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Europaudvalget 2008
SEK (2008) 3064
Offentligt

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.12.2008

SEC(2008) 3064

COMMISSION STAFF WORKING DOCUMENT

The Single Market Review: one year on

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TABLE OF CONTENTS

2.1.

2.2.

2.3.

3.1.

3.2.

3.3.

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

Actions To Boost Growth and Jobs ............................................................................. 4

Consumer confidence, protection and opportunity ...................................................... 4

Creating the conditions for firms to employ, invest and innovate ............................... 5

Advancing Social Europe............................................................................................. 8

Reaffirming the Principles of a Modernised Single Market ...................................... 10

Maintaining a level playing field ............................................................................... 10

Evidence-based single market policy to make markets work better .......................... 11

The partnership approach........................................................................................... 12

Conclusion.................................................................................................................. 12

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NTRODUCTION

The single market is a unique and proven achievement: "an area without internal frontiers"

which people, goods, services and capital can move freely. It has brought real added value as

a means to stimulate economic growth and job creation and also promote wider European

social and environmental goals.

Since November 2007, the Commission has been working with all stakeholders to implement

a programme of concrete measures to ensure that the single market is up to the job of

continuing to deliver for Europe. The Single Market Review

put citizens, consumers, and

SMEs at the centre of policy-making. It set out to modernise how the single market delivers

these results: through more evidence based tools and through partnership with the Member

States.

Right now, European and global economies and societies are facing unprecedented

challenges. The financial crisis is having a severe impact on the wider economy, feeding into

a serious recession. Steering the EU quickly and decisively to sustained recovery depends on

our ability to mobilise all available means. That is why implementing the European Action

Plan for Recovery and Reform

, endorsed by the European Council on 12 December, is so

important.

At this testing time, it is essential that all Member States reaffirm their commitment to the

principles of the single market. A level playing field has proved itself the best basis for

governance in the EU, guaranteeing economies of scale, transparency and equal treatment.

The Commission is committed to vigorously continuing to apply these principles, based on

the Treaty freedoms. In doing so, the Commission is both fulfilling its core obligations and

ensuring the single market remains the EU's most valuable asset today and in the future.

The single market, a core pillar of the Lisbon Strategy for growth and jobs, gives the

European Union a unique launch-pad for economic recovery. Together with the stabilising

influence of the euro, it is a vital tool for cushioning the impacts of the downturn on the real

economy. A joint and joined-up approach to recovery, in genuine partnership with the

Member States, will deliver the best results.

To really get the most out of the single market, we urgently need to continue the work of

modernisation and reinvigoration launched under the Single Market Review. In 2009, single

market policy will improve the business environment to help firms – in particular SMEs –

cope with the recession. It will drive consumer confidence and demand, and take account of

the social dimension, in particular during the recession, through policies that offer

opportunities, access and solidarity for all.

One year on from the Single Market Review, and in view of the European Council meeting on

19-20 March 2009, this report demonstrates that the considerable progress already achieved is

helping to create the conditions to re-launch the European economy.

Article 14(2) TEC.

COM(2007) 724 of 20.11.2007.

COM(2008) 800 of 26.11.2008.

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CTIONS

OOST

ROWTH AND

OBS

The Single Market Review outlined a series of actions needed to ensure the relevance and

effectiveness of the single market in the face of the challenges of our modern globalised

world. Some of these actions will pay their full dividends only in the medium or long term.

2.1.

Consumer confidence, protection and opportunity

Policy is now firmly directed on the whole package of rights and opportunities that the single

market needs to deliver, in particular for consumers. Confident and well-informed consumers

are the key driver of more efficient and more integrated European markets. At the present

time when consumers are worried about spending, the right policies can help reinvigorate

consumer confidence and support purchasing power especially for the most vulnerable

households. The Commission has therefore prioritised actions to strengthen consumers'

contractual rights when purchasing goods and services, to provide them with relevant

information, to support their purchasing power through the enforcement of competition rules,

and to consolidate their right to redress if something goes wrong. A second priority is to

create more choice in key consumer markets, including on-line markets. Good progress has

been made in 2008 and more will follow in 2009.

