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BackOn the Single Market Strategy
In its Position Paper on the Single Market Strategy of the Commission, the AK has explained that the latter is repeating the failed economic policy of the past years: instead of finally reacting to the dramatic rate of unemployment and to poverty in the EU, and to enable an economic change of policy by supporting employees and consumers, one continues to hold on to the one-sided orientation towards business interests.
Main points of the draft report
To begin with, the draft of the initiative report notes that the Single Market would not produce the expected results. However, its reaction to these findings is identical to that of the Commission: a further deepening of the Single Market, hence, further liberalisation is expected to bring the solution.
According to the Single Market Strategy, in future, priority shall be given to SMEs, microenterprises and start-ups. The draft report also states that their activities should be expanded. Even though the AK welcomes the extension of legal security and contact points for start-ups, it warns against providing access to risk capital in less time. This would carry the risk of accumulating debt due to failed autonomy. The existing financing options were adequate. The model of single-member private limited liability companies (SUP) is open to corporate fraud as well as wage and social dumping and therefore has to be clearly rejected.
According to strategy and draft report, participatory economics, hence business models such as Uber or Airbnb, shall be supported; however, at the same time, equal rules for all economic operators are to be enforced. However, in doing so, the effect these models have on working conditions has been completely ignored – especially these have a high demand for regulation and employee protection as well as for protecting employees' data. However, encouraging is the awareness of problems shown by both Commission and Committee regarding consumer protection in participatory economics.
With regard to the cross-border provision of services, Commission and Committee report are aiming at a further deregulation of the service sector. This shall be achieved by reforming the notification procedure within the scope of the Services Directive: according to the notion of the European Commission, in future, every regulatory measure, which is taken at Member State level, has to be notified – even if it concerns sectors of public services, which are exempt from the Directive. The AK is vehemently opposed to this reform because it would lead to liberalisation pressure on public services.
In the opinion of the AK, the service passport, which has been proposed by the Commission to reduce the administrative burden for service providers, in particular with regard to the posting of workers, could lead to abuse. Therefore, the AK opposes the inclusion of information requirements in respect of the Posting of Workers Directive and is on the whole sceptical towards the service passport.
From the AK’s point of view, the proposal by the Commission against the discrimination of consumers and businesses because of nationality is to be welcomed. Here, unequal treatments such as geo-blocking or discriminating pricing should be combated.
The issue of employment and fair working conditions still leave one of the largest blanks in the strategy and the draft report. The urgent concern, the Labour Mobility package remains – it is high time to finally end wage and social dumping with regard to employees posted within the EU!
Further information:
AK Position Paper on the Single Market Strategy of the Commission
Draft report on the Single Market Strategy of the IMCO Committee