The Gazette 1989

GAZETTE

FEBRUARY

1989

First, Member States will no longer need to monitor internal policies which themselves conflict with EEC rules. Secondly, it is anticipated that by 1992 intra-Community road trans- port will no longer be subject to quotas thus obviating the need for Member States to check move- ments of goods vehicles across frontiers. The other main justifications for maintaining border posts, such as monitoring the movement of goods and people for statistical purposes, health reasons and prevention of crime will be dealt with by removing the control of those activities wherever possible from border areas. Goods - Technical Barriers Removing border controls is not sufficient to guarantee a genuine Common Market. Technical barriers must also go to achieve the aim that if a product is lawfully manufactured and marketed in one Member State, there is no reason why it should not be sold freely throughout the Community. The Commission has largely abandoned the aim of setting harmonised standards for each and every product. In future, the Commission will press Member States to recognise other countries' standards and allow goods to circulate freely on the basis of this mutual recognition of national regulations and standards. Where the Commission does proceed to harmonise standards, it will restrict itself to laying down essential health and safety requirements: this approach will apply to veterinary controls, food products, chemicals and pharma- ceuticals, electrical items, construc- tion products and motor vehicles. The proposals are still extensive and too numerous to spell out in this article. But, by way of example, in the food law area, directives will cover: - labelling, to ensure customers are given the necessary information and so are not misled: - additives, flavourings, etc. covering all items not already dealt with in EEC directives: - containers coming into contact with food; - quick frozen foods; - controlling the use of the irradiation process.

New European standards for many products (measuring instru- ments, pressure vessels, toys, to name but a few) will be worked out by European standards bodies, such as CEN and CENELEC. The National Standards Authority of Ireland encourages representation by Irish manufacturing and other interests on the relevant CEN and CENELEC technical committees. Since in many cases Irish manu- facturers will have to adapt to standards already familiar to their competitors it is essential that early familiarity with these standards is obtained by participation. Public Purchasing EEC rules adopted in 1971 already require government departments and local authorities to allow suppliers or contractors from any Member State to bid for contracts over a certain size - 200,000 ECU (about £140,000) for supply contracts and 1 million ECU (about £700,000) for works contracts. Measures proposed would: - remove or reduce the excluded sectors, such as water, trans- port, energy and telecommuni- cations; - extend publicity requirements so that potential suppliers and contractors from throughout the Community have an opportunity to bid for contracts: - give "losing" bidders a means of complaining and taking action against non-complying author- ities. Financial Sarvicas There are more barriers to free trade in financial services than in most other areas of economic activity. Examples of restrictions include bans on individuals taking mortgage loans from foreign lenders, requiring property insurance to be obtained from national insurers, and marketing of unit trusts. The Commissions proposals are far reaching and will enable finan- cial services companies based in any part of the EC to market their services throughout the EC. It is at least partly in this context that the proposed financial services centre is being established in the Custom House Docks area in Dublin. The fields to be covered by the liberalisation process are numer- ous, but include:

Banking: The remaining barriers faced by banks wishing to establish in other countries will be removed. Thus a single banking licence obtained in one country will enable a bank to market its services throughout the twelve member states. Mortgage Credit Equally some loan institutes will, subject to compliance with the EEC standards, be able to offer loans to house purchasers in other countries. Securities Common standards will be established for disclosure for investors by means of prospec- tuses: issuers will be able to use standard documents in each country rather than satisfying a number of different stock exchange requirements. Unit Trusts The 1985 directive allowing unit trusts to be marketed freely in the Community will take effect in 1989. Insurance Many harmonising directives in the insurance field have already been adopted. Insurers in the non-life area will eventually be able to cover risks in any Member State (although widely differing rules at present may delay this aim beyond the magic date of 31st December 1992). Transport Services The Commission is proposing to phase out the quota system for road transport leading to substantial reductions in costs. Measures to promote greater freedom in air and maritime transport, road passenger transport and railways between Member States will also be adopted. Traditional national monopolies in all areas of transport will be opened up to competition from the private sector and from other countries. Information Technology The Commission has already submitted proposals to the Council for the establishment of common standards for IT equipment which will be developed by the Inter- national Standards Organisation (of which Eolas which incorporates the National Standards Authority of

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