•

Consumer rights: the Commission's proposal to update rules on consumer protection in the

field of contractual rights

primarily targets consumer confidence in cross-border

shopping, which is important for stimulating demand within the single market. A

Communication on consumer protection enforcement in 2009 will address cross-border

protection and tackle the problem of rogue traders.

•

Consumer redress: obstacles to cross-border collective redress limit consumers rights to

fair compensation for losses caused by a trader. The Commission has launched a public

consultation

on a range of options ranging from benchmarking to legislative approaches

to address this issue. In 2009, the Commission will follow up on the White Paper on

compensation for damages caused by breaches of competition law

•

Pharmaceuticals: a well-functioning internal market gives consumers and public health

providers better choice and access to cheaper generic medicines. The interim report of the

competition sector inquiry presented on 28 November

points to the need to remove

barriers for market entry for innovative and generic pharmaceuticals. The final report will

be presented in spring 2009. The package of measures presented on 10 December

will

ensure that high levels of patient safety and confidence are maintained in particular in the

face of increased global trade in counterfeits.

•

Buying across borders: geographical market segmentation prevents consumers from having

full access to goods and services. The Services Directive

requires Member States by the

end of December 2009 to put an end to discrimination that is based on the consumer's

nationality or place of residence. The Commission's report on retail market monitoring,

including online retail distribution, will propose policy responses by autumn 2009.

COM(2008) 614 of 8.10.2008.

COM(2008) 794 of 27.11.2008.

COM(2008) 165 of 2.4.2008.

http://ec.europa.eu/comm/competition/sectors/pharmaceuticals/inquiry/index.html

COM(2008) 666 of 10.12.2008.

Directive 2006/123/EC (OJ L 376, 27.12.2006, p. 36).

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•

Information and assistance for citizens: the Commission will accelerate work in line with

its "Single Market Assistance Service" Action Plan

, to give citizens a simple and single

entry point to quickly access a range of single market information, advice and problem-

solving assistance services by early 2010 (European Consumer Centres, SOLVIT, Eures,

the Citizens' Signpost Service and Europe Direct).

The Commission has taken a number of initiatives to increase consumer confidence and

choice in

retail financial services,

an area of activity that has gained an added urgency in the

context of the financial turmoil. More action is scheduled for 2009.

•

Bank account switching: an industry code of Common Principles on Bank Account

Switching, agreed by the EU banking industry on 5 November 2008 following a request by

the Commission, will make it easier for consumers to switch banks

•

Cross border payments: the Commission has presented a proposal to extend the scope of

the Regulation on cross-border euro payments

, which will ensure that direct debit

payments in euro within the EU cost the same as domestic payments.

•

Financial education: given the key importance of financial literacy for consumer

confidence, the Commission is implementing a series of measures to improve the financial

capability of consumers

•

Retail investment products: the Commission will publish a White Paper in early 2009,

which will look at where more can be done to protect citizens who invest in retail

investment products. The Commission is also examining how to improve the quality of

information provided to consumers in the field of mortgage credit.

2.2.

Creating the conditions for firms to employ, invest and innovate

A stable financial system is a pre-requisite to economic recovery and the efficient functioning

of the single market. The EU has acted to tackle the most urgent shortcomings revealed by the

crisis in financial markets, with a combination of monetary policy, regulatory policy and bank

recapitalisation plans. Proposals have been tabled in key areas including deposit guarantee

schemes

, credit rating agencies

and capital requirements for banks

, and the co-

legislators should adopt them as soon as possible. A public consultation is being launched on

hedge funds. Work is also in hand on executive pay and on derivatives. As a strategic

initiative under its 2009 Legislative and Work Programme

, the Commission will present and

implement a coherent and wide-ranging programme for the future regulation and supervision

of the European financial system.

