Internal Market

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In the view of German business the wide range of proposals made by Professor Monti produce a mixed picture.

The Single Market is one of the great success stories of the European Union. EU Commission President José Manuel Barroso has decided to make the further development of the Single Market one of the priorities of his second term. Barroso had asked former Commissioner Mario Monti to prepare a report on the future of the Single Market. Monti presented his report in May under the title “A New Strategy for the Single Market”.

In the beginning of October the Commission intends to adopt a communication under the title “Single Market Act” in which it plans to outline further legislative and non-legislative measures in the field of Single Market policy. This communication will draw a number of ideas and suggestions from Monti’s report.

In the view of German business the wide range of proposals made by Professor Monti produce a mixed picture: completion of the European single market in the areas of goods and services as well as initiatives on company or tax law can give an important impetus for growth and prosperity. However, the Monti report also unfortunately includes many proposals which, if implemented, would have negative effects for competitiveness, growth and employment in Europe.

The one-sided focus on a single market “for citizens, consumers and SMEs” is difficult to understand. The single market should have as its central focus an improvement in the environment for all businesses. That is what would ultimately work best for citizens, consumers and SMEs.

Particularly positive are the following ideas presented by Monti:

• creation of a statute for a European private company,
• introduction of an EU patent, 
• removal of remaining obstacles to free movement of goods and services, 
• stronger links between single market and promotion of renewable energies,
• elimination of tax obstacles, including cross-border offset of losses or double taxation,
• clarifications for interpretation and application of the posting of workers directive.

Conversely, the following ideas are rejected by business:

• introduction of EU-wide collective redress,
• enhanced flexibility and political influence in established European public procurement legislation,
• creation of eurobonds, 
• further harmonisation of the regulatory framework for broadband infrastructure,
• inclusion of a provision guaranteeing the right to strike modelled on European regulation 2679/98 article 2.