On 2 December 2015 the EU signed a short-stay visa waiver agreement with Colombia, at a ceremony that took place in Brussels. The EU’s relations with Colombia are built on political dialogue, trade, and development cooperation, and cover a wide range of bilateral, regional and multilateral issues, whilst also helping to address the legacies of its internal armed conflict.
The Single Market is seen as a major European Union success. Twenty percent of the world’s trade flows among EU member states, taking advantage of the free movement of goods under the single market.
This success was achieved by tearing down regulatory walls, standardising rules, and creating a transparent business environment for both supply and demand. Now, the European Commission has announced its plans for a Digital Single Market.
Under the slogan “bringing down barriers to unlock business opportunities”, Digital Economy Commissioner Günther Oettinger has identified the sector’s fragmentation and obstacles to online trade as among the factors most holding back growth.
“Europe needs to assess whether the current competition policy framework is adequately equipped to deal with the increasing occurrence of platform markets and their challenges to market power”
Oettinger says an integrated digital market could contribute an extra €415bn to the European economy – roughly the size of Poland’s entire GDP.
Europe is lagging behind the United States where companies enjoy a level playing field free from the array of legal frameworks that are a nightmare especially for start-ups in Europe.
The multiplicity of European systems might be one of the reasons why leading digitised and innovative research hubs are found in Palo Alto, New York or around the Massachusetts Institute of Technology, rather than on this side of the Atlantic.
Standardising and simplifying the framework sounds sensible, but it’s easier said than done. The Commission is currently trying to bundle together insights from various consultations covering areas as diverse as audio-visual media and the reform of telecoms rules.
One important aspect not yet covered is competition policy. Europe needs to assess whether the current competition policy framework is adequately equipped to deal with the increasing occurrence of platform markets and their growing market power.
It is debatable whether current rules dealing with the abuse of dominant market positions is defined widely enough. Another aspect that warrants adjustment is merger control. Mergers and acquisitions in the offline world are covered precisely. Digitised businesses, however, often fall through the cracks. The most prominent example is Facebook’s purchase of WhatsApp.
“European data protection legislation is needed urgently to provide consumers and businesses with a sense of legal certainty”
Digital business models work differently. Data is at the centre of most of these online companies. They often offer services that are free of charge, at least initially, while generating, analysing and using the massive amounts of data that accompany the service provision.
Consequently, even if such companies generate little or no revenue, the data they possess makes them valuable. Competition authorities, including at EU level, should take this into account when examining prospective mergers. To do this, they need to look beyond turnover, to consider indicators that better show the worth of digital businesses. Alternatives could include user numbers or the market capitalisation of acquired companies.
The Commission’s consultations on the digital single market strategy are already taking into account some of the market changes stemming from this focus on data.
However, the European legislative process is not keeping up with the pace of digitisation. European data protection legislation is needed urgently to provide consumers and businesses with a sense of legal certainty. Delay causes disruption for thousands of businesses and millions of consumers.
“The European legislative process is not keeping up with the pace of digitisation”
The suspension of the EU’s “Safe Harbour” regulation on transatlantic data transfers, following a ruling from the European Court of Justice in October, is bad enough for business. EU institutions now need to at least get the legislation for Europe done quickly.
Establishing the European Digital Single Market by levelling the playing field is an excellent idea to trigger cross-border supply and demand for digital services.
Aligning European legislation and regulative frameworks is, however, just part of what’s needed. Digitisation is moving forward quickly, becoming more complex each day. Finding the balance between protecting consumers while stimulating business and opening up the seemingly endless opportunities of the internet is a pressing challenge for the EU institutions.
Speed is essential because, in the words of Cisco Systems’ former CEO John Chambers: change will never again be as slow as today.
IMAGE CREDIT: EUROPEAN UNION 2015
The post New markets, new rules: What direction for Europe’s digital regulation appeared first on Europe’s World.
EU Naval Operation Sophia against human smugglers in the Mediterranean, previously EUNAVFOR Med. The operation is aimed at disrupting the business model of human smuggling and trafficking networks in the Mediterranean and to prevent the further loss of life at sea. It is part of a wider EU comprehensive approach to migration, tackling both the symptoms and root causes such as conflict, poverty, climate change and persecution.
Here it comes! The European Commission today will publish its long awaited Circular Economy package.
If you have been following this saga, you will know that a Circular Economy package first appeared in July 2014, when Commissioner Potočnik led on environmental policy. Soon after however, winds changed in Brussels. The package became a victim of the Better Regulation agenda and was withdrawn with Commission Vice-President Timmermans’ promise to “replace [it] by [a] new, more ambitious proposal by the end of 2015.”
Is the Commission delivering on its First Vice President’s promise? How do we rate the level of ambition?
This is about waste
The revision of the waste legislative framework is the backbone of the Commission’s package. Recycling targets, calculation methods, Extended Producers Responsibility – and more – should keep MEPs and Environmental attachés busy next year. In fact, codecision has not even started yet and we already hear a few disappointing (potentially angry) voices: How could the Commission lower the municipal waste recycling target? Why switching back to an input-based calculation method? And where is the food waste reduction target?
This is about reconciling environmental and economic ambitions
Beyond waste, the Circular Economy package is an attempt to transform production and consumption patterns in Europe; an attempt to reconcile our economic model with environmental imperatives. The Commission’s action plan is crystal clear. Before 2019, a number of key initiatives should be undertaken in order to “reinvent our economy and create new competitive advantages for Europe on a sustainable basis.” All stages of the product lifecycle from production to consumption and from waste to the secondary raw material market will be considered, to truly ‘close the loop’. Product design is particularly interesting in this regard as the Commission announces that the future Ecodesign framework should systematically take into account criteria such as reparability, durability, recyclability or the identification of certain materials or substances.
This is about the Juncker Commission
Today’s publication is last – but not least – a test for the Commission’s ability to deliver on objectives and new working methods. Since taking office a year ago, European Commission President Jean-Claude Juncker has tried hard to stick to its ‘growth and jobs’ direction and transform Commission’s internal working methods accordingly.
The Circular Economy is no exception. In fact, the package is likely to be one of the best examples of what the Better Regulation agenda has delivered so far. Indeed, while the first circular economy package had been very much dominated by DG Environment, the new one results from a joined effort between Commissioners Timmermans’ (regulation and inter-institutional affairs), Katainen’s (economy), Vella’s (environment) and Bienkowska’s (industry) services.
Has the Commission finally managed to overcome its ‘silo’ mindset? Is the package delivering on competitiveness and the environment? Will Members States, the European Parliament and all interested parties be seduced by this approach? The next months will tell us more. Stay tuned.
NOTE: You would like to know more about Circular Economy? Want to discuss the content of the package and understand what it means for your company or your sector? Don’t hesitate to send us a message.
The "European Union-NATO Declaration on the European Security and Defence Policy (ESDP)" and the "Berlin Plus" arrangements are the basic documents for the EU-NATO strategic partnership.
The EU stands united with the people and Government of France and expresses solidarity on the 13 November Paris attacks.