Bruxelas, 27.1.2005

COM(2005) 11 final

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COMUNICAÇÃO DA COMISSÃO AO CONSELHO, AO PARLAMENTO EUROPEU,AO COMITÉ ECONÓMICO E SOCIAL EUROPEU E AO COMITÉ DAS REGIÕES

Segundo relatório sobre a aplicação da estratégia do mercado interno para 2003 -2006

ÍNDICE

PARTE A: INTRODUÇÃO 3

PARTE B: SITUAÇÃO ACTUAL DO MERCADO INTERNO 4

PARTE C: ESTADO DE APLICAÇÃO DA ESTRATÉGIA 11

PARTE D: CONCLUSÃO - LACUNAS REMANESCENTES EM DOMÍNIOS PRIORITÁRIOS FUNDAMENTAIS 15

1. Completar o quadro jurídico 15

2. Cuidar melhor do quadro actual 15

3. Garantir maior coerência e sinergia com outras políticas comunitárias 15

4. Garantir uma maior harmonização do quadro jurídico do mercado interno com o quadro económico mundial 16

ANNEX 1: IMPLEMENTATION REPORT SCOREBOARD 17

1. Transposition by Member States of Internal Market rules into national law 17

2. Application by Member States of Internal Market rules: infringements 22

ANNEX 2: STATE OF PLAY WITH REGARD TO INDIVIDUAL ACTIONS 23

1. Facilitating the free movement of goods 23

2. Integrating services markets 28

3. Ensuring high quality network industries 32

4. Reducing the impact of tax obstacles 34

5. Expanding procurement opportunities 37

6. Improving conditions for business 39

7. Meeting the demographic challenge 43

8. Simplifying the regulatory environment 44

9. Enforcing the rules 47

10. Providing more and better information 49

PARTE A: INTRODUÇÃO

Este relatório faz parte do “pacote de aplicação” das políticas económicas e de emprego, juntamente com os relatórios de aplicação das Orientações Gerais para as Políticas Económicas (OGPE) e das Orientações para o Emprego (OE). Os três relatórios serão apresentados em apoio do relatório (revisão intercalar da estratégia de Lisboa) que a Comissão transmitirá ao Conselho Europeu da Primavera de 2005.

O recente relatório Kok[1] reiterou a importância do mercado interno para a melhoria da competitividade e a criação da riqueza necessária para aumentar o nível de vida e manter o modelo social europeu, retomando, assim, a principal mensagem da estratégia do mercado interno para 2003-2006[2].

Se bem que caiba principalmente a cada Estado-Membro a responsabilidade de assegurar que as suas políticas económicas favoreçam a promoção do crescimento e da prosperidade, o mercado interno constitui um projecto comum para o qual todos os Estados-Membros devem contribuir e do qual todos poderão beneficiar. Na UE com 25 Estados-Membros este desafio assume maiores proporções, mas os benefícios potenciais são também superiores. Esta foi a segunda mensagem principal da estratégia do mercado interno.

O sucesso económico da União Europeia depende, por conseguinte, da responsabilidade colectiva, da conjugação das iniciativas dos Estados-Membros e de uma acção europeia destinada a integrar os mercados nacionais num único grande mercado interno. Tal acção deve dirigir-se tanto ao lado da oferta como ao da procura, tomando em consideração os interesses das empresas e dos consumidores. O presente relatório sobre a aplicação da estratégia do mercado interno para 2003-2006 confirma a necessidade de uma acção conjunta. A respectiva análise dos progressos e dos atrasos registados até ao momento revela que é necessário envidar mais esforços no sentido de chegar a acordo quanto a propostas fundamentais e de fazer com que, na prática, o mercado interno funcione melhor; demonstra, igualmente, que o processo de integração do mercado permanece mais ou menos inalterado.

No início do seu mandato e no momento em que a revisão intercalar da estratégia de Lisboa ganha ímpeto, a Comissão acolhe favoravelmente a oportunidade de aumentar a visibilidade do mercado interno e de reunir um apoio mais sólido a favor da sua realização e do seu funcionamento eficaz em termos práticos.

PARTE B: SITUAÇÃO ACTUAL DO MERCADO INTERNO

Para além do crescimento económico lento, outros indicadores fundamentais mostram que a integração do mercado interno está a estagnar.

Não há convergência dos preços na UE...

Quando as trocas comerciais se realizam com facilidade, a concorrência resultante faz com que os preços de mercadorias semelhantes se mantenham aproximados em toda a UE. A maior convergência de preços registou-se em sectores de mercadorias em que o mercado interno veio facilitar as trocas comerciais - por exemplo, vestuário, calçado e álcool[3]. De modo geral, inclusive na zona euro, a persistência dos obstáculos faz com que os preços de mercadorias semelhantes teimem em manter-se diferentes nos Estados-Membros (ver gráfico 1).

Gráfico 1

[pic]

As trocas comerciais estão a abrandar...

O comércio de produtos transformados entre os Estados-Membros estagnou a partir de 2000, tendo mesmo chegado a diminuir em 2003. O comércio de serviços parece ser mais estável (embora só haja dados disponíveis até 2002), mas o desempenho negativo registado pelas mercadorias constitui o aspecto dominante dos dados globais relativos ao comércio - dado que o comércio de serviços representa apenas cerca de 20% do valor do comércio de mercadorias. O abrandamento das trocas comerciais traduz-se numa diminuição da pressão concorrencial sobre os preços.

Gráfico 2

[pic]

Os fluxos de investimento estrangeiro revelam-se algo inconstantes…

Gráfico 3

[pic]

De acordo com alguns estudos, o aumento do investimento estrangeiro conduz a um maior crescimento da produtividade nas economias destinatárias[4]. O aumento do investimento transfronteiras entre os Estados-Membros da UE constituiu uma importante força motriz da integração do mercado interno e o seu crescimento foi consideravelmente mais rápido do que o do investimento nacional na última década. Na UE-15, o valor total dos fluxos de IDE em 2000 foi doze vezes superior ao de 1992, mas em 2003 diminuiu para um valor (ainda considerável) quatro vezes superior ao de 1992.

Há muitos motivos que poderão justificar a inconstância do investimento directo estrangeiro nos últimos anos, entre os quais o colapso do fenómeno ponto.com e os acontecimentos de 11 de Setembro. Não obstante, a inconstância dos fluxos de IDE, quando comparada com o investimento interno (ver gráfico 3), dá a entender que é necessário fazer mais progressos em matéria de integração e que os investidores não consideram o investimento no mercado interno da mesma forma que o investimento nos respectivos mercados nacionais.

O gráfico indica ainda que, em comparação com o investimento total, a entrada de fluxos de investimento estrangeiro foi superior nos novos Estados-Membros do que na UE-15 (salvo nos anos excepcionais de 1999 e 2000). Os novos Estados-Membros receberam ainda uma percentagem desproporcionadamente elevada de fluxos de IDE intra-comunitários em relação à sua dimensão económica (ver o gráfico abaixo), embora a sua base de investimento inicial seja muito mais baixa. Este fenómeno dá a entender que a integração do mercado interno constitui um factor importante no desenvolvimento do lado da oferta da economia nos novos Estados-Membros e que o acesso destes últimos ao mercado interno da UE pode revelar-se um factor de atracção significativo para o investimento estrangeiro.

Gráfico 4

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O investimento estrangeiro entre os Estados-Membros da UE-15 centra-se nos sectores dos serviços. Em geral, o investimento estrangeiro destinado aos serviços corresponde ao triplo do destinado ao sector transformador; em 2000, o investimento estrangeiro nos sectores dos serviços foi oito vezes superior. A nível mundial, as empresas da UE tendem também a preferir os serviços em detrimento do sector transformador, mas não de forma tão evidente como se verifica na UE (ver gráfico 5).

Gráfico 5

[pic]

Eis a razão porque se torna tão importante integrar os mercados de serviços da UE...

O investimento directo estrangeiro intra-comunitário é essencialmente dominado pelos serviços. Tendo em conta que os serviços são também dominantes na economia da UE, é evidente que os benefícios potenciais da fusão do mercado dos serviços da UE são enormes. Justifica-se, assim, a importância de uma directiva relativa aos serviços que consiga aproveitar todas as potencialidades do sector dos serviços, por exemplo, facilitando a liberdade de estabelecimento[5].

Uma análise recente[6] assinala o quão fragmentados podem estar os mercados de serviços[7]: no sector da contabilidade, por exemplo, em virtude das regulamentações nacionais, uma empresa de um Estado-Membro que pretenda exercer a sua actividade noutro Estado-Membro tem de suportar, em média, custos 23% mais elevados do que um concorrente nacional. A supressão destes obstáculos dinamizaria a produtividade, aumentando assim, em média, os salários em toda a economia da UE em 0,4% e o emprego em 0,3%[8]. Uma outra análise[9] calcula que o comércio da UE poderia aumentar 15% a 30% se os mercados dos serviços estivessem integrados, ao passo que o montante do investimento estrangeiro nos serviços poderia aumentar 20% a 35%. A falta de concorrência no sector dos serviços financeiros não é favorável aos consumidores: preços mais elevados e menor acesso ao crédito. Calcula-se que, antes de 2000, os obstáculos à entrada de empresas estrangeiras no sector bancário tenham feito aumentar os preços cerca de 5,3%. A integração dos serviços financeiros poderia aumentar o PIB da UE em cerca de 130 mil milhões de euros (a preços de 2002) e o investimento das empresas em 6,0%.

