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The impact of important Single Market policies on the development of Pan-European Services and Products. i2010 Conference Information Society at the Crossroads 13-14 MAY 2008. Nick Leapman, telephone: +32 2 295 12 66 nicholas.leapman@ec.europa.eu. The Issue.

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I2010 conference information society at the crossroads 13 14 may 2008
The impact of important Single Market policies on the development of Pan-European Services and Products

i2010 Conference

Information Society at the Crossroads

13-14 MAY 2008

Nick Leapman, telephone: +32 2 295 12 66 nicholas.leapman@ec.europa.eu


The issue
The Issue development of Pan-European Services and Products

  • 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


Single market review november 2007
Single Market Review development of Pan-European Services and ProductsNovember 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 single market initiatives that create demand for interoperable solutions
3 Single Market initiatives that create demand for interoperable solutions

  • SEPA and e-invoicing

  • Electronic public procurement

  • Services Directive


Sepa and e invoicing
SEPA and e-invoicing interoperable solutions

  • 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


Sepa and e invoicing1
SEPA and e-invoicing interoperable solutions

  • 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


The eu framework for eprocurement
The EU FRAMEWORK for ePROCUREMENT interoperable solutions

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)


The eu legal framework objective
The EU LEGAL FRAMEWORK: interoperable solutionsobjective

Allow automation of full procurement-to-payment process chain preserving all existing procedural guarantees


The eu legal framework rules 1
The EU LEGAL FRAMEWORK: rules (1) interoperable solutions

  • 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


The eu legal framework rules 2
The EU LEGAL FRAMEWORK: rules (2) interoperable solutions

  • Electronic means on equal footing with paper

  • All stages of the procedure can be conducted online

  • Flexible and technology-neutral framework


Implications for ict products and services 1
Implications for ICT products and services(1) interoperable solutions

  • 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)


Implications for ict products and services 2
Implications for ICT products and services (2) interoperable solutions

  • links to B2B applications for e-ordering, e-invoicing and e-payments

  • user-friendly, multilingual interfaces


Implications for ict products and services 3
Implications for ICT products and services (3) interoperable solutions

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


The economic prize what are we talking about 1
THE ECONOMIC PRIZE: interoperable solutionsWhat 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)


The economic prize what are we talking about 2
THE ECONOMIC PRIZE: interoperable solutionsWhat 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


Services directive
Services Directive interoperable solutions

  • 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 ofdifferent services


Main implementation aspects
Main Implementation Aspects interoperable solutions

  • 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


Electronic procedures article 8
Electronic procedures (Article 8) interoperable solutions

  • 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


Implications for ict products and services
Implications for ICT products and services interoperable solutions

  • 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


European council conclusions 13 14 march 2008
European Council Conclusions interoperable solutions13/14 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”


Main interoperability challenges for the single market
Main Interoperability Challenges for the Single Market interoperable solutions

  • 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