COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Single Market Act  Twelve levers to boost growth and strengthen confidence  &quot;Working together to create new growth&quot;
Date: 2011-04-13
Institutions: European Commission
Subjects: citizens' Europe, common commercial policy, competitiveness, economic growth, market economy, reflation, single market

EUROPEAN COMMISSION 

Brussels, 13.4.2011 
COM(2011) 206 final 

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

Single Market Act 

Twelve levers to boost growth and strengthen confidence 

"Working together to create new growth" 

{SEC(2011) 467 final} 

EN 

   EN 

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

Single Market Act 

Twelve levers to boost growth and strengthen confidence 

"Working together to create new growth" 

TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

2.3. 

2.4. 

2.5. 

2.6. 

2.7. 

2.8. 

2.9. 

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

Twelve levers to boost growth and strenghten confidence .......................................... 6 

Access to finance for SMEs ......................................................................................... 6 

Mobility for citizens..................................................................................................... 7 

Intellectual property rights ........................................................................................... 8 

Consumer empowerment ............................................................................................. 9 

Services ...................................................................................................................... 10 

Networks .................................................................................................................... 11 

The digital single market............................................................................................ 12 

Social entrepreneurship.............................................................................................. 14 

Taxation...................................................................................................................... 15 

2.10. 

Social cohesion........................................................................................................... 16 

2.11.  Business environment ................................................................................................ 18 

2.12. 

Public procurement .................................................................................................... 19 

3. 

4. 

The Conditions for Success, a Strengthened Governance of the Single Market ....... 20 

Next Steps and Conclusion ........................................................................................ 22 

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1. 

INTRODUCTION 

At the heart of the European project since its inception, the common market – which has now 
become the internal market – has for over 50 years woven strands of solidarity between 
the  men  and  women  of  Europe,  whilst  opening  up  new  opportunities  for  growth  for 
more than 21 million European businesses. An area of free movement for goods, people, 
services  and  capital,  the  internal  market  has  been  further  developed  since  1993  by  the 
consolidation of economic integration, the Euro and solidarity and cohesion policies. Today 
more  than  ever  it  has  become  a  part  of  people's  everyday  life  in  their  professional  and 
private  activities  and  as  consumers.  It  is  the  real  growth  engine  within  the  European 
economy. 

Nevertheless,  the  internal  market  has  shortcomings,  which  were  highlighted  by  Mario 
Monti in his report "A New Strategy for the Single Market" and by the European Parliament in 
Louis Grech's report "Delivering a single market to consumers and citizens".1 

An Action Plan to relaunch growth and strengthen confidence 

To remedy these shortcomings we must give the single market the opportunity to develop 
its full potential. To this end, a proactive and cross-cutting strategy should be developed. 
This  means  putting  an  end  to  market  fragmentation  and  eliminating  barriers  and 
obstacles to the movement of services, innovation and creativity. It means strengthening 
citizens' confidence in their internal market and ensuring that its benefits are passed on 
to consumers. A better integrated market which fully plays its role as a platform on which to 
build European competitiveness for its peoples, businesses and regions, including the remotest 
and  least  developed2.  There  is  an  urgent  need  to  act.  Despite  the  European  Union's  swift 
reaction to the crisis and the reforms which are now well under way (especially in financial 
markets and economic governance), the crisis could have a lasting effect on potential growth 
and on unemployment, affecting both the standard of living of Europeans and their future3. In 
response,  the  European  Union  has  adopted  a  strategy  –  Europe  2020  –  setting  itself 
ambitious goals  for smart, sustainable and  inclusive  growth4. But these objectives can be 
achieved  only  if  the  Union  and  the  Member  States  carry  out  urgent  structural  reforms. 
Priority must be given to those measures likely to foster growth and employment. In its 
Annual Growth Survey5 the Commission stressed the need for a global response to the crisis, 
to  which  the  single  market  is  called  upon  to  contribute  decisively  by  leveraging  its  growth 
potential.  The  European  Council  stressed  this  role  in  its  Conclusions  of  24/25  March  2011: 
"The  Single  Market  has  a  key  role  to  play  to  deliver  growth  and  employment  and  promote 
competitiveness … Particular emphasis should be laid on measures which create growth and 
jobs  and  bring  tangible  results  to  citizens  and  businesses"6.  The  single  market  provides  the 
framework and the tools for implementing these reforms. 

1 
2 
3 

4 
5 
6 

A7-0132/2010 
The Commission entrusted P. Solbes with the preparation of a report on the situation in these regions. 
Medium-term  potential  growth  is  estimated  at  1.5%  up  to  2020.  9.6%  of  the  active  population  is 
unemployed. Commission Communication "Annual Growth Survey: advancing the EU's comprehensive 
response to the crisis", pages 2 and 3. 
COM (2010)2020. 
Communication "Annual Growth Survey" (COM(2011)11). 
European Council Conclusions of 24/25 March 2011, EUCO 10/11, paragraph 7. 

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A fruitful and stimulating public debate 

In  order  to  tackle  these  challenges,  the  Commission  put  50  proposals  up  for  debate.  These 
were set out in the Communication "Towards a Single Market Act"7. 

The  public  debate  took  place  at  European,  national  and  local  levels.  There  were  more  than 
800  responses  to  the  public  consultation  on  the  Single  Market  Act,  reflecting  the  points  of 
view  of  Member  States,  non-governmental  organisations,  social  partners  at  national  and 
European level, local and regional authorities, industrial and professional organisations, trade 
unions,  businesses,  consumer  organisations,  think  tanks,  academics  and  many  individuals8. 
The  consultation  revealed  high  expectations  from  civil  society,  in  terms  both  of  the 
development  of  the  Single  Market's  potential  to  foster  growth  and  employment  as  well  as 
the  social  dimension  of  the  internal  market  and  the  protection  of  public  services.  Priorities 
identified  by  respondents  in  the  economy  confirm  strong  support  for  the  common  goal  of  a 
highly competitive social market economy. 

In its Conclusions of 10 December 20109 the Council endorsed the general thrust of the Single 
Market  Act,  putting  the  Single  Market  on  a  solid  economic  and  social  footing  in  a  highly 
competitive  economy.  The  Council  undertook  to  examine  further  the  Single  Market  Act,  in 
order to define as quickly as possible – in partnership with the European Parliament and the 
Commission – priority objectives to put in place before the end of 2012. In its 6 April 2011 
resolutions10  based  on  the  reports  by  MEPs Sandra  Kalniete,  Cristian  Silviu  Busoi  and 
Antonio  Fernando  Correia  de  Campos,  the  European  Parliament  set  out  its  priorities  for 
developing  a  single  market  for  Europe's  citizens,  businesses  and  growth,  in  a  framework  of 
partnership and governance. 

Twelve levers to boost growth and strengthen citizens' confidence 

On the basis of the contributions made during the public debate, the views and conclusions of 
the European Parliament and Council, and the opinions of the Committee of the Regions11 and 
the  European  Economic  and  Social  Committee12,  the  Commission  has  identified  twelve 
levers.  In  order  to  boost  growth  and  reinforce  citizens'  confidence,  the  Commission 
proposes that the EU should adopt a key action for each lever by the end of 2012. 

In  2011  the  Commission  will  present  the  necessary  legislative  proposals  for  the 
implementation  of  those  key  actions,  so  that  the  Parliament  and  Council  can  respond  to 
the invitation from the European Council to adopt a first series of priority measures to 
relaunch the single market by the end of 201213. 

This  priority-setting  does  not  mean  that  the  Commission  is  giving  up  on  other  actions 
identified  in  its  Communication  "Towards  a  Single  Market  Act"  that  will  enable  the  Single 

7 
8 
9 
10 

11 
12 
13 

COM(2010)608.  
See the attached report on the Public Consultation on the Single Market Act. 
Council Conclusions on the Single Market Act (17799/10). 
"Governance and Partnership in the Single Market" (P7_TA-PROV(2011)0144), "A Single Market for 
Europeans"  (P7_TA-PROV(2011)0145),  and  "A  Single Market for  Enterprises  and Growth" (P7_TA-
PROV(2011)0146), respectively. 
CdR 330/2010 – ECOS-V-009 
CESE 525/2011 – INT/548 
European Council Conclusions of 24/25 March 2011, EUCO 10/11, paragraph 7. 

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Market to become the platform for growth and job creation. While responding to the urgent 
need to act for growth and jobs, the Action Plan is only a first step in that direction.  

