REPORT on the Commission Green Paper on Commerce (COM(96)0530 - C4-0646/96)
23 July 1997
Committee on Economic and Monetary Affairs and Industrial Policy
Rapporteur: Mr Riccardo Garosci
By letter of 25 November 1996 the Commission forwarded its Green Paper on Commerce to Parliament.
At the sitting of 10 December 1996 the President of Parliament announced that he had referred the document to the Committee on Economic and Monetary Affairs and Industrial Policy as the committee responsible, and to the Committee on Employment and Social Affairs, the Committee on the Environment, Public Health and Consumer Protection and the Committee on Regional Policy for their opinions.
At its meeting of 2 December 1996 the Committee on Economic and Monetary Affairs and Industrial Policy had appointed Mr Garosci rapporteur.
The Committee on Economic and Monetary Affairs and Industrial Policy considered the Commission Green Paper on Commerce and the draft report at its meetings of 21 January, 21 April and 8 July 1997.
At the last meeting it adopted the motion for a resolution unanimously.
The following were present for the vote: von Wogau, chairman, Katiforis and Secchi, vice-chairmen; Garosci (rapporteur); Argyros (for Areitio Toledo), Barton (for Billingham), Berès, de Brémond d'Ars, Camisón Asensio (for Christodoulou), Carlsson, Cassidy (for Friederich), Caudron, Cox, Donnelly, Ettl (for Glante), Fayot, Fourçans, García Arias, Gasòliba I Böhm, Hautala, Hendrick, Herman, Hoppenstedt, Ilaskivi, Kestelijn-Sierens, Kittelmann (for Lulling), Konrad, Kuckelkorn, Langen, Lienemann (for Imbeni), Lindqvist (for Larive), Malerba (for Arroni), Mather, Metten, Murphy, Paasilinna, Peijs, Porto (for Rübig), Randzio-Plath, Rapkay, Read, Ribeiro, de Rose, Sisó Cruellas (for García-Margallo y Marfil), Soltwedel-Schäfer, Tappin (for Miller), Thyssen, Torres Marques, Värynen (for Riis-Jørgensen), Watson and Willockx (for Wibe).
The opinions of the Committee on Employment and Social Affairs, the Committee on the Environment, Public Health and Consumer Protection and the Committee on Regional Policy are attached.
The report was tabled on 23 July 1997.
The deadline for tabling amendments will be indicated in the draft agenda for the relevant partsession.
A MOTION FOR A RESOLUTION
Resolution on the Commission Green Paper on Commerce (COM(96)0530 - C4-0646/96)
The European Parliament,
- having regard to the Commission Green Paper on Commerce (COM(96)0530 - C4-0646/96),
- having regard to the Community legislation directly connected with commerce,
- having regard to its resolution of 19 September 1996 on the proposal for a Council Decision on a third multiannual programme for small and medium-sized enterprises (SMEs) in the European Union (1997 to 2000)[1],
- having regard to the Commission communication entitled 'Towards a Single Market in Distribution' (COM(91)0041),
- having regard to its resolution of 24 April 1997 on the coordination of activities in favour of SMEs and the craft sector [2],
- having regard to its resolution of 15 July 1997 on the Commission Green Paper entitled 'Commercial Communications in the Internal Market' (COM(96)0192)[3],
- having regard to its resolution of 24 April 1997 on the communication from the Commission on the craft industry and small enterprises, keys to growth and employment in Europe [4],
- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy and the opinions of the Committee on Employment and Social Affairs, the Committee on the Environment, Public Health and Consumer Protection and the Committee on Regional Policy (A4-0254/97),
A. whereas commerce is the second biggest employer in the EU, accounting as it did in 1994 for:
- 4.5 million commercial enterprises,
- a third of all firms in the EU, 95% of which have fewer than 10 employees,
- 22 million jobs,
- 16% of the EU labour force,
- a high proportion of female labour, including 55% of persons working in the retail trade,
- 3.4 million retail businesses employing 15 million people,
- 1.1 million wholesale businesses providing 7 million jobs,
- 13% on average of the value added generated in the EU economy,
B. whereas commerce is an essential component of the tertiary sector, which, within the economy as a whole, has achieved and is achieving the best performances in terms of growth, development, and employment; whereas the benefits accruing from the combined operation of commerce, tourism, and market-related services should be taken into account and fostered; whereas tourism and public commercial enterprises in particular are closely linked and form part and parcel of commerce as a whole; whereas a range of tourist services geared to meet demand has to be encompassed within a commercial system matching the characteristics of the specific geographical area concerned,
C. whereas the links between existing forms of regional commercial enterprises and established regionally based production systems need to be expanded; whereas the typical local specialities of a given area (products of farming or stockbreeding, foodstuffs, non-food manufactures, or craftwork) will be able to win new markets if they are properly supported and publicized by the regional authorities, for which the EU should draw up special programmes and provide the necessary funding; whereas typical local products (products of agriculture and livestock farming, foodstuffs, industrial non-food products and craft products) can break into new markets, but care must be taken to ensure that no protective measures arise which further restrict the operation of the internal market for commerce,
D. whereas, as regards the forthcoming introduction of the single European currency, no other sector will be involved to a greater extent in spreading and promoting awareness of the euro; whereas joint action should accordingly be undertaken with a view to providing the information which commerce will have to pass on to consumers and the training which will have to be given in advance both to small-scale entrepreneurs, agencies, brokers, and traders and to employees working for food and non-food sales outlet chains,
E. whereas the costs of introducing the euro will mainly be incurred in certain sectors of commerce, for which they will be disproportionately high in comparison with other sectors;
