The concept of the single market is undoubtedly one of the more important aspects of the European Union. Having removed many barriers to the free circulation of goods, people, services and capital, the European Commissions claims that the single market has also resulted in an increase in output as well as the creation of almost three million jobs across the bloc during its last 15 years of operation. Much has been attained till now and yet, as most citizens and businesses find out, there is still much more to be worked for and achieved.

The process is not a simple one and, as any observers of EU affairs can attest, legislative action on this front is almost constantly being developed. There are many areas which require attention. The review initiated in 2006, starkly entitled A Citizen’s Agenda: Delivering a Europe of Results has now been followed up by a new Communication issued last week. The emphasis on consumers and small and medium-sized enterprises is carried on in the new document as well.

The legislative proposals are set to be presented as from next month. A proposal concerned with food and nutritional labelling should be included. Others on market surveillance for medicines and increased information on pharmaceuticals are also in the pipeline.

More interestingly perhaps, given that it is a relatively novel idea on this side of the Atlantic, is the planned introduction of collective redress for consumers. This should enable individuals with the same complaint on the same company to join forces in seeking redress. Collective action should weed out businesses bent on taking consumers for a ride. What this scheme shall not be, however, is a replica of the American litigation system.

Commissioner Kuneva has repeatedly emphasised that it will steer away from adopting such a problematic model. The details still need to be fleshed out further, and one has to wait for its implementation to take place prior to commenting on its effectiveness or otherwise. Yet, one must admit, it provides a potentially effective method for individual consumers with common complaints, and should possibly also act as a deterrent for bad business. Consumer contractual rights are also set to feature in the proposed legislation to be presented in 2008.

Last May saw the publication by the European Commission of a green paper on retail financial services within the context of the single market. It sought to gather views from stakeholders as well as sound out the commission’s objective of encouraging cross-border retail financial services. This time round, accompanying the communication outlining the main visions for the single market is a working document specifically on this sector, underlining the significant attention it is being afforded by the commission. Cross-border activity in this sector, possible on paper but extremely difficult to conduct without the necessary frameworks, may take off, judging by the efforts being made and the interest generated by stakeholders.

Increased competitiveness on the retailing side as well as the provision of more financial education is being indicated as the way forward. Mortgage credit will be an important issue, as should also be product tying practices (where packages bundle financial products that are not sold separately) and bank account switching. Interestingly, the working document also makes mention of financial inclusion, arguing that efforts should be made to ensure that no one is denied having a basic bank account.

There are a host of other initiatives in store. Last Monday saw the official launch of the European Qualifications Framework, which shall link the qualification systems of countries, making it easier for individuals to find work or study in another member state. In December the Commission should be presenting its new Job Mobility Action Plan to continue removing barrier for citizens, as well as the much-awaited clarification on access to cross-border health care in the European Union.

Part 2 will be featured

next Thursday

Julian Micallef is consultation

coordinator at Forum Malta

fl-Ewropa.