1. Report on the State of the single market integration 2013 Meeting of the Committee on the Internal Market and Consumer Protection, European Parliament 28–29 November 2012 Kamil Kiljański, Economic Analysis and Impact Assessment, DG MARKT, European Commission

2. Motivation and Context 2 Why yet another report?! Reinforce SM dimension in AGS MS specificities matter No easy wins for econ growth Enforcement needs prioritisation Follow-up on Governance

3. 3 The European Semester: timeline

4. June 2012 Communication on Better Governance for the Single Market 4 To this end, the Commission will prepare an Annual report on the integration of the Single Market. This report will present an analysis of the state of Single Market integration and look at the way the Single Market functions in practice. January 2012 European Council The Commission will report annually on progress made towards releasing the growth-creating potential of a fully integrated Single Market, including as regards network industries.

5. The report 5 Concise Horizontal assessment: status of integration in 4 freedoms Focus on priority sectors: services, energy, transport, digital markets Main obstacles and good practices in Member States and at the EU level Key policy priorities at national and EU level Country specific recommendations will be put forward later in the European Semester process

6. Goods (intra- vs extra-EU) 6

7. Services (establishment) 7

8. Goods vs services (price dispersion) 8

9. Goods vs services (consumer opinion) 9

10. Assessment of services markets (key points) 10 Double regulation (both home and host country rules) of cross-border service providers persists Uncertainty about the rules applying in MS to x- border service provision on a temporary basis Heterogeneous regulation of professions (reserved activities and entry/conduct restrictions) Quality of Points of Single Contact diverse Restrictions in business services (e.g. on capital form or ownership) Economic needs tests still required in some MS for autorisation of establishment in retail

11. Main policy priorities in services markets 11 More ambitious implementation of the Services Directive, especially as regards restrictions in: fixing tariffs for certain professions company structures and capital ownership construction, business services, and tourism peer review process assisted by the Commission Assess the rationale for the restrictions of the access and the conduct of regulated professions Retail: remaining economic needs tests should be abolished Improve the Points of Single Contact

12. Assessment of network industries (key points) 12 Specific chapters for each sector: Energy: both gas and electricity Little convergence in retail prices across the EU Considerable investment in infrastructure needed (interconnections, smart grids, storage capacity, LNG terminals) Delays in transposition and enforcement of third energy package Transport: Difficulties with application of key legislation Rail least competitive, especially domestic passenger transport Port services still fragmented Sea shipping between Member States often still considered as going beyond the external borders Fragmentation of the Europe's airspace

13. Assessment of digital markets (key points) 13 Low coverage of rural areas with broadband Insufficient spectrum available E-commerce: lack of trust or information, privacy and/ or security+difficulties with parcel delivery Uneven use of e-procurement Shortage of ICT professionals

14. Main policy priorities in network industries 14 Energy: implement acquis (3 rd energy package directives) monitoring and projection of investment in generation and consumption support consumers' informed choices and energy-efficient behaviour phasing out regulated prices while ensuing protection of vulnerable consumers stronger enforcement of competition rules Transport: implement acquis open domestic rail passenger services remove red tape and entry barriers in the port services accelerate implementation of the Single European Sky allow more cabotage opportunities in road freight Digital markets: accelerate deployment of fixed and wireless broadband implementation of Consumer Rights Directive and E-commerce Directive more e-government e.g. e-procurement and e-health invest in ICT training

15. Next steps… 15 Adopted together with the AGS 2013 yesterday. Discussed by the Council and the Parliament and the Spring European Council. Will help to assess the Member States programmes thus contributing to country-specific recommendations.