1. Generally endorses the Commission's approach to the broad sector covered in the Green Paper;
2. Regrets, however, that many of the statistics in Annex A are out of date, referring to the early 1990s;
3. Notes that the Green Paper is the first document in which the Commission has addressed itself to comprehensive study of commerce as a whole, a sector which has contributed and can contribute a great deal to the economy and society; points out that the resources and potential of the sector should have been tackled and analysed earlier, since its relative neglect has resulted in lost business and employment opportunities;
4. Maintains that the Union and the Member States will have to pay increasingly close attention to the distributive trades, given their importance and direct and indirect links with the wider economy and society, their implications for and the opportunities open to them on the labour market, connected for example with retraining of workers, and their relations to consumers, the production system, agriculture, the craft industry, tourism, and the environment;
5. Calls for the promotion of exchanges of experience and information, of knowledge of the state of progress in the retail and distributive trades in the EU, and of cooperation in the form of subsidies for events, to be pursued and extended to other areas;
6. Points out, having regard to the current social and economic state of play in the Community, that the distributive trades can, in view of their extent, make a very positive contribution to employment provided that both employees and entrepreneurs have undergone the right training, and draws attention to the need to set up specific trade colleges;
7. Stresses that supply must be demand-led and consumer choice must therefore be guaranteed, as regards both sales outlets and availability of products;
8. Points out that it is necessary to ensure that vertical integration at Community and national level does not limit consumer choice; the principle of open, non-discriminatory market access on the basis of competition policy in the single market must be applied and subject to supervision;
9. Draws attention to the fundamental principle that the sole purpose of the distributive trades is to offer products and services to consumers while conforming to market changes - without overturning typical regional habits, practices, and consumption patterns - and, at the same time, promoting internationalization of the market in order to meet consumer needs;
10. Believes that the distributive trades' SMEs suffer disproportionately from over-regulation as a result both of EC directives and regulations and of national regulations;
11. Reminds the Commission and the Member States that over-regulation is anticompetitive because it favours large multiple retailers who can afford specialist advisers whereas SMEs cannot;
12. Welcomes the fact that the Commission devotes attention in its Green Paper to the important role, which has hitherto been overlooked, that small retailers and local shops can play in preserving or improving the quality of life in rural areas, town centres and urban areas without which, particularly in remote, island or mountainous regions, economic development in all its aspects (such as the maintenance of a competitive agricultural sector, economic diversification, and the development of tourism) is inevitably imperilled; stresses the important social role small retailers and local shops perform in rural and remote areas, as well as their contribution to the creation of direct or indirect employment and promotion of economic and social cohesion, both in rural and urban areas; considers that necessary measures should be taken to prevent the elimination of retail trade and, to this end, to restore the balance between large and small shops;
13. Notes, however, that the maintenance of a commercial sector of this kind is dependent on the retail sector becoming sufficiently competitive, in other words capable of meeting consumers' expectations and current commercial standards;
14. Considers, therefore, that the Member States must encourage the modernization of the retail sector by all means possible (including the provision of aid for equipment or for training in the new technologies; encouraging the creation of commercial purchasing agencies and purchasing cooperatives and efforts to seek improved supply policies; the establishment of multi-service centres);
15. Takes the view that electronic trading is by far the best way of opening up remote regions and calls on the Commission to promote the technology and infrastructure needed to develop electronic trading, particularly in these regions;
16. Notes that, in urban areas, local shops are disappearing both from certain town centres and from the suburbs, which has detrimental effects on the quality of life, increases the marginalization and insecurity of certain districts, and generates pollution as a result of journeys to out-of-town hypermarkets by consumers living in town centres;
17. Notes that cross-border trade, with support through cross-border cooperation programmes (INTERREG II), offers enormous possibilities - particularly for regions that are remote from the centre of the Union - which could make a decisive contribution to economic cooperation with the creation of joint SMEs and, by extension, to the economic and social cohesion of the regions in question;
18. To ensure that recognition of the role of neighbourhood shops in strengthening economic and social cohesion, as reflected in the Green Paper on commerce, is followed by concrete measures, calls on the Commission:
- to urge Member States to exploit to the full the opportunities offered by the Structural Funds (in connection with the mid-term review of Objectives 1 and 5b, the new 1997-1999 programming period for Objective 2, and the URBAN, SMEs, INTERREG and LEADER II Community initiative programmes) to finance projects to promote neighbourhood shops in both rural and urban areas,
- to conduct a major information campaign aimed at all parties concerned in order to generate the maximum number of projects,
- to ensure the widest possible circulation of the experience gained,
- to finance innovative measures (Article 10 of ERDF) and to consider the possibility of setting up a European monitoring centre for the retail trade.
