Source: EURLEX
Language: en
Format: md

**COMMISSION OF THE EUROPEAN COMMUNITIES**

Brussels, 06.05.1997
COM(97) 184 final

COMMUNICATION FROM THE COMMISSION

10 THE EUROPEAN P A J U J A M F N T A N p THE COUNCIL

## **DRAFT ACTION PLAN** **FOR THE SINGLE MARKET**

This draft summarises the Commission's current thinking concerning an Action Plan for the Single Market.
The final Action Plan will be presented by the Commission to the European Council in Amsterdam

**TABLE OF CONTENTS**

**Why an Action Plan now?.**

**The Draft Action Plan: four Strategic Targets.**

_**Strategic target 1: Making the rules more**_ _**effective**_ _._

_Action_ _1:_

_Action 2:_

_Action 3:_

_Action 4:_

_Action 5:_

_Action 6:_

_Put agreed_ _Single_ _Market legislation into force_ ....
_Establish a framework for enforcement and_ _problem-solving_
_Strengthen_ _checks_ _on products_
_Better_ _access_ _for_ _business_ _to the right information_ _.
_National and Community_ _rules_ _must_ _be_ _simplified_

_Tackle weaknesses_ _in the existing legal framework_ ._ _8_

_**Strategic target 2: Dealing with key market**_ _**distortions.**_ _ _.9_

_Action_ 7 : _Remove_ _tax distortions_ _9_

_Action 2 :_ _Create_ _a common_ _system_ _for value-added tax_ _9_
_Action 3 : Restructure the Community framework for the taxation of energy products_ _9_
_Action 4: A rigorous approach to competition policy_ _9_

_**Strategic target 3: Removing sectoral**_ _**obstacles**_ _**to market**_ _**integration**_ _.10_

_Action_ _1:_ _Break down the barriers in_ _service_ _markets....._ .... .... _ _10_
_Action 2:_ _Give businesses_ _the structures they need for efficient cross-frontier operations_ 7 7
_Action 3:_ _Face_ _the challenge of innovation and new technology_ ._ 7 7

_**Strategic target 4: Delivering a Single Market for the benefit of all citizens.**_ _**.11**_

_Action 1 :_ _Elimina te border controls_ .... ._ .... _„_ . _11_
_Action 2:_ _The_ _right of residence_ 7 7
_Action_ _3:_ _Protecting_ _social rights_ 77
_Action 4:_ _Promoting labour mobility within the Union_ _12_
_Action 5:_ _Consumer rights and health protection_ _12_
_Action 6_ _Dialogue with the_ _Citizen_ _12_

**The international dimension of the Single Market-**

**Conclusion**

**Annex: List of Actions (to be taken before 1 January** **1999)**

_**.13**_

_**14**_

_**.14**_

_**H~">**_

1. The European Single Market is the
world's largest domestic market. It has
contributed significantly to growth,
competitiveness and employment. It
has been responsible for an increase in
EU income of between 1.1% and 1.5%

and for the creation of between

300.000 and 900.000 jobs but its
potential is still to be realised. Barriers
still stand in the way. Europe needs a
better Single Market for more growth,
more innovation and more jobs, a
market that works for everyone citizens, consumers, small companies
and larger business - a dynamic,
knowledge-based market, socially
responsible and sensitive to the
concerns of everyone affected by it. A
consolidated and properly functioning
Single Market will help to ensure a
transition to the single currency in the
most favourable conditions and will

contribute to a successful enlargement.
The Commission's 1996 Report on the
Impact and Effectiveness of the Single
Market contains recommendations on

what still needs to be done. The

Report has received a very wide
degree of support from Member States.
The political will is evident. This
needs to be translated into targeted
action.