… solucionar os problemas da incerteza jurídica...

Em sectores que não possuem legislação comunitária específica e onde, por conseguinte, se poderia aplicar o princípio do reconhecimento mútuo[10], nem os produtores nem as autoridades de vigilância do mercado sabem, com absoluta certeza, até que ponto os produtos de um Estado-Membro podem entrar no mercado de outro Estado-Membro sem alteração; de acordo com o Painel Europeu de Avaliação das Empresas, 53% das empresas não estão sequer familiarizadas com o princípio. Cerca de 80% dos inquiridos num inquérito recente[11] consideraram as dificuldades regulamentares como o principal problema que se coloca à actividade comercial no mercado interno.

O impacto desta incerteza é significativo no plano económico: calcula-se que, por não se ter aplicado correctamente o princípio do reconhecimento mútuo, o comércio de mercadorias no âmbito do mercado interno sofreu uma redução de 10% ou de 150 mil milhões de euros em 2000[12]. Consequentemente, as opções dos consumidores são limitadas e estes são forçados a pagar um preço mais elevado por não se tirar pleno partido das potencialidades da concorrência.

… e dos mercados de contratos públicos

Em 2002, o valor do mercado dos contratos públicos da União Europeia era de 1,5 biliões de euros, ou seja, mais de 16% do PIB. Se bem que, tradicionalmente, os Estados-Membros tenham privilegiado as empresas nacionais, este mercado vasto está a abrir-se: o número de concursos públicos publicados no Jornal Oficial em proporção do valor total dos contratos públicos tem vindo a aumentar de forma constante, mas representa ainda 16% do valor total dos contratos públicos.

Gráfico 6

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Do ponto de vista económico, é fundamental alargar as regras relativas aos contratos públicos no mercado interno. As entidades públicas que efectuaram aquisições recorrendo às regras da contratação pública pagaram preços 34% inferiores aos pagos pelas entidades que não recorreram a estas regras[13]. A Itália calcula ter já poupado 3,7 mil milhões de euros em relação a um montante total de 23 mil milhões de euros de aquisições em 2003. A Irlanda calcula que, apenas através do recurso à contratação pública por via electrónica, poderá poupar mil milhões de euros nos próximos cinco anos.

Uma maior abertura a nível da contratação pública incentivaria o comércio, a produtividade e o crescimento. Contribuiria também para uma situação financeira sólida no plano macro-económico; uma poupança de apenas 10% dos actuais custos de contratação pública permitiria que todos os Estados-Membros que integravam a UE-15 antes de Maio de 2004 se mantivessem abaixo do limite do défice orçamental fixado pelo Pacto de Estabilidade e Crescimento.

PARTE C: ESTADO DE APLICAÇÃO DA ESTRATÉGIA

A integração do mercado interno poderá ter estagnado temporariamente, mas a expansão do mercado interno a dez novos Estados-Membros desde Maio de 2004 tem decorrido relativamente sem problemas. A integração do mercado a nível da UE-25 dará amplas oportunidades a um novo impulso económico. Tal como o relatório de execução do ano transacto[14] assinalou, há margem suficiente para um aumento considerável do comércio e do investimento entre os antigos e os novos Estados-Membros da UE a curto e a médio prazo. Há, por conseguinte, motivos para optimismo no que diz respeito ao contributo que o mercado interno continuará a dar à competitividade da Europa.

Para além das consequências positivas de um mercado interno mais vasto, foram adoptadas várias medidas nos últimos anos, em domínios como os serviços financeiros, as indústrias de rede ou o direito das sociedades, que se espera comecem a produzir efeitos positivos na prática.

É também animador que dois terços das acções previstas se tenham concluído até ao final de 2004 (ver exemplos no quadro 1), embora muitas destas sejam propostas da Comissão que, para poderem contribuir para o crescimento e a competitividade, terão ainda de ser aprovadas pelo Conselho e o Parlamento e aplicadas de forma eficaz pelos Estados-Membros. (As informações pormenorizadas sobre o ponto da situação de cada acção constam do anexo II).

Quadro 1: Progressos realizados a nível da aplicação da estratégia

PROGRESSOS | O QUE ESTÁ EM CAUSA? |

Mercados de serviços Está actualmente em discussão no Conselho e no Parlamento uma importante proposta de directiva que visa facilitar o comércio transfronteiras e o estabelecimento no estrangeiro. O Conselho da Primavera de 2004 apelou à sua adopção no prazo previsto, ou seja, antes do final de 2005. | Um estudo realizado recentemente pelo serviço de análise das políticas económicas dos Países Baixos calcula que o funcionamento eficaz do mercado interno dos serviços poderia aumentar as trocas comerciais (entre 15% e 30%), bem como o investimento directo estrangeiro (de 20% a 35%)[15]. |

Serviços Financeiros Das quarenta e duas medidas do plano de acção para os serviços financeiros, foram já acordadas quarenta. Os mercados financeiros começam a integrar-se à medida que a ênfase se desloca para a aplicação e o cumprimento do novo quadro legislativo. | De acordo com alguns estudos[16], diferenciais mais estreitos para as acções e as obrigações dariam azo a um aumento potencial do PIB da UE de 1,1% ao longo da próxima década, um aumento de 0,5% do emprego e uma redução média do custo do capital de 0,5%. |

Política dos consumidores Foram já acordadas ou encontram-se em fase de adopção medidas importantes destinadas a promover os interesses dos consumidores. Estas medidas incluem a proposta de directiva relativa às práticas comerciais desleais, o regulamento relativo à cooperação em matéria de defesa do consumidor e a directiva relativa à segurança geral dos produtos. | Um estudo realizado recentemente revelou que apenas um em cinco consumidores tem confiança nas compras transfronteiras[17]. |

Tributação Foram adoptadas três directivas no domínio da fiscalidade das empresas, incluindo alterações à directiva sobre as sociedades-mãe e as sociedades afiliadas. No domínio do IVA, a adopção de uma directiva relativa ao regime do IVA aplicável à prestação de serviços electrónicos constituiu um sucesso assinalável. | Muitos dos obstáculos à livre circulação que ainda subsistem são de origem fiscal. Um inquérito recente realizado pelo Painel Europeu de Avaliação das Empresas indica que os custos de conformidade aumentam consideravelmente no caso das actividades transfronteiras[18]. |

Gestão do mercado interno A rede de resolução de problemas SOLVIT abrange actualmente todos os países que integram o mercado interno. O número de casos duplicou em 2004. Dos quinhentos casos tratados, 72% foram solucionados com êxito. O tempo médio de resolução de um problema é de dez semanas. | 20% das empresas que participaram num inquérito da Comissão[19] afirmaram estar interessadas em realizar a sua actividade comercial no mercado interno, mas ou não possuem informação suficiente ou receiam ter de enfrentar problemas de carácter administrativo. |

Cada vez mais se reconhece a importância do bom funcionamento do mercado interno para o futuro económico e social da Europa. Não obstante, esta tomada de consciência não foi suficiente para acelerar e tornar mais ambicioso o processo de tomada de decisão numa série de questões fundamentais (ver o quadro 2). Tal deve-se, provavelmente, ao facto de as decisões serem bloqueadas ou atrasadas quando os interesses particulares de cada Estado-Membro ou de grupos específicos da sociedade prevalecem sobre os interesses estratégicos a longo prazo da UE e do conjunto dos seus cidadãos.

A patente comunitária constitui um exemplo: os custos da falta de acção superam em muito os benefícios de uma patente mais económica. A sua rápida adopção demonstraria claramente a vontade política de concretizar os objectivos de Lisboa.

Quadro 2: Atrasos na realização das acções

ATRASOS | O QUE ESTÁ EM CAUSA? |

Propriedade intelectual e industrial O Conselho “Competitividade” não conseguiu chegar a acordo quanto a uma patente comunitária acessível. | Actualmente, beneficiar da protecção de uma patente em apenas oito países da UE custa 50 000 euros, ao passo que, nos EUA, o custo de protecção de uma patente ronda os 10 000 euros. |

Promoções de vendas Decorridos três anos, o Conselho não conseguiu ainda chegar a acordo quanto a uma medida destinada a facilitar as promoções de vendas pan-europeias. | As promoções de vendas constituem um aspecto indispensável das estratégias das empresas que pretendem expandir a sua actividade em novos mercados. |

Qualificações profissionais A simplificação radical do sistema de reconhecimento das qualificações profissionais (através da fusão num único acto das quinze directivas actualmente em vigor) sofreu atrasos devido à lentidão dos progressos registados no Parlamento. | É importante para os direitos dos cidadãos, para a inovação e para a competitividade que se facilite a livre circulação de profissionais especializados na Europa. |

Aplicação das regras do mercado interno O cumprimento dos prazos de aplicação das directivas relativas ao mercado interno piorou consideravelmente desde 2003. Apenas dois Estados-Membros (LT, ES) cumpriram o objectivo fixado pelo Conselho Europeu de manter os défices de transposição a um nível de 1,5% ou inferior. No que diz respeito à UE-15, não houve qualquer redução no número total de infracções. | A transposição e aplicação tardias e/ou incorrectas da legislação do mercado interno geram insegurança jurídica e abalam a confiança dos cidadãos e das empresas no exercício dos seus direitos. |

Contratos públicos Embora tenha já sido adoptado e esteja em fase de aplicação um novo quadro relativo aos contratos públicos, há ainda alguma preocupação quanto à aplicação efectiva das regras nos Estados-Membros, pese embora o aumento do número de anúncios de concurso registado em alguns países. | O mercado de contratos públicos da UE representa mais de 16% do PIB da UE. Estudos realizados pela Comissão confirmam que a aplicação correcta das regras reduz em cerca de 30% o montante dos preços pagos. |

A tomada de decisões não é suficiente para tirar o máximo partido do mercado interno. Exige-se também uma mudança de atitude que leve os Estados-Membros a pensar e a agir de forma mais "europeia" e a alterar as suas práticas administrativas em conformidade. As empresas europeias acolheriam favoravelmente uma mudança desta natureza - as organizações empresariais europeias assinalam que, de acordo com a sua experiência, as legislações nacionais e as práticas administrativas nem sempre estão em conformidade com os princípios do mercado interno.

