Rome backs single market crack-down

Date: 22/05/1997

By Chris Johnstone

ITALY has decided to table radical plans for a shake-up of the European Commission's powers to police the single market at next month's EU summit on treaty reform, despite a lukewarm response from some member states.

The Italian proposal would end the long delays in bringing to book governments which break the rules, by allowing the Commission to take immediate decisions condemning them.

The Commission would have the same disciplinary powers in policing the single market as it now has to deal with cases of unfair competition and subsidies.

Italy had said it would only table the plan if a canvass of EU capitals suggested it would win sufficient support to make it worthwhile. But even though Rome has decided to take the plunge, some member states are already expressing concern that it would mean handing over too much power to the Commission.

“It would amount to a big shift in authority. We must ask ourselves if we want that,” said one national official.

Another echoed this caution, warning: “Problems might arise if the rule change strengthens the Commission's powers to push for a harmonisation of value added and excise taxes. We have difficulties with that and we are not the only ones.”

Italy's proposal would allow the Commission to demand that governments conform to single market rules within set deadlines and to fine them for failing to do so. It could also seek an immediate judgement from the European Court of Justice against offending measures and governments could be fined again if they failed to suspend them.

The move is designed to streamline the current laborious system under which the Commission must ask for information, send its initial observations and deliver a final warning letter before going to the ECJ over an alleged breach of the rules. This process can take months, if not years.

The failure of member states to implement EU single market legislation properly was highlighted again this week by new Commission figures showing Germany, Europe's economic powerhouse, has slipped to last place in living up to its commitments. Bonn has implemented only 88&percent; of single market rules compared with the EU average of 94.8&percent;. Italy and France have also performed poorly and badly trail the leaders, Denmark and the Netherlands, which have put 99&percent; of the rules into effect.