Czech Business Today

Single market is the biggest market in the world representing 25 % of world GDP . 

Single market is the biggest market in the world representing 25 % of world GDP. The Czech Republic belongs to those member states who consider the Single Market to be the main jewel of the European integration. SM brought tangible results to everybody – free movement without borders, larger choice of goods and services, increased opportunities for employment, studying abroad and personal contacts. 

However, SM remains fragmented in many fields (energy, post, financial and other services), barriers to national rules remain in place and some issues raise controversial positions among member states and also among stakeholders (tax harmonization, social security systems, public services of general interest). Creating a competitive, connected and open economy should be the fundamental priority. The EU needs growth. This can only be achieved by creating a business-friendly environment especially for the small and medium sized enterprises as the Europe’s main source of growth and jobs. 

Czech business community welcomed the decision of the Commission to restart the SM and participated in its consultation. For us, the most urgent priorities of 50 proposals presented by the Commission are those that would bring up quick results such as the European patent, IPR, copyrights, European funds of venture capital, e-commerce. Some of the proposals have already been tabled and should be implemented with priority such as peer-to-peer review of the services directive or revision of the SBA. Even small steps can restart the SM, such as the interconnection of business registers, e-certification. At the same time, there are proposals that may have an opposite effect and hinder the growth and free competition. 

Therefore we call for a very cautious approach to proposals related to the posting of workers directive revision, increase in non-financial reporting of companies, Ecological Footprint in products and services and consumer collective redress. Each proposal of the SMA should be viewed through the prism whether it will strengthen or weaken the position of the European business vis-à-vis its global competitors. The EU should be more demanding in setting up the international rules of the global trade to involve the respect for social rights, the IPR protection, respect to the environmental requirements and reciprocal access when opening up markets, beyond the preferences granted justifiably to the developing countries. The good governance of the SM is also of a paramount importance and should involve the smart regulation and SME Test, thorough implementation, peer-to-peer reviews, impact assessments including social aspects, control and follow-up and enforcement of the obligations including naming and shaming plus sanctions. 

To restore the confidence in the Single Market the proposals should bring tangible results to all its actors. It is not an easy task to find the right balance and the restart of the SM must become the ownership of all – the EU institutions, member states and civil society.

Ivan Voleš,
Chief Advisor of the Czech Chamber of Commerce and Rapporteur for the Opinion on the SMA of the EESC