The effect of globalisation on the internal market

2004/2225(INI)

 The committee adopted the own-initiative report by Edit HERCZOG (PES, HU) on the effects of globalisation on the internal market.

Noting that the EU, over the past few years, had been facing challenges to retain its leading position in key areas such as economic growth, labour market performance, research and innovation, MEPs argued that the key to solving these problems lay in the completion of the internal market, "the EU's strongest asset to maximise the advantages of globalisation". A flexible and globally-oriented internal market should go hand in hand with efforts "to deliver growth, jobs, social justice and respect for ecological balance while maintaining [Europe's] values and [its] social model."

In calling for bold steps to complete the internal market the report "applauds those Member States which have opened up their labour markets for citizens from the new Member States" and urged  those Member States which still maintain restrictions in this regard to eliminate existing obstacles to the free movement of labour. The Commission, meanwhile, should develop an "efficient and regular ex-post impact assessment procedure" to gauge the effects and implementation of economic and internal market regulation.

Noting the EU's struggle to attain the goals set forth by the Lisbon Agenda, MEPs said that the Lisbon Strategy, as a general economic plan, "may not be enough to deal with globalisation". They called for "other action lines" (such as a Globalisation Adjustment Fund) to cushion the negative effects of globalisation and to help take advantage of its positive effects.

The report also stressed the need for a "common knowledge management system with efficient protection tools for knowledge". It called for intellectual and industrial property rights to be protected through integrated and efficient patenting schemes, along with effective regulation and controls on counterfeiting. It also underlined the importance of "clear labelling rules and observance of denominations of origin as means of guaranteeing the protection of European goods and values".

Among other recommendations, MEPs called on the Commission to increase preferential access to the EU market for those third countries which have ratified and "appropriately applied" core international labour and environmental standards. Lastly, they urged the Commission to make an assessment of the impact on the internal market of further multilateral market opening in agriculture, manufacturing and services, and to consult with a wide range of stakeholders before formulating its trade negotiation strategy in international trade negotiations.