Na sequência do inquérito que realizou aos seus membros, a UNICE verificou, por exemplo, que mais de metade adaptara os seus produtos para os vender em mais de um Estado-Membro, ao passo que quase metade dos membros tivera de repetir os testes realizados aos produtos para os poder comercializar nos mercados de diversos Estados-Membros[20]. Também os prestadores de serviços se deparam com normas nacionais ou locais onerosas e frequentemente contraditórias. Outros inquéritos nacionais confirmam este quadro[21].

No contexto da estagnação continuada do processo de integração do mercado europeu (ver a parte B do presente documento), trata-se de um facto preocupante. Um fenómeno de introversão virá afectar gravemente as perspectivas de crescimento da economia europeia. O facto de os Estados-Membros com um mercado interno sólido possuírem economias mais competitivas e dinâmicas não é fortuito. Neste contexto, as iniciativas para eliminar os obstáculos que se colocam às empresas de outros Estados-Membros que pretendem exercer a sua actividade comercial, tais como as adoptadas recentemente pela Dinamarca[22], são dignas de louvor e representam um modelo de melhores práticas de inegável interesse para os restantes Estados-Membros.

PARTE D: CONCLUSÃO - LACUNAS REMANESCENTES EM DOMÍNIOS PRIORITÁRIOS FUNDAMENTAIS

A análise da situação actual em matéria de aplicação assinala a necessidade de dar uma maior ênfase a diversos elementos fundamentais durante o período restante da estratégia do mercado interno.

1. Completar o quadro jurídico

Embora grande parte do quadro jurídico do mercado interno esteja já em vigor, há ainda lacunas significativas em domínios económicos fundamentais. No domínio das mercadorias, destacam-se a revisão da nova abordagem e um eventual regulamento sobre a aplicação do princípio do reconhecimento mútuo. Propostas de acção importantes, tal como a directiva relativa aos serviços, estão já a ser examinadas pelo Conselho e o Parlamento e devem ser adoptadas e aplicadas com a maior brevidade possível. O mesmo sucede com a directiva relativa à patente comunitária e à patenteabilidade dos inventos que implicam programas de computador, bem como às restantes medidas do plano de acção para os serviços financeiros.

2. Cuidar melhor do quadro actual

Acordar regras a nível europeu constitui apenas um passo inicial. Para que possam produzir os efeitos desejados na prática, as regras devem ser aplicadas atempada e eficazmente nos vinte cinco Estados-Membros. São estes últimos que devem desempenhar um papel fundamental para garantir o funcionamento quotidiano do mercado interno. Para tal, será sobretudo necessário que haja uma maior cooperação recíproca e com a Comissão, bem como o intercâmbio de informação, a prestação de assistência mútua e a resolução de problemas. O estabelecimento de uma rede desta natureza deve ser facilitado através de sistemas de informação modernos, como aqueles que servem de base à rede SOLVIT. Além disso, é necessário assegurar uma exploração óptima das redes destinadas a empresas, incluindo as redes para PME, tal como a rede de Euro Info Centres (EIC).

3. Garantir maior coerência e sinergia com outras políticas comunitárias

As políticas do mercado interno não funcionam isoladamente; devem harmonizar-se com outros objectivos políticos importantes para, sempre que possível, criar sinergias. Os vínculos às políticas dos consumidores, da concorrência e do ambiente constituem prioridades imediatas. São igualmente importantes as sinergias com outros domínios, tais como as políticas regional e agrícola. Os efeitos que o funcionamento eficaz do mercado interno exercem na concorrência traduzem-se numa escolha mais ampla e em preços mais competitivos, que trazem benefícios aos consumidores. Por sua vez, o Conselho Europeu[23] já reconheceu a importância do reforço da vertente relativa aos consumidores num mercado interno que funcione correctamente, e tal constitui uma prioridade para todas as instituições comunitárias. Os consumidores devem também ter a certeza de que os produtos são seguros e os seus direitos são devidamente protegidos. Por conseguinte, as medidas devem ser concebidas de forma a salvaguardar os efeitos, gerados pela livre circulação, de incentivo da concorrência dos quais dependem os benefícios económicos para os consumidores e, em simultâneo, a proteger estes últimos contra riscos diversos, entre os quais os riscos para a saúde e a segurança. Além disso, as políticas do ambiente, aliadas à livre circulação, poderão propiciar oportunidades de inovação e de competitividade acrescida, através de uma maior eficiência dos recursos e de novas oportunidades de investimento.

4. Garantir uma maior harmonização do quadro jurídico do mercado interno com o quadro económico mundial

Na economia altamente globalizada do mundo actual, o impacto da legislação adoptada a milhares de quilómetros de distância é cada vez mais perceptível na UE e vice-versa. Se as empresas exercem cada vez mais a sua actividade a nível global, por exemplo no sector financeiro, a legislação não pode ficar atrás. Por conseguinte, a estratégia apela ao reforço do diálogo com os principais parceiros comerciais. Este diálogo tem por objectivo obter uma legislação eficaz que aumente a abertura do mercado e reduza os encargos regulamentares das empresas que exercem a sua actividade nos mercados mundiais. O diálogo deve, portanto, promover a convergência e reduzir as disparidades ou os conflitos normativos. As vantagens de uma cooperação bem sucedida poderão ser significativas em termos de crescimento e emprego.

ANNEX 1: IMPLEMENTATION REPORT SCOREBOARD

1. Transposition by Member States of Internal Market rules into national law

Member States persistently fail to transpose Internal Market rules correctly and on time. The transposition deficit[24] for the EU has got significantly worse and now stands at 3.6%. This is a long way from the 1.5% interim target set by successive European Councils. And the real target is, of course, 0% because timely and correct transposition is a legal obligation.

The deficit for the EU 15 Member States[25] is 2.9%, which represents a very significant step backwards after their progress in reducing the deficit since the Lisbon summit in 2000. When all 25 Member States are included in the calculation, the deficit rises to 3.6% - too high, but still considerably better than the 7.1% deficit at enlargement thanks to the sustained notification efforts of the new Member States. Concretely, this means that the Commission is still awaiting 1428 notifications of national implementing measures.

Of all Internal Market directives, over a quarter (27% or 427 directives) have not been fully transposed in at least one Member State[26]. This figure is much higher than before – and its rise is in large part due to enlargement, as many of the directives still to be transposed by each of the EU 10 Member States[27] are not the same.

Member States’ failure is not only a breach of their legal obligations - it also deprives businesses and citizens in practice of their rights and undermines the day-to-day working of the Internal Market.

[pic] Average EU transposition deficit

Of those countries in the First Division:

- Lithuania and Spain are to be commended for being the only Member States to have met the 1.5% interim target set by the European Council.

- The Netherlands has improved on its recent disappointing record.

- Hungary has made impressive progress in reducing its transposition deficit and is now in fourth place.

- Germany has made major strides in reducing its transposition deficit, but there is further to go.

- Despite being in the First Division, the transposition deficits of the other Member States have got worse. The performances of Denmark, Finland, the UK and Ireland are particularly disappointing, as they have all regularly met the 1.5% interim target in the past.

[pic] Transposition deficit, by Member State, as at 30 November 2004

The transposition deficit of countries in the Second Division is more than double the 1.5% European Council target. Of these countries:

- All EU 10 Member States in the Second Division have reduced their deficit since EU accession.

- The Czech Republic is bottom of the league, and still has to transpose over 150 directives. However it can be expected that its performance will improve soon. The efforts of France to reduce its deficit are beginning to bear fruit.

- Belgium, Luxembourg, Italy and Greece have all gone into reverse gear, recording their worst transposition deficits for many years.

[pic] Transposition deficit, by Member State, as at 30 November 2004

What is striking is that the performance of almost all EU 15 Member States has deteriorated significantly since enlargement. Only Germany, France and the Netherlands have reduced their deficits since then.

