The European Parliament adopted a legislative resolution approving the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council establishing a programme for the internal market, competitiveness of enterprises, including small and medium-sized enterprises, the area of plants, animals, food and feed, and European statistics (Single Market Programme) and repealing Regulations (EU) No 99/2013, (EU) No 1287/2013, (EU) No 254/2014 and (EU) No 652/2014.

The proposal aims to implement the programme during the period of the Multiannual Financial Framework (MFF) 2021-2027. It is part of the sectoral proposals completing the package of horizontal proposals on the MFF for this period.

The programme brings together activities funded during the previous MFF period under six previous programmes: (i) European Statistical Programme, (ii) COSME, (iii) Consumer Programme, (iv) Programme to support specific activities in the field of financial reporting and auditing, (v) Regulation on the food production chain, animal health and welfare and plant health and reproductive material, (vi) Regulation on the involvement of consumers and other financial service end-users, but also includes new initiatives.

Programme objectives

The objectives of the Programme are the following:

- to improve the functioning of the internal market, and especially to protect and empower citizens, consumers and businesses, in particular SMEs, by enforcing Union law, facilitating market access, setting standards and promoting human, animal and plant health and animal welfare, whilst respecting the principles of sustainable development and ensuring a high level of consumer protection;

- to strengthen the competitiveness and sustainability of SMEs;

- to develop, produce and disseminate high-quality, comparable, timely and reliable European statistics.

Budget

The financial envelope for the implementation of the programme for the period from 1 January 2021 to 31 December 2027 is set at EUR 4 208 041 000 in current prices. The total cost of administrative and technical assistance will not exceed 5% of the value of the financial envelope.

The regulation lays down the forms of EU funding, the rules for granting such funding, and the system of governance of the programme.

The European Parliament adopted by 520 votes to 125 with 33 abstentions a legislative resolution on the proposal for a regulation of the European Parliament and of the Council establishing the Programme for single market, competitiveness of enterprises, including small and medium-sized enterprises, and European statistics and repealing Regulations (EU) No 99/2013, (EU) No 1287/2013, (EU) No 254/2014, (EU) No 258/2014, (EU) No 652/2014 and (EU) 2017/826.

The position of the European Parliament adopted at first reading under the ordinary legislative procedure amended the Commission proposal as follows:

Objectives of the programme

The proposed regulation would establish the Single Market Programme (2021-2027) aimed at strengthening the internal market and improving its functioning in the areas of competitiveness and sustainability of enterprises, in particular micro-, small- and medium-sized enterprises, standardisation, consumer protection, market surveillance, the food chain and the framework for financing the development, production and dissemination of European statistics.

Budget

Parliament considered the total financial package proposed by the Commission insufficient to meet all the challenges of the single market and, in particular, to adapt to the rapidly changing digital revolution and globalisation.

Consequently, it proposed that the financial framework for the implementation of the programme for the period 2021 to 2027 should be set at EUR 6 563 000 000 000 at current prices (compared with EUR 4 088 580 000 at current prices proposed by the European Commission).

Market surveillance, SMEs, consumers, digital developments

In particular, the programme should:

- support effective market surveillance and product safety throughout the Union and contribute to the fight against counterfeiting with a view to ensuring that only safe and compliant products are placed on the Union market, including products sold online, and to greater homogeneity and capacity of market surveillance authorities throughout the Union;

- improve the competitiveness of EU SMEs on the world market and create the conditions for introducing technological and organisational innovation into production processes, with particular attention to specific forms of SMEs such as microenterprises (including those in the tourism sector), craft enterprises, the self-employed, the liberal professions and social economy enterprises;

- support increased participation of SME representative organisations in the development of single market policy initiatives such as public procurement, standardisation processes and intellectual property regimes;

- support concrete actions, such as emergency measures in the event of crises and unforeseeable events affecting animal and plant health and the establishment of a mechanism for direct access to the Union's emergency aid reserve to respond more quickly and effectively to emergency situations;

- develop, produce and disseminate high-quality, comparable and reliable European statistics that support the design, monitoring and evaluation of all EU policies, including on trade and migration.