2. The Single Market is not simply an
economic structure. At its heart are 370

million people seeking better
employment opportunities, improved
living and working conditions, and a
wider choice of quality products and
services  - including access for
everyone to services of general interest

  - at lower prices. The Single Market is
working in their interests. Much has
already been achieved. Individuals
already enjoy the right to move and
work throughout the Union. The
Single Market sets basic standards of
health and safety, equal opportunities

###### **WHY AN ACTION PLAN NOW?**

and labour law. However, more needs
to be done to enforce these rights
effectively. In addition, social policy
must help smooth the process of
change, promoting a new interplay
between flexibility and security, for
example through appropriate
information and consultation. The

European employment strategy,
agreed at the Dublin European
Council, underpinned by the
Commission's Confidence Pact for

Employment, will help to give people
the opportunity to upgrade and
improve their skills. Similarly, the
Commission will work with Member

States to help modernise social
protection systems and make them
more employment-friendly.

3. The Single Market stands or falls on
confidence; confidence that all the key
rules are in place; that they are fully
and fairly applied; that problems will
be addressed quickly; that the groundrules for fair competition are fully
respected; confidence for consumers
in the reliability of goods and services
and of information: confidence for

smaller companies, the employment
generators, that the market can work
for them; confidence that each and
every government is committed to
making it work. Doing business,
moving, living or working in the
Union's "area without internal

frontiers" should become as easy as
within any Member State.

4. The Action Plan announced in the

conclusions of the Dublin European
Council has the clear objective of
improving the performance of the
Single Market in the years ahead. The
third stage of EMU represents a critical
juncture, at which the Single Market
must provide underlying economic
support for monetary union and the

**I."!**

Euro will provide added value and
efficiency to the Single Market. The
actions proposed are ambitious. It will
take considerable political will to carry
them through. Time is short. But if we
succeed, confidence will improve and
Europe will have a Single Market
capable of generating more growth
and more jobs, while safeguarding the
European social model. The final
version of the Action Plan will be put
to the European Council in Amsterdam
when the Council will be invited:

to make a firm commitment to the full

execution of this Action Plan before 1

January 1999 and the start of the third
stage of EMU;

- to provide for the necessary priority
treatment of any legislative proposals
in the Action Plan (a "fast-track"
approach) ;

- to review progress at each meeting of
the European Council in the run-up to
December 1998.

The Commission will regularly publish
and draw to the attention of each Internal

Market Council and European Council a
"Single Market Scoreboard" containing
detailed indicators of the state of the

Single Market and of Member States' level
of commitment to fulfilling the Action
Plan.

###### **THE DRAFT ACTION PLAN: FOUR STRATEGIC TARGETS**

The Action Plan follows the

Commission's report on the Impact and
Effectiveness of the Single Market. It sets
priorities to allow a clear and strategic
vision of what is now needed. At this

stage, four _Strategic Targets_ have been
identified. They are of equal importance
and must be pursued in parallel:

1 **Making the rules more effective:**

The Single Market must be based on
confidence. Proper enforcement of
common rules is the only way to
achieve this goal. Simplification of
rules at Community and national level
is also essential to reduce the burden

on business and create more jobs.

2. **Dealing** **with** **key** **market**
**distortions:** There is general
agreement that tax barriers and anticompetitive behaviour constitute
distortions that need to be tackled.

3. **Removing sectoral obstacles to**
**market** **integration:** The Single
Market will only deliver its full
potential if remaining barriers - and, of

course, new ones - are removed. This
may require legislative action to fill
gaps in the Single Market framework,
but also calls for a significant change
in national administrations' attitudes

towards the Single Market.

4. **Delivering a Single Market for the**
**benefit of all citizens:** The Single
Market generates employment,
increases personal freedom and
benefits consumers, while ensuring
high levels of both health and safety
and environmental protection. But
further steps are needed. And to enjoy
their Single Market rights to the full,
citizens must be aware of these rights
and be able to obtain redress.

Within each strategic target, the
Commission has identified a limited

number of specific _actions_ _to_ _be_ _achieved_
_by_ _I_ _January 1999_ (a list is given in the
Annex). This is a selective approach, but
clearly action in other areas to
consolidate the Single Market will be
pursued.

