Transcript 29.11.2012 - The Governance of the single market

Report on the State of the single
market integration 2013
Kamil Kiljański,
Economic Analysis and Impact Assessment,
DG MARKT,
European Commission
Meeting of the Committee on the Internal
Market and Consumer Protection,
European Parliament
28–29 November 2012
Motivation and Context
Why yet another report?!
• Reinforce SM dimension in AGS
• MS specificities matter
• No easy wins for econ growth
• Enforcement needs prioritisation
• Follow-up on Governance
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The European Semester: timeline
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January 2012 European Council
The Commission will report annually on progress
made towards releasing the growth-creating
potential of a fully integrated Single Market,
including as regards network industries.
June 2012 Communication on
Better Governance for the Single Market
To this end, the Commission will prepare an Annual
report on the integration of the Single Market. This
report will present an analysis of the state of Single
Market integration and look at the way the Single Market
functions in practice.
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The report
Concise
 Horizontal assessment: status of integration in
4 freedoms
 Focus on priority sectors: services, energy,
transport, digital markets
Main obstacles and good practices in Member
States and at the EU level
Key policy priorities at national and EU level
 Country specific recommendations will be put
forward later in the European Semester process
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Goods (intra- vs extra-EU)
Intra-EU trade (in % of GDP)
70
22
Intra-EU trade (in % of EU export
to or import from the whole
world)
69
21
68
67
20
66
65
19
64
63
18
62
61
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Average of export and import reported by Eurostat.
Export
Import
6
Services (establishment)
35
The average share of the enterprises controlled by an entity
from the other EU Member States in value added (in %) in
2003–2009*
30
25
20
15
10
5
0
HU EE CZ RO PL BG SK LU LV LT AT DK MT FI NL IE SE EU UK DE FR ES PT IT SI CY
Broad services***
Whole economy**
* Specific years differ for some countries due to data availbility.
** Except financial intermediation, agriculture, and fishing.
*** Whole economy except mining, manufacturing, agriculture, and fishing.
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Goods vs services (price dispersion)
0.21
Coefficient of variation (standard
deviation / mean, GDP weighted
average)
0.19
0.17
0.15
0.13
0.11
0.09
Goods
Services
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Goods vs services (consumer opinion)
Average Market Performance Indicator (2012)
84
82
80
78
76
74
72
70
LU EE DE FI MT LT LV SI SK FR DK BE NL AT HU CY UK EL CZ PL IE PT RO IT SE BG ES
Goods
Services
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Assessment of services markets (key points)
 Double regulation (both home and host country
rules) of cross-border service providers persists
 Uncertainty about the rules applying in MS to xborder service provision on a temporary basis
 Heterogeneous regulation of professions
(reserved activities and entry/conduct restrictions)
 Quality of Points of Single Contact diverse
 Restrictions in business services (e.g. on capital
form or ownership)
 Economic needs tests still required in some MS for
autorisation of establishment in retail
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Main policy priorities in services markets
 More ambitious implementation of the Services
Directive, especially as regards restrictions in:
 fixing tariffs for certain professions
 company structures and capital ownership
 construction, business services, and tourism  peer review
process assisted by the Commission
 Assess the rationale for the restrictions of the access
and the conduct of regulated professions
 Retail: remaining economic needs tests should be
abolished
 Improve the Points of Single Contact
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Assessment of network industries (key points)
Specific chapters for each sector:
 Energy: both gas and electricity
 Little convergence in retail prices across the EU
 Considerable investment in infrastructure needed (interconnections,
smart grids, storage capacity, LNG terminals)
 Delays in transposition and enforcement of third energy package
 Transport:
Difficulties with application of key legislation
Rail least competitive, especially domestic passenger transport
Port services still fragmented
Sea shipping between Member States often still considered as going
beyond the external borders
 Fragmentation of the Europe's airspace
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Assessment of digital markets (key points)
 Low coverage of rural areas with broadband
 Insufficient spectrum available
 E-commerce: lack of trust or information, privacy and/
or security+difficulties with parcel delivery
 Uneven use of e-procurement
 Shortage of ICT professionals
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Main policy priorities in network industries
 Energy:
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implement acquis (3rd energy package directives)
monitoring and projection of investment in generation and consumption
support consumers' informed choices and energy-efficient behaviour
phasing out regulated prices while ensuing protection of vulnerable consumers
stronger enforcement of competition rules
 Transport:
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implement acquis
open domestic rail passenger services
remove red tape and entry barriers in the port services
accelerate implementation of the Single European Sky
allow more cabotage opportunities in road freight
 Digital markets:
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accelerate deployment of fixed and wireless broadband
implementation of Consumer Rights Directive and E-commerce Directive
more e-government e.g. e-procurement and e-health
invest in ICT training
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Next steps…
 Adopted together with the AGS 2013 yesterday.
 Discussed by the Council and the Parliament and the
Spring European Council.
 Will help to assess the Member States’ programmes thus
contributing to country-specific recommendations.
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