Parliament also suggested:

- including references to specific actions to strengthen consumer protection, empower consumers and promote their interests, paying particular attention to the new challenges and opportunities brought about by digitisation;

- adding references to digital developments in all areas covered by the programme.

Evaluation and publicity

In the interests of transparency and visibility, the Commission should undertake information and communication actions to make consumers, businesses, in particular SMEs, and public administrations aware of the possibilities offered by the programme.

The SME component of the InvestEU Fund should include the establishment of a central window to provide information on the programme in each Member State, in order to improve the accessibility of the funds and information about them for SMEs.

Members proposed a mandatory final evaluation of the programme by 2030, focusing on the long-term impact of the programme, the sustainability of actions and the synergies achieved between the different work programmes.

The Committee on the Internal Market and Consumer Protection adopted the report by Nicola DANTI (S&D, IT) on the proposal for a regulation of the European Parliament and of the Council establishing the Programme for single market, competitiveness of enterprises, including small and medium-sized enterprises, and European statistics and repealing Regulations (EU) No 99/2013, (EU) No 1287/2013, (EU) No 254/2014, (EU) No 258/2014, (EU) No 652/2014 and (EU) 2017/826.

The Committees on Economic and Monetary Affairs, the Environment, Public Health and Food Safety, Industry, Research and Energy and Agriculture and Rural Development, exercising their prerogatives as associated committees in accordance with Rule 54 of the Rules of Procedure, also gave their opinions on the report.

Subject matter

The proposed Regulation establishes the single market programme (2021-2027) for strengthening the internal market and improving its functioning in the fields of competitiveness and sustainability of enterprises, especially micro, small and medium-sized enterprises, standardisation, consumer protection, market surveillance, food supply chain and the framework for financing of development, production and dissemination of European statistics under Regulation (EC) No 223/2009.

Financing

Members considered that the total financial envelope proposed by the Commission is not sufficient to answer all challenges of the single market and especially to adapt to a rapidly changing environment of digital revolution and globalisation.

Therefore, they proposed the financial envelope for the implementation of the programme for the period 2021 to 2027 to be set at EUR 6 563 000 000 in current prices.

Market surveillance, consumers and digital developments

Members stressed that the programme shall seek to strengthen product compliance by strengthening market surveillance, providing clear, transparent and comprehensive rules to economic operators, raising awareness of applicable Union product safety rules and intensifying compliance checks.

It shall also endeavour to strengthen the capacity of the market surveillance authorities across the Union and contribute to a greater homogeneity between Member States.

Members also suggested:

- including references to specific actions to strengthen consumer protection, empower consumers and promote their interests, paying particular attention to the new challenges and opportunities brought about by digitalisation;

- adding references to digital developments in all areas covered by the programme.

Evaluation and publicity

When it comes to transparency and publicity, the Commission shall implement information and communication actions to raise awareness among consumers, businesses, notably SMEs, and public administrations about the opportunities offered under the Programme.

Members proposed a mandatory final evaluation of the Programme by 2030 with a specific focus on the longer-term impact of the programme, the sustainability of the actions and the synergies achieved among the different work programmes.

PURPOSE: to establish a new programme for improving the functioning of the internal market for the period 2021-2027.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the internal market is one of the EU’s greatest successes. Nevertheless, it has to continuously adapt to a rapidly changing environment characterised by digital revolution and globalisation. Still, barriers to a proper functioning of the internal market remain and new obstacles are emerging. Moreover, only 6 % of EU citizens feel well informed about their rights as a citizen of the Union and only 36 % feel fairly well informed.

Action is required at EU level to ensure the consistent development of the internal market; non-discrimination; consumer protection; effective competition; the development of Member States’ capabilities and of cooperation between them; and the tackling of cross-border issues.