SEC(2008) 1882 of 8.5.2008.

http://ec.europa.eu/internal_market/finservices-retail/mobility/baeg_en.htm

COM(2008) 640 of 13.10.2008.

COM(2007) 808 of 18.12.2007.

COM(2008) 661 of 15.10.2008.

COM (2008) 704 of 12.11.2008.

COM(2008) 602 of 1.10.2008.

COM(2008) 712 of 5.11.2008.

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A modern single market policy is a lever to

simplify the business environment and reduce

costs,

in particular for SMEs, as outlined in the Small Business Act (SBA)

. Reforms are

underway in key areas that can help markets and firms cope with the recession.

•

EU company law and accounting framework: the European private company statute

(SPE)

will allow entrepreneurs to set up their businesses and expand beyond national

borders using the same company form, with significant cost savings for companies. The

fast track measures to reduce administrative burdens on SMEs

, currently before the co-

legislators, will ease the reporting requirements on SMEs and bring total savings of €1

billion/year. In 2009 the Commission will table proposals to allow Member States to

exempt very small companies (so-called "micro entities") from accounting requirements,

reducing administrative burdens by a further €5 billion.

•

Late payments and e-invoicing: in early 2009 the Commission will propose revised

legislation to help enterprises, in particular SMEs, to obtain prompt payment in their

transactions

. In the context of the administrative burden reduction programme, the

Commission is pursuing work to identify and remove barriers to e-invoicing which will

simplify and speed up the billing process. This could deliver cost reductions of up to €18

billion.

•

Common commencement dates: the Commission will launch a pilot project to ensure that

business-related legislation comes into force on certain fixed dates throughout the year.

The Enterprise Europe Network, launched in 2008, keeps SMEs informed about relevant

legislative changes.

•

Public procurement: in the SBA, the Commission put forward a European Code of Best

Practices

for national authorities to make public purchasing more SME-friendly. Further

simplification initiatives are under consideration, together with the ongoing evaluation of

the EU Action Plan for e-procurement, to encourage a wider take-up of electronic

procedures in public procurement. These will substantially increase access to procurement

opportunities - in particular for SMEs – both nationally and between Member States.

The

services economy

has been the main source of employment growth in recent years and is

the main economic sector that can create and sustain growth and jobs in the current

environment. It is thus crucial to make more progress towards a fully functioning single

market for services – including making the most of its significant potential for increasing

trade and productivity – so that SMEs and consumers can reap its full benefits to help them

through the downturn. As the European Council has emphasised, the effective implementation

of the Services Directive needs to be at the centre of that effort. It is one of the most effective

measures to create opportunities for SMEs, help them gain access to new markets and

generate jobs.

COM(2008) 394 of 25.6.2008.

COM(2008) 396 of 25.6.2008.

COM(2008) 194 of 17.4.2008 and COM(2008)195 of 17.4.2008.

Directive 2000/35/EC (OJ L 200, 8.8.2000, p. 35).

SEC(2008) 2193 of 25.6.2008.

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•

Services Directive: Member States should give adequate resources and strong political

backing to ensure full and timely implementation by the December 2009 deadline. They

should step up efforts to set up fully functional "points of single contact", finalise the

review and simplification of national legislation and adopt necessary legislative measures

to streamline procedures, remove red tape and eliminate barriers for businesses in the

services sector.

In parallel, the recent adoption of the

goods

package

will give a new boost to production

and trade in goods, making it easier for all companies to sell their products across the EU,

whilst increasing consumer protection. For both goods and services, ongoing standardisation

work is fostering innovation and removing barriers to competitiveness

The creation of the single market has also benefited the environment, in particular by

facilitating the spread of

environmental technologies

across the EU and so allowing for a

faster transition to a knowledge-based, low-carbon society. It has proved consistent with high

levels of environmental protection, whilst allowing some countries to adopt higher standards.