_**Action**_ _**1: Put agreed Single Market**_
_**legislation**_ _**into**_ _**force**_

Only 65% of Single Market rules are fully
operational in all 15 Member States. The
Single Market clearly cannot function
optimally in these conditions. Member
States will be called on to submit their

detailed timetable and to demonstrate

political commitment to eliminate, by 1
January 1999 at the latest, any delay in
transposition. The Single Market
Scoreboard will be used to keep track of
progress. Meanwhile the Commission will
continue vigorously to pursue
infringement procedures against Member
States which fail in these obligations
using, where necessary, the possibilities
of sanctions against Member States.

_**Action**_ _**2:**_ _**Establish**_ _**a framework for**_

_**enforcement and problem-solving**_

Problems need to be sorted out quickly in
today's Single Market to avoid
undermining of confidence of business
and consumers. The informal

arrangements for cooperation between
Member States and between them and the

Commission have proved only partly
successful and now need to be upgraded.
The Commission will therefore press each
Member State to designate a coordination
centre within its administration

responsible for ensuring that any
problems raised by other Member States
or the Commission are solved by the
authorities directly concerned within strict
deadlines. This will be a key component
in a simple but effective framework for
enforcement cooperation, which will also
provide; for more transparency about
enforcement structures and peer review
or mutual audit of national enforcement.

Telematic links between enforcement

authorities will be further developed
under the second IDA programme. The
Commission intends to submit serious

cases of non-application to the Internal

**STRATEGIC** **TARGET** **1:**

**MAKING** **THE** **RULES** **MORE EFFECTIVE**

Market Council to ensure strong
commitment and involvement in problem
solving at political level and. in parallel,
will accelerate its treatment of

infringement procedures. Strengthening
of the Commission's enforcement powers
under the Treaty would be desirable to
further reduce delays in problem solving.

_**Action**_ _**3:**_ _**Strengthen checks**_ _**on**_ _**products**_

At present the checks that are carried out
on compliance with product rules are
uneven and could compromise consumer
protection and fair competition. The
Commission will make legislative
proposals to strengthen common rules for
market surveillance by, for example,
providing for joint inspection schemes or
more detailed inspection procedures in
areas that will include industrial and

consumer products, foodstuffs,
pharmaceutical products and medical
devices. Scientific expertise, which is
important for the application of the
legislation and linked to market
surveillance, must be mobilized and used
more widely for legislative purposes at
Community level.

_Action_ _4: Better_ _access_ _for business to the_

_right_ _information_

Access to information is essential to

ensure that businesses are aware of

opportunities in the Single Market, how to
exploit them and how to solve problems.
Information must be made accessible

rapidly and in user-friendly ways. The
Commission will set up an Internet shop
for information on all Single Market
regulations affecting business, to
complement and be coordinated with the
Euro Info Centres, which have been
assigned a "first-stop" objective under the
multi-annual programme for SMEs (19972000). This service will be part of the
Europa Website and will also be linked to
the Member States' Websites. Businesses

will be able to provide feedback on their
experience on the ground.

_**Action 5: National and Community**_ _**rules**_
_**must be simplified and improved**_

Over-regulation is the enemy of job
creation - the Union's top priority. Overcomplex rules, most of them national,
impose unnecessary costs on operators.
The Commission will set up a permanent
rolling programme of simplification and
improvement of Single Market legislation,
combining SLIM and other simplification
exercises. It will include VAT, banking,
insurance and securities, fertilizers,
consumer services, telecommunications,
customs rules and procedures and
possibly other sectors, including company
law .The Commission will undertake pilot
projects to improve consultation
procedures with business regarding the
costs of implementing certain new
legislative proposals, including

consultation of a European Business Test

Panel.

Member States will be called upon to
commit themselves to a parallel
programme of simplification, including
the use of more comprehensive
regulatory impact analysis procedures
and to simplify national regulatory and
administrative procedures for business

start-ups.

