McCreevy geeft toelichting bij prioriteiten voor de interne markt aan het ESC (en)

SPEECH/06/115

Charlie McCREEVY

European Commissioner for Internal Market and Services

European Economic and Social Committee

Brussels, 21 February 2006

Ladies and Gentlemen,

It is with much pleasure that I meet the Internal Market Section of the European Economic and Social Committee. I pay particular tribute to Mr Hernandez Bataller, your President, who invited me to speak, but also to others in the room who I know want the Internal Market to be as operational as possible.

In my view co-operation between the Commission and your Committee is vital. You represent a cross-section of civil society and the business community, combining the views of employees, employers and others who are stakeholders. As such you are the ideal sounding-board for Internal Market policy, to make sure it matters to Europe and Europeans.

Today I would like to say a few words about how I see the Internal Market, the main areas of activity and the challenges ahead of us.

For me, the Internal Market is a principle driver for economic reform and our best guarantee to stand our own in the global economy.

This is not idle gossip. The Internal Market has worked before and delivered growth of about €6,000 per household and 2.5 million extra jobs in the 10 years since it was started in 1993. Who would say "no" to more of that in the current economic climate? And for consumers the Internal Market brings lower prices, and increased choices of quality goods and services.

We, in the Commission, want this process to continue and think we need to keep on with an Internal Market policy. But not perhaps developing new things. Rather making sure that what we have already agreed works properly and more effectively. This means that we put more emphasis on Member States implementing and enforcing rules or laws. All too often, the EU answer to a problem is another Directive or Regulation. While such initiatives are invariably well-intended, they can easily become part of the problem rather than the solution. That is why I do not look down on officials that are not engaged in drafting new legislation. On the contrary: absence of regulatory zeal should be supported and rewarded.

We should also bear in mind that the Single Market is not just some pass-time for the Brussels in-crowd. The Single Market does not belong to us. Despite the title of my portfolio, it certainly does not belong to me.

The Internal Market belongs to the Member States, to national, regional and local authorities. It belongs to the business community, it belongs to consumers and it belongs to civil society. They are the owners and they are also the beneficiaries. Each has to take responsibility and ownership. We must all ensure that what is agreed is also implemented.

Services

Compared to where we were some 20 years ago, the progress in developing the Single Market is quite remarkable. We just need to think about how easy it is to fly around Europe, often at prices that are only a fraction of what they used to be. Or take telecommunications or energy. Quite a number of operators have become household brands which is a real change from the situation where the only choice was often between national monopoly or nothing at all.

But success stories to date should not permit us to lose sight of fact that we still have a long way to go. I think that the truth is that the Single Market will always be a work in progress. It will never quite be ready but we continue to make progress.

There is one area where the Single Market is still too much of a promise and that is the Services market.

As I am sure you are well aware, there have been important developments in the last few days with the completion of the first reading vote on the Services Directive in the European Parliament. With this vote, a very important step has been made. Overall, I believe the result to be workable, constructive and positive.

With the broad consensus reached on key aspects of the proposal, the Parliament has provided us with a sound and solid basis for going forward. This represents a real advance, a step that no one would have believed possible just 12 months ago. The vote also demonstrates that there is a willingness in Europe to overcome differences and to pursue measures to deliver more jobs and growth.

I do note that on quite a number of issues the European Parliament's opinion closely matches that of the Economic and Social Committee adopted just over one year ago. This demonstrates once more that the Economic and Social Committee is at the heart of the debate, that it gauges well the opinion of the European Parliament and that Parliament's opinion represents a fair balance between the views of all the various stakeholders.

I feel confident that we now have within our grasp the prospect of a workable Services Directive that unleashes the enormous job creation and economic growth potential of the services sector, which has been shown by numerous economic studies.

The Commission now has the task of modifying its proposal, by incorporating those amendments from the European Parliament that it accepts. Honouring our commitment that we would respect a broad consensus, we intend to take on board many of the European Parliament's amendments. We hope that this will also keep us on track for reaching a political agreement in Council as quickly as possible.

But Services certainly is not the only area within my remit. We also have to deal with intellectual property, public procurement and naturally financial services.

Intellectual Property

Intellectual Property is an area where much was achieved.

Yet there are some very important missing links. The Community patent has remained blocked in Council since Spring 2004 because of issues relating to the translations of patent claims. The business community does not let an opportunity slip to remind us of the importance of having a Community patent for the competitiveness of European industry.

Considering that the Community patent remains a priority objective under the renewed Lisbon strategy leading to more growth and jobs. I will make one last push for a Community patent, when the time is ripe.

On 16 January 2006 the Commission launched a consultation on the future of patent policy in Europe, focusing on the structure of the European patent model without yet touching upon issues of substantive patent law. The main aim of this exercise is to gain new momentum on patent matters which will hopefully lead to the adoption of a Community Patent.

