Italy worst in applying EU market rules-Commission
Source: Reuters
(Adds news conference) By Huw Jones BRUSSELS, Feb 1 (Reuters) - Italy had the worst record last year for turning European Union rules into national law, the European Commission said on Thursday, while it described Poland's performance as "alarming". The executive body of the 27-nation bloc sees proper application of EU rules as key to stamping out protectionism and ensuring a level playing field for business. "Italy has more than three times the average amount of infringement proceedings for incorrect transposition or incorrect application of internal market rules," the European Commission said in a statement. There are 161 legal actions still open against Italy, the highest among all the EU's member states. "Spain, France, Greece, Germany, Portugal and Belgium are also high above the average," the EU executive added. The substantial increase in infringement proceedings over the last year against Poland was "an alarming development" in such a recent member state, the Commission said. Poland is subject to more than twice the average number of legal actions among the newcomers that joined in 2004. Half of all EU legal actions relate to environment, transport, energy, tax and customs rules. The Commission polices rules that govern the bloc's internal market, the world's largest economic unit with a gross domestic product of 10 trillion euros. Those rules ensure free movement of capital, people, goods and services across the bloc, but Brussels has clashed with Italy and Poland several times in recent months over banking and energy. TOUGHER TARGET Despite the black spots, 2006 was the best year ever for applying EU rules overall. The average "transposition deficit" fell to 1.2 percent of EU internal market rules from 1.9 percent last July, with 19 states at or below the target of 1.5 percent agreed in 2001. All member states made progress last year. "I encourage them now to push on to the real target -- of zero deficit -- and to make sure they apply the rules they have signed up to correctly and fairly," EU Internal Market Commissioner Charlie McCreevy said. The Commission is reviewing how it polices the single market. McCreevy told reporters he intended to streamline legal actions by focusing only on the important ones. "Let's be sure we do the important ones as quickly as possible. I don't believe things get any better by leaving them on the shelf and letting grass grow out of them," McCreevy said. The review is also expected to give member states more of a role in policing EU rules, McCreevy said. EU President Germany said it was time to push for a tougher implementation target. "In the context of the German presidency, we have suggested that the current target of a maximum implementation deficit of 1.5 percent be lowered to 1 percent," said German Economy Minister Michael Glos in a statement. Still, 2007 has got off to a shaky start as most EU states failed to introduce into national law the most sweeping reform of the bloc's financial markets in a decade or more by Jan. 31. Only Britain and Bulgaria met the deadline to turn the Markets in Financial Instruments Directive (MiFiD) into national law, with Ireland set to follow in the coming days. McCreevy said he would decide in mid-February on possible legal action against the laggards.
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