Businesses and citizens' organisations will
be invited to alert the Commission to

national rules which they consider to be
abnormally burdensome. The
Commission will publicize and take up
the most significant cases with the
Member State concerned.

_**Action 6:**_ _**Tackle weaknesses**_ _**in the**_

_**existing legal framework**_

There are a number of areas where the

existing Single Market framework needs

to be improved. The Commission intends,
as a priority, to propose action in the
following areas:

 - **public procurement:** action will be
proposed on the basis of the
consultation undertaken following
publication of the Green Paper;

- **application** **of** **the** **mutual**
**recognition** **principle:** Member

States and the Commission will need

to cooperate closely on cases of nonrecognition made under Council
Decision 3052/95 and ensure that

adequate political attention is given,
including at Council level, to the
effective application of the principle of
mutual recognition;

- **European standardization:** a new

impulsion will be given to
standardization policy;

- **conformity marking of products:** a

re-evaluation of CE marking will be
undertaken in view of the proliferation
of national marks;

- **construction products:**

modifications will be proposed to the
construction products Directive to
ensure its effective operation;

- **transit rules:** computerisation of
transit procedures is needed in order
to reduce fraud and the administrative

burden on business;

- **the** **Single** **Market** **and** **the**
**environment:** the Commission will

produce guidelines on how Single
Market policy can further contribute to
sustainable development and how any
potential conflicts between Single
Market and environment policies can
be remedied.

_**Action 11 Remove**_ _**tax**_ _**distortions**_

Tax barriers and distortions to the Single
Market have not yet been tackled with
sufficient determination. Harmful tax

competition increases Member States'
difficulties in restructuring their tax
systems and delays progress towards a
more coherent tax system within the
Union. A co-ordinated approach is
essential. Member States, by acting
together, can tackle this issue.

Member States will therefore be asked to

agree to a tax package designed to

achieved a balance between their
interests comprising:

 - the elimination of distortions in the

taxation of capital income, in
particular, through adoption of a
modified proposal for a Directive on
the taxation of savings;

- the elimination of tax obstacles to

cross-border economic activity, in
particular by eliminating withholding
taxes on interest and royalty payments
between companies;

- a code of conduct designed to tackle
harmful tax competition that causes
difficulties for every Member State.

In this context, the Commission will also
clarify the scope and improve the
coherence of the application of
Community competition rules, including
rules on state aids.

Progress on this package should help
Member States to make their tax systems
become more employment-friendly,
reducing the burden on labour and
thereby promoting job creation. Further
work is also needed on removing double
taxation of frontier workers.

STRATEGIC TARGET 2:

DEALING WITH KEY MARKET DISTORTIONS

_**Action**_ _**2:**_ _**Create**_ _**a**_ _**common system**_ _**for**_

_**value-added**_ _**tax:**_

The current VAT system imposes an
excessive burden on business and

discourages cross-frontier trade. The
Council and Parliament are invited to

adopt the proposals for the
modernization and a more coherent and

uniform application of the tax together
with the proposals to advance
administrative cooperation among
Member States and to engage as quickly
as possible in the process of change to
the radically simpler origin-based VAT
system proposed by the Commission.

_**Action**_ _**3:**_ _**Restructure**_ _**the**_ _**Community**_
_**framework**_ _**for the taxation**_ _**of energy**_
_**products**_

At present, only mineral oils are subject to
a Community system for minimum
taxation. For other products, Member
States are free to tax at the rate of their

choice or to apply no tax at all. This leads
to distortions between the different

sources of energy and between the
Member States. For this reason the

Council is called upon to adopt the
Commission's proposal that the
Community minimum rate system be
widened to all energy products and that
there should be a gradual approximation
of national rates of taxation for all energy
products.

_**Action**_ _**4:**_ _**A rigorous**_ _**approach to**_
_**competition policy**_

The rigorous application of competition
policy is essential to ensure that anticompetitive practices on the part of
companies or national authorities do not
choke off the competitive dynamics of the
single market.