- to ensure that trade-promotion measures are embedded in a general development or restructuring strategy based on integrated action programmes. These measures must take account of the interests and needs of all the inhabitants of urban and rural regions as well as remote, mountain and island regions and ensure that they have access to the market;
19. Endorses the Commission's call for an integrated policy for cities and for increasing the number of sales outlets in rural and sparsely populated areas; in this respect, welcomes the fact that in some Member States government has established funds for inner-city commercial centres in order to encourage the expansion of commercial centres in inner cities and core municipalities on the basis of the symbiosis between the economy and urban renewal; urges the Commission to arrange an interchange of ideas by exchanging information about such practices, thereby creating added value;
20. Hopes that the relationship and synergy with manufacturing and processing industry will improve constantly so as to ensure that consumers can be supplied with products of faultless quality posing no dangers from the health and hygiene point of view and using increasingly environment-friendly packaging and distribution systems, and considers that the hygiene Directives already introduced (HCCP Directive) are a good way of ensuring this;
21. Applauds any action likely to improve the state of the environment, provided that the costs and benefits are in due proportion, and believes that it is important to involve commerce and the productive sector in seeking and creating less noxious living conditions for all individuals, viewed in the first place as consumers;
22. Given that consumers are increasingly concerned by such issues as food production methods, the environment and animal welfare, notes that commerce can respond to these concerns by leading the way and encouraging producers to provide products which are not damaging to health, for example, by promoting organic products, thereby maintaining a balance between economic interests and health protection;
23. Stresses that the sector of commerce must also take the lead in reducing product packaging, particularly during transport, thereby helping to improve environmental conditions as part of waste management policy;
24. Stresses that labelling must convey an immediate, clear and comprehensible message and it is therefore necessary to harmonize the various existing symbols to avoid confusion and to adopt simplified Community rules;
25. Notes that commerce consists essentially of SMEs which, as far as Community and national legislation is concerned, are no less important than any other economic sector dominated by SMEs;
26. Welcomes the fact that the Commission devotes ample attention in its Green Paper to the impact which the introduction of the euro will have on commerce and at the same time stresses the important role which can be played by commerce in informing consumers about the euro and securing their acceptance of it; trusts that the Commission will therefore take sufficient account of the concerns and wishes of the sectors in question when preparing for and introducing the single currency;
27. Stresses the importance of ensuring that SMEs in the commercial sector derive benefit from the many existing SME programmes and initiatives so that they do not only benefit manufacturing industry;
28. Points out that relations between the commercial system and banks need to be reconsidered i.a. in the light of developments in electronic commerce, and improvements encouraged; notes that no economic sector today has the same potential as commerce as a whole; believes that banks, finance houses, and credit institutions should, through appropriate credit facilities, support modernization and the quantitative and qualitative advance of commerce, the sector which can do most to resolve employment problems;
29. Calls for the effects of horizontal and vertical commercial cooperation to be fully recognized, since this system helps to promote growth and development in commercial SMEs;
30. Regrets that the problems of electronic commerce are not considered; there is a lack of practical proposals for solving the problem that electronic commerce is not subject to VAT; urges the Commission to submit a proposal for an international solution of the VAT question in connection with trade using international electronic networks, as its freedom from VAT constitutes a threat to locally based trade;
31. Welcomes the new directive on distance selling as existing Community legislation needs to be adapted to the development of new technologies which makes it possible to generate new commercial activities (distance selling) by means of electronic payments; urges the Commission to covert the recommendation on payment systems and credit cards[5] and the recommendation on a European Code of Conduct relating to electronic payment[6] into legislative proposals;
32. Calls for simplification of regulations and easing of administrative burdens in the field of statistics in order to create a simpler system; this is also necessary in respect of the definitive VAT system, where the clearing mechanism is based on statistical information concerning goods flows between Member States;
33. Deplores the fact that the role of trading companies and sales agencies has been overlooked; notes that they handle over 50% of trade and will become an even more important factor in the future if their function is understood and supported;
34. Calls for the Commission to take a more leading role in dealing with illegal barriers to trade erected in the individual Member States;
35. Considers that the Commission's Green Paper paid insufficient attention to the need for the adoption of the 'origin principle' in VAT to eliminate the need for separate records for 'home' and 'export' transactions, which are a greater burden for SMEs than LEs (Large Enterprises);
