Europe's next single market must be its legal system

The European Commission has made clear its commitment to reducing bureaucratic red tape by adopting an approach to regulation that keeps the number of laws we propose to an absolute minimum. We are serious about this.

But our commitment to reducing the amount of legislation must be matched by an equal commitment to making what we have really count. This is a shared responsibility, and member states have to play their part. Until laws adopted in Brussels are enacted in national law and properly enforced, they remain paper tigers, entirely without teeth.

Most laws adopted in Brussels allow a grace period -- generally about two years -- for member states to act. Member states set this deadline themselves, so it should be more than enough time. After that, there should be no excuses.

Ten years ago, the gap between the number of single-market laws adopted in Brussels and those in force in the member states -- known as the "transposition deficit" -- stood at 6 percent. Faced with this poor record, in 2001 the European Council committed itself to achieving a target of no more than 1.5 percent at any given time.

In the period since, we have had our ups and downs, but most member states have made a considerable effort to get their house in order. For the very first time, the average deficit has fallen below 1.5 percent, standing at 1.2 percent. What is more, all member states have made progress, with Denmark and Latvia -- both five directives away from a perfect record -- sharing first place.

NEW TARGETS REQUIRED

This is an important achievement, but it should not be taken as a signal to relax. On the contrary, we should ask whether the time has not come to set even more stringent targets. And it is also time to take a more detailed look at where we continue to fall short.

When member states sign up to laws in Brussels, they accept an absolute obligation to be bound by them. When they fail to live up to their commitments, they fail in their duty to the consumers and businesses that stand to benefit.

Nor should good overall results be permitted to mask problems in particular areas -- public procurement, for example, which accounts for between 15 percent and 20 percent of Europe's GDP. Opening up markets and applying European rules properly produces savings for governments and delivers better value for taxpayers' money.

I am, therefore, deeply disappointed that a package of measures adopted in this area in 2004 -- aimed at simplifying and modernizing procedures -- has not been transposed within the agreed deadline by several member states. I warn those that have not yet acted that I will take whatever steps are necessary to make them act. We cannot continue to commit ourselves to delivering a more competitive Europe while denying ourselves the means to achieve it.

But reducing the transposition deficit, while important, is not the end of the game. Getting laws onto national statute books is one thing, ensuring they are properly applied and enforced is another. And while the story is good on transposition, it is less rosy when it comes to how things are working on the ground. Eight member states have managed to reduce the number of infringement cases taken against them by the commission, but 17 have as many or more than they did this time last year.

NO SOFT TOUCH

I appreciate that close cooperation and partnership with member states are required, and I am ready to work with them in whatever way I can to help them to transpose and apply EU law correctly. I prefer to avoid infringement cases, which are costly and time consuming. But member states should know by now that I am not a soft touch. My job is to ensure that the law is enforced without fear or favor, and that is what I will continue to do.

The single market is one of the EU's greatest achievements. Removing barriers to the free movement of people, goods, services and capital has brought greater prosperity to people across the continent, hones our skills internally, and gives us weight internationally. When we made the big push for the single market 20 years ago, there were just 12 member states. Now there are 27. Europe is a very different place.

We have also undergone a communications and technological revolution that has touched every aspect of our lives. While immense new opportunities have opened up for Europe's citizens and businesses, global competition for trade and investment has never been tougher.

Later this year, the commission will bring forward a review of the single market to ensure that Europe is ready for what lies ahead. This is an important opportunity for reform and renewal. A modern single market should reflect modern needs, and we should concentrate our efforts where they can have most effect.

We need a set of priorities that responds to what people want and expect -- jobs, growth and security. To cope with rapid change, we need to be flexible when it comes to regulation. We need to accept that not everything can be run from the center, which means more trust and more partnership, but also more willingness to shoulder responsibility further down the line.

Indeed, if we are to succeed in creating a single market that is open to the world, builds on its internal strengths, and is at the cutting edge when it comes to shaping the international environment, our efforts at the EU level have to be matched by efforts at the national level. I commend the member states for the efforts they have made, but we can all do better.

Charlie McCreevy is the EU commissioner for the internal market and services.

Copyright: Project Syndicate