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The impact of important Single Market policies on the development of PanEuropean Services and Products i2010 Conference Information Society at the Crossroads 13-14 MAY 2008 Nick Leapman, telephone: +32 2 295 12 66 [email protected] 1 The Issue • Single Market legislator has increasingly been opting for electronic solutions • Assumption that the building blocks of the information society are in place • The real world is full of surprises 2 Single Market Review November 2007 Single Market policy makers want interoperability across e-government solutions: • • • • ICT is essential tool to make the Single Market work Risk that Member States opt for incompatible solutions New “e-barriers” could emerge for end-users Need to redouble efforts to avoid market fragmentation and promote commonly agreed ICT solutions • Action Plan in 2008 to promote implementation of interoperable signatures and e-authentication 3 3 Single Market initiatives that create demand for interoperable solutions • SEPA and e-invoicing • Electronic public procurement • Services Directive 4 SEPA and e-invoicing • SEPA: – Single Euro Payments Area aims to create a world class payment system for the EU • E-invoicing: – Essential part of an efficient financial supply chain as it links the internal processes of enterprises to the payment systems • SEPA & E-Invoicing: – SEPA and a successful European e-Invoicing initiative would complement each other, by linking e-invoicing directly with payments 5 SEPA and e-invoicing • Huge Benefits: – Savings potential of e-Invoicing (SEPA Cap Gemini study): • Cost reductions due to e-Invoice = 70-75% (of a paper invoice) • Estimated potential cost savings of € 238 Billion over 6 years • Risk: – In many MS, individual e-invoicing initiatives are emerging: • Risk of emergence of multiple solutions which are not interoperable • If this risks materializes: full potential of e-invoicing will not be achieved 6 The EU FRAMEWORK for ePROCUREMENT A comprehensive legal and policy framework • Entry into force of new public procurement directives (Apr 2004) • Transposition by MS (21 months - 31 Jan 2006) – nearly complete • Action plan on e-procurement 2005-2007 (Dec 2004) • i2010 eGovernment Action plan (April 2006) 7 The EU LEGAL FRAMEWORK: objective Allow automation of full procurementto-payment process chain preserving all existing procedural guarantees 8 The EU LEGAL FRAMEWORK: rules (1) • Requirements for electronic communication and receipt of offers – Non-discrimination – Transparency – Fair competition • Rules for innovative electronic purchasing practices – Repetitive purchases, e.g. dynamic purchasing systems – Electronic auctions 9 The EU LEGAL FRAMEWORK: rules (2) • Electronic means on equal footing with paper • All stages of the procedure can be conducted online • Flexible and technology-neutral framework 10 Implications for ICT products and services(1) • e-procurement creates strong demand for specialised ICT products – comprehensive e-procurement systems solutions and electronic documents – specific tools, e.g. e-auctions, e-catalogues, Dynamic Purchasing systems (‘DPS’) – standardised product descriptions and inventory management solutions (e.g. product classifications and dictionaries) 11 Implications for ICT products and services (2) – links to B2B applications for e-ordering, einvoicing and e-payments – user-friendly, multilingual interfaces 12 Implications for ICT products and services (3) The challenge – All solutions must preserve existing procedural guarantees – To do that they must be generally available, non-discriminatory and interoperable – All solutions must provide secure means of electronic authentication and signature 13 THE ECONOMIC PRIZE: What are we talking about? (1) • The public sector: by far the biggest buyer in the economy – Estimated total EU public procurement (2006): 1.800 bn. EUR (16% of EU GDP) – Estimated total above thresholds (TED): 370 bn. EUR (3% of EU GDP) 14 THE ECONOMIC PRIZE: What are we talking about? (2) • Very large savings and efficiency gains – from e-procurement: 5% on prices, 50-80% on transaction costs – 5% of savings may correspond to up to 1% of GDP 15 Services Directive • Entry into force - 28.12.2006 • Implementation – by 28.12.2009 • Objectives – Remove barriers to the establishment of service providers (Art. 43 ECT) – Remove barriers to the cross border provision of services (Art. 49 ECT) • Horizontal nature – wide range of different services 16 Main Implementation Aspects • • • • Simplification of procedures Electronic procedures Establishment of Points of Single Contact Mutual assistance (supported by the Internal Market Information system - IMI) • Rights of recipients • Quality of services 17 Electronic procedures (Article 8) • Possibility of completion of all formalities and procedures at a distance and by electronic means • Availability for national and foreign service providers • Cross border dimension • Interoperability issues 18 Implications for ICT products and services • Services Directive creates strong demand for specialised ICT products – – – – Transactional software for completion of e-procedures User-friendly multilingual interfaces Software for back office integration Software to create standardised forms such as form generator – Tools for electronic delivery of documents such as document safes, personal web spaces – Tools for secure electronic payment 19 European Council Conclusions 13/14 March 2008 In the context of the Services Directive it is an immediate priority to: “Improve the functioning of the “e-Single Market” by putting in place cross-border interoperable solutions for electronic signature and e-authentication” 20 Main Interoperability Challenges for the Single Market • Electronic signatures – Use of qualified signatures – Use of advanced signatures – Issues related to trust • Electronic identification and authentication – Different systems ranging from soft to strong ID – Temporary solution by end of 2009 – Large Scale Pilot on e-ID aiming at interoperable EU wide solution • Documents – – – – Transition from paper to electronic world Authentication of documents Different types and formats Long term migration to electronic documents 21