Consumers and SMEs to benefit from EU single market reform

European commission president José Manuel Barroso has pledged to remove the “subtle barriers” that still remain in the European single market.

He unveiled on Tuesday his plans for a ‘modern single market for all’, which he said marked a change of perspective and a more targeted approach.

“Today’s package puts consumers and small businesses first,” Barroso said. “We are all consumers, but above all, we are all citizens and we want our rights recognised and implemented.”

The commission’s proposals include a “one-stop shop” website assistance service, an overhaul of European consumer protection law, a new means of cross-border collective redress and more action to ensure small businesses can take full advantage of the single market.

The Commission will also bring forward (in 2008) a small business act for European SMEs and propose a European private company statute to facilitate their cross-border activities.

The package finally includes a communication on services of general interest, including social services, highlighting the role of the protocol to the draft Lisbon treaty on these issues.

However parliament's Socialist group president Martin Schulz voiced his deep disappointment that there was no special legislation in the package to tackle the financing and management of such services.

“The statements of President Barroso today are a provocation,” he said.

“Legal uncertainties about our public services need to be cleared up. Universal access to public services is a fundamental right and one of the distinguishing features of the European social model.”

Barroso said the commission does not implement legislation for the sake of legislation and prefers to use existing instruments to complement the legal route, stressing that the protocol to the Lisbon treaty enshrines all the necessary instruments to deal with services of general interest.

He added, “The toolbox we need now is much more sophisticated.”

But secretary general of the European SME employers’ organisation, Hans-Werner Müller, said the document stops short of delivering completely satisfactory answers on the challenges it rightly identifies.

“The internal market review has failed to meet expectations by concentrating on analytical work and on existing initiatives rather than providing concrete policy answers.”

Commissioner for internal market Charlie McCreevy said, “This commission’s song is to do it in the most effective way”. His vision for the retail financial services sector includes a wider choice of service providers and an ease of changing suppliers that will allow consumers to “shop around” for the best deals.

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