Growth is innovation

Efficiency tests, removal of cross-border obstacles, full implementation of the EU legislation in force: the Commission intends to accelerate the pace of enlarging the single services market, a sector that now represents almost two thirds of gross domestic product within the EU. After the entry into force of the specific directive on the services sector, the last two years (2009-2010) represented a period of initial application, but implementation must be completed and every problem tackled and resolved with determination by 2012. The services market is one of the many dossiers open at the Palais Berlaymont, seat of the Executive in Brussels, which in recent days also devoted its attention to funds for research and innovation, the automotive sector (compulsory daytime lights for new models), safety on line, universal battery chargers for cell phones, terrorism and the security of air passengers.High economic potential. “In the current period of crisis we must liberate the further potential for growth that exists in a single integrated services market, so as to help firms to grow, innovate and create more jobs and offer better services to consumers and businesses”, said Michel Barnier, Commissioner for the internal market, in a recent speech. Barnier is monitoring the process of application of the Directive which, if fully implemented, could bring real economic benefits for an estimated figure fluctuating between 60 and 140 billion euro, in other words – according to the Commission – a potential for growth comprised between 0.6 and 1.5% of total GDP. And yet at the present time services represent only a fifth of total trade within the EU and only 8% of small and medium enterprises operate in other member states. So here some specific measures that have a real impact on production and commercial processes could bring advantages for businesses, for citizens and for public finances. To this end the Commission has drafted some provisions on specific sectors, measures on regulations and bureaucracy, and those on corporate and financial structures. Funds for research. Another field in which the EU has a need to increase its efficiency and cooperation is research. The point was explained by Commissioner Maire Geoghegan-Quinn in her presentation earlier this week of the green paper aimed at creating a “common strategic framework” on funding at the EU level. “It’s essential – she said – to use to the best every euro that the EU devotes to research and innovation”. The green paper opens a public consultation which will continue to 20 May and in which citizens, businesses, research centres, universities and researchers themselves are invited to participate. A conference to end the consultation will be held on 10 June; it should help to define the proposals that the Commission will put forward before the end of the year in relation to the EU budget for post-2013. According to the European Commissioner for Research and Innovation, the funds invested in science, in laboratories, and in the technological and industrial applications that derive from research itself will help “develop new growth, promote economic innovation, and bring work and advantages for firms”. “It’s a question in short of acting to improve the quality of life of citizens and tackling the great challenges of our time such as climate change, energy efficiency or food safety”.Protection of children and passengers. “In response to the changing technological models used by young people, the Commission intends to work with new groups and operators in the sector to increase the protection of children on-line”. On the occasion of Safer Internet Day on 8 February, the Executive announced a programme of greater interchange and liaison with the enterprises that operate in the ICT (information and communications technologies) sector and with child protection organizations “to encourage the design of safer products that may help to protect children on the internet”. It is therefore planned to update EU legislation in such a way to enable it to track new market developments. Neelie Kroes, Vice-President of the Commission, explained: “It’s difficult for parents to guarantee the safety of their children when they’re on-line, especially now that youngsters can access the web not only from computers, but also from smart phones and games consoles. The responsibility of the ICT sector to furnish products and services that may protect children and give them the means to defend themselves is therefore great”. The Commission has also presented a draft directive that concerns air passenger booking data (Passenger Name Record) “with the aim of combating serious crimes and terrorism”. The new norms (which will require at least a couple of years of negotiation between EU Council and Parliament) “would oblige – as Commissioner for Internal Affairs Cecilia Malmström explained – air companies to furnish member states with the data of passengers entering or leaving the territory” of the EU, “while at the same time guaranteeing a high level of protection of privacy and of personal data”.