An unfulfilled project

The work has just started. If the single market, as President of the Commission, José Manuel Barroso, repeatedly claims, “is the backbone of sustainable integration and growth in Europe”, its rules and principles must be fully enforced. The Maastritch Treaty (1992) laid down the single market’s foundations, with the strong contribution of Jacques Delors. As the Treaty approaches its 20th anniversary, the Commission re-launched the project, clearly indicating its poor implementation.Economy and political choices. Barroso II Commission, designated a couple of months ago, set as its priority action the single market. For this reason, already at the end of 2009 the economist Mario Monti, was asked to draw up a strategy on this topic. The former Commissioner and champion of the single market and competition, from 1995 to 2004, presented the report in May. The report has been analysed by the Commission throughout the month of July, when Monti presented it and explained the possible steps to revitalize the single market. The almost 120 pages long report is divided into 5 chapters, aimed at highlighting pros and cons of the single market, its deeply changed context since the beginning of the 90s, rules to adopt, and building “consensus” on the project. The report includes a multifaceted approach, in addressing topics set aside by the single market, such as for example, consumer protection, the social and labour issue and environment protection.“Unpopular but necessary”. Monti starts his report by quoting a statement made in 1961 by the Belgian political leader Paul-Henri Spaak, considered among the “founding fathers” of the Community: “All those who, in trying to meet the economic challenges set out by the treaty of Rome, neglected the political dimension have failed”. Monti points out how the single market has become a fundamental aspect of EU integration in view of the Lisbon Treaty. The Italian economist’s report marks how “today the single market is at a juncture”, as it faces various challenges. The first challenge comes from ” the erosion of the political and social support for market integration in Europe”. The single market is considered by many Europeans- citizens as well as political leaders- with suspicion, fear and sometimes open hostility”. Monti explains this reaction with two trends: “integration fatigue” that “erodes the desire of a stronger and bigger Europe”; and “market fatigue” that “reduces confidence in the role of the market”. Today, “the single market is less popular than ever, while Europe needs it more than ever”.No nationalism and protectionism. The second challenge comes from uneven policy attention given to the various components of an effective and sustainable single market. Some of the difficulties encountered by the single market in recent years are not only linked to “incomplete welding” together of national markets into one European market, but also to the unfinished business on ” the expansion towards new sectors “to accompany a fast changing economy” and ” the effort to ensure that the single market is a space of freedom and opportunity that works for all” citizens, consumers and enterprises. Political, economic and we can also say “cultural” limits are the root causes of the delay in creating the single European Market. Monti in his analysis mentions other important issues such as the return to nationalism and protectionism that deeply clashes with the creation of a single market. Social dimension. However the report presented to the Commission demonstrates that “re-launching the single market is not only necessary but also possible”. The goals are many; an overall strengthening of integration, both economically as well as politically and institutionally; improved results among citizens, consumers, workers and EU enterprises; more effective competition abroad. In chapter 3 specific focus is given to “highly competitive social market economy “, cited in the Lisbon Treaty: “economic freedoms and workers’ rights”; “the role of social services; harnessing public procurement”; “tax coordination”; “balancing of competitiveness and cohesion within the single market through regional development policies”; “search for a balance within the single market between competitions and agreements through regional policies”; defence measures against global market.