[pic] Change in the number of outstanding directives, by Member State, since May 2004. For example, Denmark’s backlog has increased by 26 directives, while Germany has reduced its backlog by 13 directives.

What is equally striking is that the EU 10 Member States have significantly reduced their deficits since their EU accession. Many now have better records than EU-15 Member States.

[pic] Change in the number of outstanding directives, by Member State, since May 2004. For example, Malta has reduced its huge backlog by 522 directives.

Ensuring that delays in transposing Internal Market directives do not go on indefinitely is also important. This is why the European Council set a ‘zero tolerance’ target for directives whose implementation is over two years late. Of the EU 15 Member States:

- Only Sweden, Portugal and the Netherlands met this target and they deserve credit for doing so.

- France almost halved the number of directives whose transposition is over 2 years late, but is still in last place (with Germany).

- The records of Luxembourg, Greece, Italy, Austria, Denmark and Spain all deteriorated.

[pic] Number of overdue directives with a deadline for transposition into national law before 15/11/2002 which have not been transposed by 30/11/2004.

The fact that EU 10 Member States only joined the EU in May 2004 should not preclude the application of this ‘zero tolerance’ target to them. The number of directives that they need to transpose to meet this target is set out below.

[pic] Number of directives to be transposed to meet the ‘ zero tolerance’ target.

2. Application by Member States of Internal Market rules: infringements [28]

For the Internal Market to work, Member States must apply the rules correctly. Where they do not do so, they deprive businesses and citizens of their rights and undermine confidence in the Internal Market. This is why the Internal Market Strategy 2003-2006 called for a 50% reduction in infringements by 2006 through a combination of better compliance, prevention and use of alternative methods of problem-resolution (such as SOLVIT).

France, Spain, Belgium, Austria, Ireland, the Netherlands, Portugal and Finland have all made progress towards meeting this goal, but much more needs to be done.

Regrettably, other Member States have not followed their good example. The position of Italy, already the country with the most infringement procedures against it, has got worse since the objective of a 50% reduction was set. Greece, the UK, Luxembourg, Sweden and Denmark have also all seen the number of infringements against them increase.

[pic] Open infringement cases as at 31/10/2004

ANNEX 2: STATE OF PLAY WITH REGARD TO INDIVIDUAL ACTIONS

Key:+ = completed or well on track+/- = some progress, behind schedule- = no progress

1. Facilitating the free movement of goods

Action | Status | State of play | Expected impact |

Commission Communication explaining how the principle of mutual recognition in the field of goods should be applied. The Commission is also considering proposing some binding rules, possibly in the form of a Regulation, which would make the application of the principle easier and more predictable for business. | +/- | Following the Communication, the Commission launched a wide consultation on the practical application of the principle of mutual recognition. Using the results of this consultation (which included asking the views of the European Business Test Panel) the Commission is now assessing the possible options for enhancing legal certainty. In the light of the results, it will take a decision whether or not to propose legislation. This decision is expected before the end of 2005. | The aim is to reduce uncertainty among economic operators and national administrations about their rights and obligations in the non harmonised field of goods and thus to encourage more trade on the basis of the mutual recognition principle. It has been estimated that non- or misapplication of the mutual recognition principle cuts trade within the EU by 10%. |

Enhancing the implementation of the New Approach Directives. | + | In May, 2003, the Commission adopted a Communication (COM 240 of 7.5.2003) setting out its views on how to improve the operation of the “New Approach” Directives. In November 2003 the Council subsequently adopted a Resolution, welcoming the objectives contained in the Communication and inviting the Commission to propose appropriate actions in the fields of conformity assessment and of market surveillance. The Commission is currently working on a draft legislative proposal consolidating and updating the basic legal texts for the New Approach and the Global Approach (Council Resolutions of 7.5.1985 and of 21.12.1989, and Council Decision 93/465/EEC). | The New Approach has been a very successful way of facilitating trade in goods within the Internal Market. The aim of the Directive is to strengthen the levels of confidence, transparency, and administrative cooperation between Member State authorities on which the New Approach depends and thus to further facilitate the free circulation of goods The revision of the New Approach will not question the fundamental principles behind the New Approach, but would update it and strengthen it by filling the gaps identified in its operation: Reinforce and co-ordinate market surveillance systems (enforcement of legislation at national level) Ensure coherence of rules for the operation of Notified Bodies (e.g. certification, testing) Ensure that accreditation remains a public authority activity Make certain that CE marking is protected. |

Concluding performance-based contracts with European standardisation organisations. | + | These contracts have since been concluded. For example CEN is trying to reduce the time it takes to make a standard and has set a target of three years. | The timely production of European standards is an essential part of making European legislation work, e.g. in the fields of construction or machinery. A lack of standards hinders trade and drives up costs. |

Commission Communication on Integrated Product Policy (IPP) | + | The Communication was published in June 2003 (COM (2003) 302 final). The Council welcomed the Communication in its conclusions of 27th October 2003. The Commission is presently implementing the actions foreseen; for example it has launched two pilot projects concerning mobile phones and teak furniture. | IPP aims to reduce environmental impacts of products throughout their life cycle. The Communication sets out a variety of ways to achieve this objective, such as increasing the availability of environmental product information and stimulating “green” public procurement (see handbook on environmental public procurement SEC 2004/1050). It sets a framework within which Member States can develop their own IPP strategies. It is important that approaches are co-ordinated at EU level so as to enhance their effectiveness and to prevent divergent national approaches from fragmenting the Internal Market. |

Commission Communication on the integration of environmental aspects into the European standardisation process. | + | The Communication was adopted in February, 2004 (COM 2004 (103) final) and endorsed by Council in October. Two workshops have been organised to raise awareness of the importance of environmental aspects for European standardisation. The European Standardisation Organisations have since taken steps to implement the approach, e.g. by more closely associating representatives from environmental organisations to the standard setting process. | This aims at ensuring that greater account is taken of environmental considerations at all stages in the standardisation process. This will not only support the achievement of environmental goals, but also facilitate free movement of goods as the scope for divergent national standards diminishes. |

Proposal for a Directive on unfair business to consumer commercial practices. | + | The Commission made a proposal in June 2003. Council reached political agreement in May 2004. The EP has meanwhile begun its second reading. | The directive would establish a general prohibition of unfair commercial practices. It will give consumers the same protection against unfair business practices and rogue traders irrespective of where they shop in the EU. Outlawing unfair practices is good for all reputable businesses. |

Commission to implement its Action Plan on European Contract Law. | + | The consultation on the 2003 Action Plan generated considerable interest both from Member States and stakeholders. In October, 2004, the Commission published its follow-up Communication (COM 2004 651 final) on European Contract law and the revision of the acquis (COM 2004 651 final), which sets out the steps to be taken to draw up a Common Frame of Reference (CFR). The work on the CFR, which will take account of the ongoing review of consumer protection law, is expected to contribute to improving the coherence of the legal framework. The Communication also describes actions to promote EU-wide standard contract terms, whilst indicating parameters on the basis of which the opportuneness for an optional contract-law instrument should be assessed. | Divergences between national contract laws may create problems for consumers as well as for traders. Without seeking to impose a single solution, the Commission is keen to ensure that consumer protection and free movement of products are fostered - and not hindered - by national contract laws. |

Proposal to recast the framework Directive on motor vehicles and their trailers. | + | The framework directive has been adopted in 2004. Member States have until the middle of 2005 to implement it into national law. | The aim is to extend the highly successful EU Whole Vehicle Type-Approval system for cars to other types of vehicles. |

The Council and European Parliament to adopt the framework Directive for the setting of eco-design requirements for energy-using products. | +0 | The Commission made its proposal (amending Council Directive 92/42/EEC and Directives 96/57/EC and 2000/55/EC) in August, 2003. The European Parliament completed its first reading in April 2004. The Council adopted a common position in November 2004. Final adoption is expected in the first half of 2005. | The aim is the promotion of sustainable development by facilitating the free movement of energy-using products within the Internal Market, by increasing security of energy supply and by strengthening environmental protection. Reducing the overall environmental impact of a product throughout the whole life cycle is achieved by integrating environmental aspects into product design. |

The Commission to provide mandates to European standardisation bodies to develop new standards or revise existing ones to ensure compliance with the requirements of the General Product Safety Directive. | + | The Commission has identified a first group of products for which a standardisation mandate will be given to CEN in early 2005. The Commission will monitor implementation of the Directive over the period of the Strategy and prepare a report on its application, including an assessment of market surveillance and enforcement in the Member States by 2006. | The aim is to promote European standards which will facilitate compliance with the requirements of the General Product Safety Directive. Its aim is to ensure that consumer products placed on the EU market are safe, whilst facilitating free movement of products within the Internal Market. |

The Commission to undertake a comprehensive study on voluntary marking at national and European level. | +/- | After discussions with Member States and other interested parties, the Commission takes the view that conducting a study may not be the best way to resolve the underlying problem of the proliferation of national voluntary marks, which are private-sector based. The problem of voluntary marks, which may act as a barrier for companies from other Member States to enter the market, can best be remedied by promoting European-level marks. Such marks whilst helping consumer choice do not carry the risk of fragmenting the Internal Market and of raising costs for SMEs without measurable benefits. | For many SMEs trying to penetrate new markets without having the advantage of name recognition or branding, displaying adherence to well known national voluntary marks is often necessary. However, the costs of adhering to multiple voluntary marks in different Member States are high, and in many cases, prohibitive. Voluntary marking, therefore, whilst often well-intentioned, may in effect result in keeping non-national companies off the market. The promotion of European level marks is intended to facilitate market entry in particular for SMEs. |

