‘20 Years of the Internal Market: Opportunities in an open Europe’

Toespraak | 19-10-2012

Monsieur le Commissaire, ladies and gentlemen,

Welcome to this celebration of the 20th anniversary of the European single market.

From time to time, I like to stand still and look back at the road I’ve travelled. It helps me appreciate how much has happened in my life. And I think the same is true for the life of the European Union. Anniversaries are excellent occasions to take stock of the progress we have made over the last 20 years. Like in the movie we just saw.

Before looking ahead at the next 20 years, let me take you back to 1992 for a moment. That is when the single market was born, after a long gestation beginning with the White Book of 1986.

Once the industrialists and entrepreneurs, united in the European Round Table of Industrialists, had given the initial impetus for the internal market, the politicians set to work. It was a turbulent time so soon after the fall of the Berlin Wall. Europe was experiencing the end of the Cold War and the reunification of Germany. The main topics of debate at the time were the Maastricht Treaty and the purpose of Europe. It was a time of hope and expectation. A single market was about to be born and it would bring economic growth.

It was not an easy delivery. The European economy was in limbo, with the European Commission predicting less than one per cent economic growth in 1993 and an unemployment rate of 11 per cent. Many countries were struggling with high interest rates. Industries feared the ‘Japanese threat’, there were calls for protectionism.

And despite the Maastricht Treaty, efforts to create a Political Union had failed. After two years of hope and happy expectations, there was a fear of what the future would actually bring.

Commissioner Barnier, you may remember the book written at the time by your compatriot, Laurent Cohen-Tanugi, entitled “L’Europe en danger”. Many people were pessimistic about the future of Europe.

And here we are, 20 years later. Europe is in the grip of one of the most serious crises of its existence. Today, like then, many people are pessimistic about the future of Europe.

But look at the road we have travelled since 1992!

Many companies and politicians were sceptical about opening up our national markets to goods, services, capital and people from other European countries. Even in the Netherlands we had a strong tradition of cartels. Change meant pain.

But it was worth it. Just look at the results! In its first fifteen years, the internal market added close to three million jobs throughout Europe. It made it easier for people to live, work and study abroad. It increased competition. Made it easier to do business in other European countries. And lowered prices. Mobile phone charges and flight prices, for instance, have decreased by 40 per cent.

In the Netherlands, we would export a fifth less without the single market. It has added an estimated four to six per cent to our economic growth since 1992. This amounts to an extra 35 billion euros in national income every year! Or an extra two thousand euros for every man, woman and child in the Netherlands.

So the single market works! There truly is a reason to celebrate its 20th anniversary, as we are doing today.

Having said that, we’re not there yet.

And you will be the first to agree, Commissioner.

Which is why you launched part one of the Single Market Act in 2010 and part two a couple weeks ago.

There is still work to be done!

Take the digital market for instance. Why are Dutch consumers allowed to order CDs from Amazon, but not to download the same music from the British i-Tunes store?

The European Policy Centre estimates that a well-functioning digital internal market could add four per cent to European GDP in 2020. This is growth we cannot afford to pass up!

The Dutch government applauds your strong leadership in improving the free movement of goods, services, capital and persons throughout Europe. Because we need to act decisively to create growth and jobs in Europe. We need to improve the climate for business and innovation.

This will allow us to strengthen Europe’s capacity for growth in the wake of the financial crisis.

It will allow us to find new solutions to challenges like energy and food security.

It will allow our entrepreneurs to seize new opportunities in Europe and outside, in particular in emerging markets.

Ladies and gentlemen,

I believe that a strong Europe begins at home. Every country has a responsibility to strengthen the European economy.

So we cannot sit back and wait for Brussels to do the job. Every country needs to take action.

Throughout the history of the European project, the Netherlands has always shouldered its responsibilities.

The Dutch are not uncritical. Just like the French, Commissioner. And the Greeks, the Spaniards and the Germans. But we have always known how much we owe Europe. The pro-European campaign by the Confederation of Netherlands Industry and Employers (VNO-NCW) is proof of that. Many people know they owe their jobs and income to Europe. And I suspect the next government will continue to support your efforts to strengthen the single market.

Commissioner,

I have every reason to believe the Netherlands will continue to fulfil its responsibilities in Europe and support more open markets.

As a token of our commitment, I am launching the Frontrunners Initiative to strengthen the single market at national level. I know some of my colleagues from other European countries would like to join.

The idea is simple. The European Union has made much progress in opening up its markets. But entrepreneurs still face many obstacles within member states. Why should we wait for Brussels to tell us which obstacles to remove, when we can find out for ourselves!

We are already working to resolve problems for Dutch entrepreneurs operating on the European market through Solvit. But we can do more. By instructing our diplomats in other European countries to use economic diplomacy to resolve internal market barriers. They can do this by organising EU-business dialogues in order to define what barriers Dutch companies still face in other EU-markets. At the same time we should ask European companies what obstacles they face when doing business in the Netherlands. And then get rid of those obstacles!

I have already initiated such EU-business dialogues within the Benelux. Companies like Paribas, Telenet, KPN and the Port of Rotterdam share their experiences and information about obstacles they encounter within the Benelux region, and how to overcome them. And Commissioner Barnier and I just had a fruitful business dialogue with leaders of Dutch companies.

Business dialogues like this one are already leading to concrete improvements.

Let me give you two examples.

First, entrepreneurs from other countries have to meet many requirements to set up a limited company in the Netherlands. The paperwork now takes about two weeks. We want to reduce that time to 24 hours by simplifying the procedure.

Second, in the construction sector, only Dutch companies were allowed to test the solidity of buildings and measure the thickness of concrete. As of March, those tests can be carried out by foreign companies as well.

There is a lot we can do in every country to make it easier to do business, live and work in other European countries. And we can learn from each other.

Take Portugal for example. It has scrapped restrictions for 170 professions, from hotel manager to photographer, in the last two years. And it has also simplified regulations for many other professions. The Netherlands and other EU member states would do well to follow Portugal’s example. Why should so many professions be regulated? Shouldn’t the member states all try to minimise regulation?

I believe that learning from each other’s best practices is exactly what the Commission had in mind when it promoted peer review as a way to boost the single market for services.

Countries like Denmark, the UK and Sweden are at the forefront of cutting red tape and unnecessary regulations.

And so is the Netherlands. We have reduced the administrative burden for entrepreneurs by 11 per cent in the last two years.

Ladies and gentlemen,

We have every reason to rejoice at the 20th anniversary of the single market. And history teaches us to be optimistic about the future. There are many opportunities to strengthen the European economy.

So let’s not sit back and wait for what Commissioner Barnier and his colleagues can do for us, but let’s ask what we can do for growth and jobs in Europe.

This is the idea behind our Frontrunners Initiative.

I hope that other countries will join in.

And I hope that companies will continue telling us what we can improve, like today.

This is how we can support you in your important work, Commissioner Barnier.

Thank you.