Following the sometimes massive problems caused by the COVID-19 pandemic and Russia's war of aggression against Ukraine, EU decision-makers gradually came to the realisation that the EU single market must be better prepared for future emergencies and crisis situations. However, many problems in a neoliberal single market are systemic. Trade unions and the Chamber of Labour (AK) have been pointing out for years that the EU single market policy, which is almost exclusively focused on market freedoms and competition, is far too one-sided and ignores the social dimension. It is clear, that the single market needs to be reorganised.

A threat to fundamental and labour rights
The new Single Market Emergency Instrument (SMEI) provides for three stages, namely contingency planning, single market vigilance and single market emergency. Different measures are triggered depending on the severity of the event. This gives the EU Commission far-reaching powers. As the AK has previously criticised, this empowerment of the EU Commission is questionable in terms of democratic policy, not least in view of the very limited involvement of the EU Parliament.

Fundamental rights and labour rights already play a subordinate role in the conflict with market freedoms. This imbalance is exacerbated in a crisis situation to the detriment of workers. However, this is hardly being taken into account in the current debate - quite the opposite. The EU Commission's original proposal for the SMEI envisaged the removal of a regulation containing an explicit provision on the protection of recognised fundamental rights, in particular the right to strike. Overall, the Commission's proposal even posed a direct threat to fundamental and labour rights, affecting not only the right to strike but also other provisions of labour and social law. In the current compromise between the European Parliament and the Council, at least this highly questionable clause is missing, the devastating consequences of which for the right to strike had been emphasised by trade unions and AK.

Co-determination by social partners is required
However, the instrument remains a delicate matter, as it is still based on an outdated single market philosophy. For example, the EU Commission can only ask companies to provide certain products and services in the event of bottlenecks, however, cannot force them to do so. Such weaknesses in the regulatory framework should be rectified in order to make the internal market fit for the future.

Stricter requirements for restrictions in the single market also remain questionable, particularly since the European Court of Justice (ECJ) generally interprets the term "restriction" very broadly in its case law. Even the entire labour and social law could therefore be regarded as a "potential restriction". This is another reason why it is necessary to grant the social partners, and in particular the labour representatives, voting rights in the planned advisory body together with the Member States and the EU Commission - and not merely observer status as is currently the case.

The points of criticism outlined above suggest that there is little awareness on the part of the EU Commission that fundamental and labour rights must be protected in crisis situations instead of giving them up in favour of economic freedoms and thus unleashing an avalanche of problematic consequences.

Agreement reached
A provisional agreement between the EU Parliament and the Council was reached on 1 February 2024, which was confirmed in the EU Parliament's Economic Affairs Committee on 22 February and must now be formally adopted by the plenary of the EU Parliament and the Council. The regulation must be implemented by Member States 18 months after it comes into force. As requested by the EU Parliament, the SMEI will be renamed to Internal Market Emergency and Resilience Act (IMERA). In the current agreement, at least one Member of the EU Parliament will now be represented on the "Internal Market Emergency and Resilience Board". He/She will be responsible for supporting and advising the EU Commission in vigilance and emergency mode. However, it is extremely disappointing that the role of the social partners has not been significantly enhanced.

For the Belgian Presidency, however, the agreement represents a success overall: "Faced with repeated crises, Europe must prove that it can provide a high level of protection for its citizens, workers and businesses. In times of crisis, the Union must avoid creating unjustified obstacles while respecting fundamental rights, including the right to strike," said Pierre-Yves Dermagne, Belgian Deputy Prime Minister and Minister of the Economy and Employment. From AK's point of view, fundamental rights such as the right to strike must not be called into question.

Further information:
AK EUROPA: Better implementation and enforcement of single market rules
AK EUROPA: Single Market Emergency Instrument (SMEI)
AK EUROPA: Single Market Emergency Instrument: Initial criticism confirmed
Arbeit & Wirtschaft: Right to strike in jeopardy (German only)
ETUC: Safeguarding the Right to Strike against Emergency Measures in the Single Market