Future of internal EU market discussed in Prague
The informal meeting of Ministers for Competitiveness addressed the economic impacts of EU enlargement, cutting red tape for businesses and the future of the EU internal market against the backdrop of the economic crisis.
The meeting was chaired by Czech Industry and Trade Minister Martin Říman. The Ministers responsible for Competitiveness agreed that the internal market is the driving force of economic growth in the EU - all the more so at a time of financial and economic crisis. Between 1992 and 2006 the market is estimated to have generated 2.15 % of the EU’s GDP and 2.75 million jobs
“The EU enlargement was beneficial to both the old and the new Member States because it brought down the barriers on the internal market. This is why today the economic crisis must not become an excuse for introducing protectionist measures which would build new barriers. Quite the contrary – I believe that the current situation is a strong incentive for further market deregulation that could increase the productiveness of European companies as much as by 10 % over the next decade”, said Minister Říman.
At today’s meeting, the Ministers reiterated their agreement that at a time of economic crisis, all players on the internal market must have a level playing field. The greater leeway in the rules for state aid, set out by the Commission under the Economic Recovery Plan, must not be misused to distort the business environment in favour of certain companies. Furthermore, the Ministers endorsed the opinion of the Presidency that the completion of the internal market requires above all interconnecting network industries, accelerating the work on EU patent law and implementing the Services Directive.
When fully implemented, the Services Directive will enable us to make the most of the economic potential of the services sector, which generates the vast majority of the EU’s GDP. A single and affordable patent system will eliminate the disadvantage of EU businesses which still have to do and pay more to protect their industrial property than businesses in other developed regions. Finally, interconnecting network industries is necessary for the functioning of the internal market above all in the areas of energy, transport and telecommunications.
The Czech Presidency also stressed the role of small and medium-sized enterprises in the internal market. Experience has shown that SMEs can cope with the consequences of the economic crisis better than large multinational companies. However, it is usually the latter that get most of the governments’ attention while it is the former that create the most jobs in the EU. This is why the rules for SMEs must be simplified and the administrative burden imposed on them must be reduced.
The Ministers appreciated that this is precisely the aim of the Commission Action Programme for Reducing Administrative Burdens. Under this programme, the European Council set out its ultimate objective of cutting red tape for businesses by 25 % by 2012 already two years ago. In order to maintain continuity after expected staff changes, the European Commission pledged to present, in the months to come, a set of reduction proposals the negotiation of which will be passed on to the Swedish Presidency. In the first reduction package, businesses are expected to save as much as 30 billion euros in the medium-term perspective. The biggest savings are expected to be made from legislative amendments eliminating the existing obstacles to electronic invoicing.
More information on the event find in the calendar.
Contact:
- Tomáš Bartovský, Spokesman of the Ministry of Industry and Trade
- Tel.: +420 224 853 311, GSM: +420 602 508 328, E-mail: bartovsky@mpo.cz
Last update: 16.8.2011 15:24
