SINGLE MARKET SCOREBOARD
(20829)
14090/99
COM(99) 2043
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Commission Working Document — Single Market Scoreboard.
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| Legal base:
| — |
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| Forwarded to the Council:
| 6 December 1999
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| Deposited in Parliament:
| 7 January 2000
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| Department: |
Trade and Industry
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| Basis of consideration:
| EM of 20 January 2000
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| Previous Committee Report:
| None; but see (20297) 9493/99: HC 34-xxviii
(1998-99), paragraph 11 (20 October 1999)
and HC23-v (1999-2000) paragraph 5
(19 January 2000)
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| Discussed in Council:
| 7 December 1999
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| Committee's assessment:
| Politically important
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| Committee's decision:
| Cleared |
Introduction
8.1 The aim of the Scoreboard is to monitor
the functioning of the Single Market and to allow Member States
to compare their performance in key areas on a six monthly basis.
It has proved an effective instrument for measuring progress in
improving the operation of the Single Market and will be important
in implementing the Strategy for the Single Market[30].
8.2 We reported on the last Scoreboard on
20 October 1999, and again on 19 January 2000 after receiving
a response from the Minister to questions on it.
The Commission Working Paper
8.3 This edition of the Scoreboard is divided
into four parts.
8.4 Part A is a round-up of progress towards
meeting targets left over from the Single Market Action Plan (SMAP)
and those set in the new Single Market Strategy. It notes areas
where further action is required. Priority areas include:
- improvement of administrative co-operation, including
issues such as mutual recognition;
- the European Company Statute;
- utilities liberalisation;
- the Financial Services Action Plan.
8.5 The Scoreboard notes that progress on
some initiatives covered by the Financial Services Action Plan
is blocked because of the absence of agreement between the UK
and Spain over the status of Gibraltar. The annex gives a detailed
account of progress on all actions included in the Financial Services
Action Plan.
8.6 Part B gives an overview of the regulatory
environment in the Single Market, particularly with regard to
the transposition of EU directives into national law. According
to this edition of the Scoreboard, the percentage of directives
not implemented in at least one Member State now stands at 12.6%
compared to 12.8% in June 1999. In November 1997 it was 26.7%.
10 out of 15 Member States have now transposed more than 96% of
directives.
8.7 As far as the UK is concerned, the percentage
of directives still to be transposed has fallen to 2.8% from 3.3%
at the time of the last Scoreboard. The UK is now in joint fifth
rather than seventh place. Denmark heads the table with 1.3% and
Greece is in last place with 6.2% of directives not yet transposed.
The Scoreboard notes that veterinary legislation and transport
are sectors causing difficulties for a number of Member States.
8.8 With regard to infringements, during
the period from September 1998 to September 1999 the UK received
10 letters of formal notice and 9 reasoned opinions. Two cases
were referred to the European Court of Justice. The UK has halved
its number of letters of formal notice compared to the previous
period, and is now one of the better performing Member States
in this regard. The Scoreboard notes that infringement activity
remains high and that some Member States have a low rate of resolution
of infringement cases. Future editions of the Scoreboard will
include a new measure of the progress of Member States in resolving
alleged breaches of Internal Market rules.
8.9 Part B of the Scoreboard also summarises
progress on the Simpler Legislation in the Internal Market initiative.
It notes that tangible results are being achieved but that the
pace of regulatory simplification remains uneven.
8.10 Part C reports the results of the new
business survey and indicates increasing satisfaction by business
people with the working of the Single Market. However, businesses
are continuing to encounter obstacles. Of these, the most significant
are barriers related to technical standards for goods and services,
either in the form of the costs necessary to render products/services
compatible with national specifications, or unusual testing or
certification procedures.
8.11 Part D reports on price monitoring.
It notes that the Internal Market has already brought about some
degree of price convergence. The Commission expects the euro to
strengthen this trend, through greater competition, price transparency
and structural changes. The paper also draws attention to the
high level of price dispersion in the utilities sector, where
economic regulation is a significant factor. For services in general,
price dispersion tends to be higher than for goods as services
are often consumed at the point of production and are not tradeable
across borders. However, it expects price differentials will remain
within the EU and within Member States, reflecting among other
things structural differences, and argues that this is still consistent
with an integrated and fully functioning market. Future editions
of the Scoreboard will include a price index based on a basket
of comparable and representative goods to improve the monitoring
of price trends in the Internal Market.
The Government's view
8.12 The Minister of State for Energy and
Competitiveness in Europe (The Rt. Hon. Helen Liddell) says that
the Government agrees with the Commission that the Scoreboard
will be a key tool in the implementation of the new Single Market
Strategy. In particular, the rules of the Single Market must be
in place and correctly implemented if citizens and business are
to retain confidence in it.
Conclusion
8.13 We report this document to the House
as it provides a useful summary of progress in an area of Community
activity of significant importance to UK interests. It is not
politically contentious and we do not wish to pursue any points
in it with the Government.
8.14 We, therefore, now clear this document.
30 For the strategy, see (20553) 11788/99: HC 23-i (1999-2000),
paragraph 5 (24 November 1999) and HC 23-v (1999-2000), paragraph
5 (19 January 2000). Back
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