Results of the Consultation on the Green Book on Commerce

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1 SPEECH/98/81 Speech by Mr. Christos PAPOUTSIS Member of the European Commission Results of the Consultation on the Green Book on Commerce Check Against Delivery Seul le texte prononcé fait foi Es gilt das gesprochene wort Annual Conference on Commerce and Plenary Session of the Committee of Commerce and Distribution Centre Borschette - Brussels, 23 April 1998

2 Mr. President, Ladies and Gentlemen, I am delighted to have this opportunity today of speaking to the owners and senior executives of commercial enterprises, representatives of trade associations, Directors General and other government officials, as well as to the Members of the European Parliament, of the Committee of the Regions and of the Economic and Social Committee. Firstly, I would like to give you a brief review of the progress that has been made regarding general enterprise policy since we last met. And additionally, I would like to present to you the directions of our policy for the future of the sector of commerce. I would like to express my thoughts about the White Paper for commerce, which we announced last year. As you know, just two years ago we proceeded to the restructuring of the services dealing with enterprise policy including the service dealing with sectoral policies in commerce. Our intention was to give DG XXIII more resources, and to ensure a more coherent approach to the important issues and challenges facing enterprises in the European Union at the present time. Enterprise policy and entrepreneurship are important components of our overall strategy to stimulate growth and competitiveness and through that to tackle the curse of unemployment. Following the Amsterdam Council we set up the Business Environment Simplification Task Force to look at the regulatory and administrative burdens facing enterprises. This Task Force will have its last scheduled meeting tomorrow to finalise its report, which I expect to receive at the end of the month. The Guidelines on Employment which were adopted by the Luxembourg European Council included entrepreneurship. Based on these guidelines the Member States are already organising their National Action Plans in order to face the unemployment problem. Our Recommendation on simplifying the administration attached to starting up a business has found a resonance with some Member States. Furthermore, we have recently adopted two important communications on risk capital and on transfer of businesses. Additionally, we have proposed to the Council and the European Parliament a draft Directive on Late Payments. Two weeks ago we also adopted a Communication on Entrepreneurship, with which we highlight the actions which will have to be tackled at both European and national level. Our aim is to improve competitiveness and to reinforce the development through a more coherent and effective actions. 2

3 As you are aware, since the beginning of our mandate, we have attached great importance to the sector of commerce. Your response to the Green Paper on Commerce was very encouraging. In general terms I can say that there is a wide coincidence of views in the priorities that we had set in the Green Paper. The responses to the Green Paper were focused, correctly, in my view, on issues which refer to the general enterprise policy. But they have also identified a series of other issues which are of special importance for commerce. These issues are the development of electronic commerce, the introduction of the Euro and the environment of commerce in areas where effective demand is limited, such as rural communities and certain inner city areas. I would now like to turn to the general approach which we will follow in drawing up the White Paper and the specific actions which we intend to take. The watchword must be competitiveness. The Commission wishes to contribute, so that commerce, will be able to use its resources efficiently, and to be able to respond effectively to the demands both for goods and services. By so doing commerce will remain one of the most important sectors of financial activity and important job creators. And, I would like to stress this important social and cultural role of commerce. A conference on commerce will be held by the Commission early next year. Our main aim will be to discuss the implementation of the White Paper and actions derived from it. I think that community actions in the sector of commerce should be essentially practical. I have already asked my services to give lengthy consideration to the preparation of a number of actions which could be proposed for the White Paper. My services have already prepared discussion sheets for each of the subjects of our new action programme which will constitute a basis for debate. You should each have received copies of these sheets. Each one concerns a particular policy area. I would now like to stress certain pre-conditions which must be satisfied if our objectives are to be achieved. Our aim is to complete existing plans in order to improve the presentation of statistics about trade, and we hope to take other steps to raise the profile of the sector through publishing an expanded range of information on paper, on the internet, and by conferences and so on. Another particulary important issue is training. Training is essential for traders and their staffs, if they wish to make the best use of the new information technologies. 3

