26 November Internal Market Council

Date: 28/11/1996

SINGLE market ministers failed to reach agreement on the controversial issue of whether small manufacturers should be able, under licence, to produce spare car parts for popular models. The Irish presidency was unable to win support for its proposal, which would have left the current mixture of national regimes in place for a further five years. Existing rules are mostly used by big car manufacturers to protect their grip on the lucrative spares market. The European Commission has proposed creating a competitive market by bringing in smaller companies. Internal Market Commissioner Mario Monti said extending the current regime clashed with consumers' interests by blocking competition and supporting current prices. Monti said he was willing to accept a transition period to a more competitive market of up to five years, but was not willing to dilute his proposals. The European Parliament has also backed changes which would allow smaller companies to produce parts such as bodywork panels, doors and lights. Ministers are expected to return to the issue in several months, after more work has been done by national experts.

PUBLIC procurement rules will be amended to make sure that non-EU companies do not have a better chance of landing Union contracts than local businesses, after two changes to existing rules were approved by ministers. The possibility of reverse discrimination has existed since the world-wide Government Procurement Agreement came into force at the start of this year. The accord opened access to EU contracts to outsiders, but local European firms were still excluded from bidding for contracts in some sectors such as water, energy and transport.

MINISTERS also approved the creation of the Customs 2000 programme, aimed at increasing cooperation between national customs authorities. It was agreed after conciliation talks between the Council and the European Parliament.

THE meeting began with a public debate on the effectiveness of the single market, four years on. Monti gave details of the Commission's biggest-ever publicity campaign, Citizens First, to spell out the advantages and opportunities offered by the market. It includes a multilingual Internet site advising on how to use the single market. Non-surfers will be offered helplines for ordering EU documents. Aspects of the campaign are being tailored to suit individual countries. The initiative answers criticism that the Commission has not done enough to explain the benefits the EU can bring citizens.