The volume of state aids granted in the
EU remains at worryingly high levels,
representing annually 95 billion ECU and
-.-._ 9 _

between 0.4 and 2.6% of GDP in the

different Member States during the 19921994 period. In addition, 85% of aid to
industry is accounted for by 4 important
economies of the Union. As well as being
a source of distortion of competition, the
high level of aid weighs on public
budgets and risks endangering the
efficient functioning of the Single Market.
Inasmuch as aids tend to concentrate on

large enterprises they also damage the
competitive position of SMEs.

Commission action alone is not sufficient.

A dialogue with the Member States to fix
precise objectives and a timetable for the
reduction of overall aid budgets appears
therefore as a necessary complement to
the Commission's action. To redress the

negative impact on cohesion of the
present situation, the Commission will
propose new guidelines on regional aids
aiming at reducing regional disparities by
concentrating aid in the poorest regions
and lowering the maximum levels to
better take account of the socio-economic

situation of each region. It will

**STRATEGIC TARGET 3:**

concentrate resources on assessment of

those aid cases which represent the
greatest threat to competition and the
functioning of the Single Market,
particularly where regional aid is
concentrated on large investment
projects. The Commission will also further
tighten the rules on rescue and
restructuring aid, while taking account of
the role of appropriate levels of aid in
cushioning the social effects of
restructuring. Furthermore, it will
examine whether state aid rules can be

modified to limit the risk of state aid

providing unfair incentives for
délocalisation.

Anti-trust rules will be simplified and
modernised by the revision of policies on
vertical restraints and horizontal

cooperation agreements. Action will be
taken to focus attention on the most

serious infringements and to decentralise
the application of the competition rules to
the Member States as far as possible
without endangering the level playing
field within the Single Market.

**REMOVING SECTORAL OBSTACLES TO MARKET INTEGRATION**

_**Action**_ _**1:**_ _**Break down the barriers in**_

_**service markets**_

Service markets account for 70% of Union

GDP but they are less integrated than
other markets. In financial sen/ices, the
lack of a real Single Market for investment
funds is a major handicap for Europe's
potential to channel savings into
productive investments. Far-reaching
steps are required. The Commission will
propose a framework directive on
Undertakings for Collective Investment in
Transferable Securities (UCITS) to tackle
the remaining obstacles. Member States
are called upon to adopt the directive by
the January 1999 deadline.

Some Member States impose strict
quantitative rules on the investments of
pension funds. These result in lower
returns which raise indirect labour costs

(and thus reduce job creation) and reduce

**10**

the potential of a European capital
market. EMU will make currency
matching restrictions irrelevant. Member
States are called upon to move towards
the elimination of these restrictions in

anticipation of the introduction of the
Euro. Further work is also needed to

improve the availability of capital to
SMEs.

The balanced opening of public utilities,
taking full account of the need to
promote access for everyone to services
of general interest, will contribute to a
better overall allocation of resources. The

liberalization of gas supplies has to be
agreed. The Community Institutions and
the Member States must ensure that the

national measures required to implement
agreed market opening in
telecommunications and electricity are
taken in time and that networks are

effectively open to competition.,

In transport, priority will be given to
opening up access to the provision of
crossborder railway services, and
railfreight freeways. In the air transport
field, new rules for charges and the
allocation of slots at Community airports
and the creation of new institutional

structures for air safety and air traffic
management are essential for effective
market integration.

_Action 2: Improve the business_
_environment for cross-frontier_ _operations_

Companies incur unnecessary costs and
delays by having to comply with different
national registration rules when operating
in more than one Member State. The

Commission calls upon the Council to
adopt, by 1 January 1999, its proposals on
the Tenth Company Law Directive on
mergers and on the European Company
Statute, in the light of the
recommendations of the group chaired by
Viscount Davignon.

