How single market dysfunctionalities contribute to the rising cost of living

Keypoints

The EESC : 

• finds it regrettable that the cost of living in Europe is being fuelled by persisting dysfunctionalities in the European Single Market, and believes that more decisive action by the European Commission is needed to safeguard it;

• calls on the European Union to urgently tackle persisting barriers that decrease competition and affect the cost of living, such as territorial supply constraints;

  encourages Member States to establish safeguards against unnecessary gold-plating. While regulatory simplification can enhance efficiency, it should not lead to a weakening of essential social and labour protections;

• urges the Commission to ensure that Member States respect their notification obligations (e.g. under TRIS), speed up proceedings against national rules which infringe EU law and explore the possibility of interim injunctions against clear violations of EU rules to prevent harm while the Commission assesses the compatibility of a national rules with EU law;

• urges the EU institutions to take decisive action to complete the Capital Markets Union as a first step to cover the EU’s investment needs and mobilise private and public investment;

• calls for action to promote labour mobility and improve social security coordination, for example through digitalisation;

• calls for further integration and better infrastructure across the EU to fully realise the potential of unified energy and telecommunications market;

• invites the Housing Commissioner to assess whether a lack of harmonisation in rules for construction services or building permits, or in other national rules on housing (e.g. access to social housing), has contributed to higher housing prices;

• urges the European Commission to remove barriers in healthcare markets (for example to safeguard free movement of pharmaceuticals) to guarantee access to affordable medicines.

For more information please contact the INT Section Secretariat.