(1)

A well functioning single market is essential for creating employment and growth, and for promoting economic stability. The more effective the single market is, the more it will improve the business environment, thereby encouraging firms to invest and create jobs, and the more it will increase consumer confidence and demand. A well functioning single market is therefore crucial in the context of economic recession to facilitate the recovery of the European economy.

(2)

It is essential for a well functioning single market to have correctly transposed, applied, enforced, monitored and satisfactorily harmonised Community rules affecting the functioning of the single market (hereafter single market rules).

(3)

Consultation and analysis carried out to prepare the Communication ‘A single market for 21st century Europe’ (hereafter the Single Market Review) (1) have identified a number of shortcomings which show that the single market does not yet function as efficiently as it should. In many areas and sectors, further work is still necessary. Citizens and businesses are often unable to seize the many single market opportunities because rules are not properly applied and enforced.

(4)

In the Single Market Review, the Commission therefore suggested a set of concrete measures, to ensure that citizens and businesses continue to benefit from the economic advantages created by the single market (2).

(5)

The measures taken by the Member States and those taken by the Commission should complement each other. A coordinated and cooperative approach — in partnership between the Commission and Member States — with a common objective of improved transposition, application and enforcement of single market rules, is vital to ensure the proper functioning of the single market. The partnership approach in the context of this Recommendation goes beyond the already established cooperation in a number of single market policy areas. It requires establishing and maintaining closer cooperation within and between the Member States, and with the Commission, in all areas that are relevant for the single market. It also implies that Member States assume shared responsibility for and therefore a more proactive role in managing the single market.

(6)

The Single Market Review, and in particular subsequent discussions with Member States, identified some areas as crucial to achieve a well functioning single market, namely: ensuring coordination on single market issues; improving cooperation within and between Member States as well as with the Commission; improving the transposition of single market rules; monitoring markets and sectors in order to identify potential market malfunctioning; improving the application of single market rules; strengthening the enforcement of single market rules and promoting problem-solving; promoting regular assessment of national legislation; and informing citizens and businesses about their single market rights.

(7)

This Recommendation draws closely on solutions already introduced in certain Member States, which have proven to work in practice in the Member States concerned. It is for each Member State to choose the practices best designed to ensure the implementation of this Recommendation, having regard to what would be most effective in the context of that Member State, since procedures and practices that are effective in one Member State may not be as effective in another.

(8)

Research shows that Member States need to improve internal coordination on single market issues, as competences are currently dispersed among different national authorities (3). As applying single market rules may involve a wide variety of national, regional and local authorities in each Member State, efficient cooperation among them should be enhanced. Therefore, Member States should ensure and strengthen a single market coordination function within their national administrations, which may vary according to specific national administrative structures and traditions. The authorities responsible for this function should have the overall responsibility to plan, oversee and evaluate the implementation of this Recommendation.

(9)

Close cross-border cooperation between Member State authorities competent for single market issues allows the building of mutual trust and is of vital importance for the correct application of single market rules. Member States should take the necessary measures to ensure that the cross-border networks or electronic information systems established by the Commission (e.g. such as the Internal Market Information system (IMI), RAPEX (4), RASFF (5) or Consumer Protection Cooperation network) are operational, by putting in place appropriate arrangements, including allocation of resources.

(10)

Internal Market Scoreboards have shown that there is still a need to improve timeliness and quality in the transposition of single market Directives. While Commission Recommendation of 12 July 2004 on the transposition into national law of Directives affecting the internal market (6) (hereafter the 2004 Commission Recommendation) has broadly been applied, and while this has resulted in a significant improvement of the transposition rate, parts of that Recommendation still remain to be applied more effectively. This Recommendation recalls as still necessary and further develops actions recommended in the 2004 Commission Recommendation, which remains a reference for Member State administrations dealing with transposition. This Recommendation also builds on the Communication from the Commission — A Europe of Results — Applying Community Law (7) and on the Communication from the Commission — Review of the Lamfalussy process — Strengthening supervisory convergence (8).

(11)

Market monitoring is necessary to identify the sectors where markets do not function properly for consumers and businesses, and to focus single market policies on those areas. Therefore, it should become an integral element in designing and monitoring single market policies (e.g. through the Consumer Markets Scoreboard). Cooperation between the Commission and Member State authorities on market monitoring and data collection work will enhance the quality of data and analysis for use at national and Community level, and help build consensus on single market issues. Member States are encouraged to participate in market monitoring exercises carried out by the Commission, and to carry out similar exercises at the national level, adapted to specific national needs.

(12)

Various national studies have underlined the importance of training to assist officials, including judges, at national, regional and local levels of administration in correctly transposing, applying and enforcing single market rules. In this context, it is important to ensure that those rules, and the impact on the Community’s external competitiveness in general, are always taken into consideration when drafting national legislation. The importance of training was further confirmed by a recent study and resolution on the role of the national judges conducted by the European Parliament and its 2005 resolution on competition law (9), as well as by a recent Council Resolution (10). Officials should also be given guidance on Community law in general and on single market rules in particular.

(13)

Effective enforcement of single market rules and proper measures to resolve problems encountered by citizens and businesses are of crucial importance to help citizens and businesses to benefit from the freedoms guaranteed by the Treaty. Building on the cooperation already achieved in the area of problem-solving, in particular through SOLVIT (11), Member States, with the support from the Commission, should improve the capacity of problem-solving mechanisms — either in national courts or through non-judicial mechanisms — to provide effective redress. It is important that the circumstances giving rise to the various problems encountered are addressed.

(14)

Regular monitoring and evaluation of national legislation is important as it allows verification of how effectively single market rules are applied in practice, and identification of provisions which could prevent citizens and businesses from drawing full advantage from these rules. Such exercises should be carried out more systematically in all Member States.

(15)

Recent Eurobarometer surveys (12) and requests addressed to the Commission’s information and problem-solving services show that it is necessary to provide more information to citizens and businesses about their rights in the single market in order for them to be able to exercise those rights in practice. It should furthermore be made possible for citizens and businesses to obtain assistance when they exercise those rights. To that end, Member States, with the support of the Commission and when appropriate in cooperation with the stakeholders, should ensure the provision of practical information and advice on matters that concern citizens and businesses who want to live, study, work, set up companies or provide goods or services in another Member State.

(16)

The Annex to this Recommendation sets out measures that Member States could take in order to implement this Recommendation and provides a list of practices of certain Member States, on which those measures are based. It is considered that, while certain measures may initially incur costs, they should allow for savings to be made, for instance by streamlining national administrative practices, and should, in the long term, lead to a better functioning single market and therefore bring benefits to consumers and businesses.

(17)

The progress in implementing this Recommendation should be monitored in close cooperation between the Commission and the Member States, including through discussions in the Internal Market Advisory Committee (IMAC) on the basis of benchmarks and indicators. In order for the Commission to be able to carry out an assessment of the effects of this Recommendation four years after the publication of the Recommendation in the Official Journal, Member States should submit reports to the Commission three years after the publication of this Recommendation in the Official Journal on actions taken to implement the Recommendation,