European Union News - Internal Market

The regulation aimed to improve the functioning of the EU milk sector has been adopted by the Council. With the new rules, the milk producers will increase their bargaining power by allowing them to set up producer organisations that on their behalf negotiate collectively contracts for the deliveries of milk. The new measures should be also seen in the context of abolition of the milk quotas regime from 2015.

The European Retail Forum for Sustainability published a report which highlights that companies in the forum are paying more attention to the greening of their supply chains, sustainable distribution systems and the use of renewable energies.

The European Commission published a study which highlights that if the internal market for electronic communications were completed, the EU gross domestic product (GDP) could grow by up to €110 billion a year. In addition the study carried out by an international team of experts points out three main types of policy measures to tackle obstacles.

The eligibility of Greek bonds used as collateral in Eurosystem monetary policy operations has been temporarily suspended by the European Central Bank (ECB). Additionally, the Governing Council decided that the liquidity needs of affected Eurosystem counterparties can be satisfied by the relevant national central banks. On the other hand, the President of the Eurogroup assured that it was expected the S&P decision to lower Greek ratings to Selective Default.

The European Union celebrates the 20th anniversary of the Single Market in 2012. The Commission highlights that the job is not finished even if the Single Market has helped create millions of jobs and make Europe increasingly competitive. Therefore, it has presented an update of the efforts aimed a delivering growth, social progress and competitiveness.

The final results of the first operation targeting rail traffic along the EU Eastern border made by twenty-four Member States, Croatia, Turkey, Norway and Switzerland ended with around 1.2 million cigarettes seized. The exchange of information was easier during the operation called "Operation Barrel", because of the setting up in OLAF's headquarters of an operational coordination centre with contact persons from the Member States, third countries and Europol.

The European Commission's second on Trade and Investment Barriers Report, which describes the progress achieved in dismantling barriers to the markets of six strategic economic partners, recognises some success stories in the removal of certain trade barriers, but also underlines the overall persistence of barriers for European business to access key markets.

In order to improve the European competitiveness, the Joint Research Centre (JRC) has decided to create a permanent forum on science needs of industry. The initiative was launched following the roundtable "Scientific Support to European Industrial Competitiveness", organised by the JRC on 15 February.

A consumer market study found that 8 out of 10 mystery shoppers were not able to switch their bank account successfully. These results show that the self regulatory initiative based on common principles established by Banking Industry Committee, which was expected to bring clarity for consumers, is clearly not delivering the desired results.

The Economic and Financial Affairs Council meeting ended with an agreement to further improving economic governance in the euro area. In addition, the Council adopted a regulation harmonising rules for short selling ad credit default swaps and the conclusions providing guidance to the Member States for tackling macroeconomic and fiscal challenges.