Increasingly long payment periods have
serious consequences for all European
firms, in particular SMEs whose cash-flow,
profitability and competitiveness and
opportunities to trade across frontiers are
undermined. In particular, SMEs'
competitive position as suppliers to larger

firms is often distorted by deliberately
long payment delays by the latter. The
public sector should also set a better
example. The Commission will publish a
report shortly which shows that little
action has been taken by Member States
to reduce this problem, and that the
payments situation is getting worse. In the
absence of sufficient action by Member
States before the end of the year, the
Commission will propose a draft directive
to reduce late payments in Europe.

_Action 3: Face the challenge of innovation_
_and_ _new_ _technology_

Electronic commerce offers enormous

opportunities for cross-border trading in
Europe. A clear regulatory framework will
give consumers the confidence to use it
and businesses the incentive to make the

necessary investments. The Commission
seeks early agreement on its proposal for
a transparency mechanism and, as
indicated in its recent Electronic

Commerce Initiative, it will make
proposals on distance-selling of financial
services, copyright, digital signatures and
conditional access services.

The Commission's new proposal on the
protection of biotechnological inventions
should be adopted in the same timeframe.

**STRATEGIC TARGET 4:**

**DELIVERING A SINGLE MARKET FOR THE** **BENEFIT** **OF ALL CITIZENS**

_Action 1: Eliminate border controls_

The continued existence of controls on

individuals at internal frontiers represents
the Single Market's most important failing
for many citizens. In the light of the
outcome of discussions in the IGC,
Member States are called upon to agree
and apply the flanking measures
necessary to provide a secure framework
for the free movement of people so as to
allow urgent adoption by the Council of
the Commission's proposals on
eliminating frontier controls.

_Action 2: The right of residence_

The High Level Panel on the Free
Movement of People and the
Commission's report on Citizenship of the
Union have highlighted a number of
shortcomings in the way citizens can
exercise their right to move and reside
freely within the territory of the Member
States.

In order to remedy this situation and to
give full value to citizenship of the Union,
the Commission will propose, inter alia,

ll

arrangements for short-term residents and
adaptation of the right to reside and to
remain in the host Member State.

Member States are called upon to act
swiftly on these proposals in order to give
its full meaning to the notion of Union
citizenship.

_**Action 3: Protecting social rights**_

Social policies have a crucial role to play
in the development of the Single Market
by defining a new interplay between
flexibility and security. This will help
create the conditions for change, and
promote new ways of working while
guaranteeing adequate social rights. The
social dialogue has a vital role to play in
this respect. Negotiations are currently
taking place between the social partners
on part-time work, and the recent Green
Paper on partnership for a new
organisation of work has launched a
broad debate on how to respond to these
new challenges. This will be followed by
specific initiatives in the framework of a
new Social Action Programme in early

1998.

Industrial restructuring resulting from
market integration is beneficial to the
Union's economy but can have serious
social consequences for the communities
involved. The Commission will monitor

closely the application of the Community
rules on the consultation of workers. It

calls on the Member States to review

national provisions for the enforcement of
these rules and the penalties which apply.
It will also soon launch consultation of

the Social Partners at European level on
possible Community framework rules on
information and consultation at national

level. Finally the Commission will
continue to define a more balanced and

coherent approach in the application of
all Community policies affecting industrial
restructuring. This will include efforts to
encourage companies and the Member
States to anticipate the consequences of
restructuring and ensure the
employability of workers by adapting
training and social protection systems.

12

_**Action 4: Promoting labour mobility**_
_**within the Union**_

Although the Treaty has long guaranteed
European citizens the right to live and
work in any Member State, labour
mobility in the Single Market remains low.
This is partly due to remaining barriers to
the free movement of workers, which
must be eliminated. Building on the
report of the High Level Panel referred to
above, the Commission will propose a
package of measures designed to
overcome these barriers. In parallel, it will
present a proposal on supplementary
pensions, and work towards the
simplification and modernisation of the
system coordinating social security
arrangements for people moving about
the Union. The Council is also called on

to adopt the Commission's proposals on
extending the scope of family reunion
and consolidating the right to equal
treatment as regards social benefits.

