INQUIRY INTO THE EUROPEAN COMMISSION'S
REVIEW OF THE SINGLE MARKET
CHAPTER 1: INTRODUCTION
1. In May 2006 the Commission launched its review
of the Single Market[1].
Following hard on the heels of recent set-backs—the failure
of France and the Netherlands to ratify the European Constitution—the
review was an attempt to reinvigorate the Single Market as a means
of creating jobs in the European Union, and thus recapture popular
support for the European project. The Commission argued that it
needed to reconnect with Europe's citizens, to remind them of
the benefits of being in the European Union, and to reassure them
that their needs were at the heart of the project. An open and
fully functioning Single Market was considered a key policy plank
in meeting these objectives.
2. In launching the review, the Commission freely
acknowledged that the four freedoms (the free movement of goods,
services, persons and capital) were not yet a reality. The Commission
set out to answer the following key questions: how can we build
on what has already been achieved? Where are the remaining gaps?
How can we meet the challenges of the future? Do we have the most
effective mechanisms for delivering the Single Market?
3. This Committee launched its inquiry into the
Commission's review of the Single Market in May 2007. In order
to restrict the scope of the inquiry to a manageable size, we
have largely focused on three specific sectors—energy, telecommunications
and financial services—as well as taking evidence on the
wider issues affecting the Single Market. This report will highlight
the common themes which have emerged across the three sectors,
and reflect on lessons for the Single Market as a whole. There
are a number of other issues which have an impact on the functioning
of the Single Market, each of which carries the risk of distorting
free competition. These include the use of state financial assistance,
common employment or insolvency laws, growing cross-border internet
trade and the protection of EU patents. It is not within the scope
of this report to address these. The Committee intends to return
to these issues.
4. The Committee heard oral evidence from a wide
range of witnesses, and received a large volume of written submissions.
The Committee travelled to Brussels on two occasions to meet with
further witnesses. Witnesses are listed in Appendix 2 and we are
grateful to them all. We also thank our Special Advisers Dean
Cook, Mark Griffiths, and Dr Ian Walden.
5. We have reported after the publication of
the Commission's review[2]
intentionally in order to offer our own comments on their conclusions,
and to help inform discussion at the Spring European Council 2008,
when further proposals are expected. However, we believe that
this subject will continue to be highly relevant for many years.
The Single Market has the potential to be of the widest significance
for consumers and businesses alike, and reaching its full potential
will take time and commitment; we hope that our conclusions will
make a contribution to that effort.
6. We make this report to the House for debate.
1 A Citizens Agenda; delivering results for Europe,
COM (2006) 211 final. Back
2
A Single Market for the 21st Century, COM (2007) 724 final, 20
November 2007. Back
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