Single market: EU must avoid race to the bottom

The single market will not work unless EU citizens can clearly see the ways in which it benefits them, says Marlene Mizzi.

Marlene Mizzi | Photo credit: European Parliament audiovisual

By Marlene Mizzi

02 Nov 2016


As far as the single market is concerned, the only thing we can agree on is that we will always disagree on certain objectives, mainly, its structure and organisation. It is undoubtedly one of the most tangible tools for European integration, and yet it still underperforms in almost all areas.

It's clear that the single market is of paramount importance for the EU economy. It creates new opportunities and economies of scale for European companies; industrial competitiveness has been strengthened and it has enabled people to live, study and work in the country of their choice. 

Despite the internal market's significant achievements, citizens, consumers and businesses have become increasingly dissatisfied with it, as it often fails to convince them that it truly represents their interests and aspirations. 


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This state of fact begs a number of questions. Why is this happening? What are the challenges? What are the solutions? These and many other questions were addressed in Parliament's recently adopted report on the single market strategy, for which I was the S&D group shadow rapporteur. 

I believe that the main problem is that in the eyes of the average citizen, the market is more concerned with vested interests than it is with their needs. The rise of globalisation and the difficult financial crisis have exposed a number of serious shortcomings and social inequalities in the single market. This in turn has led to a race to the bottom and unequal level playing field between countries and between companies. 

The new digital era has brought even more confusion. The fragmentation of the market – with obsolete rules that cannot react fast enough to the changing environment and the needs of the business and consumers - has complicated the matter further.

Therefore, we must aim for a fairer single market that is politically supported, economically viable and socially acceptable for European citizens, a market that stimulates sustainable economic growth and job creation but also considers citizens' hopes, fears, expectations and aspirations. 

I was glad to see that during the vote on the single market strategy report, the European Parliament gave overwhelming support to paragraphs aimed at strengthening a highly competitive social market economy and sustainable growth. More and more people are realising that benefits of the single market should not come at a price - that of abusing or trying to circumvent existing rules, or lower worker, consumer and environmental standards. 

Many barriers can be removed by proper and full implementation of existing legislation and effective enforcement of EU competition law. This will help ensure a level playing field, and fair and effective competition. We must also ensure that entrepreneurs - particularly SMEs - who have invested heavily in their businesses are acknowledged as valid contributors to economic growth and that unfair competition is not encouraged by adopting a laissez faire strategy veiled under the 'single market'. 

The single market also needs to provide consumers with truly high level of protection and enforceable rights. We need to empower consumers by ensuring that they will have the correct and timely information to help them make better, intelligent and informed choices.

Continued sustainable development of the single market depends more than ever on rebalancing the policy mix, reducing social inequalities and the delivery of social and environmental benefits to the citizens. The benefits are certainly there, but like justice, these benefits must also be seen by the citizens, especially when they work, travel, buy goods and engage in cross-border business.  

The single market is a kaleidoscope, always changing, always in a state of flux. It is influenced by political, economic, and social tensions and challenges. It can never be perfect, never truly complete, we can at least try to ensure it functions properly and fairly. We owe this to our citizens. 

 

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