Work  will  have  to  continue  and  we  should  prepare  as  of  now  for  the  next  step.  The 
Commission  will  present  further  measures  that  respond  to  the  needs  identified  and  make  a 
significant contribution to the relaunch of the Single Market. At the end of 2012 it will take 
stock  of  the  progress  of  the  current  Action  Plan  and  will  present  a  programme  for  the  next 
stage. All these measures together will provide a coherent political response to the gaps in the 
Single  Market  by  presenting  a  model  for  sustainable,  smart  and  inclusive  growth  in  the 
framework of the Europe 2020 Strategy. 

Sustainable growth 

All  these  reforms  should  contribute  to  sustainable  development,  based  on  a  highly 
competitive  social  market  economy14.  They  should  contribute  to  social  progress  and 
employment and to improving the environment and fighting climate change. They should 
strengthen  the  external  dimension  of  the  internal  market.  They  should  also  ensure 
tangible benefits for citizens, for whom they are intended. Public support for the European 
integration project depends on it. 

Smart growth 

These  reforms  will  complement  and  reform  the  Single  Market,  adapting  it  to  the 
challenges of the 21st century (in particular in the digital economy), giving our industry the 
means  to  be  more  competitive  in  international  markets  and  providing  Europe  with  essential 
infrastructure  necessary  to  ensure  free  movement  of  people  and  goods.  They  should  also 
encourage  innovation  and  creativity,  which  contribute  to  the  revival  of  a  strong  industrial 
economy in Europe and the development of a competitive services-based society. 

Inclusive growth 

These  reforms  will  facilitate  the  creation  and  development  of  small  and  micro- 
enterprises,  which  are  the  backbone  of  national  and  European  economies.  Continued 
efforts towards smart regulation and cutting red tape will be central to these reforms. They 
will solve the practical difficulties of Europeans and ensure that integration does not occur 
at  the  expense  of  social  rights  but  rather  that  the  reforms  contribute  to  a  society  that  stands 
together in greater solidarity. 

To this end, the Commission will continue to improve its coverage of the social dimension 
of  the  impact  assessments  which  accompany  legislative  proposals  concerning  the 
internal  market.  It  will  ensure  that  its  legislative  proposals  include  a  reference  to  social 
policies and social rights, where this is justified in the light of those assessments. It will take 
account of Articles 8 and 9 of the Treaty on the Functioning of the European Union (TFEU) 
and of the Charter of Fundamental Rights of the European Union. Under those fundamental 
rights,  workers  and  employers,  or  their  respective  organisations,  have,  in  accordance  with 
Union  law  and  national  laws  and  practices,  the  right  to  take  collective  action  in  cases  of 
conflicts of interest to defend their interests, including strike action15. 

14 
15 

Article 3(3) of the Treaty on European Union. 
Article 28 of the Charter. 

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Inclusive  growth  also  means  paying  particular  attention  to  the  needs  of  people  with 
disabilities  so  that  they  can  benefit  from  the  single  market;  for  instance,  passengers  with 
reduced  mobility  must  be  able  to  travel  more  easily,  and  the  visually  impaired  must  have 
wider access to the written word. 

An integrated strategy 

The  Commission  has  already  taken  several  major  actions  in  the  form  of  the  seven  flagship 
initiatives of the Europe 2020 Strategy. The initiatives undertaken (such as the 2011 Energy 
Efficiency Plan16 or the review of the Small Business Act for Europe17), which touch on all 
areas associated with the economic recovery, gradually pave the way towards new forms of 
growth.  Financial  markets  will  play  a  key  role in  this  regard  and  reforms  undertaken  in  the 
field of financial services regulation – putting it at the service of sustainable growth18 – will 
continue. 

2. 

TWELVE LEVERS TO BOOST GROWTH AND STRENGHTEN CONFIDENCE 

2.1. 

Access to finance for SMEs 

Key action 

Legislation  designed  to  make  it  easier  for  venture  capital  funds  established  in  a  Member 
State  to  invest  freely  in  any  other  Member  State,  without  obstacles  or  additional 
requirements.  Its  objective  is  to  ensure  that  SMEs  wanting  to  use  venture  capital  can  call 
upon funds with the necessary expertise for the sector and the capacity to offer capital at an 
attractive price19. 

The  European  Union's  21  million  SMEs  represent  a  major  asset  for  sustainable  growth  and 
job creation. Difficulty in accessing finance is one of the main obstacles that prevent SMEs 
from  launching  new  products,  strengthening  their  infrastructure  and  taking  on  more 
employees20.  This  situation  is  equally  true  of  well-established  SMEs  and  those  that  are 
innovating and rapidly expanding. 

In Europe, most well-established SMEs have access to bank finance, which has become more 
restricted  owing  to  the  financial  crisis.  This  is  why  the  Commission,  in  its  revision  of  the 
Small  Business  Act  (adopted  in  February),  pledged  to  evaluate  the  impact  on  SMEs  of  all 
proposals  for  the  regulation  of  financial  services  (such  as  capital  requirements  imposed  on 
banks) and to calibrate them appropriately. 

Facilitating  access  to  funding  for  rapidly  expanding  SMEs  is  a  requirement  of  the  utmost 
importance because such SMEs – and innovative SMES in particular – play a crucial role in 
the development of an innovative, sustainable economy. In order to access the funds needed 

16 
17 
18 

19 
20 

COM (2011)109. 
COM (2011)78. 
See  Communication  of  2  October  2010:  "Regulating  financial  services  for  sustainable  growth" 
(COM(2010)301final) 
2011  
(http://ec.europa.eu/internal_market/finances/docs/110209_progress_report_financial_issues_en.pdf). 
See also the flagship initiative "Innovation Union" (COM(2010)546). 
According  to  a  2009  Eurobarometer  study,  difficulties  in  accessing  finance  are  quoted  as  the  second 
most important obstacle to business growth.   
http://ec.europa.eu/public_opinion/flash/fl_271_en.pdf  

published 

February 

progress 

report 

and 

the 

in 

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to  make  their  innovations  marketable,  these  businesses  often  seek  access  to  capital  markets 
beyond  bank  financing.  Venture-capital  markets  could  supply  capital,  but  they  are  not 
sufficiently well developed in Europe. Venture capital funds encounter significant difficulties 
in raising capital abroad and operating across borders because of the multiplicity of national 
regulatory regimes and tax barriers. This key action will be implemented in close cooperation 
with the SME Finance Forum. 

SME financing will be the subject of an action plan. It will cover not only access to different 
financing  sources  but  also  SME  financing  tools  directly  and  the  creation  of  an  environment 
that is conducive to development and growth for SMEs.  

The Transparency Directive, the Regulation implementing the Prospectus Directive and 
the  Market  Abuse  Directive  should  also  be  revised  in  order  to  make  the  obligations 
applicable to listed SMEs more proportionate, whilst guaranteeing the same level of investor 
protection.  In  addition,  special  conditions  calibrated  to  negotiating  platforms  intended  for 
SMEs  should  be  introduced  in  the  revision  of  the  Markets  in  Financial  Instruments 
Directive  (MiFID)  in  order  to  create  a  quality  label  for  those  markets  and  to  facilitate  the 
development of a network. 

2.2.  Mobility for citizens 

Key action 

Legislation modernising the system for recognising professional qualifications21. The aim is 
to simplify procedures for the mutual recognition of mobile workers, modernise the legislative 
framework,  review  the  scope  of  regulated  professions  and  strengthen  trust  and  cooperation 
between  Member  States.  The  creation  of  a  European  professional  card  would  particularly 
encourage  the  mobility  of  professionals,  whilst  boosting  confidence  between  the  competent 
authorities of the Member States and ultimately benefiting consumers and employers. 

Mobility  and  workers'  qualifications  respond  to  the  need  to  relaunch  growth  in  Europe. 
Increased  mobility  of  skilled  labour  will  make  the  European  economy  to  become  more 
competitive.  Too  many  regulatory  barriers  still  prevent  Europeans  from  working  wherever 
they  wish  in  the  European  Union,  whilst  many  highly  skilled  jobs  remain  unfilled.  The 
economy could benefit more from temporary labour mobility if it were better promoted and 
facilitated through a clearer framework. Furthermore, when it comes to non-regulated areas, it 
is  important  that  efforts  continue  on  correspondence  between  national  certification  systems, 
via the European Qualifications Framework, in order to facilitate qualifications comparability 
in the case of mobile workers. 

The  current  situation  on  the  labour  market,  marked  by  the  economic  crisis  and  an  ageing 
population,  is  characterised  by  a  shortage  of  labour  and  the  difficulties  experienced  by 
employers wishing to recruit staff with appropriate skills. In this context, citizens must be able 
to take up a new job in another Member State quickly. For this to happen, they need to have 
their qualifications and professional experience recognised in all the Member States. 