36. Hopes that, in its composition, the Committee on Commerce and Distribution which advises the Commission will remain representative of the heterogeneous sector it represents;
37. Observes that the future development of trade is dependent not only on the considerations referred to in the Green Paper but also on legislation and the Commission's competition policy; proposes to adopt a position on a number of these aspects in connection with the Green Paper on vertical agreements in the competition policy of the European Union;
38. Draws attention to the need to assist commercial operators with regard to the new information systems, such as the development of electronic commerce;
39. Calls on the Commission to assist commercial operators in connection with the introduction of the euro;
40. Points to the dynamism of commerce, which is not just confined to physical distribution of products and services, but also covers the entire spectrum of wholesale and retail trade in all its different forms;
41. Calls for genuine simplification of Community legislation with a view to improving the operating, administrative, and economic environment for businesses, and in particular small and medium-sized enterprises, which are represented in such great numerical strength and play such an essential role in commerce and every other economic sector;
42. Hopes that the various occupational groups engaged in commerce at Community and national level, through their representative organizations, will have an increasingly greater say in the forthcoming decisions and policies affecting the sector;
43. Maintains that a White Paper on commerce should be drawn up within two years of adoption of this report, renewing the call it made in its resolution of 24 April 1997 on SMEs (COM(95)0362 - C4-0120/96)[7];
44. Calls on the Commission to provide for a proposal to regulate the expansion of distribution through hypermarkets in order to make for smooth, balanced growth and, secondly, to ensure that small shops and their distinctive local role are not excluded from the changes now under way;
45. Points to the cultural role of commerce, which must be developed first and foremost through universities, specialized schools, research and information institutes, and economic journals, primarily with a view to promoting employment growth in the sector;
46. Calls for more widespread use of electronic payment systems (credit and debit cards etc.) in the distributive trades in order to limit the quantity of cash held in shops and supermarkets, which are vulnerable to criminal attacks, and hence to protect the safety of shopkeepers and consumers; believes that the above aim could be achieved firstly by reducing the tax on individual electronic payment transactions and secondly by calling on banks and financial institutions to lower the cost of issuing and using payment cards, thereby ensuring that sales points will be encouraged to accept them and consumers encouraged to use them;
47. Calls for attention to be given, as a matter of the highest priority, to the role which commerce will play in the spread of the single European currency; notes that consumers will discover and get to know the euro at the sales points of the distributive trades and services operating on the market (hotels, travel agencies, restaurants, workshops, bars, and so forth); considers accordingly that technological change within the commercial system will need to be supported by means of the appropriate programmes and funding to facilitate the change of accounting systems and by setting up technical working parties comprising traders, industrial manufacturers, and suppliers of cash registers and computer systems;
48. Points to the importance of brand names in the production-distribution-consumption process and the way in which they can help improve the quality and knowledge of products intended for the final customer; considers that the above end could be achieved by means of more effective continuous, organized contacts with commercial enterprises, not least through institutes and joint projects (ECR, EDI, bar codes, etc.), the invariable common objective being to safeguard the best interests of consumers;
49. Stresses that it is essential that consumers are guaranteed the right of direct appeal in the event of disputes to ensure fair procedures as far as cross-border purchases are concerned;
50. Instructs its President to forward this resolution to the Commission and Council.
B EXPLANATORY STATEMENT
The Commission's Green Paper on Commerce was completed in late 1996 after nearly two years in preparation. The main reason for its importance is twofold, for it is the first comprehensive text to have been produced by the European institutions on a sector which, historically, has always been undervalued and whose varied make-up has hardly been understood. The Green Paper thus stems from the increased attention brought to bear since 1994 at the political and operational level by the Community institutions, which had previously been more interested in other economic sectors and larger forms of companies, giving scant priority to SMEs, the most common type of commercial enterprise. DG XXIII has been addressing itself more searchingly and actively to the subject, and the eventual result was a document which considers and assess the resources and potential of the EU's second largest economic sector. Precisely because of its responsibilities (SMEs, tourism, and commerce), DG XXIII should be strengthened, just as the sectors concerned here are intensifying their efforts to keep in increasingly constant touch with the indispensable consultation machinery representing commerce in the Community institutions (Economic and Social Committee and the Committee on Commerce and Distribution), which likewise needs to be boosted by being opened up to a greater number of participants, thereby enabling each Member State and every form of commercial enterprise to have a say at European level in areas of such crucial importance for the economic and social future of the EU.
