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Adopted text

Single market emergency instrument

TA-9-2023-0317 · P9_TA(2023)0317 · PE742.468

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Parliament's amended version of a proposed regulation sets up a framework of measures on emergency and resilience of the internal market (Internal market emergency and resilience act). It creates an Internal Market Emergency and Resilience Board, vigilance and emergency modes, and rules on free movement, information, procurement and digital tools. It bans restrictions on the free movement of goods, services and persons during an internal market emergency unless justified by public policy, public security or public health and proportionate. Member States must notify draft and adopted restrictions. It lets the Commission invite or require economic operators to provide information, and to accept priority-rated orders, with fines for non-compliance. It also allows joint procurement on behalf of Member States and distribution of strategic reserves. It requires the Commission to set up digital tools, fast lanes, a public website on national restrictions and a stakeholder platform, and to conduct stress tests at least every two years.

Key points

  1. The regulation aims to ensure the functioning of the internal market, strengthen its resilience, anticipate and prevent crises, and facilitate the free movement of goods, services and persons.
  2. It establishes an Internal Market Emergency and Resilience Board, composed of one representative per Member State and one expert appointed by Parliament, chaired by the Commission.
  3. The Board advises the Commission on contingency planning, vigilance and emergency tasks, and may adopt publicly available opinions, recommendations or reports.
  4. Member States must designate central liaison offices to coordinate and exchange information with other Member States and the Union-level central liaison office.
  5. The Commission may activate a vigilance mode for a maximum of six months, extendable once, and must deactivate it when the conditions are no longer fulfilled.
  6. The internal market emergency mode is activated by a legislative act on a Commission proposal, for a maximum of six months, extendable by a further legislative act.
  7. During the emergency mode, restrictions on free movement are prohibited unless justified by public policy, public security or public health and proportionate; they must be time-limited and removed as soon as possible.
  8. Member States must notify the Commission of draft or adopted measures restricting free movement, with reasons; the Commission examines compatibility with Union law and may issue decisions requiring modification or abolition.
  9. The Commission may invite economic operators to provide information voluntarily, and if they do not, may request it by recommendation; it may also invite or require operators to prioritise orders for crisis-relevant goods.
  10. Fines for non-compliance with priority-rated orders can reach 1% of global turnover, or 0.25% for SMEs; fines for other infringements can reach 200 000 EUR, or 25 000 EUR for SMEs.
  11. Member States may request the Commission to procure crisis-relevant goods on their behalf; joint procurement is open to Member States, EFTA States, candidate countries and certain other states.
  12. The Commission must set up digital tools, a public website with real-time information on national restrictions, fast lanes for free movement, and a stakeholder platform.

Who is affected

  • Economic operators in crisis-relevant supply chains: may be asked to provide information or prioritise orders, with fines for non-compliance.
  • Member States: must designate liaison offices, notify restrictions, build strategic reserves and coordinate procurement.
  • Citizens, consumers and workers: benefit from information points and protection of free movement during emergencies.
  • SMEs: face lower maximum fines and consideration of administrative burden.

Figures and deadlines

  • Vigilance mode maximum duration: six months, extendable once by six months.
  • Emergency mode maximum duration: six months, extendable by a maximum of six months.
  • Information request time limit: not exceeding 14 days, with possible one-time extension.
  • Fines for non-compliance with priority-rated orders: up to 1% of global turnover; for SMEs up to 0.25%.
  • Fines for other infringements: up to 200 000 EUR; for SMEs up to 25 000 EUR.
  • Stress tests: at least once every two years.
  • Commission must publish notified measures within one working day of receipt.
  • Commission examination of notified measures: within 10 days, extendable up to 30 days.