Completing the European Single Market must be a priority for the EU, agreed MEPs and Commissioner Stéphane Séjourné in the European Parliament plenary session on Tuesday, 7 October. However, apart from vague calls for the removal of internal tariffs, there were only few concrete guidelines.
“Completing the Single Market is the only way to help our companies, attract more investments, and protect our citizens’ way of life (…) Our competitors are creating their own single markets and they are moving faster than we are,” said Marie Bjerre, Danish Minister for European Affairs, in her opening remarks.
Ms Bjerre was not short of criticism. “Our joint exffort must be to remove barriers, starting with those that have the greatest impact,” Danish Minister said. She particularly emphasized the need to digitize the Single Market. That will, in her opinion, accelerate and simplify the flow of goods and services between member states. “A lot has already been done like Digital Services Act or Digital Markets Act, but that is not enough,” emphasized Ms Bjerre.
Service sector as the main problem
A number of MEPs highlighted the fact that especially the Single Market for services keeps to be underdeveloped.
Some services have within the EU trade barriers of 110 per cent. — MEP Andreas Schwab (EPP/DEU)
Andreas Schwab (EPP/DEU) noted that, in his opinion, transferring good ideas related to the Single Market into practical legislation takes too long. “Some services have within the EU trade barriers of 110 per cent which means that more than double of the price must be paid just for transferring from one EU country to another,” said in a raised voice Mr Schwab.
Stéphane Séjourné, Commissioner for Prosperity and Industrial Strategy, found himself under pressure several times during the debate. “Single Market is a potential driver of growth, but it is not fully utilized,” had to admit Mr Séjourné.
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High ambitions, mixed results
European Single Market comprises mainly the 27 EU member states. With certain exceptions, it also includes Iceland, Liechtenstein, Norway, and Switzerland. The Single Market seeks to guarantee the free movement of goods, capital, services, and people, known collectively as the ’four freedoms’. In theory, this is achieved through common rules and standards that all participating states are legally committed to follow.
However, companies currently still encounter obstacles and barriers when selling products or expanding into another member state, which hampers competitiveness and slows down companies’ twin transition efforts.
Benefits of up to €644bn annually
Business Europe (Confederation of European Businesses) recently identified several problems that different sectors face when it comes to Single Market. Transportation and various types of services are among the most problematic sectors. The report also notes a lack of a single EU digital notification procedure or lack of guidelines how to interpret rules.
According to Business Europe, companies intending to export goods and services often face difficulties trying to obtain information about which rules to comply with at national and EU level. It is often unclear which procedures should be followed and which public authorities should be contacted in those member states companies wish to export to.
It has been estimated that resolute actions to remove remaining regulatory barriers to the Single Market could generate economic benefits of at least €644 billion per year by 2032.