It is unquestionably the case that few sectors can match the social usefulness of commerce. In the past, communities used to gather in shops and cafés, and the present-day picture is still one of extraordinary vitality in city centres (in urban areas) and shopping malls (on the outskirts of large conurbations). That is why - as the Green Paper points out - attention and resources must continue to be devoted to all the different branches of the distributive trades.
Ultimately, consumers will choose between the various opportunities offered by the market, namely small, medium-sized, or large sales outlets, specialized dealers or stores selling a wide range of goods, traditional assistants or self-service, or shopping close to home or out of town. Their decisions will be based on different social considerations related to their age, young or old, status, as families or single people, typical needs - if they live in rural areas or small villages, for example - or position, for instance as working women or customers with fixed habits and specific preferences. Commerce must meet all these and other needs and indeed seek to anticipate and interpret changes among final consumers.
National and Community institutions have the duty of responding to and safeguarding the market, opening it up to all forms of distribution and assisting the sector's natural growth processes, which vary from one country to the next.
Cooperation among small and medium-sized enterprises, a better relationship between the wholesale and retail trades, the role of flagship industries and industrial and agricultural production in general, synergy with tourism and services, technological progress and the spread of electronic commerce, the international context and the importance of trading companies (come what may, goods can get to the places that armies cannot reach), renewal of the inner cities in accordance with more appropriate town planning, and environmental protection, for example by means of more efficient packaging and logistic systems, are some of the principal topics dealt with in the first version of the Green Paper on Commerce.
All public and private bodies and small- and large-scale market forces should now respond to the call in the Green Paper, not least to enable a definitive White Paper to be drawn up within two years.
Given that their diversity is protected by the subsidiarity principle, the governments of the Member States should begin by adopting the guidelines set out in the Green Paper with a view as far as possible to adapting and planning their entire national commercial systems. If the economic and social changes under way do not provide a sufficient inducement, they will have to start immediately or at any rate at some point in the future to think in terms of the single European currency, which will not prosper unless it has been fully assimilated and backed in time by the world of commerce. Not least because they are also consumers, Europeans will discover the euro in shops, supermarkets, travel agencies, restaurants, and so forth, and a businessman, official, or cashier will have to be on hand to explain how the single currency works. The more quickly the euro is understood, the cheaper it will be to introduce, although final consumers should not be called upon under any circumstances to foot the bill. That is why millions of entrepreneurs and their employees are doing their utmost every day by supplying products and services in increasingly close touch with a changing market.
The Green Paper is seeking to interpret that change.
OPINION
(Rule 147)
for the Committee on Economic and Monetary Affairs and Industrial Policy
on the Green Paper on Commerce (COM(96)0530 - C4-0646/96); report by Mr Riccardo Garosci
Committee on Employment and Social Affairs
Letter from the committee chairman to Mr Karl von Wogau, chairman of the Committee on Economic and Monetary Affairs and Industrial Policy
Brussels, 16 April 1997
Dear Mr von Wogau,
The Committee on Employment and Social Affairs considered the above mentioned subject at its meeting of 16 April 1997.
The Committee pointed out the importance of commerce which accounts for almost 13% of the total Gross Domestic Product of the 15 Member States of the European Union, representing roughly 30% of enterprises employing more than 22 million people (15,6% of the active population) about 55% of which are women. It noted also that part-time work is prevalent concerning almost 28% of employees and that the frequency of part-time work is particularly high in northern countries and essentially linked to female employment.
The Committee stressed the local impact of this sector on the socio-economic fabric of rural areas and urban centres as well. It noted the varied functions accomplished which go beyond what is apparently a mere trade of goods. In essence it is commerce that gives birth to the "market place" and its role is pivotal in animating the life of neighbourhoods and providing an occasion for social interaction especially for the elderly or those living alone.
Technological developments are bound to affect profoundly the nature and the scope of commercial activities not least the way we engage in shopping itself. All the same, commerce of nutritional products especially, assumes an increasing responsibility in protecting the consumer's health and in conforming to environmental concerns. Hence the heavy burden of administrative and legislative rules concerning commercial activities. The Commission rightly stresses the need for simplification of those rules and for specific and clear legislation on labelling while protecting consumers rights.
Employment aspects
The Committee feels that actions supported by the Commission to encourage the modernization of commercial enterprises (COMMERCE 2000 pilot action), acquainting them with new technologies, to develop the long-distance training of employees ( a project under Force programme), and to train business leaders of SMEs (project ASSIST), should be further developed in consultation with social partners in this area. The Commission should inform regularly the social partners on the work of the panel of governmental experts on commerce in order to promote the exchange of information between Member States. Sector based dialogue developed since 1988 between the Committee on Commerce and Distribution (CCD) representing entrepreneurs, the European federation representing wholesaling and retailing (EuroCommerce) and the European trade union of those employed in this area (Eurofiet) should be further enhanced and focused in particular on training.
