Notes that improvement in the functioning of the single Market is of paramount importance for a successful EMU.This work will also help to ensure that consumers benefit fully from the lower prices brought by the single market and EMU;

Reaffirms its commitment to transpose the remaining overdue single market Directives into national laws by the end of this year;

Invites the Council and the Commission to pursue initiatives on enforcement of single market laws including improved complaints procedures, and greater use of informal procedures such as peer group review;

Welcomes the work that has already been launched to improve weaker areas such as standardisation, mutual recognition and public procurement and asks the Council and Commission to pursue this work actively;

Invites the Commission to table a framework for action by the time of the Vienna European Council to improve the single market in financial services, in particular examining the effectiveness of implementation of current legislation and identifying weaknesses, which may require amending legislation;

Reaffirms its commitment to fostering tax efficiency and discouraging harmful tax competition .The European Council welcomes the new Code of Conduct Group on business taxation, and its intention to send a preliminary report to the Council by the end of the year; Emphasizes the need to promote competition and to reduce distortions such as state aids.

18.The European Council intends to review progress in these areas at its future meetings.

PROMOTING ENTREPRENEURSHIP AND COMPETITIVENESS

19.Member States and the Community need to work together to create conditions for fostering and encouraging entrepreneurs and small businesses.The Council has begun to identify the key factors influencing competitiveness, which include skills and adaptability of labour, an efficient market for capital, and an improved environment for business start-ups and innovation.Work in these areas should continue in partnership with business.

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