Efforts to revitalise the single market should seek a balance between economic factors - above all competitiveness - and the rights of consumers and workers, recommends a report by Mario Monti on ways to "relaunch" the single market before 2012, an aim shared by MEPs who are also preparing a report on the subject.
As the EU (established in 1992 by the Maastricht Treaty) approaches its 20th anniversary, Mario Monti was asked by José Manuel Barroso in October 2009 to draw up a strategy to revitalise the single market by 2012. Six months later, Professor Monti presented the fruit of his work, done in parallel with a similar parliamentary project, to EP President Jerzy Buzik and MEPs.
Prefer the Community method
"The Lisbon strategy, let's be frank, was not a success", said Mr Buzek. "It was based on the co-ordination method. We must learn from this. It is the Community method, reinforced by the Lisbon Treaty and defended by Parliament, which is right. It is this method that will enable us to revitalise the internal market. Relaunching it is essential to the European economy in the years to come, but also to emerging from the current crisis".
The link between the single market and the Greek crisis and euro zone difficulties was also underlined by Mr Monti. "Certainly, it’s a financial market crisis but it also reflects the state of the real economy, marked by weaknesses in the internal market and competitiveness", he said adding that the single market is a "key component of economic and monetary union, and hence of the European Union as a whole".
A single market for the economy and for citizens
The single market, a cornerstone of European integration, is "ever less popular but ever more necessary", said Mr Monti. To become stronger, it must serve citizens, consumers and small and medium-sized enterprises. This conclusion of the strategy agress with that of a report by Louis Grech (S&D, MT), which advocates "giving a single market to citizen-consumers" and states Parliament's view on how best to revitalise the single market.
Andreas Schwab (EPP, DE) welcomed the social concerns Mr Monti's report. It recommends better co-ordinating social security rights, giving everyone the right to retire and clarifying the directive on the posting of workers, noted Evelyne Gebhardt (S&D, DE). For the latter directive, the report advocates protecting workers' rights whilst facilitating their free movement and resisting protectionism. It also analyses the impact of the Court's Lavel and Viking rulings on public and trade union perceptions of the single market.
A greener and more competitive market
Mr Monti advocated a proactive attitude, directed towards revitalising the single market and strengthening competitiveness. But "social rights must remain in balance with economic ones", he insisted. He stopped short of calling for a harmonisation of tax systems, but did recommend better co-ordination of VAT (e.g. on postal services) and company taxes. This point was picked up by Cornelis de Jong (GUE/NGL, NL), who stressed the need for "tax competition" among Member States. Emilie Turunen (Greens/EFA, DK), who backed the report's conclusions, would nonetheless have preferred to "see more green" in it. Mr Monti replied that "green growth" was one plank of his strategy. As to energy, he regretted that "2012 will not be the 20th anniversary of the single energy market".
Putting it into practice
Louis Grech expects the European Commission to act on his report (which should be approved at the May plenary session) and that of Mr Monti. Mr Monti observed that "if José Barroso decided to launch this specific project, it's because he attaches particular importance to it", but added that "much remains to be done to mobilise the political class".
"What we need is to regain our courage and political will, at least as much as continuing to listen to Europeans", concluded Edvard Kožušník (ECR, CZ).
In the chair : Malcolm HARBOUR (ECR, UK)
10.05.2010