A determined effort by the Community and Member States is needed to remove remaining "e-

barriers". Making more use of

information and communications technology

(ICT) will help

firms - especially SMEs - to become more productive and adapt to adverse conditions.

Innovation through investment in and use of ICT is key for enhancing labour productivity in

services markets.

•

E-signatures: under the Action Plan on e-Signatures and e-Authentication

, working with

the Commission over the next two years, the Member States should give full political

backing and practical support to ensure electronic signature and authentication applications

are interoperable across borders. This will allow firms to use public services by electronic

means across borders, making business quicker and less costly.

•

E-communications: the co-legislators should quickly reach agreement on the revised

regulatory framework which will further open the telecommunications market for

businesses and consumers, in particular through a more efficient management of radio

spectrum across the EU.

Removing barriers to the free movement of knowledge, and so creating a

"fifth freedom",

urgently needs to become a reality, since economic growth and innovation are increasingly

based on intangible assets. Yet the single market for those assets is far from complete and is

lagging behind our global partners. Progress in this field will be key in the drive to re-launch

the European economy. In 2008, the Commission took a series of initiatives to build a unified

European market for research and researchers and enhance knowledge creation, its transfer

and exploitation, by establishing: a European Partnership for Researchers; a legal base for

European research infrastructures; and better international cooperation on science and

technology research. A number of priority initiatives launched in 2008 set the stage for

progress in 2009.

Regulation (EC) No.764/2008 (OJ L 218, 13.8.2008, p. 21), Regulation (EC) No.765/2008 (OJ L 218,

13.8.2008, p. 30) and Decision 768/2008/EC (OJ L 218, 13.8.2008, p. 82).

COM(2008) 133 of 11.3.2008.

COM(2008) 798 of 28.11.2008.

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•

Lead markets initiative: the Commission is pursuing work to create more innovation-

friendly market conditions in six key areas: e-health, sustainable construction, protective

textiles, renewable energies, bio-based products and recycling. The Commission will

report on progress by summer 2009.

•

Sustainable Production and Consumption: the Commission's proposals

will contribute to

improving the environmental performance of products, while increasing demand for more

sustainable goods and production technologies and so encouraging EU industry to

innovate.

•

Industrial Property Rights: the Commission re-iterates the urgency of creating a

Community patent and an integrated EU-wide jurisdiction for patents. In parallel, the

Industrial Property Strategy Communication

sets out to support inventors in making

informed choices on the protection of their rights, and to ensure that those rights are of

high quality and accessible to all - in particular SMEs. The lower, simpler trademark fees,

expected to apply from 1 July 2009, will lead to significantly reduced costs and simplified

procedures for SMEs.

•

on the availability and dissemination

of research, science and educational materials in the single market, and how intellectual

property (IP) rules should address these issues.

•

Fight against counterfeiting and piracy: the Commission is stepping up efforts by

improving coordination between national bodies responsible for IP enforcement;

establishing a network of administrative cooperation between Member States to allow for

Europe-wide actions; strengthening joint efforts to gather and share data and experience;

and setting up a China SME helpdesk

. Significant progress needs to be achieved in 2009.

international level,

the Commission will reinforce its efforts to ensure that European

businesses can continue to take full advantage of global markets and that European consumers

benefit from lower import prices and greater choice. Alongside a major push towards a global

agreement in the Doha Round, the Commission will maintain its efforts to secure Free Trade

Agreements with key partners, and will strengthen the market access initiative

to deliver

even more opportunities for European SMEs to export their products and services. Economic

dialogues with third countries will also enhance the mutual compatibility of regulatory

systems, further opening markets and exporting European norms. The Commission is actively

engaged in international discussions aimed at redefining the global regulation and supervision

of financial markets.

2.3.

Advancing Social Europe

In line with the Citizen's Agenda

, the EU needs to deliver concrete results for citizens, both

economically and socially. Internal market and social policies are mutually reinforcing and

COM(2008) 397 of 16.7.2008.

