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OPINION (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

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Committee on Industry, Research and Energy · Rapporteur: Eva Maydell

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The Committee on Industry, Research and Energy gives its opinion on the proposed Single Market emergency instrument, which would repeal Council Regulation No (EC) 2679/98. It proposes amendments to add checks and balances to the vigilance and emergency modes, including a Council vote, a Crisis Preparation and Single Market Protection Report, and a limit of two extensions. It seeks a bigger role for the Advisory Group, a new article on long-term strategic reserves, and safeguards for priority rated orders and public procurement. It also demands transparency towards Parliament, stronger data protection and cybersecurity for digital tools, and lower fines for small and medium-sized enterprises (SMEs).

Committee position. The committee supports the objective of giving the Single Market tools for resilience, but proposes amendments to add checks and balances, a stronger Advisory Group, a new article on long-term strategic reserves, safeguards for priority rated orders and procurement, and transparency towards Parliament.

Key points

  1. The Regulation should not restrict national measures on security and defence policy, and national defence capabilities must be taken into account in a crisis.
  2. The Advisory Group should provide strategic foresight and consult economic operators, social partners, stakeholder organisations and experts.
  3. The Commission may invite economic operators to prioritise orders only after consulting the Advisory Group; operators that decline must give legitimate reasons.
  4. A new Emergency and Resilience Dialogue lets Parliament's competent committee invite the Council and Commission Presidents to discuss crisis matters.
  5. The Advisory Group includes a European Parliament representative, and its minutes go to the Council and Parliament once approved.
  6. The Commission must consult the Advisory Group and provide evidence before proposing that the Council activate the vigilance mode for a maximum of six months.
  7. A Crisis Preparation and Single Market Protection Report must accompany activation and each extension, and the vigilance mode cannot be extended more than twice.
  8. Member States must give the Commission and Advisory Group information on reserves, shortages, alternative supply, demand, labour shortages and costs.
  9. A new article on long-term strategic reserves of critical importance requires a review to recommend permanent, phased and voluntary reserves.
  10. Priority rated orders are a last resort: operators have a right to be heard, 10 days to give a reasoned explanation, and affected parties are not liable for contractual breaches.
  11. Fines for supplying incorrect information or failing to inform the Commission about third-country obligations are capped at 200 000 EUR, or 50 000 EUR for SMEs.
  12. Digital tools must be interoperable, user-friendly, cybersecurity-protected, adequately funded, and give special consideration to SMEs and citizens.

Who is affected

  • Economic operators, including SMEs, face information duties, priority rated orders, fines and a right to be heard.
  • Member States must build strategic reserves, share information and may request Commission procurement.
  • The European Parliament gains scrutiny through the Emergency and Resilience Dialogue and regular information.
  • The Advisory Group gains a larger role in activation, reserves, priority orders and procurement.
  • Citizens and workers are considered in digital tools, reports and measures on free movement.

Figures and deadlines

  • Vigilance mode maximum duration: six months.
  • Vigilance mode extension: maximum of six months, not more than twice.
  • Lessons-learned report due not later than six months after the vigilance mode ends.
  • Economic operator has 10 days from notification to give a reasoned explanation for refusing a priority rated order.
  • Fines shall not exceed a maximum of 200 000 EUR; for an SME, a maximum of 50 000 EUR.
  • For an SME, penalty payments shall not exceed 0,5 % of total turnover in the preceding business year.
  • Limitation period for enforcing fines: three years.