In  order  to  facilitate  mobility,  citizens  must  also  be  able  to  establish  and  keep  their 
complementary  pension  rights  (portability),  even  in  the  event  of  subsequent  move  to 

21 

See also the flagship initiative "An agenda for new skills and jobs" (COM(2010)682)  

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another Member State. The full commitment of the European Parliament and the Council will 
be vital to respond by 2012 to citizens' high expectations. 

Accordingly,  and  as  a  follow-up  to  its  2010  Green  Paper22,  the  Commission  will  publish  a 
White Paper on pensions which – amongst other things – will address the question of pension 
rights protection and encourage Member States to set up pension tracking services which will 
help citizens follow the development of their pension rights. Legislative measures will then be 
proposed in the course of 2012 to enhance the protection of pension rights. At the same time 
the  Commission  will  also  review  the  Directive  on  institutions  for  occupational  retirement 
provisions (IORPs) in order to enable both workers and employers to make the most of the 
single market.  

The  Commission  has  also  proposed  a  set  of  measures  to  favour  mobility  in  its  flagship 
initiative  "An  Agenda  for  skills  and  jobs",  including  the  creation  of  a  "European  skills 
passport" recording the assets and skills acquired by an individual in the course of his or her 
life23. 

Youth mobility, particularly in the case of those who left school without qualifications, should 
also  be  facilitated.  The  Commission  will  propose  a  Council  Recommendation  on  the 
promotion and validation of non-formal and informal learning24. 

2.3. 

Intellectual property rights 

Key action 

Legislation  setting  up  a  unitary  patent  protection  for  the  greatest  possible  number  of 
Member  States  and  a  unified  patent  litigation  system  with  the  objective  of  issuing  the  first 
EU patents in 201325. 

Intellectual property is a property right recognised in the Charter of Fundamental Rights26. It 
is just as important as raw materials or the industrial base: between 45% and 75% of the value 
of  large  enterprises  is  linked  to  their  intellectual  property  rights27.  Industries  that  make 
intensive  use  of  IPR  play  a  strategic  role  in  the  sustainable  development  of  our  economies. 
Not  only  do  they  lead  to  innovation,  they  also  generate  significant  added  value  and  offer 
stable  and  highly  qualified  employment.  Salaries  in  these  industries  are  on  average  60% 
higher than in other sectors. 

The  protection  of  intellectual  property  rights  encourages  investment  in  the  development  of 
innovative  services  and  products  and  ensures  a  fair  return  on  investment.  A  regulatory 
framework will be introduced to provide effective protection for those rights, with due regard 
for  fundamental  rights.  The  framework,  which  at  the  same  time  must  enable  information, 
products  and  services  to  be  distributed  in  compliance  with  competition  law,  will  have  to 
constitute one of the EU's top priorities. 

22 
23 
24 
25 

26 
27 

"Towards adequate, sustainable and safe European pension systems" (COM(2010)365). 
See COM(2010)682.  
See also the flagship initiative "Youth on the Move" (COM(2010)477). 
See also the flagship initiatives "An Innovation Union" (COM(2010)546) and "An Integrated Industrial 
Policy for the Globalisation Era" (COM(2010)614). 
Article 17 of the Charter of Fundamental Rights. 
Source: http://www.wipo.int/sme/en/documents/valuing patents.htm 

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The  current  situation  –  characterised  by  a  multiplication  of  patents  and  national  patent 
litigation  systems  –  is  costly  and  inefficient  and  it  generates  legal  insecurity,  which  makes 
putting in place a single patent and a unified system for litigation the absolute priority in this 
field. A single patent would reduce costs by 80%. 

Similarly, the development of an instrument to enhance the value of intellectual property 
rights  would  facilitate  the  emergence  of  a  true  European  market  for  patents  and  licences. 
Moreover,  the  possibility  of  the  intangible  assets  that  a  business  holds  in  the  form  of 
intellectual-property rights being fully recognised as loan collateral is a desirable objective. 

Meanwhile,  current  systems  for  the  granting  of  copyright  licences  for  legal  on-line 
services  should  also  be  simplified  and  made  transparent28.  In  the  internet  age,  collective 
management  must  be  able  to  evolve  towards  European  models  which  facilitate  for  licences 
covering  several  territories  for  a  multitude  of  on-line  services,  whilst  at  the  same  time 
providing  a  high  level  of  protection  for  rights  holders.  The  new  flexibility  provided  by  an 
updated legal framework will enable new business models to emerge, leading to a wider and 
targeted distribution of creative content to more mobile consumers. In addition, the creation of 
a  digital  version  of  the  catalogues  of  European  cultural  institutions,  including  of  orphan 
works, should be facilitated. 

The  promotion  of  legal  services  must  be  accompanied  by  European  legislation  to  combat 
piracy  and  counterfeiting  more  effectively,  in  particular  by  enhancing  the  role  of  the 
European  Observatory  on  Counterfeiting  and  Piracy  and  improving  cooperation  between 
authorities29. Customs authorities should be able to provide greater protection for intellectual-
property rights through revised legislation. It is estimated that piracy and counterfeiting cost 
European businesses EUR 250 billion each year30.  

The  European  trademark  system  should  also  be  modernised  in  order  to  improve  the 
protection  of  trademarks  and  to  make  the  European  and  national  trademark  systems  more 
coherent.  This  will  simplify  procedures,  reduce  costs  and  enable  the  system  to  benefit  fully 
from new technologies, thereby facilitating research.  

These  matters  will  be  dealt  with  in  the  Communication  on  the  strategy  for  intellectual 
property, which will be adopted by the Commission in 2011. 

2.4. 

Consumer empowerment 

Key action 

Legislation on Alternative Dispute Resolution. The purpose of this is to establish simple, fast 
and  affordable  out-of-court  settlement  procedures  for  consumers  and  protect  relations 
between businesses and their customers. This action will also include an electronic commerce 
dimension. 

The Single Market is part of everyday life for consumers whenever they travel, buy goods or 
services  or  make  payments.  However,  consumers  still  face  with  many  obstacles  and  lack 

28 
29 
30 

See also the flagship initiative "A Digital Agenda for Europe" (COM(2010)245). 
See also the flagship initiative "An Integrated Industrial Policy" (COM(2010)614). 
OECD:  "Magnitude  of  counterfeiting  and  piracy  of  tangible  products  –  November  2009  update", 
http://www.oecd.org 

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confidence in their ability to obtain redress if problems arise. To relaunch the Single Market 
(and  the  digital  Single  Market  in  particular),  strengthening  their  trust  in  the  application  of 
their  rights  is  paramount.  Better  application  of  the  rules  would  prevent  sizeable  losses  for 
consumers,  which  are  estimated  at  0.16%  of  the  European  Union's  gross  domestic  product 
(GDP). Increased consumer confidence in cross-border electronic commerce would generate 
additional  economic  benefits,  estimated  at  approximately  0.02%  of  the  European  Union's 
GDP (i.e. EUR 2.5 billion31). 

In  addition  to  alternative  dispute  resolution,  the  Commission  will  pursue  its  work  on  a 
European approach to collective redress on the basis of the results of the consultation it has 
launched. 

In order to strengthen consumer confidence in the Single Market, other practical steps must be 
taken. Consumers must be confident that the goods they buy are reliable, irrespective of the 
place  of  production.  The  Directive  on  General  Product  Safety  should  be  revised  for  this 
purpose. Similarly, businesses expect Member States to apply the same protection rules across 
the  EU.  To  this  end,  a multiannual  Action  Plan  on  market  surveillance  (including  at  the 
EU's external borders) will be drawn up by the Commission in cooperation with customs and 
market  monitoring  authorities  and  will  be  implemented  by  the  Member  States.  In  order  to 
ensure  that  consumers  receive  reliable  information  on  the  environmental  performance  of 
products, the Commission will propose – in connection with the Action Plan on Sustainable 
Consumption and Production – an initiative on the ecological footprint of products. 

Passenger rights should be correctly applied in all modes of transport, including for people 
with reduced mobility. A Communication will be published, summarising all European Union 
rules  relating  to  passenger  rights  for  all  modes  of  transport:  aeroplane,  train,  boat  and 
bus/coach.  In  order  to  better  protect  consumers,  the  Commission  will  in  the  near  future 
propose a review of the Directive on Package Travel, with particular reference to the on-line 
purchase of such travel. 

In  addition,  work  on  the  protection  of  consumers  of  retail  financial  services  will  continue, 
with particular regard to the transparency of bank fees and better protection of borrowers in 
the mortgage market. 

2.5. 

Services 

Key action 

Revision of the legislation on the European standardisation system, to extend it to services 
and make standardisation procedures more effective, efficient and inclusive32. 

