Eurocommissaris McGreevy over de interne markt in Bulgarije (en)

SPEECH/07/308

Charlie McCreevy

European Commissioner for Internal Market and Services

The future of the Single Market

Sofia University

Sofia, 14 May 2007

Ladies and Gentlemen,

Thank you for inviting me here today. I am delighted to be here in Sofia only four months after Bulgaria's accession to the European Union and to welcome you as a new member.

I know very well that it has been a long road to full membership. The criteria are tough and the process is long. Following the first review of progress in 1998, Bulgaria's government has had to work hard to reform its institutions and the economy. And to adopt the Community acquis - 90 000 pages of European legislation. I understand that this process is well on track. So let me first pay tribute to your hard work and your achievement in joining the EU.

And let me also congratulate you on the progress that Bulgaria is making economically. Recent years have seen strong and sustained economic growth. And there are encouraging signs for the long term, with strongly rising inward investment and your industries moving up the value chain. Your government also deserves credit for its fiscal discipline, with public debt halved since 2003, making room for welcome private investment. Provided that Bulgaria keeps these sound fundamentals in place, you will be well placed to reap the full economic benefits of the single market - bringing new commercial opportunities and rising living standards for all.

It is the single market and its benefits on which I would like to focus today. As you know, the Commission has launched a full review, to ensure the single market is equipped for the challenges of the 21 st century. As Internal Market Commissioner I have a central interest in its success.

We can fairly say that so far, the single market is a major success story. Since 1992 it has created an additional 2.75 million jobs and put an extra 480 € in the pockets of average Europeans. And of course there are new possibilities for citizens to work, study and live abroad. 1.2 million young people have studied in another Member State thanks to the Erasmus programme.

For businesses, cross-border trade is now far easier. Before the frontiers came down, the tax system alone required 60 million customs clearance documents annually: these are no longer needed. So Europe's small- and medium-sized firms - not least your own - have new opportunities to export and to grow.

This is what the single market has achieved so far. As an accession state, Bulgaria has already shared some of the gains. The issue now facing us is how to keep the single market dynamic and competitive - how to deliver the new jobs and growth over the long term. And how to maintain Europe's global position in the face of tough competition from emerging economies.

Let me say a few words about how we can get there.

The Commission is pursuing an ambitious vision. Our interim report, endorsed by Heads of State at the recent Spring Council, outlines five priorities to guide the Single Market:

First, we must build a single market for citizens and consumers. We need to ensure that competition delivers lower prices, while maintaining high levels of quality in the products and services on offer.

Second, we need a more integrated economy. The spread of the Euro, the move towards a single European labour market and the integration of our key network industries will all strengthen the EU economy - stimulating growth, jobs and cross-border trade.

Third, on a knowledge society. We need to focus on making markets for knowledge - and technology-intensive goods and services work better. They are vital for our future prosperity. So if we can secure agreement to it, the Community patent will be a huge step forward for the Single Market.

Fourth, on a well-regulated Europe. Better regulation is critical - as is thorough enforcement of existing rules. The benefits of the Single Market will not materialise if EU rules are not correctly applied or if legal rights are not protected.

In March this year the European Council agreed to reduce to less than 1%, the volume of EU law outstanding in each Member State. My services tell me that with only 3% of Community law still to transpose, Bulgaria is making very good progress. You are already ahead of some of your older colleagues. And I urge your government work closely with the Commission to close the remaining gaps.

And let me also emphasise the priority we attach to the Services Directive. This enshrines freedoms for businesses throughout Europe and proper implementation will unlock new commercial opportunities throughout the EU. So the Commission is determined to work in partnership with all Member States - including Bulgaria - to ensure that they meet the end of 2009 deadline for implementation.

Fifth and finally, the EU's success has been achieved while respecting high social and environmental standards. The Single Market of the future must protect these achievements to deliver a high quality of life for Europe's citizens.

These are the objectives we want the Single Market to achieve. How will we achieve them? First we need to accept that the nature of the game has changed. It is fifteen years since the launch of the 1992 Single Market programme. This made great strides in tackling barriers and opening Europe's markets. And it has been mainly a programme of EU legislation. Some important legislative reforms remain - for example in postal services; a subject I will return to later. But looking forward, we won't be able to remove all remaining barriers with more legislation and more harmonisation.

So I want to see a Single Market focused on results. The EU should act when markets do not deliver and where it will have maximum impact.

