As we head into the second half of 2010, the new College of Commissioners and the new Parliament have had time to settle in. They must now get to work on the heavy agenda ahead of them – not least the difficulties of the euro economy and the problem of climate change after the Copenhagen fiasco.

Europe urgently needs a clear plan of action if it is to maintain its place in the shifting global landscape, surmount the challenges of an ageing population and confront the need to switch to a greener economy in a globalised world. These are complex issues and it is important to set clear objectives and define the necessary steps to ensure a smooth transition to a new societal model.

 

Commerce is dedicated to contributing to Europe's recovery, as one of the most vibrant and productive sectors in the Union. The 6 million companies in wholesale and retail represented by EuroCommerce provide jobs to over 31 million people - so one in seven jobs in Europe is in the commerce sector. Over 95% of our companies are SMEs and many have been hit hard by the current recession.

Commerce has a unique position in society, acting as the link between manufacturers and consumers. Its overriding aim is to provide consumers with the products they want at the right time, at the right place and at the best price.

 

Many people assume that commerce is a fairly simple business – not much more than taking products supplied by others and selling them on to consumers. Yet, the reality is far more complex, involving a whole range of activities, from food safety, environmental issues and transport strategies to consumer rights, payment systems and new technologies.

The steps from the producer to the consumer are many and various including - to name but a few: manufacturing, processing, packaging, storage, transport. All these steps add costs which must be built into prices. Because commerce is so competitive and margins so low, any additional regulatory burden tends to reduce our productivity and further increase the end price to consumers.

But, given its weight in the economy and close relationship with consumers, the commerce sector can play a key role in the recovery process. If the sector is to be able to do this, we need your commitment both on basic policy and on specific issues.

First, as a matter of principle, let us support our SMEs. Less red tape, better regulation and access to credit on reasonable terms are essential for small businesses to survive. Much has been said about this in the past, yet the practical impact felt by SMEs during the last year has been all too limited. The EU new "2020 Strategy" must build on past experience and deliver concrete solutions to promote growth at both EU and national level.

 

Secondly, to promote health and the environment, we need innovation. As a direct link with consumers, companies in commerce take their role in supporting campaigns on healthy eating and sustainable consumption very seriously. Yet our efforts cannot stand alone: European and national government action on education is needed to change consumer behaviour. Neither should ill-judged regulation hinder the development of voluntary programmes, such as REAP, the Retailers' Environmental Action Programme, the full impact of which will depend on public authority efforts towards consumer education.

Thirdly, we need to improve the supply chain as a whole. Commerce is just one of many players in this complex chain, all of whom have an impact on final consumer prices. Any initiative on prices must be aimed at improving the competitiveness of the entire supply chain.

Lastly on this, we need to strengthen the single market: consistent implementation of the Services Directive and an Internal Market Review which provides further market efficiencies are essential, as is a single euro payments area which works to the benefit of all. The road is long.

On more specific issues, our aims must be to improve transport and enhance labour market skills. European transport policy should recognise the distinct needs of businesses and consumers to ensure that the goods consumers want reach the high street in an efficient, cost-effective way, while reducing environmental impact. On work skills, if we can promote more flexibility, security and skills development, we can strike a balance between employment and social security laws (through what we call 'flexicurity'), providing greater training opportunities and reducing non-wage labour costs.

 

Finally, on the global level, we need to encourage free trade. Protectionism, vis-à-vis third countries or within the single market, is anathema to competition: it provides no way out of a crisis and must be avoided. Free and open international markets will allow us to source products from across the globe, stimulate growth in developing economies and increase consumer choice at home. Above all, trade defence instruments, if proven justified, must be predictable, certain and transparent.

This might seem like a long list, but what we are asking for is quite simple: a regulatory environment that stimulates competitiveness, innovation and employment. Through more choice and lower prices, the primary beneficiaries will be consumers and the environment.