Standardisation  is  a  primary  tool  for  the  free  movement  of  goods  whilst  ensuring  product 
interoperability, safety and quality. It is also increasingly used in the services sector, although 
mainly at national level. This can hinder the integration of the single market for services. In 

31 

32 

Working  Document  "Strengthening  the  powers  of  consumers  in  the  European  Union",  adopted  on 
7 April  2011  (SEC(2011)469)  and  based  on  Eurobarometer  342;  and  Commission  services'  estimate 
based on data published by the study "Mystery Shopping Evaluation of Cross-Border E-Commerce in 
the EU" by YouGovPsychonomics. 
See  also  the  flagship  initiatives  "An  Innovation  Union"  (COM(2010)546),  "An  Integrated  Industrial 
Policy  for 
the  Globalisation  Era"  (COM(2010)614)  and  "A  Digital  Agenda  for  Europe" 
(COM(2010)245). 

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order  to  avoid  the  emergence  of  new  barriers  and  to  facilitate  the  cross-border  provision  of 
services, particularly business-to-business services, such as logistics or facility management 
services, services standardisation should be developed at European level, taking full account 
of market needs. This will be a major objective of the review of the European standardisation 
system. Another major objective will be to establish a more effective, efficient and inclusive 
system. It should be possible for the standardisation system to enable standards to be adopted 
rapidly  and  to  be  adapted  to  new  technologies  (not  least  in  the  area  of  information  and 
communication  technologies),  to  enable  SMEs  and  other  interested  parties  to  become  more 
extensively involved and to ensure that standards remain accessible to all interested users.  

in  accordance  with 

More  generally,  a  Single  Market  in  services  which  functions  well  is  a  prerequisite  for 
generating growth and employment in Europe. Whereas the growth of the European economy 
was on average 2.1% per annum between 1998 and 2008, the services sector grew on average 
by 2.8% per annum. Employment in this sector increased by 2% per annum, compared with 
1%  for  the  economy  as  a  whole33.  To  create  a  Single  Market  in  services,  the  immediate 
priority  is  the  full  and  complete  implementation  of  the  Services  Directive  in  all  Member 
States, including the establishment of Points of Single Contact. Beyond the implementation of 
the  Directive,  and 
the  European  Council  Conclusions  of 
24/25 March 2011,  the  Commission  –  together  with  the  Member  States  –  will  carry  out 
"performance  checks"  aimed  at  closer  scrutiny  of  the  practical  functioning  of  the 
EU regulatory  framework  applicable  to  certain  growth  sectors  such  as  business  services, 
construction  and  tourism.  It  will  carry  out  further  assessments  on  reserved  activities, 
requirements  as  regards  capital  ownership  and  legal  form,  and  insurance  obligations,  all  of 
which are persistent obstacles to better integration of the markets in services34. On the basis of 
the  outcome  of  these  various  initiatives,  the  Commission  will  decide  in  2012  on  the 
subsequent  steps.  Particular  attention  should  also  be  devoted  to  the  retail  and  wholesale 
sectors  on  account  of  their  important  contribution  to  growth  and  job  creation.  An  initiative 
will be launched to combat unfair business-to-business commercial practices, in order to 
identify  the  nature  and  scale  of  the  problems  associated  with  unfair  commercial  practices 
between professional operators throughout the supply chain, list current regulations within the 
Member  States,  to  assess  their  implementation  and,  finally,  identify  the  various  possible 
options.  The  goal  will  be  to  put  an  end  to  unfair  practices  which  jeopardise  the  viability  of 
businesses and stimulate the competitiveness of the various operators in the supply chains in 
the  context  of  a  fairer  and  more  effective  single  market  in  the  retail  and  wholesale  sectors, 
while  at  the  same  time  meeting  consumers'  and  producers'  expectations  with  regard  to 
competitive prices. Given the importance of business services, the Commission will set up a 
High-Level Group to study the shortcomings of this particular market. 

Finally,  and  without  prejudice  to  the  recognition  of  qualifications,  the  question  of  how  to 
safeguard the quality of education provided in the context of the freedom to provide services, 
given the increasing use of franchising in education, will need to be examined. 

2.6. 

Networks 

Key action 

33 
34 

Eurostat 
Commission  Communication  (COM(2011)20)  "Towards  a  better  functioning  Single  Market  for 
services". 

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11 

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Energy  and  transport  infrastructure  legislation  serving  to  identify  and  roll  out  strategic 
projects of European interest and to ensure interoperability and intermodality. 

Transport,  energy  and  electronic-communications  networks  are  the  backbone  of  the  single 
market.  Indeed,  efficient  infrastructures  foster  rapid  free  movement  of  people,  goods  and 
various  types  of  energy  and  data  (with  the  allocation  of  a  sufficient  radio  spectrum)  at  a 
reasonable  cost.  Efficient  economic  integration  relies  on  the  integration  of  efficient 
infrastructure networks. 

A new European policy for energy infrastructures35 is needed in order to change the way in 
which  networks  are  planned  and  developed  in  the  EU.  Solutions  need  to  be  found  for 
important  missing  links,  and  networks  need  to  become  smarter  in  order  to  improve  energy 
transmission. New legislation must facilitate the establishment of a unified smart network, 
improving not only security of supply and market integration but also energy efficiency and 
renewable-energy  consumption.  More  efficient  and  transparent  authorisation  procedures  are 
essential  to  the  successful  integration  of  national  energy  networks  into  a  single  European 
network. Action in this area must be taken as a matter of urgency, given the time required for 
new projects to be authorised (often more than 10 years). 

As regards transport, the actions promoted by the White Paper on transport in the period up to 
205036  –  which  are  designed  in  particular  to  eliminate  obstacles  to  the  achievement  of  a 
genuine single market encompassing all transport modes and all national systems (including 
smart transport systems) and to develop a modern multimodal cabotage and transport network 
–  should  be  implemented.  In  particular,  the  EU  still  lacks  a  sufficiently  interconnected, 
interoperable  and  efficient  cross-border  transport  infrastructure  network.  A  revision  of  the 
joint  guidelines  for  the  development  of  the  Trans-European  Transport  Network  (TEN-T)  in 
2011  should  make  it  possible  to  eliminate  the  main  bottlenecks,  fill  existing  gaps  and 
interconnect  transport  modes  by  improving  project  identification  and  the  follow-up  of 
decisions.  The  new  guidelines  will  thus  define  a  basic  network  of  strategic  European 
infrastructure bringing together the eastern and western parts of the European Union, thereby 
embodying a European mobility network and a single European transport space. 

Finally,  radio  spectrum  is  essential  for  the  digital  society,  for  fast  wireless  services,  for 
economic  recovery,  for  growth,  for  high-quality  jobs  and  for  the  EU's  long-term 
competitiveness. Given the importance of the availability and efficient use of spectrum for the 
establishment  of  an  internal  market  in  electronic  communications  and  for  other  EU  policy 
areas, the Parliament and Council are called upon to adopt without delay  the proposal for a 
Decision establishing a radio spectrum policy programme for the strategic planning and 
harmonisation of the use of radio spectrum in Europe. 

2.7. 

The digital single market 

Key action 

Legislation ensuring the mutual recognition of electronic identification and authentication 

35 

36 

See also the Communication "Energy infrastructure priorities for 2020 and beyond – A Blueprint for an 
integrated European energy network" (COM(2010)677 final), the Conclusions of the European Summit 
of 4 February 2011, the flagship initiative "A resource-efficient Europe" (COM2011)21) and the Energy 
Efficiency Plan 2011 (COM(2011)109) 
See also the flagship initiative "An industrial policy for the globalisation era" (COM(2010)614). 

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across the EU and review of the Directive on Electronic Signatures. The objective is to make 
secure,  seamless  electronic  interaction  possible  between  businesses,  citizens  and  public 
authorities,  thereby  increasing  the  effectiveness  of  public  services  and  procurement,  service 
provision and electronic commerce (including the cross-border dimension). 

Strengthening  confidence  in  electronic  transactions  is  a  necessary  condition  for  the 
development of a digital single market, from which citizens, businesses and public authorities 
could  fully  benefit.  What  is  needed  in  order  to  do  this  are  trusted  electronic  services  that 
respect  privacy,  provide  legal  certainty,  ensure  that  transactions  are  secure,  work  across 
borders and are recognised by all sectors of activity, but which are cheap and easy to use and 
which are under the strict control of the transaction parties. 

