Introduction 5 Chapter 1: a description of the organisational structure set up for the implementation of the Strategy 6

Pillar 2: To make the Baltic Sea Region a prosperous place

All projects within Priority Area 6 are aimed at identifying barriers that are hindering the smooth operation of the internal market and finding ways of reducing or abolishing them. So far, all the projects are moving forward, a great number of hindrances have been mapped, and the present phase could be called “finding solutions to the problems”. All project partners have shown a willingness to contribute to a better functioning internal market without barriers. It has also been identified that the best way of raising awareness among citizens and interested entrepreneurs is by creating web pages where all interested actors can find the relevant information on Member States’ requirements related to goods and services in different sectors.

A conference “Baltic Sea Strategy and the Internal Market” was organised in Tallinn on 16-17 September 2010. Both experts and senior officials from the Commission and Member States met to discuss practical issues, including those related to the digital agenda of the internal market – e-services, e-signatures etc. – and other ways in which the internal market and cooperation can be improved.

The main results so far include:

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  Internal market barriers according to the aims of Flagship Projects are mapped;
  
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  Constant exchange of best practices has taken place in the form of different meetings of project participants;
  
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  Creation of regional websites containing specific information related to the Goods Package and the Services Directive targeted at any interested parties has started;
  
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  Efforts have been made to intensifying cooperation with Russia to complement and facilitate the achievements of the goals of the EUSBSR with the aim of trade facilitation and customs modernisation.
  

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  “Implement the strategy aimed at sustainable improvement and facilitation of border controls of goods” adopted at the meeting of the EU-Russia Sub-Committee on Customs and Cross-border Cooperation on 26 April 2007 and reconfirmed on 19 June 2008.
  

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   Report: It was decided recently to recast EU-Russia customs cooperation in the format of a Strategic Framework based on mutual interest in economic integration, customs modernisation and convergence in line with international standards. A Strategic Framework for EU-Russia Customs Cooperation was endorsed in December 2010.
   

The evaluation of the strategy will be indispensable for the further implementation of the priorities under the Framework. It will be based on the evaluation project on functioning of border-crossing points and procedures. Recently Russia agreed to start implementation of the evaluation project in two phases covering six crossing-points each. The first phase could start possibly in October 2011.

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  “Coordinate with actions taken by the CBSS Working Group on Customs Cooperation and Border-Crossing Aspects (WGCB)” in order to improve cooperation among authorities at the border, including harmonisation of working practices, common training and exchanges of information and best practices.
  

The work of the CBSS Expert Group on Customs Cooperation and Border Crossing Aspects was discontinued in June 2011, following the decision by the paticipants of the Group stipulated in the Final Report adopted by CSO of the CBSS. Continued cooperation on these issues will continue in other for a, notably in the Eu-Russia Working Group on Customs Border Issues.

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  “Open up the public sector to competition”. Increase productivity in traditionally state and municipal services by gradually opening up more to free competition in relevant areas such as waste management, recreational activities, postal services, related logistics and the broader communications sector, supply of local energy, etc. to secure full access to the respective markets in the Baltic Sea Region.
  

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  “Remove remaining barriers to the cross-border provision of services” by timely and consistent implementation and application of the Services Directive and other relevant directives, especially those affecting SMEs and those aiming at the liberalisation of service markets (e.g. the Third Postal Directive which sets a deadline for full market opening by 31st December 2010 for the majority of Member States). Besides requiring Member States to take concrete legislative measures, the Directive asks them to put in place a variety of practical measures such as Points of Single Contact for service providers, electronic procedures and administrative cooperation. It also introduces innovative tools, such as the review of national legislation and the process of mutual evaluation. Close cooperation between the bodies responsible in each Member State for implementing the Services Directive has been established over the last two years in the framework of the “Nordic-Baltic cooperation group”. This cooperation could further be enhanced through exchange of good practices, including for the setting up of Points of Single Contact, and also through engaging business associations in the process.
  

