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Q. What is the principle of mutual recognition and what role did it play in the creation of the single market?

The principle of mutual recognition allows free movement of goods and services, without harmonizing the national laws of Member States. The sale of a product lawfully manufactured in another Member State would not be prohibited to use. This rule is applicable even if the product is manufactured according to technical or quality specifications that are different from the usual rules. There are exceptions for health care and consumer or environmental protection, which is strictly regulated. The same principle applies to the services sector.

The requirements for the country of origin universally prevail. Thus, the observance of the subsidiary principle is guaranteed. The introduction of detailed Community rules is avoided, and there is more respect for local, regional and national traditions and the diversity of goods and services could be maintained. Mutual recognition is a practical and powerful tool for economic integration (Valentine Korah, 2007, pp. 245-268).

One of the problems is that more reliable data is necessary to assess in this situation. Based on the available data, institutes cannot precisely estimate the economic significance of mutual recognition. It is clear that the principle of mutual recognition for many industrial and service sectors is a very valuable mechanism.

The results of the surveys show that there are still obstacles in the field of technical standards and regulations. The tertiary sector in general believes that the obstacles to the free movement of services in 1996-1998 have remained virtually unchanged.

In terms of the products, most problems relate to the protection guaranteed. The areas where most problems occur include food, transport, precious metals, and construction and chemical industries.

The Commission receives the most complaints from services sector including the commercial communications, construction, patent agents and security. The available data paint an incomplete picture, because the number of complaints lodged with the Commission is very small. In the field of regulated professions, the difficulties in applying the principle of mutual recognition affect individuals more. In the area of financial services, the Commission notes that abuse of the concept of public interest and consumer protection. As regards business communication, a genuine single market is hampered by national differences, particularly in advertising. In electronic commerce, there are legal obstacles that need to be removed.

The Commission shall prepare an evaluation every year to assess what progress has been made. The conclusions of the evaluation reports to the Internal Market Scoreboard will be needed to allow the States to raise awareness of the continuing problems and the solutions found. The Commission undertakes to pay more attention to ensure that obligations are met by the Member States, including through infringement procedures in place. They also like the possibilities offered by the notification procedure for mutual recognition and promote the emergence of new barriers to prevent full potential (Richard Whish, 2009, pp. 264-272).

The Commission undertakes a dialogue with citizens and firms. The Commission proposes the following for information and economic analysis to ...