CHAPTER 4: GENERAL CONCLUSIONS
58. This chapter contains general conclusions
arising from our consideration of the issues affecting the Single
Market as a whole, and supported by the findings in each of the
individual sectors examined. Specific recommendations are made
for each of the sectors in the following chapters, but are not
repeated here.
59. We believe that the Single Market has great
potential to deliver benefits to consumers and businesses, and
yet, despite its impressive record, its future appears at risk.
We are concerned that the momentum behind the Single Market has
been weakened. We therefore call on the Government and the
Commission to instil a sense of urgency into the review of the
Single Market. Despite substantial gains to date, without renewed
political commitment to making the Single Market a reality, there
is a risk of sliding backwards.
60. Less legislation: there is little appetite
for new legislation to be introduced—many witnesses concurred
on this point, including the Commission. There was also support
for the increased use of non-legislative tools such as self-regulation
to help overcome the difficulties of legislating for an expanded
EU. The Committee strongly supports the Commission's commitment,
made in the Single Market Review, to keep legislation simple,
to roll back EU intervention where it is no longer appropriate,
and to seek non-legislative solutions where possible.
61. The failure of Member States to implement
Single Market legislation damages businesses and consumers: the
evidence overwhelmingly argued that existing rules are not being
effectively implemented across the 27 Member States. The responsibility
for implementing and enforcing the Single Market lies with Member
States, starting with the timely and proper transposition of directives.
The impetus, the political will and the drive to follow up commitments
with proper implementation must come from the Member States; the
failure to do so puts the whole Single Market at risk. The
Commission's Review rightly emphasises the importance of working
in partnership with Member States and local authorities, but this
Committee would place greater onus on the Member States to meet
their commitments in order to achieve a fully-functioning Single
Market.
62. Effective policy-making underlies good implementation:
policies that are based on detailed sector-specific understanding,
derived from consultation with industry, civil society and Member
State governments, are more likely to be relevant and therefore
easier to implement. We therefore welcome the Commission's
proposals in its Review of the Single Market for better product
and sector monitoring, consultation with a wider range of stakeholders
and improved impact assessments.
63. Commission as facilitator: in a European
Union of 27 Member States the Commission has to play the role
of facilitator and enabler. More effort and resources should
be devoted to providing practical assistance to Member States
in the process of transposing legislation in order to avoid problems
of interpretation, delayed implementation or failure to enforce
later on.
64. However, our evidence also suggested that
the Commission should make better use of its powers, including
its competition powers, in cases where cooperation is not forthcoming.
The focus on assisting Member States early on in the process
of transposition must not come at the expense of effective enforcement
when necessary.
65. We welcome therefore the Commission's
proposals for a more proactive approach to prevent problems in
the implementation of EU law, promoting best practice through
a Member State working group and supporting the exchange of information
and staff between national administrations, as well as using competition
powers, such as sector inquiries.
66. National Regulatory Authorities must be
independent of government, especially where governments
have financial interests in the major market operator or national
incumbent. This is essential to generate consumer and market
confidence, and is the best way to ensure a fair application of
the rules. The powers of regulators should also be reviewed in
light of the broad diversity of scope and remits. These are areas
where new EU legislation may be appropriate.
67. There is no need for a 'super-regulator'
at EU-level in any of the sectors we considered in this inquiry.
National market differences make this undesirable. However, there
is a need for greater and better coordination between national
regulatory authorities, especially in matters regarding the cross-border
provision of services. This is essential if market access is to
become a reality—especially for consumers and SMEs.
68. The Committee is pleased to see that the
Commission's recent proposals suggest more cooperation between
National Regulatory Authorities; the need for operational independence
of regulators; and strengthened powers for regulators to ensure
that consumers and businesses can reap the benefits of the Single
Market.
69. More should be done to help SMEs participate
actively in the Single Market. Very few SMEs are engaged in
cross-border activity and this is largely due to the regulatory
barriers which remain in place, and the lack of reliable information
to assist businesses. The Commission has made the objective of
engaging small business in the Single Market the centre-piece
of its Review and this is to be welcomed and supported.
70. Winning hearts and minds: evidence
indicated that values and social benefits are as important to
reconnect Europe with its citizens as are economic advantages.
Consumers and citizens need to be more fully persuaded of the
benefits of the Single Market. The Commission must ensure
that clear and accessible information is available about these
social benefits as well as the economic benefits. We welcome the
right of all European citizens to petition the Commission directly
and feel that this should be extended to include matters of consumer
redress. The Commission's Review rightly includes many proposals
designed to make the Single Market more accessible to the consumer,
as well as to make its benefits better known to the consumer.
71. Free and undistorted competition to continue:
The Minister for Europe assured the Committee that the removal
of the words free and undistorted competition from the text of
the Reform Treaty had not led, and would not lead, to a change
in policy[13]. This was
supported by evidence heard from Commission officials. However,
we continue to be concerned by evidence of support for "national
champions" in some Member States. We agree with the Government
that such practices are contrary to the principles of the Single
Market and will not benefit consumers or businesses. We call
for a renewed commitment to the importance of competition and
the need to complete the Single Market for the benefit of consumers
and businesses alike.
13 European Union Committee, 28th Report (2006-07):
Evidence from the Minister for Europe on the June European Council
and the 2007 Inter-Governmental Conference (HL 142) Back
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