Czech Business Today

The European Commission is preparing an initiative on Single Market Information Tool (SMIT) to collect quantitative and qualitative information directly from selected market players.

According to its inception impact assessment the goal is to enable the Commission to better target its cooperation with Member States and use the information to improve its ability to enforce EU rules in priority areas, as well as to be able propose improvements where evidence reveals significant regulatory failures.

The tool could provide the Commission with exclusive powers to investigate and access sensible information at company level to detect infringements against Single Market rules. European businesses fear such proposal and stress the need for a serious consideration among several options of the inception impact assessment. The cost-effectiveness and no additional red tape must play an important role in the Commission ́s final decision. If any such a tool is adopted, the Commission must ensure the highest level of security of data.

Last but not least, a sufficient number of safeguards should be built to ensure that the tool would not be used in a recurring way. Still, a thorough analysis of the need for such a tool is missing.