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The European Union (EU) comprises 27 countries where goods, services, capital and persons can circulate freely. This month Douglas Herbison, Chief Executive of AMDEA, reflects on the development of the Single Market and how much we take it for granted.
In 1957, six countries (Belgium, France, Germany, Italy, Luxembourg and the Netherlands) signed a Treaty to establish the European Economic Community (EEC). Their objective was to remove customs barriers and establish a common customs tariff to be applied to goods from outside the EEC.
Over the following three decades more countries joined, the European Parliament became directly elected and a revised Treaty in 1987 included plans to establish a Single Market by 1992 by means of Directives and Regulations. In fact some 282 laws were subsequently passed to ensure that by January 1993 there was a single European Market in place.
In 1999, the euro became the new official currency of 11 Member States and it has now replaced the old national currencies of 17 of the EU Member States.
People too can move freely throughout much of Europe using the Schengen visa arrangement. Yet recent events have demonstrated that in spite of all our efforts there are still limits on cross-border trade that affect our ability to compete with other economic areas.
Following the global financial crisis the EU identified a series of 50 measures to boost the European economy and create jobs. These measures are collectively known as the Single Market Act and these have implications for our industry. AMDEA submitted a response to the public consultation and the European Commission aims to agree a final set of measures in time to celebrate the 20th anniversary of the Single Market in 2012.
The proposals cover three areas: economic growth, citizens’ rights; and help for the consumer.
Europe has around 20 million enterprises providing around 175 million jobs. Some of the proposals to stimulate economic growth are: improved access to capital for SMEs; reducing the costs of the EU patent system; and simplified rules for accounting and taxation. Further steps are envisaged to promote a Single Market for services.
Access to public services and ensuring fundamental rights and freedoms for European citizens are a key theme and there is particular emphasis on the citizen, as a consumer, with proposals to eliminate barriers to cross-border online shopping and improve market surveillance. Not to mention changes to the banking system.
From its first incarnation as the EEC, a driving force behind further European integration has always been the removal of barriers to free trade and the agreement of common rules and standards.
Even countries that were or are not members of the EU may choose to implement similar if not identical legislation. A particularly topical example of this is the EU Energy Label.
Beyond the EU, the EEA (European Economic Area) countries Iceland, Norway and Liechtenstein are allowing voluntary use of the new label pending amendments to their national legislation and will follow the same phasing out of less efficient appliances as the EU. Switzerland has used the EU labelling scheme since 2002 and is tracking the EU approach except that they are phasing out less efficient refrigerators more quickly.
Elsewhere, Russia is introducing the existing EU labelling scheme and Ukraine is planning similar labels for fridge freezers and washing machines
Turkey, like Switzerland, has been using the EU labelling scheme since 2002 and they now plan to introduce the new labels, though they may retain national variations.
Other countries outside Europe also recognise the value of the EU Energy Label and it is clear that the Single Market has influence well beyond its borders.
For many people 1992 was the key date for the realisation of Europe as a single market but the latest proposals demonstrate that we still have some way to go. The domestic appliance industry is very much a European industry and we need to see the remaining barriers to free trade removed so that our high quality goods can be made available to consumers throughout Europe and beyond.
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