ZEI Monitor: EU Progress 2014-2019
ZEI follows policy progress in the ten areas which have priority for EU institutions over the period 2014-2019:
Commission Priority: A deeper and fairer internal market
Objectives
Creating a Capital Markets Union, making it easier for small businesses to raise money and making Europe a more attractive place to invest
Encouraging workers to take up jobs in other EU countries to fill vacancies and meet the need for special skills
Reviewing the Posting of Workers Directive and ensure its strict implementation to prevent social dumping
Spurring administrative cooperation among national tax authorities
Working for the adoption of a common consolidated corporate tax base and a financial transaction tax at EU level
European Commission Work Program:
2019
A Fair and Future-Proof Single Market
On the 20th of June 2019, the Regulation(EU) 2019/1020 on market surveillance and compliance of products entered into force (amending Directive 2004/42/EC and Regulations (EC) No 765/2008 and (EU) No 305/2011). The goal of this Regulation is to improve the functioning of the internal market by strengthening the market surveillance of products covered by the Union harmonisation legislation, with a view to ensuring that only compliant products that fulfil requirements providing a high level of protection of public interests, such as health and safety in general, health and safety in the workplace, the protection of consumers, the protection of the environment and public security and any other public interests protected by that legislation, are made available on the Union market. This Regulation also provides a framework for controls on products entering the Union market.
1. On the 20th of June 2019, the Regulation (EU) 2019/1156 entered into force. It establishes uniform rules on the publication of national provisions concerning marketing requirements for collective investment undertakings and on marketing communications addressed to investors, as well as common principles concerning fees and charges levied on managers of collective investment undertakings in relation to their cross-border activities. It also provides for the establishment of a central database on the cross-border marketing of collective investment undertakings. 2. Furthermore, on the same day, the Directive (EU) 2019/1160 with regard to cross-border distribution of collective investment undertakings entered into force (amending Directives 2009/65/EC and 2011/61/EU).
On the 17th of April 2019, the Directive (EU) 2019/633 against unfair trading practices in business-to-business relationships in the agricultural and food supply chain entered into force. It aims to combat practices that grossly deviate from good commercial conduct, that are contrary to good faith and fair dealing and that are unilaterally imposed by one trading partner on another, this Directive establishes a minimum list of prohibited unfair trading practices in relations between buyers and suppliers in the agricultural and food supply chain and lays down minimum rules concerning the enforcement of those prohibitions and arrangements for coordination between enforcement authorities.
On the 19th of March 2019, the Regulation (EU) 2019/515 on the mutual recognition of goods lawfully marketed in another Member State (repealing Regulation (EC) No 764/2008) entered into force. It aims to strengthen the functioning of the internal market by improving the application of the principle of mutual recognition and by removing unjustified barriers to trade. lays down rules and procedures concerning the application by Member States of the principle of mutual recognition in individual cases in relation to goods which are subject to Article 34 TFEU and which are lawfully marketed in another Member State, having regard to Article 36 TFEU and the case-law of the Court of Justice of the European Union.
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Health Protection |
2018
European Defence Action Plan (from 2016)
On the 13th of June 2018, the European Commission submitted a Proposal for a Regulation establishing the European Defense Fund under the Multiannual Financial Framework 2021-2027. The Fund seeks to launch cooperation programmes that would not be possible without an EU contribution and aims to support research and development activities. It should provide the necessary incentives to promote cooperation at every stage of the industrial cycle, thereby contributing to the strategic autonomy of the EU. The proposed act should apply from 1 January 2021. | |
Fair taxation in the digital economy
On the 4th of December 2018, the Council Directive (EU) 2018/822 as regards mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements entered into force (amending Directive 2011/16/EU).