To this end, the Commission will propose a new legislative framework to ensure confidence 
in  electronic  transactions.  This  framework  will  propose  revision  of  the  Directive  on 
Electronic  Signatures  in  order  to  clarify  its  concepts,  simplify  the  use  of  e-signature  and 
remove interoperability barriers. The framework will also provide for the mutual recognition 
of electronic identification and authentication services. It will also cover the cross-border 
functioning of certain other trusted services. The tools proposed in the framework should be 
general and not linked to a specific sector, especially where electronic identity is concerned. 
The  framework  will  be  technologically  neutral  and  open  to  all  communication  channels, 
including the Internet and mobile communications. 

The  development  of  digital  technology  is  one  of  the  main  levers  for  boosting  growth  and 
employment in the EU in various respects: the information and communications technology 
industry (whose added value to the European economy was approximately EUR 600 billion in 
200737), an increasing number of Europeans who use the Internet on a regular basis or even 
daily (65% and 53% respectively in 201038), a broadband market which was a world-leader in 
201039, a market for public-sector information estimated at EUR 27 billion40, to name just a 
few.  The  flagship  initiative  "A  Digital  Agenda  for  Europe"41  presents  a  complete  set  of 
actions which are designed ultimately to bring the digital single market into being.  

Voice transmission and data transmission are increasingly becoming essential services for all 
Europeans.  In  the  case  of  roaming  charges,  EU  regulatory  measures  undertaken  since  2007 
have  clearly  contributed  to  lower  telephone  costs  and  to  increased  transparency  for 
consumers.  However,  retail  prices  of  roaming  data-transmission  services  are  still  too  high, 
forcing  the  majority  of  individuals  and  a  significant  number  of  businesses  to  refrain  from 
using these services outside their country's borders. 

The development of the digital single market is hindered by lack of consumer confidence, the 
prime causes of which are payment security and the enforcement of consumer rights in cross-
border transactions42, particularly with regard to product safety and counterfeiting43. This lack 

37 
38 
39 

40 

41 
42 

"Europe's Digital Competitiveness Report", SEC(2010)627. 
Eurostat. 
Communications  Committee  Working  Document  -  "Broadband  Access  in  the  EU:  situation  at  1  July 
2010". 
Study "MEPSIR – Measuring European Public Sector Information Resources" (2006), HELM Group of 
Companies with Zenc, for the European Commission. 
COM(2010)245. 
Flash  Eurobarometer  No  299  –  Cross-border  trade  and  consumer  protection,  September  2010, 
Analytical report, p. 30 

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of consumer confidence and the problems encountered in shopping on line in other Member 
States explain why e-commerce represents less than 5% of  retail sales and why only 9% of 
Europeans have shopped on line in another Member State44. The challenge lies in providing a 
genuine  single  market  for  all  citizens,  including  the  most  vulnerable  or  those  residing  in 
isolated areas. Accordingly, the Commission will present an Action Plan for the development 
of electronic commerce. The relevant Communication will assess the implementation of the 
e-Commerce  Directive  and  analyse  the  challenges  that  need  to  be  met:  micro-payments, 
security of on-line payments, personal-data protection, the fight against counterfeiting, order 
delivery,  liability  of  service  providers  on  the  internet  and  consistency  of  EU  law  affecting 
electronic  commerce45.  The  Commission  will  also  propose  measures  to  promote  the 
development of a single space for payment cards and other innovative forms of payment. 

Discrimination based on geographical location (particularly in the field of e-commerce) must 
be abolished. The Commission will present Guidelines46 to remove unjustified discrimination 
where this is based on nationality or place of residence, in particular in e-commerce. 

Finally,  the  Directive  on  re-use  of  Public  Service  Information  (PSI47)  introduced  the  basic 
conditions for the re-use of the wide range of data produced by public authorities, which can 
stimulate the content and services markets if they are made available in a transparent and non-
discriminatory  manner48.  Revision  of  that  Directive  will  enable  public-sector  information  to 
become an important source of opportunities and growth for many other innovative sectors. 

2.8. 

Social entrepreneurship 

Key action 

Legislation  setting  up  a  European  framework  facilitating  the  development  of  social 
investment funds, which would scale up the impact of national initiatives by opening Single 
Market  opportunities  to  them  (access  to  investment  opportunities  and  to  investors  from  all 
Member States). 

The internal market is based on a "highly competitive social market economy", which reflects 
the  trend  towards  inclusive,  socially  fairer  and  environmentally  sustainable  growth.  New 
business models are being used, in which these societal concerns are taking precedence over 
the exclusive objective of financial profit. This trend must be reflected in the single market. A 
level  playing  field  must  be  ensured  and  initiatives,  which  introduce  more  fairness  in  the 
economy  and  contribute  to  the  fight  against  social  exclusion,  should  be  supported.  The 
tremendous financial lever of the European asset-management industry (EUR 7 000 billion in 
2009) should be used to promote the development of businesses which have chosen – above 
and beyond the legitimate quest for financial gain – to pursue objectives of general interest or 

43 

44 

45 

46 
47 
48 

See also the conclusions of the Communication "Cross-Border Business to Consumer e-Commerce in 
the EU" (COM(2009)557 – http://ec.europa.eu/consumers/strategy/docs/COM_2009_0557_4_en.pdf 
5th Consumer Scoreboard  - 
http://ec.europa.eu/consumers/strategy/docs/5th_edition_scoreboard_en.pdf. 
The  initiative  on  European  contract  law  will  be  among  the  actions  envisaged  in  order  to  reduce 
regulatory obstacles to electronic commerce. 
On the implementation of Article 20 of the Services Directive. 
2003/98/CE of the European Parliament and Council of 17 November 2003. 
For  example,  maps  and  itineraries  that  are  available  online  or  in  GPS  would  not  be  developed  to  the 
same  extent  if  the  PSI  Directive  had  not  created  the  conditions  for  public-sector  information  to  be 
available. 

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relating  to  social,  ethical  or  environmental  development.  In  order  to  ensure  a  level  playing 
field, the Commission will present a legislative proposal on the transparency of the social and 
environmental information provided by companies in all sectors. 

In  order  to  expand  and  meet  its  objectives,  the  social  economy  sector  in  the  Single  Market 
should have at their disposal legal models adapted to their needs. The European cooperative 
sector, for example, is more vibrant than ever49 – although the slow take-up of the Statute for 
a European Cooperative Society must be looked into. Mutual societies operate in sectors of 
key importance to citizens (health, banking, insurance, etc.) but they hardly ever provide their 
services  in  more  than  one  Member  State.  Nonetheless,  with  a  25%  share  of  the  insurance 
market and 70% of the total number of undertakings in the industry, they cannot be forgotten 
by the Single Market. Foundations make a strong contribution to the financing of innovative 
initiatives of general interest. However, they still face difficulties in establishing themselves 
in other Member States or pooling their assets on a cross-border basis. In order to overcome 
these  difficulties,  the  Commission  will  present  a  proposal  for  a  Regulation  establishing  a 
European Foundation Statute. 

Some companies, moreover, set themselves the objective of fighting against social exclusion, 
whilst  remaining  profit-making.  They  are  often  very  small  undertakings  acting  locally, 
although  some  of  them  have  a  genuine  growth  and  job  creation  potential50.  Legal 
instruments51  should  ensure  that  they view  the  Single  Market  as  both  their  breeding  ground 
and an opportunity for growth, instead of limiting themselves within national boundaries. 

Within the framework of the European Platform against Poverty and Social Exclusion52, the 
Commission will support the development of the social economy as an instrument for active 
inclusion by proposing, in 2011, a "Social Business Initiative" and by facilitating access to 
the Union's financial programmes for use in this area. 

In 2011 the Commission will also adopt a Communication on corporate social responsibility 
(CSR)  –  a  wider  concept  than  social  business  –  which  encourages  all  businesses  to  pursue 
actions with social or environmental objectives as part of their daily activities. 

2.9. 

Taxation 

Key action 

Review  of  the  Energy  Tax  Directive  in  order  to  ensure  consistent  treatment  of  different 
sources of energy, so as to better take into account the energy content of products and their 
CO2 emission level. 

EU rules on taxation no longer reflect the realities of the Single Market in the 21st century, 
nor the challenges of sustainable development. They do not provide a level playing field for 
end-users  within  the  internal  market  and  do  not  sufficiently  support  energy  saving  or 
environmentally  friendly  energy  consumption.  Today  it  is  important  that  taxation  policy 

49 
50 

51 

52 

Cooperative societies alone represent more than 4.8 million jobs. 
Employees in  social enterprises and the third sector are estimated at 7  million individuals (i.e. 4% of 
paid employment in Europe). 
Public procurement rules, business-to-business relations, especially in the retail and wholesale trade (B 
to  B),  access  to  finance  (bank  credit,  dedicated  investment  funds,  orientation  of  private  savings  by 
initiatives such as the Big Society Bank in the United Kingdom). 
COM(2010)758. 

