the 
mobility  of  workers  and  adapt  training  to  current  labour  market  requirements.  As  part  of  this 
proposal, the possibility of a professional card will be evaluated. 

2012 

Report on 
citizenship 

The Commission will develop, in cooperation with the Member States, a ‘Youth on the Move card’ 
helping all young people to move to another Member State to study. It will expand its ‘Youth on the 
Move’  Internet  site  by  providing  information  on  distance  learning  and  opportunities  to  study  and 
train in Europe. 

The  Commission  will  implement  the  European  qualifications  framework  in  partnership  with  the 
Member States. It will propose a Council Recommendation to promote and validate training outside 
the  classroom  (non-formal  and  informal  learning).  It  will  also  propose  the  creation  of  a  ‘European 
Skills  Passport’  enabling  individuals  to  record  the  knowledge  and  skills  they  have  acquired 
throughout  their  lives.  It  will  establish  a  bridge  between  the  European  Qualifications  Framework 
and the nomenclature of occupations in Europe.  

2012 

2011 

Communication 
on Youth on 
the Move 

Communication 
on Youth on 
the Move 

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Proposal No 36 

Proposal No 37 

Proposal No 38 

Proposal No 39 

2.4 New resources for the social market economy 

In 2011 the Commission will propose a Social Business Initiative in order to support and accompany 
the  development  of  socially  innovative  corporate  projects  within  the  single  market  by  means  of  in 
particular social ratings, ethical and environmental labelling, public procurement, the introduction of 
a new investment fund regime and the use of dormant savings. 

2011 

For several reasons relating mainly to the nature of its financing and the preference of shareholders 
or  stakeholders  who  support  projects  with  a  strong  element  of  social,  economic  and  sometimes 
technological  innovation,  the  market  economy  is  structured  around  a  variety  of  different  types  of 
legal  status  (foundations,  cooperatives,  mutual  associations,  etc.).  The  Commission  will  propose 
measures enabling the quality of the legal structures concerned to be improved in order to optimise 
their functioning and facilitate their development within the single market. 

The  Commission  will  launch  a  public  consultation  (Green  Paper)  on  corporate  governance.  It  will 
also  launch  a  public  consultation  on  possible  ways  to  improve  the  transparency  of  information 
provided  by  businesses  on  social  and  environmental  matters  and  respect  for  human  rights.  These 
consultations could lead to legislative initiatives. 

2.5 A single market serving consumers 

2011/2012 

2011/2012  An integrated 

industrial policy 

In  2011  the  Commission  will  draw  up  a  multiannual  action  plan  for  the  development  of  European 
market  surveillance.  In  addition,  in  relation  to  the  customs  services  and  the  market  surveillance 
authorities  of  the  Member  States,  the  Commission  will  draw  up  guidelines  for  customs  controls  in 
the  area  of  product  safety  in  2011.  The  Commission  will  also  propose  a  revision  of  the  general 
product  safety  Directive  in  order  to  ensure  a  coherent  and  effective  framework  for  the  safety  of 
consumer goods in the EU. 

2011 

An integrated 
industrial policy 

Proposal No 40 

The Commission will adopt a legislative initiative on access to certain basic banking services at the 
start  of  2011.  It  will  also  call  on  the  banking  sector  to  submit  a  self-regulatory  initiative  geared 
towards improving the transparency and comparability of bank charges by the end of 2011. 

2011 

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Proposal No 41 

Proposal No 42 

Proposal No 43 

Proposal No 44 

Proposal No 45 

Proposal No 46 

By February 2011 the Commission will propose a Directive geared towards the creation of a single 
integrated mortgage market with a high level of consumer protection. 

2011 

The  Commission  will  adopt  a  Communication  by  the  end  of  2010  aimed  at  identifying  and 
eliminating the tax obstacles still facing European citizens. 

2010 

In  2012  the  Commission  will  adopt  a  proposal  amending  the  regulation  on  the  rights  of  air 
passengers, particularly in the light of the crisis triggered by the recent volcanic eruption in Iceland, 
and – should the legislative proposal on the road transport sector (buses and coaches) be adopted – a 
Communication on the rights of passengers using all means of transport.  

