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Due to the small markets in the BSR, it is essential that appropriate measures be taken to upgrade the business environment. A policy framework conducive to investors and a dynamic business environment offer the best options for sustaining high levels of development in the west, and increasing levels in the eastern part of the Baltic Sea rim. The current economic crisis makes it especially important to stimulate further integration of the markets in the BSR. It is also important to support and facilitate the development of legitimate trade and economic cooperation, to combat customs fraud and to enhance the security and safety of the supply chain in trade with third countries. This requires, inter alia, a package of measures to strengthen cooperation between customs authorities of the EU Member States with Russia and other neighbouring countries, and to remove procedural, staffing and infrastructural bottlenecks. Promotion of the principles of good governance is needed to ensure fair and efficient tax systems. This plays an essential role in ensuring a level playing field for economic relations, trade and investment. The poor trade relations established by SMEs in the BSR can be explained by administrative burdens imposed by national legislation, implementation of EU directives in an insufficient or non-transparent way, limited competition in network industries due to unjustified barriers for market entrants, strongly regulated labour markets, and weak tax incentives. As a result there is often a lack of competition, which translates as relatively high price levels. Citizens and businesses do not always seize the many opportunities the Single Market has to offer because the rules are not being transposed, applied or enforced properly, or in the same way, in all Member States. As shown in the latest Internal Market Scoreboard,36 although Member States may have become much better in transposing Internal Market legislation, but there are still problems with its correct application, with a high number of reported open infringement cases. Furthermore, citizens and businesses still do not have sufficient information to use and enforce in practice their Single Market rights.37 An even greater effort should therefore be made to translate and distribute material that in explains these clearly to the different target groups. Traded goods going outside the EU are experiencing serious difficulties due to problems in the control procedures, and delays are usually long at the EU border with Russia. Until recently, long queues of lorries formed regularly at crossing points from Finland, Estonia and Latvia. The main reason was the growth of EU-Russia trade, complemented by inefficient procedures and inadequate infrastructure on the Russian side. Although the congestion has decreased, enhanced EU-Russia customs cooperation is important in ensuring trade facilitation, while protecting citizens and combating fraud. Today, goods aboard vessels which leave the customs territory of the EU are normally assumed to be non-Union goods, unless the status of Union goods can be satisfactorily demonstrated on arrival. This applies irrespective of whether the goods have come from a European country which is not a member of the EU, from another third country, or come from elsewhere in the EU but have left the customs territory en route. The same presumption that they are non-Union goods applies to any goods on any type of means of transport which leaves the customs territory of the EU. Facilitations have already been introduced for maritime transport (e.g. the presumption of Union status for goods transported on authorised regular shipping services), but it is still considered by the industry that vessels travelling between EU ports still encounter a significant number of complex procedures which put intra-EU shipping at a disadvantage in comparison to other transport modes, because geographically they may have to leave the customs territory of the EU even though on an intra-EU voyage. That is particular manifest in the Baltic Sea region where, for instance, 90% of Union goods moved to or from Finland are transported by sea. In order to establish a true internal market for Union goods carried by ships in intra-EU trade, the Commission included in the Single Market Act II ‘Together for new growth’ (COM(2012)573 final of 3.10.2012) a key action 2 aiming at establishing a true Single Market for maritime transport by no longer subjecting EU goods transported between EU seaports to the same administrative and customs formalities that apply to goods arriving from third country ports. That action will take the form of a ‘Blue Belt’ package with legislative and non-legislative initiatives to be presented in the second quarter of 2013. Targeting further simplifications of administrative procedures, especially customs procedures, the focus of discussions should be laid on solving this problem of so called ‘infected vessels’. Targets and indicators A comprehensive system for the design, the monitoring and the follow-up of indicators and targets will be set up in 2013, under the responsibility of the priority area coordinator. The still missing targets and deadline, baseline, and statistics/information sources related to the above indicators will be defined.
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