To raise awareness of job opportunities in
other Member States and increase labour

mobility the Commission will improve the
EURES database on pan-EU employment
opportunities. Member States will be
invited to make this information more

widely available by integrating it into the
mainstream of their public employment
services.

_**Action 5:**_ _**Consumer**_ _**rights and health**_
_**protection**_

Consumers may hesitate before buying
goods and services, including financial
services, across frontiers because they are
unsure of their rights. Agreement on the
proposal on consumer guarantees would
be one of the important step for
improving consumer confidence.

Consumer health protection will be
reinforced through more effective use of
scientific advice, control and risk analysis.
This will be used to ensure that consumer

health is taken into account during the
drafting of new legislation, that current
legislation is properly applied and that

Community interests are defended in the
international context. In addition, the
Commission is considering whether
primary agricultural products should be
covered by Directive 85/374 on
producers' liability for defective products.

_**Action 6: Dialogue with the Citizen**_

Most European citizens are keen to find
out more about the rights and
opportunities offered by the Single
Market; more than half a million people
have already made use of Citizens First to
find out what they need to do in practice

to reside, study or work in another
Member State. Building on experience,
the Commission considers that a

permanent mechanism is necessary for
dialogue with citizens on their rights and
how tc exercise them. A Signpost Service
will also be made available to advise

citizens who run into problems and need
help. Feedback from this mechanism will
help to identify and eliminate
administrative obstacles and keep the
Commission informed about how

Community rules are respected in
practice.

##### THE INTERNATIONAL DIMENSION OF THE SINGLE MARKET

The Single Market cannot be considered
in isolation from its wider economic and

political environment. Its size and
potential growth already constitute an
asset in terms of attracting international
trade and investment to Europe. The
Single Market is providing the conditions
for improving European international
competitiveness and its success serves as
a model for other regions. These strengths
will be reinforced by a single currency.
The Union should capitalise more on
these advantages.

_**(i) Preparing for enlargement**_

As agreed by the European Council
following the Commission's 1995 White
Paper, the associated countries preparing
for accession must be assisted to prepare
for their integration into the Single
Market. The extension of the activities of

the Technical Assistance Information

Exchange Office (TAIEX) beyond 1997
will contribute to that objective. Where
the Community acquis has been fully
integrated, the Conformity Assessment
Agreements offer the possibility of
opening markets.

_**(ii) The**_ _**global context**_ _**of**_ _**the Singh**_

_**Market**_

The Single Market is the reflection of
Europe's open economy, with its rules
and standards frequently a reference for
many countries. This is an asset which
should allow the Union to play a stronger
role in international fora provided it
speaks clearly with one voice. Action will
focus particularly on the following areas:

 - approximation of systems and rules in
the Euro-Mediterranean area;

 - attacking technical barriers to trade _in_
third country markets;

 - assisting SMES to compete in world
markets;

 - favouring the use of international
standards in national and international

technical regulations;

 - negotiation of mutual recognition

agreements;

 - fighting intellectual property fraud;

 - liberalising financial services (GATS);

 - a common negotiating position for air

transport;

- coordination of Member States in

international fora for tele
communications;

- strengthening and expanding WTO
disciplines for competition and
investments.

13

An important step will be to ensure full
Community participation in international
organisations, particularly those
responsible for the development of
technical regulations and standards and
full exploitation of other frameworks,
such as the Trans-Atlantic Business

Dialogue.

###### **CONCLUSION**

The draft Action Plan is the key to unlock
the full potential of the Single Market. It
should improve the competitiveness and
job-creating capability of business in the
run-up to the introduction of the single
currency. It represents a balanced and
coherent approach which takes full
account of the concerns of individual

citizens regarding their personal rights,
the environment, the protection of health
and safety, and the social dimension.

