Free movement of goods becomes reality

Veröffentlicht 19.2.2008

Strasbourg, 19 February 2008

Free movement of goods becomes reality. Alexander Stubb MEP

The European Parliament will adopt on Thursday 21 February the most extensive legislative package on the free movement of goods since the 1992 Single Market Project of Jacques Delors. Finnish centre-right MEP Alexander Stubb, rapporteur on the Regulation on Mutual Recognition of Goods, was pleased with the final outcome:

"All European companies, large and small, must realise that they should from now on be able to sell their products from one EU country to another, without any red tape", he noted.

The Regulation is based on the 'Cassis de Dijon' court ruling of 1979 which stated that if a product is accepted in one country, it should be accepted in other Member States as well. Despite the ruling, this principle of mutual recognition has not worked properly in practice. Member States have come up with an array of protectionist measures to prevent the free entry of goods to their territory.

To tackle the problem, the new EU Regulation shifts the burden of proof from the economic operator to the MemberState.

"The effects of this are threefold: firstly, consumers will have more choice. Secondly, SMEs will face less red tape and an easier market access. Thirdly, through increasing trade, we expect higher growth. The cost of the non-application of mutual recognition is estimated at €150 billion annually", said Stubb.

"Now a company should not be afraid of entering any other EU country's market. If the product is accepted somewhere in Europe, it cannot be denied in another Member State unless the authorities can provide evidence that the application of a national technical rule is justified. The number of such cases should now be reduced to a minimum".

The Regulation has been long-awaited by the European business community and it is seen as the missing major step in completing the internal market for goods.

Many Member States attempted to water down the proposal during the co-decision procedure. "The Parliament pushed for a more pro-internal market approach than the Commission even dared to propose. This is a success for us, but especially a success for Europe. Protectionists will have a tough time in nine months when the Regulation will start to apply", commented Stubb after the debate in plenary.

For further information:

Alexander STUBBMEP, Tel: +33-3-88-175264
Antti Timonen, EPP-ED Press Service, Tel: +32-474-851831