The EU Single Market Strategy presents an accurate diagnosis, but the cure lies in political will

In reaction to the Single Market Strategy published earlier today by the European Commission, the Malta Business Bureau (MBB) acknowledges the initiative as a timely and accurate diagnosis of the challenges facing the Single Market. 

Its successful implementation, however, will depend on the political will of Member States to follow through.

The identification of the so-called “Terrible Ten” barriers is a strong indication that the Commission understands the issues at stake and the urgent need for action to unlock the Single Market’s full potential.  If effectively implemented, the strategy could provide the right framework for businesses to grow through cross-border trade, as originally envisioned when the Single Market was established over 30 years ago.

MBB CEO Mario Xuereb said that “the Single Market is the cornerstone of the EU economy. It enables businesses to grow, consumers to benefit from greater choice and lower prices, and allows the EU to leverage its market globally.”

“Too often, the incorrect application of rules or excessive national measures – so-called ‘gold plating’ – lead to infringement procedures and obstruct cross-border activity. A unified and determined political effort is essential to ensure that rules are applied uniformly across the EU to foster business growth,” he added.

The MBB stressed the importance of the Single Market to Malta’s economic prosperity. The free movement of goods and services provides Maltese businesses with access to customers and suppliers across Europe.

Admittedly however, the Single Market has yet to meet its potential. Considering the widening innovation and productivity gap of the EU to its global competitors, the MBB believes this is the right time for the adoption of an economic framework that strengthens the Single Market, which is central to European competitiveness.

The Commission’s strategy outlines a mixture of broad and targeted measures aimed at modernising the Single Market.  Generic improvements include simplifying overly complex EU rules and shortening long delays in standard settings. Targeted actions focus on fragmented rules regarding packaging, labelling, and waste; faster recognition of professional qualifications; simpler procedures for cross-border company establishment; the elimination of territorial supply constraints; and the removal of barriers for the provision of cross-border services.

Specific proposed actions include the harmonisation of labelling rules via sectoral legislations; reducing fragmentation in extended producer responsibility (EPR) schemes; establishing a European company law for an easy digital setup; better coordination among Market Surveillance Authorities; making it easier for highly skilled workers to temporarily provide services across borders; and propose a Single Market Barriers Prevention Act.

The MBB reiterated that while the Commission’s strategy is ambitious and well-grounded, its success will ultimately depend on whether Member States match that ambition with the political will to deliver.