2. Integrating services markets

Action | Status | State of Play | Expected impact |

Proposal for a Directive on Services in the Internal Market. | + | The Commission made its proposal in January, 2004. Discussions are gaining momentum in Council and Parliament. The first reading is expected to be completed during the first half of 2005. The European Council, recognising the importance of this measure for Europe’s competitiveness and the Lisbon Strategy, has requested that it be agreed before the end of 2005. | The Internal Market is still rife with barriers in the field of services of a legal and administrative nature. These range from duplicative licensing requirements, economic needs tests to outright bans. Removing these restrictions would free up the enormous growth and job creation potential of more than half of the economy which is covered by the Commission’s proposal. According to estimates, intra-EU trade and investment would get a major boost. |

Adoption of the Regulation on Sales Promotion | - | Parliament delivered a very supportive first reading in 2003. Nonetheless, Council has so far failed to reach agreement, which is disappointing. The main areas of contention are the scope and the type of instrument. | If adopted, this would make it far easier for businesses to use and communicate sales promotions (discounts, premiums, free games, promotional contests and games) across the borders of the Member States and thus encourage cross-border sales of their products and services. The proposal is particularly important for SMEs since sales promotions are the most affordable forms of commercial communications and are therefore used by all companies including micro-enterprises. It is also of fundamental importance for the European direct marketing/mail order sectors. |

Adoption of Directive on the recognition of professional qualifications | +/- | Slower than expected progress of work in Parliament has resulted in considerable delays. It is expected that the measure can be adopted during the second half of 2005. | This simplified measure should make it easier for skilled professionals to provide cross-border services and establish themselves in other Member States. Greater mobility of skilled professionals is important for the achievement of the Lisbon objectives. |

Commission Communication on the competitiveness of business services | + | The Communication was adopted in December 2003 (COM (2003)747 final). In light of the results of the consultations, a detailed Action Plan will be proposed during 2005. This will include actions to promote the development of European standards and measures to improve statistical coverage of services sectors. | Whilst the Services Directive aims at removing legal and administrative barriers to cross-border service provision and establishment, its positive effects can be strengthened by a number of non-legislative initiatives, e.g. in the field of service quality standards. |

The Commission, subject to the results of a feasibility study, to propose an extension to services other than information society services of Directive 98/34/EC requiring notification of national technical rules and regulations regarding products and information society services. | + | The results of the feasibility study have been received at the end of last year. The Commission intends to make a proposal for a Directive during the first half of 2005. | Extending the requirement for Member States to notify technical rules to services (other than information society services) will help prevent future barriers to trade and establishment whilst also promoting exchanges of view between Member States as to the regulation of services industries. |

Adoption of the Prospectuses Directive. | + | The Directive was adopted in November 2003 (2003/71/EC). The Commission has organised a number of technical workshops to help Member States implement the directive correctly and on time (by July 2005). | This measure will make it easier for companies to raise money on an EU-wide basis as it obviates the need for multiple prospectuses to meet different requirements. This simplification is accompanied by provisions to protect investors. |

Communication on clearing and settlement. | + | The Communication was adopted in April 2004 (COM (2004)312. | Improved clearing and settlement arrangements are essential to an efficient and integrated securities market. Current bottlenecks raise the costs of money transfers between Member States. |

The Commission to propose a new Capital Adequacy Directive. | + | The Commission adopted the proposal in July 2004 (COM (2004)486). The proposed implementation date is end 2006. The proposal is still under negotiation in Council and Parliament. | The overall aims are to maximise the effectiveness of capital requirement rules, ensure continuing financial stability, maintain confidence in financial investment and protect consumers. The new regime is also designed to ensure that capital requirements for lending to small and medium-sized enterprises are appropriate and proportionate. |

The Council and European Parliament to adopt the Investment Services Directive. | + | The directive was adopted in April 2004 (2004/39/EC). Its transposition deadline is 2006. Commission implementing measures will follow as from beginning 2005. | This measure must be seen against the backdrop of major structural changes in EU financial markets over the past five years. It will offer investment firms a "single passport" which allows them to operate across the EU on the basis of the rules in their home state, while at the same time providing investors with a high level of protection. |

The Council and European Parliament to adopt the Transparency Directive. | + | The directive was agreed in May 2004 after a single reading. However, formal adoption has been delayed because of translation constraints and is expected shortly. The transposition deadline foreseen is 24 months after its adoption. | The aim is to increase the quantity and quality of information (e.g. on shareholding and changes of shareholding) investors have access to with regard to publicly quoted companies. Apart from safeguarding investors' interests, the proposal should help to further integrate Europe's securities markets and increase the availability of funds for investment. |

In light of the Council and European Parliament’s response to the Commission’s report on the safety of services for consumers, the Commission has to decide whether to make a proposal for a legislative framework aimed at monitoring and supporting national policies and measures in this area. | +/- | A Commission report on the safety of services for consumers was adopted in June 2003 (COM 2003) 313 final). The Council endorsed its findings in a Resolution of November 2003. The Commission has not yet decided on future initiatives, which will depend on the results of several projects and further analysis. | The aim is to ensure as far as possible that services which consumers use are safe. The approach will cover the systematic collection of data on accidents, injuries and risks (currently available data is inadequate), procedures for the exchange of information on national policy and regulatory developments and procedures for the establishment of European standards where necessary. |

Council and European Parliament to adopt the Consumer Credit directive. | - | The Commission adopted an amended proposal in October, in response to the Parliament's first reading amendments. | Aim of the directive is to enable progress towards an effective single credit market with greater choice and strong consumer protection. |

3. Ensuring high quality network industries

Action | Status | State of play | Expected impact |

Single European Sky for air traffic management | + | Four regulations were adopted in March 2004 and have entered into force in April. In addition, all institutional arrangements have been completed for the implementation of the Single Sky Initiative. The first implementing rules are now being prepared and a programme for modernisation of air traffic management systems (SESAME) is being launched. | More efficient use of Europe’s air traffic management should help reduce air transport delays and lower costs whilst increasing passenger safety. |

Second package of measures to revitalise European railways | + | The 2nd rail package was adopted in April, 2004. It provides for a complete market opening of rail freight by 1 January 2007, develops a common rail safety approach in the EU and sets up a European Railway Agency. Member States will have to implement the provisions before 1 May 2006 (31 December 2005 for rail freight market opening). | This should result in more competitive rail freight services, promoting a shift from road-to-rail by offering business better conditions and a higher-quality service. |

Council mandate to the Commission to negotiate an open skies agreement with the US | + | The Commission received a negotiating mandate from the Council in June 2003. There were six negotiating sessions EU-US between October 2003 and June 2004. A first step agreement could not be signed yet, because of the issue of access to the US domestic market for EU airlines. Further negotiations will take place in 2005 with US. | This would allow the restructuring of EU air transport industry by removing current obstacles to airlines’ mergers, generate employment and expand opportunities for airlines, airports, tourism, business links and cargo transport. It is for example estimated that an EU/US open aviation area would generate consumer benefits of at least 5 billion $ a year. |

Adoption of legislation completing the Internal Market for gas and electricity | + | The market for non household customers has been open since July 2004. Market opening for household customers is due for July 2007; the directives were adopted in June 2003 (Directives 2003/54/EC and 2003/55/EC. | This will increase competition in distribution and supply and widens choice for businesses (and for households from 2007). Competition is expected to exert downward pressure on prices. |

The Commission will undertake a review of the legal and administrative situation in the water and waste-water sector. This will include an analysis of the competition aspects, in full respect of Treaty guarantees for services of general economic interest and environmental provisions. | + | The Commission has completed its review and expects shortly to publish its findings. | The effective application of existing Community rules, including the Treaty guarantees for services of general economic interest and environmental provisions, can contribute to creating the conditions for a modernisation of the water sector. Investment needs in this sector to meet high quality and environmental standards are significant. |

Green Paper on Public Private Partnerships. | + | The Commission published its Green Paper in April 2004 (COM (2004) 327). The public consultation ended 30 July 2004. Some 200 contributions were received. The Commission is analysing these contributions and expects to draw policy conclusions and, where appropriate, prepare concrete initiatives during 2005. | The aim of the green paper is to start a process to increase legal certainty for public and private bodies who wish to develop joint (infrastructural) projects. Achieving greater legal certainty can be expected to increase the level of investments and promote the development of high-quality public services. |

4. Reducing the impact of tax obstacles

Action | Status | State of play | Expected impact |

Proposals amending the existing Parent Subsidiary Directive (90/435/EEC) and the existing Merger Directive (90/434/EEC) | + | Parent Subsidiary Directive: The Commission submitted a proposal in July 2003. After intensive technical discussions in Council, the proposal was adopted in December 2003 (Council Directive 2003/123/EC). Implementation date is 1 January 2005. Merger Directive: The Commission submitted a proposal in October 2003. Intensive technical discussions in Council started in November 2003. Political agreement was reached in Council in December 2004. Formal adoption is due to take place beginning of 2005. | These Directives eliminate double taxation and allow companies organising their operations on a cross-border basis to defer payment of certain taxes. The amendments extend the benefits of these Directives to more types of companies and, as regards the Merger Directive, to additional types of restructuring operations. |

