European Consumer Scoreboard exposes barriers to better deals
Consumers' ability to afford goods and services
The Spring Consumer Markets Scoreboard published by the European Commission reveals that EU consumers are still not reaping the full benefits of the internal market due to barriers to cross-border commerce. The scoreboard shows there is a growing gap between cross-border and domestic e-commerce.
The national conditions for consumers - measured for example by consumer trust in consumer authorities and NGOs, and the effectiveness of handling disputes - have declined in many countries. Some member states have improved their scores notwithstanding the difficult economic period.
The ability of consumers to afford goods and services varies greatly from one country to another: in six countries, affordability is less than half the EU average. Life in the richer EU countries is more affordable for consumers, despite higher price levels. In Malta affordability is slightly below the EU average. The Commission said in a statement that it is working to tackle existing barriers, based on a catalogue of measures, including simplifying rules for retailers.
John Dalli, European Commissioner for Health and Consumer Policy, said: "For consumers, a single European market is a promise of greater choice and lower prices. However, this promise often goes unfulfilled, as traders and shoppers alike are confined within national borders by formidable hurdles which, together with my colleagues commissioners, I am determined to dismantle".
He added: "I want to praise those member states which - in the face of pressure on national budgets - continue to invest in an environment where consumer watchdogs are trusted and disputes are swiftly resolved".
The Consumer Markets Scoreboard provides evidence and alerts about how the internal market is performing for consumers in terms of choice, competitive prices and satisfaction.
The number and value of cross-border transactions is a measure of how integrated the EU retail market is. Cross-border commerce shows limited growth: in 2009, only 29 per cent of consumers made any purchase in another EU country (25 per cent in 2008) and only 25 per cent of retailers sold to any other EU country (20 per cent in 2008). The gap between domestic and cross-border online purchases is growing: in 2009, 34 per cent of EU consumers bought goods or services online from national sellers (28 per cent in 2008), but only eight per cent ordered from elsewhere in the EU (six per cent in 2008).
In small countries such as Malta, Cyprus and Luxembourg, cross border online purchases, however, are more frequent than domestic ones, due to limited domestic choice.
Earlier Commission studies have showed that shopping cross-border can offer genuine savings and a greater choice to consumers, but barriers remain, resulting in many traders refusing to deliver abroad. Earlier reports show that over 60 per cent of cross-border orders fail. The Commission said it is determined to pursue a strategy of dismantling these barriers by ending fragmentation of rules, boosting cross-border dispute resolution and simplifying regulations for retailers.
The consumer environment is defined by a number of factors such as by the quality of regulation concerning consumers and businesses, the effectiveness of resolving disputes and handling complaints, and consumer trust in authorities, retailers, advertisers and consumer organisations.
The Commission said the economic crisis has had an adverse impact on these conditions for consumers, with most countries experiencing a decline.
However, eight member states (Portugal, Luxembourg, Ireland, Italy, Austria, France, Slovakia and the United Kingdom) have improved their scores compared with 2008.