On the 25th of May 2018, the European Commission issued a Proposal for a Council Directive on the VAT system for the taxation of trade between member states, which would make detailed technical amendments to the existing VAT rules to make them more fraud-resilient. With these technical measures, the Commission hopes that member states will kick-start discussions on the Commission proposals' made on the 4th of October 2017. (More)
On the 13th of March 2018, the Council Directive on Mandatory Exchange of Information between Intermediaries came into effect. The Directive entails new new transparency rules for tax advisers, accountants, banks and lawyers - who execute tax planning for their clients. The new reporting requirements will enter into force on the 1st of July 2020, with EU member states obliged to exchange information every 3 months after that. The first exchange will take place by 31st October 2020. (More) | |
Social fairness package | |
EU food supply chain
On the 12th of April 2018, the European Commission put forward a Proposal for a Directive to ban the more damaging unfair trading practices in the food supply chain to ensure fairer treatment for small and medium sized food and farming businesses. In addition, the proposal includes enforcement provisions so that national authorities can impose sanctions where infringements are established. (More) | |
Completing the Capital Markets Union
On the 12th of March 2018, the European Commission put forward two pieces of legislation to boost the cross-border market for investment funds: (press release) 1. a Proposal for a Regulation on Facilitating Cross-Border Distribution of Collective Investment Funds 2. a Proposal for a Directive for Reducing Regulatory Barriers to the cross-border distribution of investment funds | |
More efficient Single Market law-making
On the 7th of June 2018, the European Commission issued a Proposal for a Regulation Establishing the Programme for Single Market, competitiveness of enterprises, including small and medium-sized enterprises, and European statistics. The Single Market Programme is intended to receive 4 billion euro in appropriations in the next long-term EU budget 2021-2027 to empower and protect consumers and enable Europe's many small and medium-sized enterprises (SMEs) to take full advantage of a well-functioning Single Market. (More) | |
Implementation of the Single Market Strategy (continued from 2017 / 16 / 15)
On the 2nd of October 2018, the Regulation establishing a Single Digital Gateway came into effect. A common user interface which is managed by the European Commission shall provide citizens and businesses with access to information, to procedures and to assistance and problem-solving services, amending Regulation (EU) No. 1024/2012. The Single Digital Gateway-Regulation is based on a Commission proposal from the 2nd of May 2017 (see the ZEI Monitor for 2017 below).
On the 28th of June 2018, the Directive on a Proportionality Test for Professions Regulations came into effect. It is based on a legislative proposal by the Commission from the 10th of January 2017 and the first out of three legal acts to pass with regard to the freedom of services (see the ZEI Monitor for 2017).
The proposed best practices includes guidance on the following issues: 1) Facilitating retail establishment; 2) Reducing restrictions to daily operations of shops; 3) Adopting new approaches to promote vitality of city centres; 4) the Retail Restrictiveness Indicator (RRI) | |
Fairer Taxation of companies (continued from 2017)
On the 6th of November 2018, the Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud came into effect. This Council Directive is based on a Commission proposal from the 25th of May 2018.
On the 25th of May 2018, the European Commission presented a Proposal for a Council Directive amending Directive 2006/112/EC on the common system of value added tax as regards the period of application of the optional reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud and of the Quick Reaction Mechanism against VAT fraud (More)
On the 18th of January 2018, the European Commission proposed new rules to give member states more flexibility to set Value Added Tax (VAT) rates and to create a better tax environment to help SMEs flourish.This proposals are the final steps of the Commission's overhaul of VAT rules, with the creation of a single EU VAT area to dramatically reduce the 50 billion euro lost to VAT fraud each year in the EU, while supporting business and securing government revenues. (Press release) The following legislative proposals have been tabled: 1. a Proposal for a Directive on the VAT Rates to introduce more flexibility for member states to change their VAT rates they apply to different products. The new harmonised and flexible rules proposed would enable all member states, in addition to the two reduced rates of a minimum of 5 per cent and one 0 per cent rate, to apply a third reduced rate of between 0 per cent and 5 per cent. 2. a Proposal for a Directive for the Reduction of VAT Compliance Costs for Small Businesses | |
Implementation of the Space Strategy for Europe (continued from 2017 / 16)
