The Single Market Act: What do you think?

On 11th November 2010, the Commission adopted a communication proposal to renew Europeans' trust in the Single Market. There is a public consultation open until 28^th February about what the Single Market Act. This Act will have an important effect on the way that European integration continues in the future, so it is important that

civil society organisations (CSOs) make their voice heard.
This is especially so because the EU institutions do not seem to take full account of the contribution which CSOs make to the European economy, or of their specific situation with respect to the market, which is decidedly different from that of commercial enterprises. CEDAG will prepare a position paper on the Single Market Act, and we will contact you shortly to ask for your input.
The purpose of the Single Market, as laid out in Article 3 of the Treaty on European Union, is to strengthen "a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment". The European Parliament (EP) has considered several draft reports in recent weeks, which discuss the Single Market. It considers the Single Market to be one of the main drivers of European growth and that it is not only an institutional structure, facing economic, financial and social challenges, but also a way of protecting specific fundamental rights of citizens, consumers, workers and SMEs.

There is broad agreement that, in principle, the Single Market can allow Europeans more choices, especially to those that live in less accessible areas, and those who suffer from reduced mobility. It is felt that rules governing the Single Market need to be reformed because there are currently too many obstacles stopping citizens and SMEs who want to move, shop, sell or trade across borders. Free circulation of workers, service providers and professionals is also impeded by the lack of portability in social security rights, corporatism and labyrinthine bureaucracy.
However, there is a danger that if decision makers take a blinkered view of the market and the actors involved in it, they will put at risk the contribution made by those entities which fall outside of the categorization into public and commercial – in particular social economy actors. The result of this would be an EU which is less concerned with citizens’ well-being, and more concerned with simply making profit and achieving economic growth.

The EP is the European institution which is most tuned in to this danger. A draft report for the EP’s <Commission>{IMCO}Committee on the Internal Market and Consumer Protection welcomes</Commission> Commission Communication "Towards a Single Market Act” especially chapter II "Restoring confidence by putting Europeans at the heart of the Single Market" which containing 19 initiatives oriented to European citizens. However, the report considers that, “the proposals are still too weak, without clear prioritisation.” There is a clear need for consistency and good governance to ensure coherence of European integration measures.
The report proposes the prioritisation of the 19 initiatives according to five criteria - basic social rights, consumer rights, free movement of workers, free movement of goods and socially oriented corporate institutions. This is supposed to ensure tangible benefits for citizens and enterprises, in a feasible period of time.

We believe that a 'horizontal social clause' should be inserted into all Single Market legislation so that policy developed is centred on citizen’s basic social rights. These include particular attention should be paid to groups who are currently disadvantaged by the socio-economic factors, without being further hit by the full force of the Single Market. In this respect we would welcome recognition of skills gained through informal education and work experience, particularly for young people and others who face exclusion from the labour market. We are pleased to see that the EP also calls for a Framework Directive on Services of General Economic Interest, a new regulation on the recognition of professional qualifications, on improving human resources mobility, and on providing equal access and opportunities to citizens.The Social Business Initiative to develop and support socially innovative corporate projects within the Single Market is very interesting and innovative; it draws attention to the contribution of social economy for a balanced development of the Single Market boosting growth, employment and social inclusion, which is very encouraging. The need to further develop measures aiming at a responsible and accountable corporate management and governance is a way to give a positive contribution to the real economy and the society.
Many of these ideas are already on the table during discussions within the EU, but there is still cause for concern because the institutions still tend to still talk about a Single Market which is good for businesses, specifically referring to commercial enterprises while ignoring social economy actors and the non-profit sector. It is important that they have the chance to hear different voices which put across the view that the market is enriched by having a variety of different business models operating.
Small and medium-sized enterprises (SMEs) are often talked about as being houses of innovation, which is very true. It is right that their ability to prosper and function be protected and enhanced in a reformed Single Market; but the same is true for the non profit sector which is both differently managed and differently resourced compared to for-profit actors. The non-profit sector never-the-less makes an enormous contribution to the EU’s GDP and to the labour market, not to mention its invaluable social contribution. It is so important to protect this, which is why we will be responding to this consultation.