The European Commission has published a new set of best practices to improve the quality of integration and competition in the retail sector.
Retail is the second largest sector in the European economy, with almost one in ten Europeans working in the sector, and more than 3.6 million companies. However, the commission has identified what it calls an ‘accumulation of restrictions’ which have created challenges for competition in the retail sector.
The best practice guidance provided by the commission aims to improve the retail sector, and trigger positive spill-over effects for the entire economy. Retail provides some 8.6% of all jobs across the EU, and by removing restrictions and increasing efficiency, the EU hopes to boost economic growth.
What guidance has the European Commission issued?
The commission has focused on a number of key areas where member states can make material improvements which will directly impact the health of the retail sector. For example, the recommendations include making efforts to improve compliance with the Services Directive, which will make it far easier for retailers to establish new shops and access the market.
An additional recommendation is that member states reduce restrictions on the daily operations of ships, including opening hours, retail-specific taxes, purchasing of products across EU borders and more. Additionally, the commission has provided guidance on fostering revitalisation and modernisation of city centres.
What has the European Commission said?
Elżbieta Bieńkowska, European Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, said that removing restrictions would promote competition in the retail sector, and leave room for innovation which can enable retail to embrace new technologies.
She explained: “The future of the European retail sector – and our economy at large – depends on its ability to develop innovative business models and maximise new opportunities such as e-commerce. This requires a favourable business environment. That is why we are offering advice to member states on how best to apply EU rules and follow the example of tried-and-tested reforms in other EU countries.”