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enables  consumption  to  be  directed  towards  a  better  use  of  energy  resources,  with  priority 
being given to clean energy sources. 

Furthermore, businesses which are established in several Member States must file several tax 
declarations and deal with several tax administrations. With its draft common consolidated 
corporate  tax  base  for  businesses  (CCCTB),  the  Commission  plans  to  harmonise  the 
methods for computing the tax base, so that the businesses so choosing can be subject to the 
same set of rules, irrespective of the Member State in which they are taxed53. Setting up one-
stop shops for taxation matters will facilitate relations between businesses and tax authorities 
and  organise  administrative  cooperation  between  the  Member  States'  tax  authorities.  Each 
year the CCCTB will enable EU businesses to save EUR 700 million in compliance costs and 
EUR 1.3 billion as a result of consolidation. In addition, companies wishing to expand beyond 
national borders will make savings of around EUR 1 billion. The CCCTB has been identified 
in the annual growth strategy as one of the growth-promoting measures to which it is vital to 
give  priority  to  be  adopted  by  the  end  of  2012.  In  this  context,  the  full  involvement  of  the 
Parliament  and  the  Council  will  be  of  fundamental  importance  in  order  to  meet  companies' 
high expectations with respect to the simplification of their regulatory environment.  

The  VAT  system  must  also  be  revised  with  a  view  to  establishing  the  definitive  system 
applicable  to  cross-border  transactions  in  particular  and  the  taxation  thereof,  in  order  to 
streamline the procedures relating to such transactions and place the entire commercial chain 
on a secure footing, in particular for SMEs. By the end of 2011, the Commission intends to 
identify the elements of a VAT strategy which should lead on to legislative initiatives. These 
would  then  be  examined  as  part  of  the  next  stage  of  strengthening  the  single  market  after 
2012.  

Cross-border taxation poses a number of problems for citizens. They must be resolved. A 
Commission  Communication  on  abolishing  cross-border  tax  obstacles  for  citizens54  has 
identified the most pressing problems, in particular double taxation, tax discrimination and the 
difficulty in gaining access to information and to the tax authorities of other Member States. It 
announced  measures  to  solve  specific  problems.  Possible  solutions  include  a  binding 
mechanism for disputes relating to double taxation, the creation of one-stop contact points for 
access to authorities and the tax treatment of cross-border successions.  

2.10. 

Social cohesion 

Key action 

Legislation  aimed  at  improving  and  reinforcing  the  transposition,  implementation  and 
enforcement in practice of the Posting of Workers Directive55, which will include measures 
to  prevent  and  sanction  any  abuse  and  circumvention  of  the  applicable  rules,  together  with 
legislation aimed at clarifying the exercise of freedom of establishment and the freedom to 
provide services alongside fundamental social rights.  

In a social market economy, a more unified European market in services means being able to 
ensure,  with  no  race  to  the  bottom,  that  businesses  are  able  to  provide  their  services  more 

53 

54 
55 

It  is  estimated  that  the  introduction  of  a  common  consolidated  corporate  tax  base  could  reduce  tax-
related administrative costs by 67% for SMEs. 
COM(2010)769. 
See the flagship initiative "An Agenda for new skills and jobs" (COM(2010)682). 

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easily throughout the European Union (in particular by posting their workers on secondment), 
whilst  at  the  same  time  providing  more  high  quality  jobs  and  a  high  level  of  protection  for 
workers and their social rights. 

In this regard, the legal framework relating to the posting of workers needs to be implemented 
more effectively  to  facilitate  the  flow  of information between businesses and  Member  State 
authorities,  to  enable  more  stringent  checks  to  be  carried  out  and  to  combat  abuse,  with 
particular regard to workers' rights. 

The legislation on the single market must take due account of Articles 8 and 9 of the Treaty 
on  the  Functioning  of  the  European  Union  and  the  Charter  of  Fundamental  Rights  of  the 
European  Union,  which  now  has  the  same  legal  value  as  the  Treaty.  Accordingly,  the 
Commission will propose legislation applicable to all sectors which will clarify the exercise of 
freedom  of  establishment  and  the  freedom  to  provide  services  alongside  fundamental  social 
rights,  including  the  right  to  take  collective  action,  in  accordance  with  national  law  and 
practices and in compliance with EU law56. 

More broadly, social and territorial cohesion is a prime importance for European integration, 
which  acknowledges  that  market  forces  alone  cannot  provide  an  adequate  response  to  all 
collective needs. Services of general economic interest (SGEIs) are essential building blocks 
of the European social model that is both highly competitive and socially inclusive. 

The  European  Union  recognises  –  in  particular  in  Article  14  of  the  TFEU  and  in 
Protocol No 26  to  the  Treaties  –  the  importance  of  SGEIs  in  promoting  the  social  and 
territorial  cohesion  of  the  Union  and  its  Member  States  and  the  essential  role  and  wide 
discretionary  powers of  national,  regional and local authorities in providing, commissioning 
and organising services of general economic interest in a way that meets users' needs as far as 
possible, in accordance with the subsidiarity principle.  

In the area of public procurement, the Commission has recently launched discussions with a 
view  to  clarifying  the  relationship  between  the  rules  on  State  aid  and  public  procurement 
rules, as well as on the arrangements applicable to services provided in-house. 

Furthermore,  pursuant  to  Article  106  of  the  TFEU,  the  Commission  has  exclusive 
responsibility for ensuring that the provision and the financing of SGEIs are compatible with 
the  Treaty  principles  and  provisions  regarding  competition.  Discussions  have  just  been 
launched on the next revision of the package of measures on State aid for SGEIs (known as 
the "post-Altmark package")57. The future reform should serve the dual purpose of providing 
clarification  and  following  a  differentiated  and  proportionate  approach.  Hence,  the 
Commission  envisages  providing  –  if  necessary  –  clarifications  on  various  relevant  key 
concepts and making the degree of detail in the assessment of State aid proportionate to the 
nature and scale of the services provided. 

56 

57 

The  initiative  could  use  the  solutions  in  Regulation  (EC)  No  2679/98  of  7  December  1998  on  the 
functioning of the internal market in relation to the free movement of goods among the Member States 
as a starting-point. 
Commission  Communication  of  23  March  2011,  "Reform  of  the  EU  State  Aid  Rules  on  Services  of 
General Economic Interest" (COM(2011)146). 

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In a Communication to be adopted by the end of 2011, the Commission will present measures 
designed  to  better  ensure  that  SGEIs,  including  social  services  of  general  interest  (SSGIs), 
have a framework enabling them to perform their tasks. 

The Commission will therefore examine the measures to ensure, in conjunction with Article 
14 and Protocol No 26, that all citizens have affordable access to essential everyday services 
which  they  need  in  order  to  participate  in  economic  and  social  life,  with  due  regard  for  the 
vital  role  of  the  Member  States  in  providing,  commissioning  and  organising  such  services. 
This response will take into account the changing needs of Europeans. 

The Commission notes that not all citizens are able to participate actively in the single market. 
For example, access to basic banking services – which has become an essential condition for 
participation  in  economic  and  social  life  –  is  not  available  to  all.  The  Commission  will 
therefore present an initiative concerning access to a basic payment account for all citizens at 
a reasonable cost, wherever they live in the EU.  

2.11.  Business environment 

Key action 

Simplification  of  the  Accounting  Directives  as  regards  financial  information  obligations 
and reduction of the administrative burden, particularly for SMEs. 

In its Conclusions of 24/25 March 2011, the European Council stressed the need to reduce the 
regulatory  burden,  in  particular  for  SMEs,  at  both  European  and  national  levels.  The 
Commission will report on this issue by the summer58. The advantages of the Single Market 
depend on the ease with which persons, goods, services and capital can circulate freely from 
one  Member  State  to  another.  The  objective  of  Single  Market  policy  is  to  facilitate  free 
movements not only through the abolition of market barriers, but also through the creation of 
a regulatory environment which minimises administrative burdens.  

The main aim of the proposed revision of the Directives on accounting rules is to reduce the 
administrative  burden  stemming  from  accounting  requirements  on  micro-  and  small  public 
limited  companies  and  limited  liability  companies.  The  potential  savings  generated  by  this 
proposal  amount  to  EUR  1.5  billion  per  year  for  1.1  million  small  companies  and  EUR  5.2 
billion  per  year  for  5.9  million  micro-enterprises59.  These  savings  would  be  mainly  due  to 
easier financial reporting requirements on these micro- and small enterprises. In addition, the 
review  of  the  Directives  will  also  improve  the  clarity  and  comparability  of  the  financial 
statements  of  small-  to  large-sized  companies  across  the  EU.  In  addition,  the  Commission 
proposal to exempt micro-enterprises from the provisions of the accounting Directives should 
be adopted by the Council and the Parliament. 

