Ghilardotti (PSE), rapporteur. – (IT) Mr President, Commissioner Byrne, ladies and gentlemen, the proposal for a directive concerning unfair commercial practices takes over a large part of the Green Paper on consumer protection, referred to by the Commissioner in his report.

The reasons underlying the directive, which is designed to achieve higher consumer protection, are of an economic nature, and therefore relate to the completion and smooth operation of the internal market. In order for these general economic goals to be achieved, it is necessary to have a consumer protection policy to create European consumer confidence and to give a fresh impetus to international and European commercial transactions. The benefit of economic growth in the internal market ought to translate into both higher profits for businesses and higher protection and financial benefits for consumers. Through a joint policy for consumers and the harmonisation of the internal market it will also be possible to achieve price convergence. Conversely, unfair commercial practices lead to irrational financial behaviour in consumers, create distortions of competition and place barriers in the way of the proper functioning of the market.

To this end, I endorse the Commission's approach, which is based on harmonisation, on the principle of mutual recognition of the country of origin, on a general prohibition on unfair commercial practices, on the identifying of specific criteria and examples and on the fact that the scope of application is limited to a framework directive based on business-consumer relations. The creation of a European legislative framework covering unfair commercial practices based on an appropriate level of harmonisation and aimed at clear and effective protection of consumers within the European Union will result in enhanced consumer confidence, an increase in international trade and will allow businesses to compete in a situation of legal clarity.

While endorsing the basic approach and the main objectives of the directive, Parliament is nevertheless tabling a raft of amendments which, in our opinion, make a series of definitions and options clearer and unequivocal. In this regard, we have tabled an amendment concerning the legal basis, that is, a proposal to include, in addition to the legal basis proposed by the Commission in relation to the internal market, a legal basis based on Article 153 concerning consumer protection, so that we can reconcile the objective of harmonisation and mutual recognition of the internal market with the possibility for the Member States to maintain legislation which goes further to protect consumers. In this way, I believe that we can respond to the fears of those who think that greater harmonisation could lead to downward levelling of consumer protection or entail a step backwards with regard to existing legislation in many Member States. We also feel that it is important – with regard to the definition of consumers – to refer to a particular group of consumers, specifically vulnerable consumers who, as a result of various factors such as age, physical or mental abilities, their level of literacy or disability, need greater protection. Again with reference to Article 2, in relation to the definitions, it is important to amend the definition of professional diligence and I will retable an amendment in plenary in this regard.

In essence, we support the Commission’s approach to the regulation of misleading and aggressive practices but we stress, though, that the information which consumers must receive about unfair commercial practices and codes of conduct is an essential element. Similarly we also think, in relation to codes of conduct, that the distinction between national and Community codes is slightly artificial, and we therefore point out the need to provide for appropriate, efficient mechanisms for monitoring and enforcing compliance with the codes.

Another important point, which concerns the codes of conduct as a method of regulating and resolving disputes between businesses and consumers, is arbitration, which cannot and should not replace or prevent recourse to administrative bodies, but which could play an important part.

Therefore, as my fellow Members and Commissioner Byrne also pointed out, adoption of this directive and tomorrow’s report is of the utmost importance both for the development of the internal market and for consumer protection.

I will conclude by thanking all my fellow Members who sought to improve this document and find a solution with their contributions. In particular, I would like to thank Mrs Paciotti, who deputised for me for a time when I was absent owing to ill health, and did an outstanding job on my behalf.