Analytics, Economics, EU – Baltic States, Innovations, Internet, Modern EU

Most important, of course, are the issues of the EU Single Market; the concept, which was called in Rome Declaration “Stronger Single Market”.

The Treaties of Rome established a common market where people, goods, services and capital can move freely and created the conditions for prosperity and stability for European citizens. Thanks to the Single Market, citizens benefit from broader choices as consumers and lower costs for many products and services. The EU offers high standards of consumer protection, including product safety, food safety and other important contractual rights. For business, the Single Market offers access to 500 mln potential customers. The euro – the single currency of 19 out of 28 EU countries – is used by over 330 mln people every day. It has become the second most used reserve currency in the world. 

Digital Single Market

Most important in the “stronger Single Market” concept is the digital single market. As Commission President declared in the beginning of his term (15 July 2014), that the member states “must make much better use of the great opportunities offered by digital technologies, which know no borders. If we do this, we can ensure that European citizens will soon be able to use their mobile phones across Europe without having to pay roaming charges”.

President Jean-Claude Juncker envisaged that the Commission will “ensure that consumers can access services, music, movies and sports events on their electronic devices wherever they are in Europe and regardless of borders”. Most vital in that sense is to create “a fair level playing field where all companies offering their goods or services in the European Union are subject to the same data protection and consumer rules”, he mentioned almost three years ago.  

https://ec.europa.eu/commission/news/eu-celebrates-60-years-rome-treaties-and-looks-future_en

- 54%- the US based online services;

- 4%- EU cross-border online services;

- 42% international online services.

Note: 315 mln Europeans use internet every day. Only 15% of consumers shop online from another EU states; only 7% 0f SMEs sell cross-border. 

Enhanced cooperation/integration

The Rome Declaration underlined that the EU member states can “act together, at different paces and intensity where necessary, while moving in the same direction…, in line with the Treaties and keeping the door open to those who want to join later. Our Union is undivided and indivisible.”

Enhanced cooperation allows a group of at least nine nations to implement measures if all other EU member states fail to reach agreement. Other EU countries keep the right to join when they want. The procedure is designed to overcome paralysis, where a proposal is blocked by an individual country or a small group of countries who do not wish to be part of the initiative. It does not, however, allow for an extension of powers outside those under the EU Treaties. The possibility was first introduced by the 1999 Amsterdam Treaty, with the 2009 Lisbon Treaty formalising the procedure and extending the possibility for enhanced cooperation to include defence.

The Lisbon Treaty on enhanced cooperation. The adoption of the decision authorising enhanced cooperation requires a qualified majority of the member states within the Council and the consent of the European Parliament. The adoption of the new rules then requires unanimity by the member states participating in enhanced cooperation and the consultation of the European Parliament. Other EU states are free to join the enhanced cooperation at any time.  

See art. 326-334 in TFEU.

The White Paper on EU’s future said that “the starting point for each scenario is that the 27 Members States move together as a Union – this is the principle. And then, there is the possibility that those who want more can do more. This is a clear explanation of the fact, on the basis of the current Treaties. The Treaties of today will be the Treaties of tomorrow, for a longer period. Enhanced cooperation already exists today. Not only as far as euro and Schengen are concerned but other examples include the Financial Transaction Tax, the European Unitary Patent or the European Public Prosecutor”.

President Jean-Claude Juncker (after the European Council, 10 March 2017). 

EU in the world issues

Europe is the largest trade power and development and humanitarian aid donor. Its diplomacy holds real weight and helps keep the world safer and more sustainable, as shown by the historic deal with Iran on its nuclear pro­gramme or the leading role the EU played in the Paris Climate Agreement and the adoption by the United Nations of the Sustainable Development Goals for 2030. This influence is reinforced by our close cooperation with NATO and our active role in the Council of Europe.

The European Commission President Jean-Claude Juncker, said (8 March 2017) that “Europe must continue being the positive global force we are today. Our society, our European societies are built on openness. We should be more proud of that. Other parts of the world prefer to close ranks and look inwards. Isolationism is making alarming progress across the globe. But such an attitude, such isolationism, is not in our nature or interest.” 

Note: The EU is the biggest donor of development and humanitarian aid (% of total aid in billion USD)

Perspectives:  Europe’s place in the world is shrinking, as other parts of the world grow. In 1900, Europe accounted for around 25% of global population. By 2060, it will account for less than 5%. No single Member State will have more than 1% of the world population by then. Europe’s relative economic power is also forecast to wane, accounting for much less than 20% of the world’s GDP in 2030, down from around 22% today. The rapidly rising influence of emerging economies accentuates the need for Europe to speak with one voice and to act with the collective weight of its individual parts.

Extract from the Rome Declaration: “A stronger Europe on the global scene: a Union committed to strengthening its common security and defence, also in cooperation and complementing the North Atlantic Treaty Organisation, taking into account national circumstances and legal commitments; a Union engaged in the United Nations and standing for a rules-based multilateral system, proud of its values and protective of its people, promoting free and fair trade and a positive global climate policy.”

Better regulation

As outlined in the White Paper on the Future of Europe, an example of taking decisions at the most appropriate level is the Commission’s reform of State Aid law which ensures that 90% of all State Aid measures are in the hands of national, regional and local authorities.

However, being big on big things also means that “the Commission no longer regulates oil cans or showerheads, but concentrates instead on what can be done better together rather than alone”; such as tackling the refugee crisis, securing EU external borders, or leading the fight against climate change.

This approach is at the core of the Commission’s Better Regulation Agenda, which also ensures that EU legislation is checked regularly to see whether it is fit for purpose and outdated legislation is withdrawn.

The Commission focuses since its start on a set of ten political priorities. This approach means acting only where the EU adds value, and leaving other issues to national and local authorities.

Delivering results where they are most needed requires that the EU Institutions work closely together, in particular when it comes to the legislative process.

That is why the Commission is committed to agree each year on a number of proposals for priority treatment in the legislative process. The first ever Joint Declaration on EU legislative priorities for 2017 was signed by the three EU Institutions on 13 December 2016.

Jean-Claude Juncker said in May 2014, that he was an advocate of a stronger Europe in some fields, but he didn’t believe in more Europe for the sake of more Europe. He added that he “wanted a better Europe that is big on big things and small on small things”.

That means that the Commission “will stop regulating each and every corner and every aspect of the daily lives of our citizens”.  

Extract from the Rome Declaration: “We will work together at the level that makes a real difference, be it the European Union, national, regional, or local, and in a spirit of trust and loyal cooperation, both among Members States and between them and the EU institutions, in line with the principle of subsidiarity. We will allow for the necessary room for manoeuvre at the various levels to strengthen Europe’s innovation and growth potential. We want the Union to be big on big issues and small on small ones. We will promote a democratic, effective and transparent decision-making process and better delivery.”