4 Training is also important for the proprietors of businesses, in particular concerning their adoption of modern purchasing and sales methods. We intend to publish in the summer of this year a Communication on Training for SMEs which I am sure you will find interesting and relevant. Allow me, though, to come back to the issues I believe should be included in the White Paper. - Two of the subjects about which the Commission will propose action, concern the business environment: One subject concerns the aim of bringing about simplification of administrative procedures. We are planning to identify problems specific to trade, through our regular contacts with national officials, in order to recommend best practices. A second subject is that of the social dialogue where the objective is to ensure that the arguments between consumers and traders including that which is already happening between CCD and the Consumers' Committee as regards the introduction of the Euro. A second group of subjects concerns wider developments which have an impact on trade: Without any doubt the introduction of the Euro is of major importance to the sector of commerce. Most of the major decisions in this regard have already been taken or are at an advanced stage of discussion. The possibility for a high-visibility code of conduct for traders, the double-pricing, and the rounding of prices are issues that concern us. There is however much to be done to ensure that not only the large retail chains, but traders and especially small traders are preparing themselves for the Euro. An educational campaign including simulated use of the Euro could be of particular help in familiarising consumers, traders and their staffs with the new money. Another subject is the enlargement of the European Union. The Commission must assist traders in the future new member states to become sufficiently competitive, so that they can operate efficiently within the Union after accession. We must examine ways of best integration in the new conditions and the best practices for facing the challenges in the commerce of the candidate countries before their accesion and during the period of negotiations. Another group of subjects is concerned with encouraging the sector to improve its competitiveness. 4

5 I will indicate a number of actions towards these guidelines: The Commission's services will give careful consideration to examining the impact of competition policy on the sector and in particular on buying groups and voluntary chains. We are presently studying the use of payment cards with a view to ensuring that the arrangements for these are competitive and transparent from the points of view of consumers and other partners involved. We could examine means of certification of small traders who want to use electronic commerce including methods which improve the confidence of the users towards the new environment. For this reason we will examine the possibility of creating a reliable certificate in order to develop the confidence of consumers especially when trading across borders. The users of electronic commerce should be associated with the research programmes in this field, should make major investments in the new technology, since they will be among the main beneficiaries of its future results. We will continue to promote actions under the Commerce 2000 initiative. Our aim is to identify the way the best practices I would say - by which small shops, especially those in remote rural areas and those in declining urban areas can improve their competitiveness. The contribution towards these goals which the Structural Funds could make will be highlighted. Access to capital is a problem for all small and medium-sized businesses. The Commission already has a number of actions taking place in this regard. The situation of traders, though, is different from that of SMEs and the industry. Because the commercial small enterprises only have limited collateral to offer since much of the value of their businesses is in goodwill and trading reputation. We need to find ways to overcome such difficulties. As you know, part of my responsibilities as a Member of the Commission includes a large range of programmes to assist small and medium sized enterprises to become more competitive. The actions which could be proposed in the White Paper on Commerce could draw on these programmes where necessary and seek answers from the whole range of Community policies to the problems which presently exist in the sector. These actions could also fully comply with the Commission s initiative to foster entrepreneurship and are intended to encourage the further development of the commerce sector. Our intention is to bring enterprise policy and entrepreneurship to the forefront of Community policy. It will, I believe, be a major topic from now until the end of this decade. The commerce sector is very important for the development of a new enterprise culture, which will respond to the needs and the challenges of our times. 5

6 Our actions for enterprises as a whole also concern the commerce sector. Your principal benefits are likely to come from simplification of formalities, quicker implementation of the Internal Market or a more sympathetic tax structure for enterprises. Not all of these initiatives depend on the Commission for action. Many depend on the Member States. Now, at least, I believe we are all working in the same direction and we have agreed that progress should be measured. Your contribution to the successful introduction of the Euro is going to be crucial. Without the willing co-operation of the shopkeeper and the wholesaler it the introduction of the Euro can not proceed. We will need very close co-operation throughout the period from now until the transition period is finally over. I am asking you to tell us how we can further strengthen our co-operation in this respect. The future of an enlarged Europe will depend to a considerable extent on how fast the new Member States adapt to the conditions of an enlarged internal market with open internal frontiers and free movement of goods and capital. Your experience as masters of logistics and innovators, not only in products but in marketing techniques will be vital in helping the new members prepare and adjust. We count on your contribution to this major step forward. Up to the present, we have worked succesfully together, and I hope that this fruitful cooperation will go on in all these issues especially with CCD. I am convinced that our strategy has already started showing positive results. With the progress we have made in developing new forms of co-operation with CCD and the organisations representing the Commerce sector, we can look forward to greater success in the following years. On my behalf, I would like to express my commitment to the realisation of our common aims. I thank you all for your attention. I will be pleased to hear your first reactions to our ideas. 6

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