Communication reporting on progress in the company tax field and examining different options for providing companies with a consolidated tax base for their EU-wide activities (COM(2003)726) | + | The Commission presented the Communication in November 2003. 2 options were identified for further action. A pilot scheme for SMEs to use 'home state' rules to compute their tax base across the EU ('Home State Taxation - HST') and the development of a common consolidated corporate tax base for all companies operating across the EU. Work on a Commission Recommendation concerning HST is progressing with a target date of early 2005 for approval by the Commission. The Commission is currently finalising the details of a technical working group, which under its chairmanship will carry out the preparatory work on defining a common consolidated corporate tax base. The work of this expert group is expected to provide a major input into a formal Commission proposal for such a base. | A consolidated base could be achieved without harmonising corporate tax rates and would go a long way towards solving the problems faced by companies. It would also make the functioning of the Internal Market more transparent by making it easier to compare the merits of carrying out operations in different locations. |

Communication setting out review and update of VAT strategy priorities (following the Strategy launched in 2000) | + | The Communication (COM (2003)614) was adopted in October 2003 and sets out further steps to modernise and simplify the VAT system. | Simplifying the VAT system for businesses and decreasing its costs is a major aim of the strategy as set out in the Communication.. |

A proposal to take concrete measures to simplify VAT obligations for companies, amongst which the introduction of a single place of VAT compliance for all businesses trading in Member States where they have no establishment. | + | Directive was proposed end of October 2004 (COM (2004) 728) and will soon be discussed by Council and EP. | Such an initiative would decrease the administrative burden of VAT for companies. This will lower compliance costs and make it easier to do business across borders. |

Communication on the effect of case law of the ECJ on dividend taxation systems. | + | The Communication (COM (2003) 810) on "Dividend taxation of individuals in the Internal Market" was adopted in December 2003. Several Member States have changed their systems of dividend taxation, in order to take account of court judgments (in particular C-35/98 – Verkooijen, and C-319/02 – Maninnen). Several infringement procedures are underway. | This aims to eliminate discrimination in some Member States who impose a higher tax on cross-border dividends than on domestic dividends. Such rules are a strong disincentive to the cross-border holding of shares and slow down the creation of pan-European equity markets. |

The Commission to present legislative proposals to remove the obstacles to the free movement of cars in the Internal Market. | +/- | This will be proposed the second quarter of 2005. | Aim is to modernise and simplify the existing vehicle taxation systems and to better co-ordinate them, with the final aim of removing tax obstacles and distortions to free circulation of cars within the Internal Market and use fiscal measures as a tool to reduce CO2 emissions from passenger cars. |

5. Expanding procurement opportunities

Action | Status | State of play | Expected impact |

Adoption of the "legislative package" which updates the existing legal framework for public procurement. | + | The new directives were adopted in March 2004. Member States have until 31 January 2006 to implement them into national law. | The aim is to simplify public procurement rules. The new rules facilitate the use of electronic procurement and are sufficiently flexible for the complex contracts which can arise, for example, in the context of Trans-European Networks. |

The Commission to develop an Action Plan on e-procurement. | +/- | The action plan has been adopted by the Commission 13 December 2004. | The action plan provides a blueprint for actions in order to allow substantial part of procurement to be carried out electronically by 2006. The first step will be to translate the legal provisions of the public procurement package into functional requirements. The Commission will also give mandates to European standards organisations, where necessary, to develop technical standards for e-procurement |

The Commission to publish a Green Paper assessing the need for any further initiatives in European defence procurement. | + | The Commission published its Green Paper in summer 2004 (COM (2004)608). Deadline for comments is end January 2005. The Commission will then analyse the results and, if appropriate, propose specific initiatives. | The aim is to promote value for money in what is a € 30 billion EU market for defence procurement. Providing greater clarity about Treaty exceptions is expected to contribute to more open procurement which in turn will help EU industries become more competitive on the global market. |

The Member States should strengthen administrative co-operation, notably through the further development of the fledgling Public Procurement Network (PPN) established on the initiative of the Danish authorities. Member States should ensure that the PPN is sufficiently well funded so as to be able to meet its ambitions. | +/- | The PPN network has meanwhile been expanded to include all 25 Member States. It meets annually and relies on rotating Presidencies. While it is a useful forum for the exchange of information, there is little to no information on actual performance of the network as far as problem-solving is concerned. | The aim is to resolve any cross-border procurement problems at the pre-contracting stage and to promote the exchange of best practices (using benchmarking techniques). |

The Member States should stimulate and develop procurement training (possibly using the Internet), particularly to raise the awareness of European rules amongst procurement officials at all levels of government. Best practices could be exchanged through the PPN. | - | The PPN has decided to concentrate on exchanges of best practices relevant for the proper and timely implementation of the legislative package | This should raise awareness amongst procurement officials at all levels of government of the need to comply with European procurement rules. It can be expected that this will contribute to higher publication rates, clearer tender documents, fewer infringements and less need for legal action. |

The Commission to propose amendments to strengthen the Procurement Remedies Directive, possibly including the strengthening of the powers of national surveillance authorities on which it will conduct a prior consultation. | +/- | The Commission has consulted stakeholders, including members of the European Business Test Panel, on possible options. It is now carrying out an extended impact assessment on the different options. In light of the outcome, the Commission may make a proposal for a directive before the end of 2005. | This will promote better compliance with the rules as bidders will have access to more effective redress mechanisms. |

6. Improving conditions for business

Action | Status | State of play | Expected impact |

Regulation on the Community Patent. | - | Council so far failed to reach agreement, especially because of language issues. Currently the Commission is reflecting on if and how to take this further. The Kok Report calls on Member States to “deliver or drop it”. Two accompanying proposals on jurisdiction and on the setting up of a Patent Court are also before Council. | The proposed system will establish a single EU-wide patent, bringing important benefits for innovators in terms of obtaining, enforcing and managing their rights. It will provide protection in 25 Member States for around the same price (or slightly less) as is currently paid for protection in just 5 countries. |

Adoption of the directive on the enforcement of intellectual property rights. | + | The Directive was adopted in April 2004 on its first reading. The transposition deadline is April 2006. A meeting with the Member States has been scheduled in February 2005 to monitor the implementation process. | This will create a level playing field for the enforcement of intellectual property rights in different EU countries. It is an essential part of the fight against piracy and counterfeiting which causes immense damage to the EU economy. |

Directive on the patentability of computer-implemented inventions. | +/- | Council reached a political agreement in May 2004. This still has to be formalised. Attention will then shift to the Parliament. | This will clarify and make more transparent the boundaries of patent law in this field. It will stimulate innovation and benefit software developers and suppliers as well as the users of patentable technology. |

Take-over bids Directive | +/- | This was adopted in April 2004. The transposition deadline is May 2006. | A Directive ensuring a high degree of harmonisation at EU level would have facilitated pan-European restructuring. However, the agreement reached in Council falls short of what is required to create a genuinely level playing field. |

Legal endorsement of existing International Accounting Standards. | + | The Commission has adopted a regulation in September 2003 endorsing IAS for use in the EU as from 2005. All IAS standards will be endorsed before 1.1.2005 except for IAS 39 (which is about derivatives) which is only partially endorsed. IFRS 2 has been submitted to the Accounting Regulatory Committee in December 2004 and will be adopted by the end of January 2005. Further work will need to take place in the International Accounting Standards Board on IAS 39 to eliminate the existing carve outs. | All EU-listed companies are now required to prepare their consolidated accounts in accordance with IAS from 2005. IAS are established by the International Accounting Standards Board but have to be endorsed for use within the EU. This will improve competition and transparency and makes free movement of capital easier. |

Communication on statutory audit. | + | The Communication was published in May 2003 (COM (2003) 286) and was followed by the proposal for a Directive in this field. (See action below). | This sets out priorities for 2003 and beyond aimed at improving and harmonising the quality of statutory audit in the EU. It will ensure that investors can rely fully on the accuracy of audited accounts, prevent conflicts of interest for auditors and enhance the EU's protection against Parmalat-type scandals. |

Proposal to modernise the 8th company law Directive on statutory audit of annual accounts and consolidated accounts. | + | The proposal was adopted in March 2004 and is currently being negotiated in Council and EP. Expected adoption by mid-2005. | If adopted, this will strengthen access to and regulation of the audit profession and will aim to ensure proper oversight of the audit profession at national level and appropriate co-ordination at EU level. |

Proposal for a 10th Company Law Directive on cross-border mergers. | + | Currently the proposal is being discussed in Council and EP. The Council agreed a general approach at the end of November, 2004. | If adopted, this proposal will make cross-border mergers simpler for all companies with share capital. However, it will be especially useful for small and medium-sized businesses that want to operate in more than one Member State, but not throughout Europe, and thus are not likely to seek incorporation under the European Company Statute. |

