Proposal for a Regulation establishing a Single Market emergency instrument and repealing Council Regulation No (EC) 2679/98

Author (Corporate)
Series Details COM (2022) 459
Publication Date 20/09/2022
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Legislative initiative tabled by the European Commission on 19 September 2022, aiming to establish a Single Market emergency instrument (SMEI) and repeal Council Regulation (EC) No 2679/98. This is a text with EEA relevance.

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Crises such as the COVID-19 (coronavirus) pandemic and Russia's invasion of Ukraine demonstrated vulnerabilities within the European Union's Single Market and its supply chains in case of unforeseen disruptions and, at the same time, how much the European economy and its stakeholders rely on a well-functioning Single Market. Further instability and emergencies require the functioning of the Single Market to be guaranteed.

This proposal aims to address two separate but interrelated problems: obstacles to free movement of goods, services and persons in times of crisis and shortages of crisis-relevant goods and services. The SMEI aims to provide a strong, agile governance structure as well as a targeted toolbox to ensure the smooth functioning of the Single Market in any type of future crisis. It also aims to repeal Council Regulation (EC) No 2679/98.

The European Council in October 2020 urged the European Union (EU) to draw lessons from the pandemic and address remaining fragmentation, barriers and weaknesses of the Single Market in facing emergency situations. The European Commission announced in its update of the Industrial Strategy an instrument to ensure the free movement of persons, goods and services, as well as greater transparency and coordination in times of crisis. The initiative is part of the Commission's Work Programme for 2022, and it was tabled on 19 September 2022.

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Commentary and Analysis
European Trade Union Confederation (ETUC): Press Release, 12/09/2022: Right to strike at risk in new EU law

Bloomberg, 01/09/2022: EU Will Propose Crisis Tool for Supply Chain Emergencies
Euronews, 03/09/2022: EU Commission plans emergency powers to avoid crisis bottlenecks -FAZ
EurActiv, 07/09/2022: EU Commission wants sweeping new powers to secure supply chains
Le Monde, 13/09/2022: Brussels seeks to set up crisis management tool to protect EU from shortages
Politico, 16/09/2022: EU’s supply-chain plan criticized for overreaching
EUObserver, 19/09/2022: EU seeks crisis powers to take control over supply chains
Deutsche Welle, 19/09/2022: EU seeking emergency powers to tackle supply crisis
Politico, 19/09/2022: EU unveils supply chain emergency powers

EUR-LEX: SWD(2022)288: Staff Working Document accompanying the Proposal - Subsidiarity Grid
EUR-LEX: SWD(2022)289: Staff Working Document accompanying the Proposal - Impact Assessment Report
EUR-LEX: SWD(2022)290: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment Report
European Commission: Press Release, 19/09/2022: Crisis-proofing the Single Market: equipping Europe with a robust toolbox to preserve free movement and availability of relevant goods and services
European Commission: Questions and Answers: Single Market Emergency Instrument (19 September 2022)
European Commission: Speech by Executive Vice-President Vestager on the Single Market Emergency Instrument (19 September 2022)

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