The money will be allocated as follows: 1) 9.7 billion euro for Galileo and EGNOS, the EU's global and regional satellite navigation systems; 2) 5.8 billion euro for Copernicus, the EU's Earth Observation programme; 3) 500 million euro to develop new security components Legislative Proposal - Space Programme of the Union: Initially included in the work programme 2017, the European Commission also published a legislative Proposal for a Regulation establishing the space programme of the Union and the European Union Agency for the Space Programme as a follow-up to the 2015 Space Strategy for Europe, bringing together all of the Union’s activities under one umbrella in this highly strategic field and create a fully integrated space programme. | |
An Aviation Package (finalised from 2015)
On the 4th of July 2018, the Regulation on Common Rules in Civil Aviation and the establishment of an EU Aviation Safety Agency(repealing Regulation (EC) No 216/2008) came into effect. It was based on a legislative proposal by the European Commission from the 7th of December 2015 (see below). |
2017
| Implementation of the Single Market Strategy
On the 19th of December 2017 the EU Commission presented two legislative proposals to facilitate cross-border business for companies and especially SMEs: (press release) 1. a Proposal for a Regulation on the Mutual Recognition of Goods lawfully marketed in another state 2. a Proposal for a Regulation on Compliance and Enforcement Rules for Product Safety
On the 2nd of May 2017 the EU Commission presented a measures to facilitate doing cross-border business. The proposed legislation aim to enable citzens and companies to manage their paperwork online in their home country or when working, living or doing business abroad in the EU. (Press release) The three concrete initiatives comprise of: 1. a Proposal for a Regulation on a Single Digital Gateway: key administrative procedures will be available online, including requests for a birth certificate, to register a car, start a business or register for social security benefits. 2. a Proposal for a Regulation on a Single Market Information Tool, allowing the Commission, in targeted cases, to source defined and readily available data (such as, for example, cost structure, pricing policy or product volumes sold) in cases of serious difficulties with the application of EU Single Market legislation 3. the SOLVIT Action Plan to increase the use of SOLVIT, a free of charge service which provides rapid and pragmatic solutions to people and companies all over Europe when they experience difficulties with public administrations while moving or doing business cross-border in the EU.
On the 10th of January 2017, the European Commission proposed a set of measures for the EU service sector to facilitate services for companies and professionals in the EU. The planned legislative measures include:(press release) 1. A Proposal for a Regulation introducing an European Services e-card 2. A Proposal for a Directive for a Services Notification Procedure 3. A Proposal for a Directive on a Proportionality Test for new Regulation of Professions |
Fairer Taxation of Companies
On the 4th of October 2017, the European Commission issued a Proposal for a Council Directive to harmonise rules in the Value Added Tax (VAT) system and a Communication to make the VAT system more fraud-proof, announcing the biggest VAT reform of in a quarter of a century. The reboot aims to improve and modernise the system for governments and businesses alike. (More)
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Implementation of the Space Strategy for Europe
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Implementation of the Capital Markets Union Action Plan (continued from 2016 / 15)
On the 20th of December 2017, the European Commission proposed a two-track overhaul to make life simpler for smaller investment firms, whilst ensuring that large, systemic investment firms which carry out bank-like activities and pose similar risks as banks are regulated and supervised as banks. As a consequence, the European Central Bank, in its supervisory capacity in the form of the Single Supervisory Mechanism) would supervise such systemic investment firms in the Banking Union. (Press release) The legislative proposals include: 1. a Proposal for a Regulation on the Prudential Requirements of Investment Firms 2. a Proposal for a Directive on the Prudential Supervision of Investment Firms
On the 12th of December 2017, the Regulation laying down common rules on securitisation came into effect. It was based on a legislative proposal by the European Commission from the 30th of September 2015 (see ZEI Monitor 2015 below).
On the 12th of December 2017, the Regulation on prudential requirements for credit institutions and investment firms (amending Regulation (EU) No 575/2013) came into effect.
On the 29th of November 2017, the European Commission issued a Proposal for a Regulation on the Seat of the European Banking Authority (EBA) in order to provide a legal basis for the EBA's move from London to Paris due to the Brexit-vote.
On the 25th of October 2017, the Regulation on European Venture Capital Funds, EuVECA, and on European Social Entrepreneurship Funds, EuSEF (amending Regulations (EU) No 345/2013 and No 346/2013) came into effect. It was based on a legislative proposal by the European Commission from the 14th of July 2016 (see ZEI Monitor 2016 below).
