EU adopts strategy for single market to combat malfunctioning sectors UPDATE

EU adopts strategy for single market to combat malfunctioning sectors UPDATE

	Published : Tue, 20 Nov 2007 13:01 By : Agencies Print this Story

(Updates with comments from EU's McCreevy on retail financial services)

BRUSSELS (Thomson Financial) - The European Commission said it has adopted a package of measures to streamline the bloc's single market and combat malfunctioning sectors hit by lagging productivity.

The measures include proposals to further integrate retail financial services markets, the promotion of consumers' contractual rights, the introduction of a small business act next year, changing research and innovation methods and a clarification of how EU rules apply to services and social services of general interest.

Commission president Jose Manuel Barroso said: '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.'

The EU executive said member state governments must do more to revive the bloc's regulatory framework and embrace globalisation forces.

It added that the bloc must be developed as a driver for innovation, as a springboard for businesses entering global markets, as an attractive location for investors and as a global rules and standards setter.

With regard to retail financial services, EU internal market commissioner Charlie McCreevy warned that he does not 'rule out' taking regulatory action, given the current barriers that exist.

He said consumers must be 'able to shop around for the best deal', but warned that there was product tying and a not large enough range of banking providers, which restricted choice. He also noted that in some countries changing bank accounts, a key right under unfettered free market principles, was not easy.

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 commission launched its single market initiative in 1985, with the market up and running from the start of 1993. It was set up to remove barriers to goods, people, capital and services.

simon.zekaria@thomson.com

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