Given the magnitude of challenges facing this economic sector, its particular relevance to everyday life and its importance as a source of jobs, we need to ensure that vocational training leads to qualifications that are of direct relevance to the work of the sector. The emergence of distantelectronic selling enhances the potential for participation but could also lead to the exclusion of a section of the population, namely the elderly and those not connected to electronic networks of communication. Equally worrisome are the implications of technological developments for employment prospects in this area. "Electronic shopping centres" would dispose of many employees in the shops although new jobs would be created in the delivery systems. To better assess the impact of these developments on employment, qualifications, urban and rural development, it is necessary to call upon the Commission to produce a thorough study in close cooperation with the social partners.
The Committee believes the Green Paper to be a good basis to initiate this reflexion and expects the outcome to be instrumental in the development of strategic options for policy makers and individual entrepreneurs in this area. In that perspective wishes to be kept informed of the progress and results of this process1.
.
Yours sincerely,
(sgd) Stephen Hughes
1 The following took part in the vote: Hughes, chairman; Menrad, vice-chairman; Ojala, vicechairwoman; Andersson, Boogerd-Quaak, Cabezon Alonso, Castagnetti, Correia, Filippi (for Chanterie), Glase, Gonzalez Alvarez (for Eriksson), Hernandez Mollar, Lindqvist, Mann, McKenna (for Wolf), McMahon, Mendonça, Papakyriazis (for Blak), Peter, Pirker (for Donnelly), Pronk, Ribeiro (for Sornosa Martinez), Schiedermeier, Schörling, Theonas and van Velzen.
23 May 1997
OPINION
(Rule 147)
for the Committee on Economic and Monetary Affairs and Industrial Policy
on the Green Paper on Commerce (COM(96)0530 - C4-0646/96); (report by Mr R. Garosci)
Committee on the Environment, Public Health and Consumer Protection
Draftsman: Mr Guido VICECONTE
PROCEDURE
At its meeting of 17 December 1996 the Committee on the Environment, Public Health and Consumer Protection appointed Mr Guido VICECONTE draftsman.
It considered the draft opinion at its meeting of 15 April and 21 May 1997.
At the latter/last meeting it adopted the following conclusions unanimously.
The following took part in the vote : Dybkjaer (for the chairman) ; Lannoye, vice-chairman ; Viceconte, draftsman ; Blokland, Breyer, Campoy Zueco, Flemming, Graenitz, Grossetête, Hautala (for McKenna), Hulthén, Jackson, Jensen, Kuhn, Lange (for Apolinario), Pollack, Riis-Jorgensen (for Eisma), Roth-Behrendt, Schleicher, Tamino, Virgin, White, Whitehead.
1. Background
Commerce within the European Union is characterized by disparate national economic, demographic, legal, fiscal, structural and cultural characteristics of each Member State. The market, although part of a larger entity, is, above all, local. Commerce is very flexible in adapting to socio-economic structures and the differences between commercial structures in the EU reinforce varying consumption and behaviour patterns.
2. Introduction
Commerce accounts for around 13% of the total gross domestic product of the 15 European Union Member States. Over 15% of the working population is employed in commerce (around 22 million people) and almost 30% of all undertakings operate in the sector of commerce. As far as these three parameters are concerned, there are significant differences between the Member States as a result of specific national characteristics such as the importance of tourism or the number of small businesses. The aim of the Green Paper on Commerce is to stimulate informed debate on the importance of this sector of the economy and the challenges facing it on the eve of the 21st century. The Green Paper looks at three main aspects:
. The structure and development of commerce
Commerce is the second largest area of economic activity within the European Union and, in most cases, is governed by national laws which often vary widely between the 15 Member States.
The sector operates mainly at local and national level, particularly as far as retailing is concerned, while in recent years wholesale companies have expanded outside the home market to other European Union Member States, Central and Eastern Europe and even to Japan and the United States.
Retailing is very different between the northern and the southern European Union Member States. There are more small retail outlets at local level in the south and, in Italy and Greece in particular, there are many small shops employing few people. However, in Germany and the United Kingdom large retail outlets are more widespread (supermarkets, hypermarkets and discount stores).
. The role of the Member States and the Union relating to commerce
Commerce works best on the basis of local knowledge of markets and individual initiative. To be flexible and competitive the sector cannot be too constrained by rigid, centralized regulation. Commerce is therefore based essentially on the principle of subsidiarity which, in some cases, can be used as a pretext for adopting protectionist measures.
