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DRAFT REPORT (COM(2022)0459 – C90315/2022 – 2022/0278(COD))

On the proposal for a regulation of the European Parliament and of the Council establishing a Single Market emergency instrument and repealing Council Regulation No (EC) 2679/98

IMCO-PR-742468

Committee on the Internal Market and Consumer Protection · Rapporteur: Andreas Schwab

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The rapporteur's draft report sets out Parliament's position on the proposed regulation establishing an internal market emergency and resilience act, replacing the Single Market emergency instrument and repealing Council Regulation No (EC) 2679/98. It renames the act, adds resilience measures such as biennial stress tests, trainings and voluntary crisis protocols, and sets up an advisory board with Parliament and EFTA access. It bans Member States from imposing intra-Union export bans, discriminatory or disproportionate restrictions on goods, services and persons during an internal market emergency. It makes information requests to companies voluntary, limits fines, keeps priority rated orders as a last resort, and moves strategic reserves to the contingency mode. It requires the Commission to set up digital tools, fast lanes, a real-time restrictions website and a stakeholder platform, and opens joint procurement to EFTA States, candidate countries and Andorra, Monaco and San Marino.

Committee position. The rapporteur proposes to rename the act the internal market emergency and resilience act, strengthen resilience through stress tests and voluntary cooperation, ban discriminatory restrictions, make information requests voluntary, and open joint procurement to EFTA and candidate countries.

Key points

  1. The regulation is renamed the internal market emergency and resilience act, and its objective is to strengthen the internal market's resilience and ensure an effective response to crises.
  2. An advisory board replaces the advisory group, composed of one representative per Member State, with EFTA States as observers and Parliament and Council receiving all documents at the same time.
  3. The Commission must develop biennial stress tests, trainings and voluntary crisis protocols involving national authorities, businesses, social partners and experts.
  4. Member States shall make best efforts to build strategic reserves of critical goods, with the Commission coordinating, exchanging information and promoting solidarity, but not prescribing mandatory stockpiles.
  5. During an internal market emergency, Member States shall not impose intra-Union export bans, discriminatory rules, freight or passenger transport bans, or disproportionate travel restrictions.
  6. Member States must notify draft crisis measures restricting free movement, provide justification, and the Commission shall publish them within one working day.
  7. Information requests to economic operators are voluntary, limited to a closed list, and fines for non-compliance are removed; fines for priority rated orders are capped at 50 000 EUR or 1% of global turnover.
  8. Priority rated orders require a positive opinion of the advisory board, a request from 14 Member States, and must include fair and reasonable prices covering additional costs.
  9. The Commission shall set up interoperable digital tools, including a real-time restrictions website, fast lanes with multilingual forms, and a stakeholder platform for voluntary roadmaps.
  10. Joint procurement is open to all Member States, EFTA States, candidate countries, Andorra, Monaco and San Marino, and must not distort competition or discriminate.
  11. The Commission shall publish draft implementing acts and invite comments before adoption, and delegated acts are subject to a three-month objection period.
  12. The Commission shall evaluate the regulation five years after entry into force and every five years thereafter, including the work of the advisory board.

Who is affected

  • Member States, which must notify restrictions, build reserves and refrain from banned measures during emergencies.
  • Economic operators, who face voluntary information requests and possible priority rated orders with safeguards.
  • Workers and service providers, protected from disproportionate travel restrictions and benefiting from fast lanes.
  • EFTA States, candidate countries, Andorra, Monaco and San Marino, which may participate in joint procurement and advisory board meetings.
  • Citizens and consumers, who receive information on restrictions and access to digital tools.

Figures and deadlines

  • Vigilance mode maximum duration of six months.
  • Emergency mode maximum duration of six months, extendable by no more than six months at a time.
  • Commission shall endeavour to propose extension no later than 30 days before expiry.
  • Fines for priority rated orders shall not exceed 50 000 EUR.
  • Fines for non-compliance with priority rated orders shall not exceed 1% of global turnover.
  • Economic operator has 10 days to provide reasoned explanation for declining priority rated order.
  • Observations on preliminary findings within a time limit of not less than 21 days.
  • Commission shall publish national measures within one working day of receipt.

Legal basis: Article 294(2) and Articles 114, 21 and 45 of the Treaty on the Functioning of the European Union.