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  “Make the EU internal market work on the ground for the Baltic Sea Region” through enhanced cooperation between national authorities in managing the Single Market. Improved and increased administrative cooperation between national authorities in the Baltic Sea Region on the implemen­tation of Single Market Directives should be developed with the existing “Nordic-Baltic cooperation group” for the Services Directive as an inspiration. National authorities are also encouraged to cooperate within the Baltic Sea Region regarding provision of training in Single Market law to national civil servants and court officials; and provision of information to citizens and businesses about their rights and opportunities in the Internal Market. Such close cooperation on Single Market issues between the authorities of the Baltic Sea Region should be developed in the context of and in line with the Commission's Recommendation on Partnerships which was to be adopted in June 2009.
  

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  “Promote the principles of good governance in the tax area”, namely transparency, exchange of information and fair tax competition, in order to improve international tax cooperation and reinforce efforts to combat cross-border tax fraud and evasion. A first step would be to reach an agreement with Russia on good governance in the tax area. The alignment of taxation policy should also be pursued, including inter alia gradual approximation of excise rates for cigarettes with Russia. This would diminish tax fraud and smuggling of excise goods into the EU, and also contribute to the budget and health objectives, addressing problems which are difficult to fight by means of reinforced border controls only. Additionally this would contribute to trade facilitation in the Region by reducing the need for strict and detailed controls at the border. 
  

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  6.1. “Remove remaining Single Market barriers” by strengthening practical cooperation between the responsible authorities. The project consists of five areas divided between two leaders: 1. Identification of the internal market barriers to trade between the countries of the Region and taking actions to remove them – country responsible: Poland. The general objective to be achieved under the project should be to collect extensive information on the barriers to the internal market that hinder the free movement of persons, goods, services and capital between the countries of the Region. 2. Cooperation aimed at the implementation of the Commission Recommendation on measures to improve the functioning of the Single Market – measures ensuring better coordination of Single Market issues (Recommendation no. 1) – country responsible: Poland. To establish a cooperation group (modelled on the Nordic-Baltic group or within that forum) which will meet periodically to exchange experience on the implementation of Recommendation no. 1 on measures to improve the functioning of the Single Market on measures ensuring better coordination of Single Market issues. 3. Intensification of cooperation between the SOLVIT Centres of the countries from the Region – country responsible: Poland. To carry out a joint campaign to increase awareness of the existence of SOLVIT among SMEs and to provide them with reliable and objective information on the type of assistance they may obtain at SOLVIT. 4. Exchange of best practices on the practical functioning of Product Contact Points and Points of Single Contact – country responsible: Sweden. The project should aim at providing a platform for exchange of experience regarding establishing, financing and developing the contact points in the Baltic Region. 5. Provide better information to citizens and business about the Goods Package (including mutual recognition principle) and the Services Directive – country responsible: Sweden. This project could take the form of a group sharing best practice information, which should aim at identifying what kind of information efforts have been carried out regarding the content of the new legislation and the role of the new contact points. Furthermore, the project should aim at identifying if and what kind of additional information efforts could be beneficial to the Region. (Lead: Poland and Sweden; Deadline for progress review: first results produced in June 2011) FAST TRACK
  

SOLVIT Centres’ representatives discussed the idea of creating a common regional e-newsletter on SOLVIT and other internal market issues.

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  6.2. “Implement European space for maritime transport without barriers in the Baltic Sea Region”. This plan includes several legislative measures, including a proposal aimed at simplifying administrative formalities based on Community regulations and recommendations to Member States for reducing the administrative burdens imposed on shipping companies. This should be done through analysing the present legal and administrative barriers and initiating necessary changes to the regulatory and administrative framework through better regulation strategies, and by developing integrated EU maritime information reporting systems (single window) agreed at EU level. (Lead: Swedish Maritime Agency tbc; Deadline for progress review: to be determined)
  

