The House of Lords European Union Committee, an arm of the UK Parliament has warned that the effectiveness of the European Single Market is at risk of being undermined by poor implementation of legislation by member states.
In their report into the European Commission's review of the Single Market the Committee warn that the Single Market, often seen as one of the great achievements of the EU, is failing in many areas as countries have not adequately introduced liberalisation of trade and economic competition. The Committee argue that the failure to implement properly the Single Market has particularly affected small and medium sized businesses.
The Committee do not feel the current failures of Single Market should, in general, be tackled by increased European legislation. The Committee highlight a growing desire for a 'regulatory pause' among business and recommend instead fuller implementation of current Single Market regulations and greater help in this process from the Commission.
The Committee assert the importance of strong regulatory authorities, operating independently of government, to ensure consumer interests and the openness of domestic markets are maintained. This is of particular importance with new member states and other EU members where government has a large stake in domestic industry and a potential motive to protect those industries.
The Committee contrast the open and dynamic way the Single Market operates in relation to the new technologies of telecoms compared to the more static market for traditional fixed line telephony.
The Committee argue that the relative success of the Single Market in telecoms indicates that there is no need for a European telecoms regulator as proposed by the European Commission. They state that deficiencies in the more traditional telecoms market would be best tackled by a more thorough enforcement of current regulations rather than any new legislation or regulatory bodies.
Commenting Lord Freeman, Chairman of the Lords EU Committee on the Internal Market, said: "The Single Market is often heralded as a European success story however we have real concerns that it is being undermined by continuing economic nationalism and failure to implement fully European Single Market legislation.
"There is little appetite for increased EU legislation. What is needed now is for Member States to do more to ensure they have a robust and independent regulatory regime that promotes the Single Market and does not act to protect 'national champions'."
The committee also reported on the financial and energy markets and came to similar conclusions as they did with the telecoms market.
Posted to the site on 8th February 2008
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