EU ministers, commissioners and leading entrepreneurs joined forces to create a more competitive Europe - Main contents
On Wednesday 27 and Thursday 28 January, the informal meeting of the European Competitiveness Council was held in Amsterdam. This time the council, that deals with issues such as strengthening the Single Market and Digital Single Market for companies, citizens and consumers, came together in a unique setting.
Minister of Economic affairs Henk Kamp chaired the meeting and invited each minister to be accompanied by a high-profile digital entrepreneur from their member state. As a result, entrepreneurs from across Europe took part in the free and frank exchange of thoughts on questions like: How can the EU ensure that European businesses remain successful and can compete at global level? How can our citizens get the best services and products? How can we continue to protect consumers? And how can we help EU citizens, companies and industry get the most from innovation, new technologies and digitisation?
Minister Kamp: “The European economy is looking up. In 2016 the European Commission expects EU GDP to grow by 2%, the highest figure for six years. The challenge now is to turn this budding growth into a full recovery, by enhancing our competitiveness. Entrepreneurs and businesses play a major role in meeting this challenge. That’s why we hav invited them here today to exchange views on what strategic decisions should be taken for the future of Europe.” He added: “The aim of this informal meeting is to provide input for the European Commission on several crucial Single Market dossiers on which proposals are expected soon. I felt it was extremely valuable to involve the private sector in this Process and I know my colleagues and Eurocommissioners share this sentiment.”
Minister Kamp and his fellow ministers were joined by Vice-President Katainen,Vice-President Ansip, Commissioner Bieńkowska and Commissioner Oettinger. Their presence underlining the importance of the issues that were discussed during this informal Council.
Outcomes Wednesday
Wednesday afternoon the Council discussed better regulation for an attractive business and investment climate. It concluded that if we are to attract the best innovators, start-ups and investors, we have to improve European regulations. The Ministers agreed that our laws and regulations are unable to keep up with today’s rapid technological developments. If we are to stimulate innovation, we should not regulate the previous challenge. Three measures to tackle this issue were discussed: European Innovation Deals, the Innovation Principle and a Startup Visa.
Wednesday evening, the Council focused on connecting opportunities & digitising EU businesses. Challenged by presentations and best practices of entrepreneurs, the meeting concluded that we’re in the midst of a digital industrial revolution. New technologies, processes and business models have the potential to transform our competitiveness and way of life. If we succeed in taking advantage of digital opportunities and new business models, we could increase Gross Value Added by 1.25 trillion euros by 2025 in manufacturing alone. To materialize this, we need to act fast and in an integrated way. It’s only through collaboration between industry, government and other stakeholders that all European industries can seize the digital opportunity and keep our business competitive.
The Dutch Presidency stated it is committed to accelerating the digitisation of industry by:
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-helping the Commission to facilitate a dialogue between industry, government and stakeholders to urgently develop industry-led standards;
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-encouraging all member states to prioritise tackling their digital skills gaps;
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-asking the Commission to add a fitness check to ensure that regulation is future-proof and flexible to innovation.
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-Calling on the Commission to swiftly publish a communication and action plan on smart industry.
Outcomes Thursday
On Thursday, the Council worked on a competitive and innovative single market for digital services. In various breakout sessions, a first for the Council, it discussed the prospect that strengthening the internal market, could unlock growth worth 651 billion euros. It also noted however, that the single market is far from complete and there are still many differences, not only in legislation and standards but also in how EU rules are implemented. During the meetings, the Council focussed on three specific issues: services, geoblocking and Collaborative economy.
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Services
Businesses and entrepreneurs who want to trade across borders are still faced with barriers that make it more difficult. Or even impossible. The Council shared a sense of urgency and a view that now is the time to act. It called for priority to be given to better implementation and stronger enforcement of existing rules. In addition, there was broad support for targeted EU initiatives, in particular the services passport and the analytical framework for regulated professions. The services passport should reduce the administrative burden and ensure that services providers have easy access to markets across borders, without going through complicated administrative procedures or having to adjust their business model. The discussion provided valuable input for the Council Conclusions to be adopted at the Council meeting on 29 February about the Single Market Strategy and for the Commission’s development of specific proposals.
Geoblocking
The Council concluded that digital developments make it easier to access Europe’s single market, but they also facilitate potential digital barriers, such as geolocalisation of customers. Customers may be confronted with situations where they are treated differently depending on their geographical location or nationality. For example, they may be charged different prices for the same product for no clear reason. The Council shared its views on the issue and discussed how the Commission can ensure a clear and comprehensive framework, facilitating cross-border trade for both consumers and businesses when it presents a legislative proposal later this year. The Council furthermore agreed that discriminatory practices have no place in Europe’s single market. At the same time, it acknowledged that any action should not impose an unfair burden on businesses.
Collaborative economy
As a third issues, the Council discussed the potential of the collaborative economy. Member states agreed on the need to share best practices and experiences among member states, and to work with the Commission to clarify how to harness the power of the collaborative economy. This will enable Member States to pursue an effective, consistent and coordinated approach to further facilitate the development of the collaborative economy.
Concluding the Council, minister Kamp noted: “The single market is far from complete. And it faces threats. Yet I feel that yesterday and today we were able to focus on the opportunities, discuss the challenges and make clear recommendations on how to further the digital and internal market in a way that will benefit our entrepreneurs, citizens and consumers alike.”