On the 20th of September 2017 the European Commission published a Communication explaining its measures for reinforcing the integrated supervision of financial markets to strengthen the Capital Markets Union and proposed a series of legislation to pave the way for further financial integration: (press release) 1. a Proposal for a Regulation on the mandate of European Supervisory Authorities (ESAs) to reinforce their powers, governance and funding framework. The ESAS include the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), the European Securities and Markets Authority (ESMA) 2. a Proposal for a Regulation on establishing a European Systemic Risk Board (ESRB) and EU macro-prudential oversight of the financial system (amending Regulation (EU) No 1092/2010) to change to composition and organisation of the ESRB, which monitors stability risks for the financial system as a whole. 3. a Proposal for Directive on the supervision and powers of the European Securities and Markets Authority, ESMA (amending Directive 2014/65/EU on markets in financial instruments and Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance, Solvency II)
On the 14th of June 2017, the Regulation on Prospectus Rules for Securities came into effect. It sets new publishing requirments when securities are offered to the public or admitted to trading and was based on a legislative proposal by the European Commission from the 30th of November 2015 (see ZEI Monitor 2015 below).
On the 13th of June 2017, the European Commission has put forward a Proposal for a Regulation on the Set-Up of the European Securities and Markets Authority (ESMA) to centralise the supervision and regulation of derivatives contracts. |
2016
Labour Mobility Package
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Follow - up to Single Market Strategy
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European Defence Action Plan
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Action Plan on VAT
1. a Proposal for a Council Directive on the common system of value added tax 2. a Proposal for Council Directive on Modernising VAT for cross-border B2C e-commerce
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Corporate Tax Package
1. a Proposal for a Council Directive on Rules against Tax Avoidance Practices 2. a Proposal for a Council Directive on mandatory automatic exchange of tax-related information | |
A Space Strategy for Europe
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Capital Markets Union Action Plan (continued from 2015)
Proposal for a Regulation (amending Regulations (EU) No 345/2013 and No 346/2013) on European Venture Capital Funds (EuVECA) and on European social entrepreneurship funds (EuSEF) |
2015
An Internal Market Strategy
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A Labour Mobility Package
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Capital Markets Union Action Plan
1. a Proposal for a Regulation laying down common rules on securitisation 2. a Proposal for a Regulation on prudential requirements for credit institutions and investment firms amending Regulation (EU) No 575/2013 to open up investment opportunities for a wider set of non-bank investors.
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A Framework for Financial Institution Resolution | |
An Aviation Package
1. Compensation for a delay: the right to compensation after a delay of three hours at the final destination. 2. Compensation for a missed connecting flight: the right to compensation in case of a long delay on arrival due to missed connecting flights. 3. Extraordinary circumstances concerning technical defects linked to the premature malfunction of certain components of an aircraft or aircraft collisions with other aircraft/devices whereby airlines cannot be exempted from the payment of compensation in case of a cancellation and delay. 4. Measures to be taken in extraordinary circumstances: the right to assistance and care during exceptional events such as the ash cloud in 2010.
1. a Communication on a new Aviation Strategy for Europe to improve the competitiveness of the EU's aviation sector in the years to come, including a package of requests to negotiate air transport agreements with third countries. 2. a Proposal for a Regulation on Common Rules in Civil Aviation and an EU Aviation Safety Agency, repealing Regulation (EC) No 216/2008 |
ZEI Insights
![]() | Towards a Fairer EU Food Supply Chain: Harmonising the Legal Framework by Micol Visciano No. 56 July 2018 (Download) |
![]() | The European Union Space Strategy: A Science Diplomacy Perspective by Elif Özkaragöz Doğan No. 50, September 2017 (Download) |
![]() | Brexit: What is at stake for the Single Market by Sarah Gansen No. 38, May 2016 (Download) |
![]() | The Myths and Realities of EU Labour Mobility by Sally Brammer No. 30 September 2015 (Download) |
![]() | New Strategy for Completing the Single Market: A New Chance? by Robert Stüwe No. 26 July 2015 (Download) |
Policy objectives for the internal market by Balázs Kubinszky No.8 December 2014 (Download) |