Under the next multiannual financial framework for the period 2021-2027, the proposed new programme brings together activities financed under five previous programmes in the areas of business competitiveness ( COSME ), consumer protection ( Regulation (EU) No 254/2014 ), customers and end-users in financial services ( Regulation (EU) 2017/826 ), policy making in financial services ( Regulation (EU) 258/2014 ) and the food chain (Regulation (EU) 652/2014) respectively.

All of these activities are united by their shared objectives to regulate, implement, facilitate, enforce and protect various activities and actors within the internal market.

CONTENT: the proposal for a Regulation - presented for a Union of 27 Member States - seeks to establish the programme for improving the functioning of the internal market and the competitiveness of enterprises , including micro, small and medium-sized enterprises and the framework for financing of development, production and dissemination of European statistics. It lays down the objectives of the Programme, the budget for the period 2021 to 2027, the forms of Union funding and the rules for providing such funding.

The scope of the proposed programme covers the areas of the internal market, SME competitiveness and European statistics in a comprehensive way. The specific objectives of the programme are as follows:

making the internal market work better : the objective is to facilitate the prevention and removal of obstacles and to support the development, implementation and enforcement of the Union law in the areas of the internal market for goods and services, public procurement, market surveillance as well as in the areas of company law and contract and extra-contractual law, anti-money laundering, free movement of capital, financial services and competition, including the development of governance tools; improving the competitiveness of businesses, especially SMEs : improving the competitiveness of enterprises, in particular SMEs: building on the success of the current COSME programme, the Commission proposes to strengthen support for small enterprises to facilitate their access to markets, including the internationalisation of SMEs, the business environment, the competitiveness of certain sectors, the modernisation of industry and the promotion of entrepreneurship. SME loan guarantees previously granted under the COSME programme shall now be granted under the SME component of InvestEU ; increasing standardisation : the programme shall also enable the financing of European standardisation and stakeholder participation in setting up European standards. It shall support the development of high-quality international financial reporting and auditing standards; promoting the interests of consumers : the programme shall empower, assist and educate consumers, businesses and civil society by: (i) ensuring a high level of consumer protection, sustainable consumption and product safety notably by supporting competent enforcement authorities and consumer representative organisations and cooperation actions; (ii) ensuring that all consumers have access to redress and; provision of adequate information on markets and consumers; (iii) enhancing the participation of consumers, other financial services end-users and civil society in financial services policy-making; (iv) promoting a better understanding of the financial sector; contributing to a high level of health for humans, animals and plants throughout the food chain : funding shall support the safe production of food, the prevention and eradication of animal diseases and plant pests, and the improvement of animal welfare in the EU. It shall also promote market access for EU food producers, contribute to exports to third-countries, and significantly support the agri-food industry as a leading sector of the EU economy; producing and communicating high-quality statistics on Europe : the programme establishes the financial framework for providing high-quality, comparable and reliable European statistics to underpin the design, monitoring and evaluation of all the Union policies. This replaces the predecessor European statistical programme .

The proposed programme also includes new initiatives aimed at improving the functioning of the internal market, such as the initiative ‘ An ambitious and innovative competition policy for a stronger Union in the digital age, Joint Cluster Initiative ’ (e.g. to respond to market developments linked to the use of big data and algorithms) and the initiative for collaborations between clusters or clusters of businesses.

Implementation of the Programme shall be based on annual or multi-annual work programme or programmes. The contribution of the programme to the overall objective of increasing the share of EU expenditure contributing to climate objectives to 25% shall be monitored.

Proposed budget : the programme shall have an overall budget of EUR 4.089 billion for the period 2021-2027 . This shall be supplemented by an allocation of EUR 2 billion from the InvestEU Fund, in particular its SME window, which shall make a significant contribution to achieving the objectives of the Regulation.