COM(2008) 465 of 16.7.2008.

COM(2008) 466 of 16.7.2008.

Council Resolution on a comprehensive European Anti-counterfeiting and Anti-piracy plan (OJ C 253,

4.10.2008, p. 1).

COM(2007) 183 of 18.4.2007.

COM(2006) 211 of 10.5.2006.

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the Commission is determined to develop them in synergy. Maintaining a joined up approach

is critical given the particular challenges of the present economic climate.

The Renewed Social Agenda for opportunities, access and solidarity

focuses on

empowering and equipping citizens for the challenges of globalisation, technological and

demographic change, and immigration. Proposals which will contribute to more and better

jobs and growth in the EU are already before the co-legislators: these include the recast of the

Directive on European Works Councils

and the package for better reconciliation of

professional and working life

. The Directive on Temporary Agency Work

will bring

significantly enhanced working conditions and protection to over three million workers in the

EU.

The current economic downturn adds a new and urgent driver to the need for reform. It is vital

to invest more in giving people the skills they need to be mobile and stay in work. Younger

people must be able to enter the job market. EURES, the European Employment Service

providing access to advisers and 1.5 million job vacancies, has been reinforced. The present

context also highlights the fundamental importance of the European commitment to solidarity

with those who are less advantaged, the need to complete the European legislative framework

for non-discrimination

, as well as the key role that public services play in ensuring equal

access to a decent quality of life for everyone.

The financial crisis also throws a sharper focus on pension reforms and in particular funded

pension schemes. The Commission is monitoring developments, drawing lessons and

encouraging the sharing of best practice using the established open method of coordination

process.

•

Opportunities for all: the "New Skills for New Jobs" initiative aims at better anticipation

and matching of skills and labour market needs. In 2009 the Commission will renew its

Youth Strategy. A Green Paper on cross-border mobility will promote the integration of

young people into the labour market across Europe.

•

Dialogue with social partners: a Forum with social partners took place in October 2008 on

the relationship between fundamental freedoms and the rights of posted workers. The

Commission intends to maintain and follow up this open and constructive dialogue with

the social partners. Moreover, a Communication on sectoral social dialogue will be

presented in 2009.

•

Access to quality healthcare: the proposed directive on patients' rights

will establish clear

and predictable rules on the right to reimbursement for treatment in other Member States.

In 2009 the Commission will present a Communication on reducing health inequalities and

initiatives on important public health threats including cancer, HIV/Aids and Alzheimer’s.

COM(2008) 412 of 2.7.2008.

COM(2008) 419 of 7.2.2008.

COM(2008) 635 of 3.10.2008.

Adopted on 22.10.2008. Awaiting publication.

COM(2008) 426 of 2.7.2008.

COM(2008) 414 of 2.7.2008.

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•

Services of General Economic Interest: the Commission is proactively pursuing its

outreach approach to provide clarification and information to citizens, service providers,

public authorities and other stakeholders on the application of Community rules

. A web-

based "interactive information service" has been successfully launched and will operate in

all Community languages from early 2009. On the basis of the practical issues already

raised, including in particular by social services stakeholders, the Commission will update

its two explanatory "Questions and Answers" documents on state aid and public

procurement

EAFFIRMING THE

RINCIPLES OF A

ODERNISED

INGLE

ARKET

The Single Market Review set out to reshape the way the single market is governed. The

principles that have made the single market such a success since 1992 remain in place. But

more effective means to deliver them are needed. A set of new tools for a modernised single

market is now being embedded in daily practice: evidence-based policy to make markets work

better; and a reinforced partnership approach with Member States to guarantee the functioning

of the single market for citizens and firms. The worsening economic outlook makes it even

more urgent to complete this work, whilst holding firmly to the principle of a level playing

field.

3.1.