The introduction of harmonised EU rules replaces a set of 27 national rules and therefore in 
itself constitutes a reduction in the regulatory burden. Further efforts are being made to reduce 
the administrative burden stemming from EU rules60. The Commission has therefore proposed 

58 
59 

60 

European Council Conclusions of 24/25 March 2011, EUCO 10/11, paragraph 7. 
Figures based on an October 2010 study by the Centre for Strategy & Evaluation Services (CSES) and 
on a report on the EU project on reference measures and lower administrative costs which was carried 
out by Capgemini, Deloitte and Ramboll in February 2009. 
See also the European Strategy for the simplification of the regulatory environment (COM(2005)535). 

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drawing  up  a  European  Private  Company  Statute  (EPC),  the  adoption  of  which  requires 
action by the EU Council. 

The Commission has adopted a "Small Business Act"61 to facilitate the activities of SMEs. 
This  introduced  the  "Think  Small  First"  principle  in  all  European  policies  and  includes  a 
range of practical steps designed to make SMEs more competitive in the single market. 

An  optional  European  contract  law  instrument  should  be  introduced  to  facilitate  cross-
border transactions in the Single Market. A Regulation should also be adopted to simplify the 
cross-border recovery of debt. This would further simplify existing rules, to the benefit of 
citizens and businesses which would like to have more legal certainty in this area. 

2.12. 

Public procurement 

Key action 

Revised  and  modernised  public  procurement  legislative  framework,  with  a  view  to 
underpinning  a  balanced  policy  which  fosters  demand  for  environmentally  sustainable, 
socially  responsible  and  innovative  goods,  services  and  works.  This  revision  should  also 
result  in  simpler  and  more  flexible  procurement  procedures  for  contracting  authorities  and 
provide easier access for companies, especially SMEs62. 

In Europe, public authorities spend around 18% of GDP on goods, works and services. Under 
EU  and  national  procurement  legislation,  public  procurement  has  been  opened  up  to  fair 
competition, resulting in better quality and lower prices for citizens. 

Given the vast number of procured goods, services and works, public purchasing can be used 
to boost demand for goods, services and work which are environmentally sustainable, socially 
responsible  and  innovative.  In  other  words,  public  procurement  can  be  used  as  a  lever  for 
developing a Single Market which is greener, more social and more supportive of innovation. 
There is also a need to examine ways of simplifying procurement procedures and introducing 
greater  flexibility  in  order  to  make  public  purchasing  more  efficient.  At  the  same  time,  this 
simplification  must  be  carried  out  in  a  way  that  does  not close  procurement to cross-border 
competition.  Access  to  such  contracts  must  be  made  easier  (especially  for  SMEs  and  cross-
border  suppliers),  including  for  joint  purchases  by  different  procurers.  Currently,  the 
proportion  of  public  contracts  which  are  awarded  to  suppliers  from  other  Member  States  is 
still  quite  low,  in  particular  in  comparison  with  the  level  of  import  penetration  in  private 
procurement. 

Service concessions represent an important share of economic activity in the EU63 and are the 
most  common  form  of  public-private  partnerships.  A  specific  legislative  framework  will 
provide greater legal certainty for this type of partnership. 

Opening up public procurement generates benefits at global and European levels. In order to 
ensure  that  that  process  takes  place  in  a  spirit  of  reciprocity  and  mutual  benefit  (offering 
European  and  foreign  businesses  equal  opportunities  and  guaranteeing  fair  competition), 

61 
62 

63 

See also "An Integrated Industrial Policy for the Globalisation Era" (COM(2010)614). 
See also the EU flagship initiatives "Innovation Union" (COM(2010)546) and "An Integrated Industrial 
Policy for the Globalisation Era" (COM(2010614). 
According to cautious estimates, at least EUR 138 billion between 2000 and 2006. 

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European  legislation  on  the  access  of  third-country  businesses  to  European  public 
procurement procedures must also be introduced, which will enable commitments to be made 
within a European context. 

3. 

THE  CONDITIONS  FOR  SUCCESS;  A  STRENGTHENED  GOVERNANCE  OF  THE  SINGLE 
MARKET 

For  the  proposed  actions  to  produce  the  effects  expected  in  terms  of  growth  and  jobs,  the 
conditions  for  their  development  and  efficient  implementation  must  be  met.  There  are  four 
such  conditions:  (1)  a  better  dialogue  with  civil  society  as  a  whole;  (2)  a  close  partnership 
with  the  various  market  participants;  (3)  efficient  provision  of  information  for  citizens  and 
enterprises; and (4) closer monitoring of the application of single-market legislation. 

Involve civil society and promote a culture of evaluation 

The  public  consultation  has  clearly  highlighted  the  willingness  of  civil  society  to  be  more 
closely involved in the development of the single market than it has been in the past64. In 
order to signal its firm commitment in this direction, the Commission will regularly publish a 
list  of  citizens'  and  enterprises'  20  main  expectations  vis-à-vis  the  single  market,  based  on 
their practical experience. This list – which the Commission will submit to the Single Market 
Forum – will really enable the state of the single market to be gauged. The Single Market 
Forum  will  periodically  gather  together  market  participants,  e.g.  businesses,  social  partners, 
non-governmental organisations and those representing citizens, public authorities at various 
levels  of  government  and  parliaments.  It  will  examine  the  state  of  the  single  market  (in 
particular  the  transposition  and  application  of  directives)  and  will  exchange  best  practice.  It 
will contribute to the development of a policy-evaluation culture and as such will play its part 
in monitoring the Single Market Act and will help to measure the impact which that Act has at 
grassroots level. The work of the Ombudsman will also contribute to that evaluation. In order 
to improve monitoring and evaluation, the Commission will use the set of indicators listed in 
Annex 2. 

The social partners should also have an enhanced role, by having the opportunity to present 
their positions on issues relating to economic and social cohesion. 

Create partnerships and encourage cooperation 

The need to strengthen and deepen partnerships between all single-market participants – 
in particular between the Member States and the Commission – has been emphasised by the 
territorial authorities, who have made it quite clear that they wish to be fully involved in the 
development  of  single-market  policies.  This  will  mean  involving  them  more  extensively  in 
consultations  on  specific  Commission  proposals  and  improving  ways  of  facilitating  and 
encouraging cooperation between national authorities at the level where individual decisions 
are  taken,  i.e.  often  at  territorial  level.  To  that  end,  the  legal  certainty  of  the  electronic 
information  exchange  system  (IMI)  –  which  already  links  6 000  authorities  –  will  be 
increased.  Preferential  use  should  be  made  of  this  system  as  a  partnership  tool  for 
implementing  Single  Market  rules  in  future  Commission  proposals.  The  technological 

64 

Consultation  and dialogue  with  civil  society  was  considered  as  the  most  important  topic  amongst  the 
50 SMA actions, based on the highest number of responses on line (312 out of 740). 

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possibilities  of  automatic  translation  should  be  developed,  in  order  to  facilitate  exchanges 
between authorities. 

Better information for better implementation of Single Market rules 

The  Single  Market  could  contribute  more  to  growth  if  all  the  Single  Market  acquis  (in 
particular the European legislation currently in force) were implemented by all Member States 
and businesses and citizens were able to reap its full benefits. Businesses and citizens are 
the first in line to assert their rights, but in order to do so they need to know their rights, to be 
in a position to exercise them and to find assistance whenever their rights are not upheld. The 
Commission  will  develop  its  single  entry  point  ("Your  Europe")  in  partnership  with  the 
Member States, so that it becomes the single information and assistance point at European and 
national  level.  Improvements  must  also  be  made  to  the  conditions  under  which  practical 
solutions can be brought about rapidly and without cost to the citizens and enterprises whose 
rights are not being fully upheld. This is important if people are to trust the Single Market and 
be  willing  to  engage  with  it.  To  this  end  the  Commission  and  the  Member  States  will 
bolster the "Solvit" network linking national authorities. 