2012 

3. Dialogue, partnership, evaluation: The keys to good governance of the single market 

The Commission and the Member States will cooperate in continuing to develop the internal market 
by  stepping  up  the  procedure  for  evaluating  the  acquis,  in  particular  using  the  'mutual  evaluation' 
process set out in the Services Directive and currently being implemented by the Member States and 
the  Commission.  The  experience  gleaned  from  the  mutual  evaluation  process  of  the  Services 
Directive will also be applied to other key single market legislation. 

In early 2011 the Commission will present a strategy on extending the Internal Market Information 
system (IMI) to other legislative areas during 2011, with a view to creating a genuine face-to-face 
electronic  network  for  European  administrations.  This  strategy  will  be  the  subject  of  a  legislative 
proposal. This strategy will be the subject of a legislative proposal. 

In 2011, the Commission will be submitting an initiative on the use of alternative dispute resolution 
in the EU. It will also be adopting a Recommendation in 2011 on the network of alternative dispute 
resolution  systems  for  financial  services.  The  aim  of  these  two  initiatives  is  to  ensure  that  simple, 
reasonably  priced  out-of-court  settlement  procedures  are  established  to  deal  with  cross-border 
consumer  disputes.  By  2012,  the  Commission  will  be  proposing  a  European  system  for  the 
settlement of on-line disputes for digital transactions. It will also carry out a public consultation on a 
European approach to collective redress in 2010-2011, in order to identify arrangements which could 
be introduced into the legal framework of the European Union and the legal systems of the Member 
States. 

2011 

2011 

Report on 
citizenship 

Report on 
citizenship 

An integrated 
industrial policy 

A Digital 
Agenda for 
Europe 

Report on 
citizenship 

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Proposal No 47 

Proposal No 48 

Proposal No 49 

Proposal No 50 

The Commission will work in partnership with the Member States to develop a more resolute policy 
to enforce the rules of the single market. The Commission undertakes to prepare transposition plans 
and  draft  correlation  tables  for  the  legislative  proposals  provided  for  in  the  Act  and  to  reduce  the 
average time taken to deal with infringement files. The Commission calls on the Member States to 
reduce  their  transposition  deficit  of  the  single  market  directives  to  0.5%  and  to  provide  their 
correlation tables with the implementing measures. 

2011 

The  Commission  will  increase  consultation  and  dialogue  with  civil  society  in  the  preparation  and 
implementation of texts. Particular attention will be paid to taking into account the points of view of 
consumers,  NGOs,  trade  unions,  businesses,  savers,  users  and  local  authorities  in  the  consultations 
prior to the adoption of proposals and, in particular, with regard to the work of expert groups. 

2011 

Report on 
citizenship 

In 2010, the Commission will continue to promote a one-stop shop to provide citizens and businesses 
with  information  and  support  concerning  their  rights  in  the  single  market,  on  the  internet,  by 
telephone  or  in  person,  by  developing  the  ‘Your  Europe’  internet  portal  and  improving  its 
coordination  with  ‘Europe  Direct’.  The  Commission  will  also  strengthen  its  partnerships  with  the 
Member  States  with  a  view  to  ensuring  that  information  on  national  rules  and  procedures  is  also 
available through this one-stop shop.  

2010 

Report on 
citizenship 

The Commission, in partnership with the Member States, will strengthen informal problem-solving 
tools,  specifically  by  consolidating  and  reinforcing  the  EU  Pilot  project,  the  SOLVIT  network  and 
the networks of European Consumer Centres. Based on an assessment in 2010, it will make specific 
proposals  concerning  SOLVIT  in  2011.  In  the  longer  term,  it  will  examine  the  conditions  for 
potential  further  development  of  these  tools  and  of  the  other  alternative  dispute-resolution 
mechanisms by forging closer ties between them, with a view to ensuring that they will eventually be 
able to better deal with all of the problems associated with the single market. 

2011 

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