Maintaining a level playing field

Many areas of the single market, in particular wholesale financial services and many goods

markets, have by now reached a considerable degree of integration. A large number of firms

operate across borders. Particularly in harsh economic circumstances, both companies and

consumers need to know that they will continue to be able to benefit from the opportunities

offered by the four freedoms. Any measure that was to cut through integrated markets would

carry huge economic risks, as would competition distortions resulting from the actions of

Member States or companies. The impact of the financial crisis on the wider EU economy

would undoubtedly be much more serious if the single market were to suffer damage.

The success of the steps taken this autumn by the Commission and the Member States to

ensure a coordinated European response to the financial crisis has demonstrated the added

value of a coordinated approach grounded in a shared commitment to single market

principles. These efforts both limited the impact of the financial crisis on the wider economy

and avoided any undesirable negative spillovers that might have flowed from unilateral and

uncoordinated state measures.

The Commission therefore reiterates the need for a firm commitment to the single market in

today's financial and economic crisis. The level playing field that has benefited all Member

States, their firms and citizens, over several decades must be maintained and safeguarded if it

should come under threat. The fundamental freedoms and principles of the single market

should guide any unilateral measures taken by Member States, including crisis measures.

National measures, also where Member States have taken economic stakes in undertakings,

should also respect in particular the principles of non-discrimination and proportionality and

the state aid rules.

COM(2007) 725 of 20.11.2007.

http://ec.europa.eu/services_general_interest/faq_en.htm.

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3.2.

Evidence-based single market policy to make markets work better

Market and sector monitoring has developed substantially. It is now recognised as an

important tool for policy formulation. This evidence-based approach is of particular

importance in the current economic circumstances, as it will allow us to better identify and

prioritise inefficient markets and sectors where adjustments can deliver gains in terms of

growth, job creation and consumer welfare.

Through a screening exercise at European level, the Commission has identified sectors which

have high potential for delivering more growth and jobs but where markets appear to be

functioning poorly. Work is in hand with Member States to implement similar screening

exercises at national level.

The food supply chain, retail distribution, and the electrical engineering sector were identified

as areas for in-depth market monitoring at European level. The food supply chain inquiry is

the first to have delivered results. In 2009 the Commission will monitor the pharmaceuticals

sector and further in-depth exercises will be launched in other sectors.

•

In 2009, the Commission will come forward with reports presenting the results of its work

on the retail distribution, including online retail distribution, electrical engineering and

pharmaceutical sectors. Interim reports will be made public for reaction and further

contributions from all interested stakeholders.

•

The Commission will continue to work with Member States to complete national screening

exercises and to use the results in developing individual recommendations to Member

States in the context of the Lisbon Strategy.

•

The roadmap for overcoming obstacles to the proper functioning of the food supply chain

should be implemented as a matter of priority. The Commission and Member States should

make full use of internal market and competition instruments where price levels cannot be

justified and where markets are failing to pass reductions on to consumers.

•

Possible candidates for further market monitoring include in particular three sectors which

have been identified as targets for green investment and important for the economic

recovery of Europe: construction services, environmental technologies and the car

industry. To complement the ongoing work on retail distribution, logistics would be a

further possible candidate

. The Commission invites Member States and wider

stakeholders to continue to join in market monitoring activities and to contribute by

gathering market intelligence.

•

The February 2009 edition of the Internal Market Scoreboard will be expanded to monitor

economic in addition to legal integration of the single market. The second edition of the

Consumer Markets Scoreboard - to be presented in early 2009 - will identify weak points

where the single market is failing consumers. The Commission will work with Member

States to develop regular collection and publication of average price data for comparable

products and to deliver robust data on complaints.

COM(2008) 821 of.10.12.2008.

SEC(2008) 3074 of 16.12.2008. Commission Staff Working Document – "Market Monitoring: State of

Play and Envisaged Follow-up".

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3.3.

The partnership approach

Throughout 2008, much progress has been made to reinforce joint management of the single

market by the Commission and Member States. The results that can be achieved through

cooperation and partnership are clear, as demonstrated by the success of the coordinated and

coherent actions in autumn 2008 to stabilise the banking sector.