The Green Paper stresses the need to look into the reasons why commerce has remained a sector which has achieved a fairly low degree of uniformity at European level. It is therefore necessary to find ways of ensuring that the internal market operates to the advantage of consumers.
. New challenges facing commerce
One of the greatest challenges facing commerce in the near future within the Community is the introduction of new technology and the impact this may have on the behaviour of consumers and suppliers (for example, distance-selling). Moreover, commerce will have a crucial role to play in getting European consumers used to the euro.
4. Conclusions
While agreeing with the substance of the Green Paper, the draftsman believes that certain aspects relating to consumer rights should be highlighted.
1. Supply must be demand-led and consumer choice must therefore be guaranteed, as regards both sales outlets and availability of products;
2. It is necessary to ensure that vertical integration at Community and national level does not limit consumer choice; the principle of open, non-discriminatory market access on the basis of competition policy in the single market must be applied and subject to supervision;
3. Given that consumers are increasingly concerned by such issues as food production methods, the environment and animal welfare, commerce can respond to these concerns by leading the way and encouraging producers to provide products which are not damaging to health, for example, by promoting organic products, thereby maintaining a balance between economic interests and health protection;
4. Labelling must convey an immediate, clear and comprehensible message and it is therefore necessary to harmonize the various existing symbols to avoid confusion and to adopt simplified Community rules;
5. As the development of new technologies makes it possible to generate new commercial activities (distance selling) by means of electronic payments, existing Community legislation needs to be adapted. The draftsman therefore welcomes the new directive on distance selling and urges the Commission to covert the recommendation on payment systems and credit cards[1] and the recommendation on a European Code of Conduct relating to electronic payment[2] into legislative proposals;
6. To ensure fair procedures as far as cross-border purchases are concerned, it is essential that consumers be guaranteed the right of direct appeal in the event of disputes;
7. The sector of commerce must also take the lead in reducing product packaging, particularly during transport, thereby helping to improve environmental conditions as part of waste management policy;
13 May 1997
OPINION
(Rule 147)
for the Committee on Economic and Monetary Affairs and Industrial Policy
on the Green Paper on commerce (COM(96)0530 - C4-0646/9); (report by Mr Ricardo Garosci)
Committee on Regional Policy
Draftsman: Mr Philippe Monfils
PROCEDURE
At its meetings of 27 February 1997, the Committee on Regional Policy appointed Mr Monfils
draftsman.
It considered the draft opinion at its meetings of 22 April and 12 May 1997.
At the latter meeting it adopted the following conclusions unanimously.
The following took part in the vote: Arias Cañete, chairman; Napoletano, vice-chairman; Monfils, draftsman; Azzolini, Berend, Bernardini, Collins, Costa Neves, Crampton, Frutos Gama, Grosch (for Klass), Hatzidakis, Imaz San Miguel (for Kellet-Bowman), Karamanou, Klironomos (for Walter), Lindholm, Myller, Novo, Novo Belenguer, Otila, Rack (for Varela Suanzes-Carpegna), Schiedermeier (for Decourriere), Schröder, Schroedter, Vallvé and Viola.
INTRODUCTION
In addition to its main economic role as the link between supply and demand, commerce, and in particular the retail sector (which accounts for 3.4 million of the total 4.5 million commercial enterprises and employs 15 million people in the EU), plays an essential role in regional development, town and country planning and the maintenance of economic and social cohesion, particularly in lessfavoured rural and urban areas.
1. Retail trade and rural development
In rural areas (80% of the EU's territory), many rural communities suffer from a lack of commercial enterprises. In some rural districts in peripheral regions, on islands or in mountainous areas, the decline of the economy is very alarming. When the last shop closes, the future of the village is threatened.
The effect of rural depopulation is exacerbated by the popularity of more competitive commercial developments such as franchised shops and hypermarkets, which offer consumers a wider range of products and additional services.
But these facilities are restricted to those with access to transport, thus excluding the elderly, people with disabilities and housewives. Moreover, the village shop provides a meeting place and centre of local social life.
It is essential, therefore, to maintain as far as possible retail shops in rural areas. Experimental measures have been implemented successfully in the framework of national assistance programmes for commerce, sometimes with support from the Structural Funds (such as grants for the purchase of commercial equipment or the modernization of premises, for the provision of car parking, or for training in the new technologies).
Shops in rural areas must, moreover, remain competitive, and their prices should not exceed those of the nearest medium-sized and large commercial enterprises by more than 15%-20% at the most. Retailers should, therefore, be encouraged to form purchasing cooperatives in order to remain competitive. The future of the retail sector in rural areas also appears to depend on the creation of multi-service enterprises (offering postal and banking services, service stations, etc.).
