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DRAFT 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

ITRE-PA-745415

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

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The Committee on Industry, Research and Energy gives its draft opinion on the proposed Single Market emergency instrument, which would repeal Council Regulation No (EC) 2679/98. The rapporteur supports giving the Single Market tools for resilience, and proposes amendments to the rules on activating the vigilance mode, building strategic reserves, priority rated orders, procurement and digital tools. The amendments add checks and balances, a greater role for the Advisory Group, and safeguards for economic operators, with market intervention as a last resort.

Committee position. The rapporteur supports the objective of the regulation but proposes amendments to add checks and balances, strengthen the role of the Advisory Group, and ensure that market intervention is a last resort.

Key points

  1. The rapporteur supports the objective of giving the Single Market tools to ensure greater resilience and protection, with prevention preferred to cure.
  2. The regulation should provide a clear framework focused on cooperation, communication and preparedness, ensuring business continuity and limiting industrial disruption.
  3. The vigilance mode should be activated only on clear evidence, with checks including the Advisory Group, a Single Market Crisis Protection Report and, if necessary, a vote.
  4. Articles 9 and 10 are merged; the vigilance mode lasts a maximum of six months, can be extended once by six months, and can be terminated early.
  5. A crisis preparation and single market protection report must accompany activation, and a review of lessons learned must follow within six months of the mode ending.
  6. The Advisory Group should have a greater role in building strategic reserves, with transparency and proportionality.
  7. A new article on long-term strategic reserve planning would have the review recommend whether Member States and the Commission should establish a long-term plan for reserves.
  8. Member States would provide information on reserves, purchase potential, alternative supply, bilateral and third-country agreements, and current and expected demand.
  9. The Commission and the Advisory Group may set individual targets for quantities and deadlines of strategic reserves, taking into account costs, competitiveness and impacts on economic operators.
  10. Priority rated orders would be a measure of last resort, with economic operators given the right to be heard and to appeal, and fines for non-compliance.
  11. Fines for supplying incorrect information or failing to inform about third-country obligations would not exceed 200 000 EUR, or 50 000 EUR for SMEs.
  12. Digital tools should be interoperable, usable for SMEs and citizens, and employ the highest levels of cybersecurity and data protection, with adequate funding.

Who is affected

  • Member States, which must build and report on strategic reserves and coordinate procurement.
  • Economic operators, who may face priority rated orders, information requests and fines, but gain rights to be heard and to appeal.
  • SMEs, which face lower maximum fines and whose access to digital tools should be prioritised.
  • The Commission, which gains powers to activate modes, set targets, issue orders and impose fines, subject to Advisory Group involvement.
  • The Advisory Group, which gains a greater role in activation, reserves, priority orders and procurement.

Figures and deadlines

  • Vigilance mode maximum duration of six months.
  • Extension of vigilance mode for a maximum of six months.
  • Review of lessons learned not later than six months after the end of the vigilance mode.
  • Economic operator must provide reasoned explanation within 10 days from notification of the decision.
  • Fines not exceeding 200 000 EUR, or 50 000 EUR for SMEs.
  • Fines not exceeding 1% of average daily turnover, or 0.5% of total turnover for SMEs.
  • Limitation period of three years for enforcing decisions.