Proposal for a 14th Company Law Directive on cross-border transfer of registered office. | + | The proposal is expected to be adopted by the Commission in January 2005. | If adopted this proposal will harmonise current legislation in the EU with regard to the transfer of a company’s seat. |

The Council to adopt the proposed reform of the merger regime. | + | The new Council Regulation (139/2004) on the control of concentrations between undertakings and the Implementing Regulation (802/2004) have entered into force on 1 May 2004. The Commission has also adopted “Guidelines on the assessment of horizontal mergers” (OJ C 31, 05.02.2004) dealing with the substantive aspects of the reform as well as a “Notice on Case Referral in respect of concentrations” setting out the principles of the jurisdictional reform. | The reform of the Merger Control Regime included both jurisdictional and procedural issues. It ensures the continuing effectiveness of merger control in the context of globalisation and enlargement of the EU. |

The Commission to adopt a new block exemption Regulation with regard to technology agreements. | + | This regulation has been adopted 27 April 2004. | The aim is to facilitate technology transfer agreements between companies. |

The Commission to adopt a Communication on the management of copyright and related rights in the Internal Market. | + | The Communication was adopted in April 2004(COM (2004) 261). A further consultation was launched amongst stakeholders and an extended impact assessment is now under way in preparation for a Directive on the Collective Management of Rights. | These initiatives aim at implementing the measures necessary to create a more favourable environment for the cross-border marketing and licensing of these rights. |

The Member States to continue their efforts to further reduce the total amount of state aid while re-directing aid towards horizontal objectives of Community interest, such as the environment, research and development and SMEs. | + | Total state aid provided remains under 1% of GDP. Specific country information can be found in the state aid scoreboard from November 2004 COM(2004) 750 final. | The aim is to reduce the amount and distortive effect of state aid, thus creating a more level playing field in the Internal Market. |

7. Meeting the demographic challenge

Action | Status | State of play | Expected impact |

Analysis of Member States’ compliance with ECJ case law relating to cross-border provision of and access to health services | + | The analysis has been carried out and shows that the Internal Market in health services is not functioning satisfactorily. The Services Directive seeks to clarify the legal situation in this respect. | The objective is to make it easier for citizens to benefit from medical treatment in other Member States provided that certain requirements are fulfilled. This is particularly important in cases where there are long waiting lists in the home Member State. |

The Commission to examine the desirability of proposing a Directive on portability of occupational pensions. | +/- | A second stage consultation was launched in September 2003 (first round was in June 2001). It suggested action to be taken by the social partners to address obstacles to the acquisition of pension rights, to improve the preservation of acquired pension rights and to facilitate the transfer of pension rights between schemes. Since there was no agreement amongst the social partners, the Commission is currently preparing a proposal for a Directive (to be adopted in 2005). | Aim is to facilitate the free movement of workers across Europe. The proposal for a Directive will aim at fixing minimal requirements based on the current situation in the Member States. It will constitute a first step in a progressive approach to improve the portability of occupational pension rights for mobile workers. |

The Commission to continue its action to tackle tax discrimination against pension funds established in other Member States. The Commission will vigorously pursue any cases which come to its attention and ensure that the relevant ECJ jurisprudence is complied with throughout the EU. | + | The Commission is presently examining the relevant national rules and taking the necessary steps to ensure their compliance with the Treaty. Several member states have already eliminated tax obstacles or have announced that they will do this soon. Eight infringement cases have already been opened. | Aim is to eliminate tax discrimination to create a level playing field for pension funds with the result that citizens who decide to work in another Member State will not have to change pension funds to continue to benefit from tax relief and so that companies operating in several Member States can run a single pension fund for all employees. |

8. Simplifying the regulatory environment

Action | Status | State of play | Expected impact |

Ex-ante impact assessment | +/- | The majority of Commission initiatives taken in 2004 have been subject to extended impact assessment (compared to 17% in 2003). In 2005, this will be the case for all initiatives. | If carried out properly, impact assessment introduces greater transparency, provides an objective basis for decision-making and improves the quality of any new rules. |

Simplification of existing EU rules. | +/- | The screening of different policy sectors has been completed. A number of proposals to simplify the rules have already been made and others are in preparation. These range from rules in the automotive sector to company law. Meanwhile, the Council has drawn up a shortlist of priority measures which offer scope for simplification (e.g. on company law, waste) which the Commission will take into account in its on-going simplification work. In the agricultural sector, an important process for the simplification of its legislation has been launched with first results in 2004 (98 legal acts declared obsolete) and further actions are planned for 2005. | Whilst many Internal Market measures have considerably reduced paperwork and removed obstacles to trade, it is important that the Community institutions tackle those measures which have become too burdensome or overcomplicated. Simplifying or removing these will bring significant economic benefits. Simplification is a shared responsibility – so Member States will also need to make a contribution by ensuring that they implement EU rules in the simplest way possible (Inter Institutional Agreement on better law making 2003/C321/01). |

Mechanism for reporting on particularly complex rules. | - | Several Member States have launched such mechanisms, for example, Belgium and the Netherlands. Meanwhile, the Council’s efforts to identify simplification priorities have triggered extensive consultations with (national) business organisations and other NGOs. Such methods, if they can be put on a more permanent footing, would obviate the need for a mechanism at EU level. | Efforts at achieving better regulation will only result in tangible benefits if there are ways to identify bad regulation. Once the problems are identified, steps can be taken to address them. |

The Commission to draw up an “Internal Market compatibility test” following consultations with the European Parliament and Member States. | + | The problem of possible incoherence or conflict between national and EU rules has been addressed in a number of ways. First, the Commission is working with Member States to ensure that they implement the mutual recognition principle in their national law, where possible in a horizontal way (most new Member States have done this). Furthermore, in its Recommendation on Transposition of Internal Market law[29], the Commission encourages Member States inter alia to avoid “gold-plating” and take account of the Internal Market dimension when implementing directives. Lastly, the Commission plans to propose an extension of the notification requirement for national technical rules and regulations to services (which already exists for goods and information society services). These approaches – taken together – should considerably reduce the risk of conflict between national and European rules. | These tests would act as guidance for national legislators at all levels of government to ensure that their actions do not inadvertently impinge on the free movement principles of the Treaty. |

Commission to develop with the Member States indicators to measure progress towards a higher quality regulatory framework for the Internal Market. | +/- | The Commission has received the results of a major study on possible indicators which it is currently analysing. In parallel, it has developed with the Member States a questionnaire for business which can be used to track progress over time. This survey will shortly be launched via the European Business Test Panel. | It is important that policy-makers have some way of monitoring and measuring progress on better regulation, information which it can share with the general public. Such indicators will also help identify delays or bottlenecks which can then be tackled. |

The Commission to develop a coherent approach to the question of legislative technique and the choice of legal instrument in the Internal Market. | +/- | This concerns particularly the use of different instruments (i.e. harmonisation, mutual recognition) and coherence between Internal Market and other important policies, such as consumer policy. | It is important that the different instruments chosen to support various policy objectives are the appropriate ones and that they are as far as possible mutually supportive. There is certainly scope for improving further the links between Internal Market and other policies and for developing the kind of evidence-based system which will help policy-makers to decide, for example, when harmonisation should be pursued (instead of mutual recognition) and at what level. |

9. Enforcing the rules

Action | Status | State of play | Expected impact |

Meet transposition targets as set by the Spring European Council. | - | The record gets worse every year (deficit has risen from 2.3% to 3.2% since 2003 – see annex I). Targets set by the European Council seem to have little to no effect. The Dutch presidency has now asked Ministers to notify by which date the national deficit will be at or below the European Council’s target. It is hoped that Ministers will want to deliver on their personal commitment. | Member States who do not respect their transposition obligations deprive businesses and citizens of their rights, distort competition and prevent the exploitation of the full economic benefits of a properly functioning Internal Market. |

The Commission to issue a Recommendation setting out “best practices” to speed up and improve the quality of transposition of Internal Market Directives. | + | The recommendation, which was based on best practices provided by Member States, was published in July (SEC (2004)918). As a follow-up to the Competitiveness Council held at the end of September 2004, Member States agreed to conduct an internal screening of their administrative procedures and practices to identify those best practices which can be used to improve their records. Results will be reported in 2005. | This is an attempt to promote learning amongst Member States to help them organise their internal systems for the implementation of EU directives as efficiently as possible. This should translate into better transposition records. |

Organising “preventive” dialogues between the Commission and Member States after adoption but before national implementation of Directives. | + | The Commission holds transposition “package meetings” with Member States to clarify legal provisions and help speed up implementation. These have been held with most EU-15 Member States; and will start with the new Member States as from 2005. In parallel, the Commission increasingly organises more technical discussions with all Member States shortly after adoption of a directive to promote understanding and to secure consistent implementation. Examples include market abuse, occupational pensions and financial conglomerates. | The aim is to achieve better and more consistent implementation of the rules and avoid delays. Prevention (i.e. detection of problems early) is always better than cure (the Commission having to take legal action for non-conformity of national implementing measures). |

The Commission proposes that a standard transposition period should be set within the Inter-Institutional Agreement on Better Regulation, from which departures are only permitted if this can be justified by the complexity of the measure. | + | This standard transposition period (2 years maximum) is now set in the Inter Institutional Agreement (2003/C 321/01). | This will make the transposition process and obligations more predictable and in so doing facilitate planning. |