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  6.3. “Increase the use of electronic signatures/e-identification” in contact with authorities in the Baltic Sea Region, in line with the November 2008 Action Plan on e-signatures and e-authentication²¹, which aims to ensure that electronic signature and authentication applications are interoperable across borders. This would enable cost-effective and more expedient conduct in the provision of public services and of administrative and court proceedings, and make it easier for citizens and private enterprises to report digitally to public authorities, which will also support the strategic action "Remove remaining barriers to the cross-border provision of services" (as described on page 27). Such work should have a heavy focus on market access for foreign citizens and enterprises by avoiding the creation of structural barriers due to increasing the security level for interoperable e-signatures to an unnecessary high level. Joint projects should be developed within the field of the information society; these would include electronic voting and other public and private electronic services. (Lead: Estonia; Deadline for progress review: to be determined)
  

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  6.4. “Encourage sharing of competences between accreditation bodies”. Cooperation between accreditation bodies could be a cost-effective way of sharing competence and offering a wide range of accreditation services to companies, without having all the facilities in each Member State. (Lead: Sweden – Swedish Board for Accreditation and Conformity Assessment; Deadline for progress review: to be determined)
  

It was decided to start with two of the proposed areas, accreditation of certification bodies for the scope “greenhouse gases” and accreditation of proficiency testing (PT)-providers. In the area of greenhouse gases, it has been identified that a harmonisation discussion is useful, while for accreditation of PT providers there is a new standard, ISO 17043, which is not yet fully implemented, thus highlighting the need for harmonisation. There have been constructive discussions, and proposals for other activities within the area have been developed. The networks within the greenhouse gases and PT testing are in place. (Phase 2)

The next steps would be to create, within each area, a network with one contact person and to create, within each area, a pool of technical assessors with specific competence. (Phase 3)

Phase 4 will be using and developing the experience from Phases 1 – 3 to expand other areas within the national accreditation work and also to create a pool of experts to support the strengthening of accreditation work in developing countries.

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  6.5. “Monitor implementation of the priorities of the EU-Russia strategy” for improvement of customs and border procedures , namely: a) Implementation by Russia of legislative, administrative and procedural measures to improve the situation at the border; b) Implementation of a pilot project on EU-Russia information exchanges; and c) Implementation and development of border-crossing and customs infrastructure. (Lead: European Commission, DG Taxud/EU-Russia Working Group on Customs Border Issues; Deadline for finalisation: to be determined)
  

A number of important legal acts, including on the reduction of agencies operating at the border, were adopted by Russia in late 2010, and their full implementation will contribute to trade facilitation and customs modernisation. In the meantime, an appropriate mechanism (early warning system) to prevent disruption of trade and congestion on border crossings is being discussed between the Commission services and Russian customs. Despite its technical success, the pilot project on exchanges of information has not yet resulted in undisrupted movement of trade flows. To implement the Framework, experts groups have been set up to explore ways to cooperate on risk management, operators' reliability, exchanges on information and to identify the areas for convergence of legislation.

An evaluation will be carried out based on two projects: the "Laufzettel" project on the measurement of border crossing times and the evaluation project on the functioning of border-crossing points and procedures. The Commission and the Working Group will continue to monitor the situation and to engage with Russia through our regular dialogue. The deadline for finalisation of the project has not been determined yet.

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  6.6. “Monitor border situations” by re-launching the "Laufzettel" project, originally carried out in 2001, 2003 and 2005, with the objective of measuring border crossing/clearance times and identifying bottlenecks as well as opportunities to improve control procedures at the EU-Russian border. (Lead: European Commission, DG Taxud/EU-Russia Working Group on Customs Border Issues; Deadline for finalisation: second half of 2010) FAST TRACK
  

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  6.7. “Coordinate the use of the digital dividend.” Coordination of the use of the digital dividend that will be available in the transition to digital television transmitted on land for a more effective use of frequencies and to add benefits to companies to offer broadband in sparsely populated areas. Development of enhanced models for cooperation between Member States for multilateral coordination and market control (Lead: Sweden. Deadline: to be determined).