The prize is immense. If we are successful
confidence could be generated across
Europe. The European Union will be able
to draw strength before the end of the

The policing of the Union's external
frontiers requires further action to
strengthen the ability of customs
authorities to work together as effectively
as possible, particularly in the fight
against fraud.

century from the convergence _of_ several
major developments : a first-rate single
market, the single currency, new panEuropean market opportunities as
previously closed sectors open up and
enlargement of the Union - all leading to
more employment opportunities.

All Community institutions and the
Member States are called on to play their
full part in ensuring a strong positive
response to this call for action to ensure
that all the elements of the Plan finalized

at the Amsterdam European Council are
implemented before the 1 January 1999
deadline.

##### **ANNEX: LIST OF ACTIONS (TO BE TAKEN BEFORE 1 JANUARY 1999)**

_**1. Making the rules more effective**_

- All delays in transposition of the
Single Market legislation to be
eliminated

- Establishment of a framework for

enforcement and problem-solving

- Adoption of new rules on market
surveillance in selected sectors

- Adoption of second IDA

programme

- Implementation of the Customs
2000 programme

- Speeding up infringement
procedures

- Establishment of an Internet shop
for information on all Single Market
rules affecting business

- Extension of SLIM and other

14

simplification work to new sectors :
VAT, banking, insurance and
securities,consumer services,

telecommunications, customs rules
and procedures and fertilizers
Consultation of a European
Business Test Panel for certain

legislative proposals
Simplification of national business
start-up rules
Follow-up to Commission initiatives
concerning public procurement,
mutual recognition, European
standards, conformity marking,
construction products, transit rules
and the links between Single
Market policy and the environment.

###### ANNEX: LIST OF ACTIONS (TO BE TAKEN BEFORE 1 JANUARY 1999) CONTINUED

_**2. Dealing with key market distortions**_

  - Adoption of proposals for the
modernization and more coherent
application of VAT

  - Restructuring the Community
framework for the taxation of
energy products

  - Adoption of a tax package
(modified Directive on the taxation

_**3. Attacking sectoral obstacles to market**_
_**integration**_

Adoption of a new general
framework UCITS Directive

Reduction of restrictions on
investment by pension funds
Agreement on the liberalisation of
gas supply
Implementation of telecommunications and electricity
liberalization on time
Agreements on crossborder railway
services and railfreight freeways
Adoption of new rules on the
allocation of airport slots and on
charges
Agreements on creation of
European Air Safety Agency and
new EUROCONTROL convention

_**4. Delivering a Single Market for the**_

_**benefit of all citizens**_

Adoption of accompanying
measures and of 3 Directives on
abolition of frontier controls,
restrictions on the right to
movement and the right to travel
Adaptation of right to reside and
remain in another Member State
Adoption of Directive on
supplementary pensions

of savings, Directive on crossborder
payment of interest and royalties,
code of conduct on harmful tax
competition)
Guidelines on regional state aid
schemes, stricter rules on rescue
and restructuring aids and
simplification of anti-trust rules.

Adoption of the proposals for the
European Company Statute, related
proposals for statutes on cooperatives, mutualities and
associations and the Tenth
Company Law Directive
Adoption of proposal for a
Directive on late payments
Adoption of electronic commercerelated measures (proposals on
transparency mechanism, copyright
and related rights protection,
distance selling of financial services,
digital signatures, conditional
access services)

Adoption of Directive on the
protection of biotechnological
inventions

Improvement and wider use of the
EURES employment database
Adoption of Directive on the sale of
consumer goods and associated
guarantees
Establishment of a mechanism for
dialogue with citizens
Consultation of the social partners
on information and consultation of

workers.

**15** **—**

##### ISSN 0254-1475

### COM(97) 184 final

# DOCUMENTS

#### 10 01 Catalogue number : CB-C0-97-197-EN-C ISBN 92-78-19520-0

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