Close partnership with Member States is now established as an accepted and necessary

method for managing the single market. To further deepen the approach, the Commission and

Member States have jointly carried out extensive fact-finding work over the course of 2008 to

identify problem areas and good practices in how single market rules are transposed, applied

and enforced; how information about single market rights is spread; and how cross-border

cooperation between authorities works in practice.

This work has shown that although many good practices exist, further action and closer

cooperation is needed. Key priorities include: training of civil servants and judges on single

market matters; improved application and enforcement of single market rules; greater

availability of practical information about single market rights to citizens and businesses; and

better internal and cross-border coordination of single market issues.

•

As a priority initiative under its Legislative Work Programme for 2009, the Commission

will bring forward a Recommendation on Partnership to consolidate the best practices and

fill the gaps identified through the fact-finding exercise. To further strengthen the

implementation of single market rules at national level, all Member States should set up a

national single market coordinator function since this has had real added value in a number

of Member States already.

•

Internal Market Information System (IMI): 2008 saw completion of a successful pilot

project and transition to an operational system to support administrative cooperation

between Member State authorities to improve the practical application of the Professional

Qualifications Directive

. In January 2009, IMI will be extended to the Services Directive

on a pilot basis to allow Member States prepare for a fully operational system by the

December 2009 deadline. Member States should now intensify their investment in training

and awareness-raising activities. In due course, consideration will be given to using IMI

for other instruments, for example to facilitate cooperation and information exchange

between Member States in applying the Posting of Workers Directive

ONCLUSION

Considerable progress has been made over the past year to implement our shared vision for

the single market of the 21

century. 2009 will see a renewed effort to drive the modernisation

of single market policy even further and to ensure that it can play its full part as a launch-pad

for economic recovery.

Today's single market can deliver tangible results for consumers and SMEs: stronger

contractual rights, better quality and a wider choice of products and services at lower prices,

Directive 2005/36/EC (OJ L 255, 30.9.2005, p. 22).

Directive 1996/71/EC (OJ L 18, 21.1.1997, p. 1) and Commission Recommendation of 31 March 2008

(OJ C 85, 4.4.2008, p. 1).

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effective redress and simpler and better information about their single market rights. It can

provide safer medicines and cheaper and safer financial products - bank accounts, savings,

investment products and payments. It should over time remove those unjustified obstacles to

cross-border buying that few citizens understand.

SMEs can benefit from lower costs and administrative burdens, from simpler company rules

and better access to markets in other Member States. They should be able to rely on a simple

and single company statute, obtain payments from their debtors more promptly, use electronic

procedures instead of paperwork and deal with administrative formalities through one contact

point.

Unnecessary barriers for cross-border e-business are being tackled. Public procurement rules

make it easier for SMEs to bid for tenders and electronic procurement should bring further

savings in costs and effort. Member States will have to screen national rules for service

provision to make them simpler and more single market friendly.

All these improvements are either underway or within reach – but many depend on Member

States reaching agreement quickly and implementing agreed reforms in a timely manner. The

Commission will continue to work in close cooperation with Member States to ensure that the

progress made is properly communicated to the public at large, to create consensus and to

help rebuild confidence among market players and consumers. This is particularly important

at national and local level, where all the existing tools for cooperation, including the

communication management partnerships, should be deployed.

The economic crisis has vividly demonstrated the pertinence of the new approach set out in

the Single Market Review: the focus on empowering consumers and SMEs, fostering

investment and innovation, and developing the social and environmental dimensions of the

single market. But recent events have also added a new sense of urgency to the reform

process. Getting results will depend on how successfully we develop and manage new

evidence-based tools and new working methods through a closer partnership with Member

States and all stakeholders - consumers, social partners, economic actors and civil society

alike.

The European Parliament, the Council, the European Economic and Social Committee and the

Committee of the Regions are invited to contribute actively to the important work ahead.