Single Market
November 21, 2007
According to a document released on Tuesday, Nov. 20, the European Commission is taking steps toward achieving a true single market economy in the bloc.
Making it easier to switch bank accounts, helping consumers seek redress in other member states and opening up the car insurance industry to more competition are among the plans described in the draft.
"Essentially, I want consumers to be able to shop around for the best deal in financial services in the same way that they do when buying a TV or a car," EU Internal Market Commissioner Charlie McCreevy told a news conference.
Making it easier to change banks
"If the consumer is unhappy, he or she should, without any fuss or delay, be able to change their account from one bank to another. How easy is that? In some member states it's not at all easy," McCreevy said.
The Commission envisages making switches between domestic banks easier, first by giving a deadline for direct debits and standing orders to be redirected to the new lender.
"Banks will also be invited to abolish existing discriminations, either based on nationality or residence, which abusively prevent individuals from opening accounts on a cross-border basis," the Commission said.
Making customers more mobile would in turn encourage more foreign banks to penetrate new markets.
Bolstering small companies
The Commission also plans to introduce a "Small Business Act" by next year to help remove red tape for small companies seeking to operate in more than one EU nation.
The draft also called for the establishment of a "one-stop shop" to give information to consumers and small businesses on their rights in the single market.
"Today's package puts consumers and small businesses first. It marks the start of a new cycle for the single market. We need to make the strong base we already have work even better," Commission President Jose Manuel Barroso told journalists.
"It's important that small businesses and consumers understand that the internal market is not just for big businesses, it's for them as well," he said.
An overhaul of European consumer law is also planned.
Room for improvement
The Commission identified 23 economic sectors where the single market is not working well and said it would develop more targeted policies to improve the situation.
"Only 26 percent of consumers make cross-border operations, and only 24 percent of business retailers. In practical terms, the market remains, above all, national," Barroso said.
The adoption of the strategic package follows an interim report submitted at the EU summit in February, which set out key principles for the bloc to take forward its strategy for the single market.
The EU began 50 years ago as a free-trade association of six member states -- Belgium, France, Germany, Italy, Luxembourg and the Netherlands. Since then it has expanded to 27 members.