Select Committee on European Scrutiny Thirtieth Report


10 Single Market Scoreboard

(25858)

11566/04

SEC(04) 956

Commission staff working paper: Internal Market Scoreboard No. 13

Legal base
Document originated14 July 2004
Deposited in Parliament27 July 2004
DepartmentTrade and Industry
Basis of considerationEM of 31 August 2004
Previous Committee ReportNone; but see (24544) 9354/03: HC 63-xxv (2002-03), para 13 (18 June 2003)
To be discussed in Council24 September 2004
Committee's assessmentPolitically important
Committee's decisionCleared

Background

10.1 As part of the Internal Market Action Plan agreed in June 1997, the Commission undertook to produce a Single Market[17] Scoreboard during each Presidency of the European Union. The purpose of the Scoreboard is to monitor the functioning of the Single Market and allow Member States to compare their performance in certain key areas.

The document

10.2 This Scoreboard is the 13th edition. It is presented in three parts. The first — "Implementing the Internal Market's Legal Framework" — looks at progress in transposition (the implementation of Directives through national legislation) and action on transposition failure. The focus is on reducing the proportion of Directives overdue for transposition (the transposition deficit) to the 1.5% target set by the European Council in March 2002. The UK met the target then and in all subsequent Scoreboards. In this Scoreboard the UK has achieved joint fourth place with a transposition deficit of 1.2%. France has the worst transposition record, followed by Greece and the other five founding Member States. The EU average stands at 2.2%, which is a slight improvement on the 2.4% average of the last Scoreboard.

10.3 The Commission uses infringement proceedings, involving considerable resources, to try to enforce transposition. So far such proceedings have not been started against new Member States. The Scoreboard notes that the Internal Market Strategy 2003-2006 set a target of a 50% reduction in infringement proceedings by 2006. But the Commission reports little improvement in the last year. The position in relation to the two Member States currently with the most cases against them — Italy and France — has worsened.

10.4 The second part of the Scoreboard reports on the two informal methods the Commission uses, before resorting to infringement proceedings, to resolve Single Market problems and ensure respect for Community law. One of these involves meetings at which experts from Member States and the Commission informally discuss a package of cases being considered by the Commission. In 2003 46% of the cases so discussed were resolved, and discussions continue on a further 38%. The other mechanism is SOLVIT, an online system dealing with cases of misapplication of Single Market rules by national and local administrations. The Commission says that SOLVIT's performance is good, with an average success rate of 75% for all cases opened and closed between May 2003 and May 2004.

10.5 In the third and fourth parts of the Scoreboard the Commission discusses the role of European standards in the Single Market and the practical benefits of the Single Market as measured by the Internal Market Index of indicators of market integration and by price convergence.

The Government's view

10.6 The Parliamentary Under-Secretary of State for Employment Relations, Competition and Consumers, Department of Trade and Industry (Mr Gerry Sutcliffe) says:

"The primary aim of the Scoreboard is to monitor a range of indicators which reflect the health of the Internal Market. It has no direct policy implications but, has proved extremely useful both as a means of evaluating developments in the Internal Market and as a spur towards greater achievement. The Government, therefore, supports the continued use and development of the Internal Market Scoreboard."

Conclusion

10.7 The Scoreboard continues to be a useful source of information on, amongst other things, the relative performance of Member States in transposing Directives and on reducing infraction cases. We note again that the UK is amongst those making good efforts to improve its transposition record.

10.8 But we are dismayed again at the continuing failure of some Member States to meet promptly and properly their obligations in relation to the Single Market. This disadvantages not only UK businesses and consumers but the interests of all those who stand to benefit from a properly functioning Single Market. We trust that the Minister will make plain in discussion of this Scoreboard, particularly to recalcitrant Member States, the cynicism engendered in ordinary European citizens by this disregard for what is supposed to be a common enterprise.

10.9 We clear the document.


17   The Commission uses the term Internal Market, and the subject of this paragraph is entitled the Internal Market Scoreboard.However, the term Single Market is more commonly used in the UK and therefore we use it except when referring to titles or headings using Internal Market. Back


 
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