Impact and efficiency of the internal market
1996/2223(COS)
In adopting the report by Mr. Lyndon Harrison (PES, UK) Parliament expressed its view that the
European Commission should expose and name Member States which have failed to cut back home-grown legislation impeding the development of the single market, and pinpoint those Member States
which have failed to transpose Community legislation into national law. It believes that - with the
single market programme having created an extra 1.5% GDP, adding $130 billion to the EU's wealth
in 1996 - experience has shown that completing the single market is the most efficient and effective
way of creating sustainable jobs for EU citizens. However, in view of the very limited impact the
single market has made on employment, Parliament calls for the single market programme to be
backed by a common European employment policy.
With a view to dismantling trade barriers, the report calls on the Commission to eliminate cartels,
monopolies and abuses of dominant position. It emphasizes, however, that unless free trade is
accompanied by other measures, such as social and environmental protection, it will not produce the
desired results.
The report expresses the concern that small and medium-sized firms (SMEs) have not been able to
take advantage of the gains of a larger single market in the EU, have failed to participate in public
projects, have been burdened by the cost of hundreds of Community directives and find it impossible
to seek redress.
It therefore proposes drawing up a dedicated action plan, to run beyond the current multiannual
programme for SMEs from 1997 to 2000, with the aim of helping SMEs participate in and benefit
from the single market, and a vademecum of compliance with single market legislation to help
SMEs.
It also suggests transforming the European Information centres into Redress Complaints Centres
which meet the costs of bringing legal action before national courts.
Parliament calls on the Commission to draft proposals for European legislation on the private
pensions insurance sector in order to guarantee the proper functioning of the internal market for
insurance and facilitate the free movement of workers. It believes that an efficient single market
presupposes simplified taxation system in the EU which would avoid double taxation, eliminate
fraud and offer incentives for investment. Such systems must be fair, cover all sources of income and
ensure the responsible redistribution of wealth.
As regards environmental protection, the report suggests introducing eco-taxes and calls for national
rules on solvent emissions, eco-label schemes and waste management to be scrutinized. Consumer
policy should also be fully integrated into EU law at its creation and application and should include
labelling of goods, clear and simple redress procedures, cross-border guarantees and active
consultation of consumer associations.
The Commission is called on to:
- speed up the adoption of legislation in key areas concerning freedom of movement and freedom
of establishment for individuals, the creation of the European company, taxation of investment
income, recognition of diplomas, communications networks and the transmission of information and
energy;
- continue its simplification exercise to remove two remaining barriers, described as the "black hole"
of the single market, namely public procurement and state aid;
- complete the trans-European networks in energy, transport and telecommunications.
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