Proposal for a Regulation on co-operation between national authorities responsible for the enforcement of consumer protection laws. | + | The Regulation was adopted in October, 2004 (EC2006/2004). Member States have until December 2006 to implement its provisions. Informal cooperation to facilitate implementation has already started. | This will establish a network to detect, investigate and stop cross border rogue traders. There is also the possibility to conclude EU agreements with third countries to do the same. |

The Commission to propose a legal instrument to make certain implementation aspects, such as electronic notification of implementing measures and the use of concordance tables, mandatory. | +/- | This has proven not to be necessary anymore as the mandatory use of concordance tables is included in the above mentioned Inter Institutional Agreement. A large number of Member States notify electronically and the Commission expects that this will further increase in 2005. | This will make the transposition process and obligations more transparent. |

The Commission to publish the results of a study on the different options for improving the enforcement of Internal Market law. | +/- | While the Commission continues to take the view that Member States should take more ownership of the Internal Market, it has decided after discussions with the Internal Market Advisory Committee to pursue a bottom-up rather than a top-down approach. This means that it will give priority to putting in place the (information) systems to enable Member States to co-operate amongst themselves, exchanging information and providing mutual assistance. It will start with developing a system that can support the administrative co-operation needed for the services directive. Member States will of course want to ensure that their internal organisation takes account of this need to co-operate. | The aim is to strengthen administrative co-operation so that the Internal Market can work better in practice. Stronger links between national administrations of the different Member States can be expected to contribute to greater confidence in each other’s systems and controls. |

Internet facility setting out the various redress procedures available to citizens, consumers and businesses. | +/- | Access to a wide range of information, advice and redress networks will be provided through the Your Europe portal, to be launched in January 2005 (see last action under next chapter). | This will allow citizens, consumers and businesses to see the whole range of possibilities available to them and the time and costs involved in each option. It will enable them to choose the means of redress most suited to their needs. |

10. Providing more and better information

Action | Status | State of play | Expected impact |

Member States to draw up national information plans. | - | Only four Member States have submitted such information plans. It is therefore proposed to pursue cooperation on Internal Market information in other ways, particularly through the Your Europe portal project (see below). | Better information will lead to more citizens and businesses taking advantage of the many opportunities offered to them by the Internal Market. |

Member States to take responsibility for national-level information made available through the Dialogue with Citizens. | + | The pre-existing information has now been updated, with the exception of a small number of documents on which information from the responsible Member State is still awaited. In the case of the new Member States, the exercise of preparing the necessary fact sheets has been launched. In order to ensure that information remains up to date, Member States should take ownership of the fact sheets and keep them up to date. | The Dialogue provides citizens with targeted, practical information about how to exercise their Internal market rights. It does so by providing a series of EU level guides dealing with different areas (e.g. living, working and studying in another Member State) and national fact sheets providing detailed instructions on how to exercise Internal Market rights in individual Member States. |

The Commission to improve the Dialogue web-sites to provide better access to practical information. | + | A new user-friendly Dialogue with Citizens website was launched in May 2004 (http://europa.eu.int/citizensrights). Improvements to the Dialogue with Business website are being pursued in the framework of the Your Europe project (see below). | See above |

The Commission to extend the Citizens Signpost Service to the new Member States. | + | The service was extended to new Member States on 1 May 2004. About 500 enquiries were received from residents of the new Member States between May and November. | Enable citizens from new Member States to benefit from the service which provides practical advice and/or signposting to an appropriate local, national, or EU organisation |

The Commission and Member States to extend the Euroguichet (network of European Consumer Centres (ECC). The aim is to have at least one ECC in all MS. | + | The Commission is working on extending the network, and from beginning 2005 merging it with the European Extra-Judicial Network (EEJ-Net). EEJ-Net is a network of clearing houses which inform and assist consumers in using alternative disputes resolution schemes throughout the enlarged EU. Currently, there are 15 ECCs in 13 Member States. There will in principle be a contact point of the merged network in each "old" Member State as well as in Norway and Iceland. Merged centres will be created in some of the New Member States in 2005. | The aim of the network is to provide information to consumers and assist them in pursuing cross border-complaints. The merger with the EEJ-Net should create a credible system that all stakeholders can trust by providing consumers with a seamless and effective service. There are a number of other significant benefits that such a merger could bring: more efficient administrative and financial management; greater profile and coherence of the actions and a strengthening of the knowledge-base (a combined structure will enable statistical data to be more efficiently processed). |

The Commission to set up a top-class information portal bringing together the Dialogue and the Signpost Service with other related initiatives, such as SOLVIT, European Consumer Centres, Fin-Net and EEJ-Net. | + | The first version of the Your Europe portal will be launched in January 2005. | The new portal, which is financed under the IDA (Interchange of Data between Administrations) programme, will provide access to a wide range of practical information for citizens and businesses at both EU and national level as well as to advice and problem-solving services. It is managed by an editorial board with representatives of the Member States. Work will continue with a view to developing an improved version, including e-services, by 2006. |

[1] Grupo de Alto Nível presidido por Wim Kok: “Enfrentar o desafio: a estratégia de Lisboa para o crescimento e o emprego”, 3 de Novembro de 2004.

[2] COM(2003) 238 final de 7.5.2003.

[3] Engel, C. & Rogers, J. (2004) European product market integration after the euro , Economic Policy, Julho, pp. 348-384.

[4] Aghion, P. et al (2004) Entry and productivity growth: evidence from microlevel panel data , Journal of the European Economic Association, Abril-Maio 2 (2-3), pp.265-276.

[5] COM(2004) 2.

[6] CE (a publicar) Economic Assessment of the Barriers to the Internal Market for Services , Copenhagen Economics.

[7] Relativamente a 20 Estados-Membros.

[8] Op cit.

[9] Documento CPB n.º 69, Outubro de 2004, Free movement of services within the EU , http://www.cpb.nl/eng/pub/document/69/doc69.pdf .

[10] De acordo com este princípio, nenhum Estado-Membro tem o direito de proibir a venda no seu território de qualquer produto legalmente produzido ou comercializado noutro Estado-Membro, excepto quando haja motivos fundamentados de interesse legítimo, como a protecção da saúde ou da segurança.

[11] RIIA e Accenture (2004) Unfinished Business: Making Europe's Single Market a Reality .

[12] CE (2001) http://europa.eu.int/comm/internal_market/en/update/economicreform/cardiff02ensta.pdf,p. 24.

[13] http://europa.eu.int/comm/internal_market/publicprocurement/docs/public-proc-market-final-report_en.pdf

[14] COM(2004) 22 final de 21.1.2004.

[15] Documento CPB n.º 69, Outubro de 2004, Free movement of services within the EU , http://www.cpb.nl/eng/pub/document/69/doc69.pdf .

[16] Quantification of the Macro-Economic Impact of Integration of UE Financial Markets , Relatório Final apresentado à Comissão Europeia pela London Economics em Novembro de 2002; e Comissão Europeia, Financial Market Integration (ECFIN 597/02), Economic Papers, Novembro de 2002.

[17] Confiança dos consumidores no mercado interno do comércio retalhista, transacções transfronteiras e protecção dos consumidores: Eurobarómetro 57.2 e Flash Eurobarómetro 128 Public opinion in Europe: Views on business-to-consumer cross-border trade (Opinião pública na Europa: pareceres sobre o comércio transfonteiriço entre as empresas e os consumidores), Novembro de 2002; Eurobarómetro 59.2 Consumer protection in the EU (Protecção dos consumidores na UE), Outubro de 2003.

[18] SEC(2004) 1128 de 7.9.2004.

[19] Inquérito Dez anos de mercado interno sem fronteiras: http://europa.eu.int/comm/internal_market/score/docs/score11/score11-text_pt.pdf

[20] UNICE (2004) It's the Internal Market, stupid! A company survey on trade barriers in the European Union , Bruxelas.

[21] Inquérito sueco sobre os obstáculos ao comércio de serviços, 3.11.2003, dnr 100-416-2003.

[22] A Dinamarca instituiu uma task force para o mercado interno (TIM), com o objectivo de verificar as normas e a sua compatibilidade com o mercado interno. Foram já alcançados resultados positivos.

[23] Conselho Europeu de 20 e 21 de Março de 2003.

[24] The transposition deficit shows the percentage of Internal Market directives not yet communicated as having been fully transposed, in relation to the total number of Internal Market directives which should have been transposed by the deadline. (1579 as at 15/11/2004).

[25] Belgium, Denmark, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Sweden, United Kingdom.

[26] This is usually referred to as the fragmentation factor.

[27] Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia. The transposition deficits for the EU 10 Member States are still to a certain extent provisional, as part of the national implementing measures are still under verification by the Commission. Wherever there has been a notification, the Commission deems this to reflect a full transposition unless it establishes after analysis that this is not the case. This means that the transposition deficits in reality could be higher.

[28] This section concerns the EU 15 Member States, as no formal infringement proceedings have yet been taken against the EU 10 Member States concerning the Internal Market corpus.

[29] SEC(2004) 918.