Vice-President Jyrki Katainen
Jobs, Growth, Investment and Competitiveness
European Commission
Rue de la Loi/Wetstraat 200
1049 Brussels
Belgium
Commissioner Elżbieta Bieńkowska
Internal Market, Industry, Entrepreneurship and SMEs
European Commission
Rue de la Loi/Wetstraat 200
1049 Brussels
Belgium
-
25 September 2015
Dear Vice-President, Dear Commissioner,
The single market is the EU’s greatest economic achievement. It added over 2% to EU GDP, provided a
platform for business growth, created new opportunities for citizens and provided consumers with greater
choice. The single market encourages innovation, competition and resource efficiency and it remains
one of the most powerful tools that we have to increase productivity and competitiveness and secure the
EU’s continuing prosperity. But times have changed. Markets are increasingly integrated, manufacturers
are reliant on world-class services providers and digital technology is reshaping every aspect of the
economy. We can no longer continue with business as usual. If we do, we risk consigning the EU to
years of economic underachievement. If we are to avoid this and provide European business and
industry with the platform it needs to compete globally, we need a step-change in our approach. We
need reforms that will modernise and deepen the single market, support the growth and competitiveness
right across the EU, and promote the interests of consumers. We need to tackle head-on the root causes
of uncompetitive markets so as to create the best possible conditions for the success of our
manufacturers and service providers. We need to take on vested interests wherever necessary and we
need to future proof our regulatory framework. This requires real political leadership from the
Commission, Member States and the European Parliament.
President Juncker has already made clear his commitment to completing the single market in goods and
services and making it a launch pad for European business to thrive in a global economy. What is now
needed is a single market package that will deliver on this. We believe that this could be achieved if the
following actions are prioritised:
1.
Services
– Uncompetitive services markets are one of the most significant drivers of the EU’s
productivity gap with the United States and are acting as a drag on the success of European
manufacturers, particularly those competing at the global level. This must be addressed by:
a) Comprehensively reviewing the application of the Services Directive (as required by
Article 41) and related jurisprudence of the Court of Justice of the EU, and responding to
the findings of this review with an ambitious action plan to unlock the full economic
potential of the Directive;
b) Taking a targeted approach to reform based on economic evidence and focusing on
sectors where there is a high potential for economic gain;