On 21 May, the European Commission published its proposal for a Single Market Strategy, aimed at supporting companies in developing their businesses while providing greater protection for consumers.
More specifically, the Commission aims to remove ten barriers that still exist to trade between EU countries, which are considered “terrible” because of their impact on the overall competitiveness of the European bloc in an increasingly complex global environment. The proposal also plans to modernise rules in certain key sectors, including construction, postal services and parcel delivery, and to simplify regulations for many services. A new definition of small and medium-sized enterprises (SMEs) should enable them to enjoy certain benefits typically available to SMEs.
Furthermore, the digitisation of processes should make digital filing the norm for companies required to comply with European regulations.
The ten key actions to break down barriers
The European single market currently has 26 million businesses and 450 million consumers, generating 18% of the global economy and €18 trillion in value for European gross domestic product. However, the single market is characterised by low productivity (around 1%), which impacts European competitiveness. According to the European Commission, completing the single market would double its benefits. In particular, the services sector alone contributes 75% of the European Union’s GDP, but 60% of the barriers are the same as they were 20 years ago.
In this regard, one of the ten priorities identified by the legislation is the definition of the 28th company regime. Furthermore, the sharing of objectiveswith individual Member States should see each of them appoint a high-level representative for the single market, known as a “sherpa”, responsible for promoting the application of the new rules and ensuring that national legislation does not hinder the completion of the single market.
Other simplification measures should impact public procurement rules and speed up the recognition of professional qualifications. The standardisation regulation should also be reviewed, with the possibility for the Commission to establish common specifications where necessary. The digital product passport is one of the measures planned for the packaging and labelling of goods on the market, with the extension and harmonisation of extended producer responsibility schemes for the end-of-life management of products.
A European market surveillance authority could also be created and authorisations and certifications for cross-border services could be harmonised. Cross-border mobility of workers could be facilitated by the adoption of an electronic declaration for posted workers and the coordination of social security. Finally, the strategy plans to develop new tools against unjustified territorial restrictions on supply, beyond the situations prohibited under competition law.
