Helping the Single Market work, July 2002

Author (Person)
Publisher
Series Title
Series Details 26.7.02
Publication Date 26/07/2002
Content Type , ,

The European Commission has published its second biennial report on mutual recognition of products and services in the Single Market.

The principle of mutual recognition - originally established in the 'Cassis de Dijon' case - concerns products and services for which there are no EU-level rules on harmonisation. Under mutual recognition, such products and services can legally be sold or provided in all EU Member States providing they meet the relevant legal requirements in the manufacturer's or service provider's own Member State (there are some exceptions based on 'overriding requirements of general public importance', such as public health, and consumer or environmental protection).

In 1999, the Commission adopted a communication on the application of the mutual recognition principle and published its First Report On the Application of the Principle of Mutual Recognition In Product and Services Markets. The Second biennial Report on the Application of the Principle of Mutual Recognition in the Single Market assesses progress made since 1999 and highlights areas where there are still problems.

Mutual recognition covers an estimated 430 billion worth of products traded between Member States; its application is therefore seen as a critical element in the effectiveness of the Single Market. However, the Second Report shows that although the principle generally works well for simple products (e.g. bicycles, tanks and containers), there are problems associated with more complex products. Two categories of problem products are identified: those which are technically complex (e.g. buses, lorries, construction products, precious metals) and those which can pose health or safety risks (e.g. food supplements, fortified products).

The Commission suggests that mutual recognition works less well for these types of products primarily because 'a number of economic operators and national administrations are unfamiliar with the principle' and suffer from a lack of information and cooperation.

To help improve the situation, the Commission intends to produce guidelines, explaining the rights and obligations of the parties concerned.

Where Member States' rules differ so widely that mutual recognition is not appropriate (as in the cases of fortified foodstuffs and construction products), the Commission confirms that harmonisation will remain the most appropriate solution.

Introducing the Second Report, the European Commissioner responsible for the Single Market, Frits Bolkestein, said:

'the principle of mutual recognition enables consumers to have a wide choice of products and services from the other Member States without prices being pushed up by pointless administrative costs that businesses would incur if they had to fit in with fifteen different sets of regulations. It also means there is no need for systematic, across-the-board introduction of detailed rules at Community level, guaranteeing substantial respect for local, regional and national traditions. This report shows that in certain areas, the Member States should apply mutual recognition even more effectively. The Commission will do all it can to contribute toward this effort, which is vital for the smooth running of the internal market.'

Links:

European Commission
25.07.02: Mutual recognition in the field of products and services in the internal market: a combined review [IP/02/1153]
Second biennial Report on the Application of the Principle of Mutual Recognition in the Single Market
The Principle of Mutual Recognition
First Report On the Application of the Principle of Mutual Recognition In Product and Services Markets
 

Eric Davies
KnowEurope Researcher
Compiled: Friday, 26 July 2002

The European Commission published its second biennial report on mutual recognition of products and services in the Single Market in July 2002.

Subject Categories