There is an urgent need, therefore, to take all measures required to maintain an adequate commercial presence in rural areas, without which the economic prospects of such areas (the setting up in business of young farmers, economic diversification, the development of tourism) would be irrevocably damaged.
2. The retail sector in disadvantaged urban areas
The retail sector also plays a significant role in promoting economic and social cohesion in urban areas. Retail shops are gradually disappearing from town centres because of rising rents and competition from hypermarkets on the outskirts of town. The same applies to some suburbs which have become marginalized and suffer from high unemployment and a climate of insecurity. The establishment of local shops in urban areas of this kind is one means of tackling such problems. Here again, programmes to assist the retail sector are required, if necessary with support from Objective 2 funding and the URBAN programme. A better balance must be sought between hypermarkets and smaller shops. Measures to exempt businesses from tax and social insurance contributions can help, as can the implementation of appropriate rules on commercial development (for example, to restrict the number of large supermarkets and set up medium-sized shops covering an area of less than 300 m2). Finally, a more balanced retail sector would have a favourable effect on the environment by limiting consumers' journeys to outlying commercial centres. Moreover, maintaining the economic, social and cultural role of town centres has the effect of strengthening social cohesion and preventing increased delinquency.
CONCLUSIONS
The Committee on Regional Policy calls on the Committee on Economic and Monetary Affairs and Industrial Policy, as the committee responsible, to incorporate the following amendments in its report:
1. Demands that the importance of local shops, which has hitherto been overlooked, should be recognized, as they contribute to the creation of direct or indirect employment and promote economic and social cohesion, both in rural and urban areas;
2. Emphasizes the essential role of local shops to maintain the social and economic fabric in rural areas, to maintain a quality of life without which, particularly in remote, island or mountainous regions, economic development in all its aspects (such as the maintenance of a competitive agricultural sector, economic diversification, and the development of tourism) is inevitably imperilled;
3. Notes, however, that the maintenance of a commercial sector of this kind is dependent on the retail sector becoming sufficiently competitive, in other words capable of meeting consumers' expectations and current commercial standards;
4. Considers, therefore, that the Member States must encourage the modernization of the retail sector by all means possible (including the provision of aid for equipment or for training in the new technologies; encouraging the creation of commercial purchasing agencies and purchasing cooperatives and efforts to seek improved supply policies; the establishment of multi-service centres);
5. Takes the view that electronic trading is by far the best way of opening up remote regions and calls on the Commission to promote the technology and infrastructure needed to develop electronic trading, particularly in these regions;
6. Notes that, in urban areas, local shops are disappearing both from certain town centres and from the suburbs, which has detrimental effects on the quality of life, increases the marginalization and insecurity of certain districts, and generates pollution as a result of journeys to out-of-town hypermarkets by consumers living in town centres;
7. Considers that it is essential, therefore, for Member States to take the necessary measures to restore a better balance between small and large commercial enterprises (such as - in addition to the general measures to modernize small shops referred to above - introducing appropriate rules on commercial development, with preference being given to shops covering an area of less than 300 m2, and providing for tax exemptions), and calls on the Commission to ensure that the formula of commercial cooperation in both horizontal and vertical terms is fully recognized as the key to the growth and development of small businesses in the commercial sector;
8. Calls for the promotion of exchanges of experience and information, of knowledge of the state of progress in the retail and distributive trades in the EU, and of cooperation in the form of subsidies for events, to be pursued and extended to other areas;
9. Notes that cross-border trade, with support through cross-border cooperation programmes (INTERREG II), offers enormous possibilities - particularly for regions that are remote from the centre of the Union - which could make a decisive contribution to economic cooperation with the creation of joint SMEs and, by extension, to the economic and social cohesion of the regions in question;
10. To ensure that recognition of the role of neighbourhood shops in strengthening economic and social cohesion, as reflected in the Green Paper on commerce, is followed by concrete measures, calls on the Commission:
- to urge Member States to exploit to the full the opportunities offered by the Structural Funds (in connection with the mid-term review of Objectives 1 and 5b, the new 1997-1999 programming period for Objective 2, and the URBAN, SMEs, INTERREG and LEADER II Community initiative programmes) to finance projects to promote neighbourhood shops in both rural and urban areas,
- to conduct a major information campaign aimed at all parties concerned in order to generate the maximum number of projects,
- to ensure the widest possible circulation of the experience gained,
- to finance innovative measures (Article 10 of ERDF) and to consider the possibility of setting up a European monitoring centre for the retail trade.
- to ensure that trade-promotion measures are embedded in a general development or restructuring strategy based on integrated action programmes. These measures must take account of the interests and needs of all the inhabitants of urban and rural regions as well as remote, mountain and island regions and ensure that they have access to the market.