A level playing field for uniformly applied rules 

The  use  of  alternative  dispute  resolution  systems  should  be  systematic65.  However,  where 
difficulties  persist  and  are  the  result  in  particular  of  problems  of  a  more  structural  nature 
originating in national legislation, it is for the Commission to make full use of the procedures 
provided  for  in  Article  258  of  the  Treaty  (TFEU).  During  the  consultation  on  the  Single 
Market Act, stakeholders insisted on the importance of ensuring a level playing field for all 
in  the  Single  Market  and  criticised  a  number  of  obstacles.  The  Commission  will  therefore 
initiate a more determined policy in this field and will call on the Member States to improve 
the  transposition  of  –  and  compliance  with  –  their  national  legislation,  using  numerical 
targets. This approach has already enabled the transposition deficit to be reduced to 1%. More 
efforts  must  be  made  now.  As  called  for  by  the  European  Parliament,  thorough  and 
comprehensive implementation of Single Market legislation by all Member States requires by 
2012:  (i) the  notification  by  Member  States  of  correlation  tables  to  be  made  public;  (ii) 
numerical targets limiting the transposition and compliance deficit for national legislation to 
0.5%66 for the transposition deficit, and 0.5%67 for the compliance deficit, respectively; (iii) 
more effective application of infringement proceedings through numerical targets relating to 
the stages of the procedure.  

In  addition,  the  mutual  evaluation  tool  may  be  proposed  by  the  Commission  for  the 
transposition  of  directives  concerning  a  key  sector  in  which  national  laws  are  particularly 
numerous. 

Global rules 

The  success  of  the  Single  Market  and  of  European  businesses  in  international  competition 
depend  on  the  European  Union's  ability  to  ensure  that  its  internal  and  external  policies  are 

65 

66 
67 

The EU Pilot network between the Commission and some Member States is an effective means to try 
and  solve  disputes  before  resorting  to  infringement  procedures.  It  is  systematically  used  by  the 
Commission, which wishes to extend it to all Member States. 
The average deficit was 0.9% in 2010 and a quarter of the Member States have already achieved 0.5%. 
The average deficit was 0.7% in 2010. 

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consistent  and  complementary.  The  Commission  will  continue  pursuing  its  policy  of 
promoting  regulatory  convergence  and  will  actively  promote  the  wider  adoption  of 
international standards. It will negotiate trade agreements with a particular focus not only on 
market  access  but  also  on  regulatory  convergence.  Special  attention  should  be  paid  to  the 
candidates  for  accession  to  the  European  Union  (who  will  be  expected  to  adopt  the  acquis 
communautaire) and also to countries in the EU neighbourhood and to the Union's strategic 
partners,  in  order  to  promote  economic  integration  and  improve  mutual  market  access  and 
regulatory  approximation,  particularly  on  the  basis  of  more  far-reaching  free-trade 
agreements. 

4. 

NEXT STEPS AND CONCLUSION 

Setting priorities for the coming 18 months does not prevent us from already considering the 
steps beyond 2012. Indeed, the Single Market should be reoriented and boosted to serve the 
objectives of the Europe 2020 Strategy, which sets out objectives for the next 10 years. The 
Single  Market  should  contribute  more  to  the  objectives  of  sustainability  and  more  effective 
use  of  resources,  to  innovation,  social  inclusion  and  territorial  cohesion  and  employment 
strategy.. 

By the end of 2012, a new stage in the development of the Single Market will be launched. 
The discussions will draw upon a comprehensive economic study, the results of which should 
enable  the  identification  of  specific  areas  with  untapped  growth  potential,  together  with 
possible new levers for growth. The Commission will also consult civil society and all Single 
Market actors through its new governance instruments. 

Citizens and businesses will not be able to reap the full benefits of the Single Market unless 
the Single Market Act and its priority actions are implemented swiftly and boldly. This 
set  of  actions  is  an  essential  contribution  to  the  efforts  being  made  to  make  the  European 
economy more competitive and should therefore be given the very highest priority. It requires 
the  full  involvement  and  support  of  all  European  Institutions,  Member  States  and 
stakeholders. 

Consequently, the Commission: 

– 

– 

– 

– 

calls  upon  the  European  Parliament,  the  European  Council,  the  Council,  the 
European Economic and Social Committee and the Committee of the Regions to give 
their full support to the Single Market Act; 

calls upon the European Council to support the 12 priorities established by the Single 
Market Act and the priority implementation thereof; 

calls upon the European Parliament and the Council to give the highest priority in the 
legislative process to the key actions contained in the Single Market Act by agreeing 
that they should be swiftly adopted by the end of 2012 at the latest; 

in connection with the European Semester and with a view to an examination of the 
matter  at  the  Spring  European  Council,  will  report  regularly  to  the  European 
Parliament,  the  European  Council  and  the  Council  on  progress  achieved  in 
implementing the Single Market Act and its key actions; 

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– 

– 

– 

will work with the Member States to facilitate the swift implementation of the Single 
Market Act and its key actions; 

calls upon national, regional and local authorities in the Member States to ensure that 
Single Market rules are applied and enforced; 

calls upon all interested parties, Members of the European Parliament and of national 
parliaments,  representatives  of  national,  regional  and  local  authorities  and  all 
stakeholders to participate actively in a "Single Market Day" designed to take stock 
of progress achieved and to focus on priorities ahead at national and European level, 
in particular in the Single Market Forum. 

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Annex 1: Key actions 

Key action 

Lever 

Proposal by the 
Commission 

1 

2 

3 

4 

5 

6 

7 

8 

Legislation designed to make it easier 
for venture capital funds established 
in a Member State to invest freely in 
any other Member State, without 
obstacles or additional requirements 

Legislation modernising the system 
for recognising professional 
qualifications 

Legislation setting up a unitary patent 
protection for the greatest possible 
number of Member States and a 
unified patent litigation system with 
the objective of issuing the first 
EU patents in 2013 

Legislation on Alternative Dispute 
Resolution. This action will also 
include an electronic commerce 
dimension. 

Revision of the legislation on the 
European standardisation system, to 
extend it to services and make 
standardisation procedures more 
effective, efficient and inclusive 

Energy and transport infrastructure 
legislation serving to identify and roll 
out strategic projects of European 
interest and to ensure interoperability 
and intermodality 

Legislation ensuring the mutual 
recognition of electronic 
identification and authentication 
across the EU and revision of the 
Directive on Electronic Signatures 

Legislation setting up a European 
framework for social investment 
funds 

Access  to  finance  for 
SMEs 

4th quarter 2011 

Mobility for citizens 

4th quarter 2011 

Intellectual property 
rights 

2nd quarter 2011 

Consumer 
empowerment  

4th quarter 2011 

Services 

2nd quarter 2011 

Networks 

4th quarter 2011 

3rd quarter 2011 

Digital single market 

1st quarter 2012 

Social entrepreneurship  4th quarter 2011  

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9 

10 

11 

12 

Review of the Energy Tax Directive in 
order to ensure consistent treatment 
of different sources of energy, so as to 
better take into account the energy 
content of products and their CO2 
emission level 

Legislation aimed at improving and 
reinforcing the transposition, 
implementation and enforcement in 
practice of the Posting of Workers 
Directive68, together with legislation 
aimed at clarifying the exercise of the 
freedom of establishment and the 
freedom to provide services alongside 
fundamental social rights 

Simplification of the Accounting 
Directives  

Revised and modernised public 
procurement legislative framework 

Taxation 

2nd quarter 2011 

Social cohesion 

4th quarter 2011 

Business environment  

2nd quarter 2011  

Public procurement 

4th quarter 2011  

68 

See the flagship initiative "An Agenda for new skills and jobs" (COM(2010)682). 

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Annex 2: Indicators for the Single Market 

– 

– 

– 

– 

– 

– 

Intra-EU  trade  in  goods  and  services:  in  2009,  intra-EU  trade  in  goods  represented 
37%  of  GDP  (EUR 4 320  billion)  and  intra-EU  trade  in  services  10.5%  of  GDP 
(EUR 1 233 billion)69. 

Intra-EU  electronic  commerce:  in  2009,  9%  of  EU  citizens  carried  out  purchases 
from suppliers in other Member States70. 

The  number  of  applications  for  the  award  of  a  European  patent  introduced  and 
approved: in 2010 (provisional data) – 235 029 requests for a European patent were 
filed with the European Patent Office; 58 108 European patents were approved71.  

Cross-border  cooperation  between public  authorities  in  the EU  (IMI): at the  end of 
2010, 5 737 competent authorities were registered in IMI72. 

Deficit  in  the  transposition  of  internal-market  legislation:  the  transposition  deficit 
stood at 0.9% for the entire EU at the end of 201073. 

The  number  of  citizens  working  in  another  Member  State:  5.8  million  citizens  in 
2009, equivalent to 2.5% of the EU working population74. 

69 
70 
71 
72 
73 
74 

Eurostat 
Eurostat 
European Patent Office 
European Commission 
European Commission 
Eurostat 

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