Pending the outcome of this consultation, the Commission is also seeking views on what measures could be taken in the near future to improve the patent system in Europe. The consultation is intended to ensure that any new proposals in the area of EU patents policy reflect stakeholders' needs. Clearly I welcome input from ECOSOC.

Current developments in the area of copyright facilitate market entry for new and innovative Internet-based products and services. Last October we presented a Recommendation on on-line music to make licensing of online copyrights that are administered by collecting societies easier to acquire on a Community wide basis. The choice for a Recommendation shows that we do take the imperatives of better regulation to heart. It would be a mistake to try to capture developing business models in the straightjacket of legislation. At the same time, a Recommendation should motivate Member States and market players to abandon practices that are no longer viable.

We are also looking at the system of copyright levies for private copying. We must ensure that any system that compensates right-holders for acts of private copying does not hinder the launch of new products and services or unfairly puts a charge on certain computer equipment.

Financial Services

Financial Services are an essential aspect of creating an Internal Market which works for everybody in Europe.

In December 2005 the Commission presented its new strategy for the next 5 years in the area of financial services, following on from the completion of the highly successful Financial Services Action Plan. In preparing this strategy, a two year consultation exercise was carried out and the input of all stakeholders, including this Committee, has been taken into account.

The period to 2010 will be a phase of consolidation of existing legislation, with few new initiatives. Considerable effort will be made to ensure the effective transposition of EU rules into national regulations and more rigorous enforcement by supervisory authorities. Only when rules are implemented on time and enforced effectively, can companies and consumers benefit. Regrettably, the rate of transposition of Community law by Member States, within agreed deadlines, remains weak.

We will be looking for supervisory and enforcement mechanisms to be strengthened and joined-up across the Member States. Companies with pan-EU operations suffer from a huge administrative burden as a consequence of fragmented supervision. Hence, the Commission has set some clear goals on which supervisors need to deliver. For instance, existing and very costly duplicative supervisory reporting requirements should be eliminated by 2008.

One of the areas that may still necessitate action from the Commission is retail financial services, which has remained quite fragmented. Here the Commission will look into the issue of credit intermediaries. Another aspect is bank accounts, where there are certain barriers that need to be addressed. Work is also ongoing in the areas of mortgage credit and asset management, where the Commission will be coming forward with White Papers later this year.

In addition, we are working hard to increase consumer and user participation in the Commission's work in the area of financial services, so that we can ensure that the citizen's voice is strongly heard in this important sector.

Public Procurement

I should say a few words on Public Procurement. I am also very pleased to see the interest that the Committee is showing in Public Procurement. Public Procurement represents a significant part of the European economy. In 2003, it amounted to over €1,500 billion - more than 16% of GDP, which is almost as much as France's GDP. And, in an enlarged Europe of 25 Member States these figures are increasing.

Public Procurement is therefore crucial for Europe, but it needs to function properly. We have to ensure efficient spending of tax payer's money, to the benefit of national budgets, consumers, and players in the marketplace. A proper functioning Public Procurement market can therefore contribute to the Lisbon agenda, and our quest for growth and jobs as part of improving European "prosperity".

I will therefore read with great interest the "Own Initiative Opinion" that the Committee is currently preparing. I know that the Rapporteur, Mr Van Iersel, is in close contact with my officials on the technical aspects of this Opinion, and I can only encourage him and you all to continue to work in such an important domain.

Better Regulation

Finally let me say a few Words on Better Regulation.

The Barroso Commission is very attached to this. Not just because we have to remove unnecessary barriers from business which allows them to concentrate on being enterprising. But, also because the result is good for consumers and citizens as well. Better Regulation is regulation that is the result of wide consultation, that has weighed the various alternatives against each other.

I rather think that we are singing from the same hymn sheet here. Better Regulation has, I know, already attracted a degree of support from your Section and the Single Market Observatory, and you have been instrumental in bringing Better Regulation and simplification issues to the fore. I know that this work will continue in 2006 with Messrs Cassidy and Van Iersel as Rapporteurs.

I think you will find that the Commission is very structured now in its decision making process. Before coming forward with plans we have a period of comprehensive consultation and undertake impact assessments which tell everybody what the implications are going to be of introducing a directive or regulation. Often the Commission decides that regulation as such is not necessary or appropriate, and that voluntary measures will achieve the same goals without the added costs that regulation usually implies.

Summing up, ladies and gentlemen, I have given you a snapshot view of our activities and the work ahead, covering services, copyright and intellectual property, financial services and public procurement. All of these activities are within the context of the better regulation agenda aimed at improving the lots of our citizens and our companies.

I am pleased and honoured that I can lead the work for the European Commission. I hope that you share our ambitions and look forward to continue working with you. I would now be happy to discuss any matter pertaining to the Single Market that you would like to raise with me.