I want to see a more effective Single Market policy. Legislation is not always necessary or sufficient on its own. In some cases the best approach will be combining regulation with other tools - such as infringement action - or promoting effective self-regulation.

And I know that Brussels alone cannot deliver the project. The Single Market must become more decentralised and network-based. We need to improve the ownership in the Member States. And we must strengthen cooperation between the national and EU level.

Lastly, better communication. We need to publicise the opportunities the Single Market offers. For the Single Market to work, citizens and entrepreneurs must know and make use of the rights it offers.

So these are the elements of our new policy approach. Those are the things we will do differently.

Now let me say something about what you can expect from the conclusions of our review this autumn.

First, we will set out clearly the state of play - where the Single Market is well advanced, and where there is more to do - especially for citizens. Second, we will elaborate fully the new approach I've described today - how we will build new partnerships and use our policy toolbox to improve Europe's markets and raise living standards. Third, we will set out new initiatives for the Single Market: targeted actions to benefit citizens, using the full range of policy tools.

The Commission as a whole is reflecting on possible new initiatives. But within my areas of responsibility we are looking closely at where the EU can genuinely help citizens. Retail financial services are a priority area - everyday products such as bank accounts, mortgages, insurance and credit cards. Last week I launched a Green Paper, seeking views across Europe on how integrate these markets for the benefit of consumers and small businesses. The challenge we face is how best to promote choice and competition, while maintaining high levels of consumer confidence.

Another priority is professional services, for instance health and pharmacy services, where barriers push up prices and prevent our citizens from enjoying full choice.

We will also try to improve the way we 'govern' the Single Market - both at the national and EU level. For instance, we are looking at ways to involve consumers more closely in shaping policies and ways to improve problem-solving and redress systems in the Member States.

Before I conclude, I would like to stress the developing a Single Market is a long term process that often faces fierce opposition. I would like to illustrate this with the current debate in the European Parliament and the Council of Ministers on Postal Services.

The advantages of the Single Market and open markets for both business and consumers are beyond dispute. Already 15 years ago, the process of opening up the postal sector to full competition was set in motion. This has been a gradual process. It has delivered real and tangible benefits in terms of choice, price and quality of postal services.

Yet in the postal sector we see that many countries and vested interests prefer to forego the advantages of the Single Market by protecting the monopoly holders.

Last October, the Commission proposed to take the final step in this process by confirming 1 January 2009 as the target date for abolishing the remaining exclusive rights enjoyed by incumbent postal operators. This proposal was based on years of intensive study and consultation.

These studies confirm that full market opening is essential for the success of the sector. They also confirm my own believe that protectionism simply does not work. In today's world you can not pretend that competition does not exist. Living in a state of denial will strangle a country's economy.

I have no doubt that increased competition in the postal sector - a sector which is already restructuring in the face of new technological and commercial challenges - will raise efficiency and innovation and provide sustainable jobs.

I have called this proposal a litmus test for the Single Market. A test to demonstrate Member States' commitment to reform and restructuring in the interest of promoting growth and employment.

Listening to the opposition levelled at the proposal, I can only wonder how attached many opponents really are to the Single Market. The rhetoric I hear on the proposal is hardly in line with contemporary economic thinking.

One of the most heard arguments is that more time is needed. That the proposal is unfair on the countries that joined the European Union in the last couple of years and that have not had as much time to prepare as the others. Ironically this argument is pushed the most by some Member States that were among the original 6 in 1957. These countries have participated in the discussions and negotiations on all stages of market opening in the Postal Sector. They recognised and approved the changes that were necessary. But they failed to implement them on the ground. Other countries that took the necessary steps, that made the investment that was required, are reaping the benefits of their commitment.

I am particularly pleased that Bulgaria has chosen for an open and positive approach to the postal proposal. This puts Bulgaria at the forefront of the promoters of the Single Market. The support of Bulgaria for the Postal Proposal also illustrates that the argument that new Member States need more time is false. Bulgaria's attitude demonstrates your commitment to the EU. And it affirms your commitment to the future success of the single market. I invite all Bulgarians to speak up forcefully for the Internal Market and to confirm that Bulgaria is ready to implement the reforms that are necessary in order to obtain the benefits accruing from the Single Market.

In conclusion, this is a fascinating time for the single market. The Commission's review has launched a rich debate. You can be assured that as Internal Market Commissioner I am looking for good results - better regulation, new opportunities for business and new initiatives to help citizens. But we can only succeed if there is real commitment and support, also for decisions that require difficult reforms.

Thank you for your attention and I look forward to your questions