The European single market has now been in existence for 22 years, and yet there are still a number of areas where it is incomplete, particularly when it comes to the movement of vehicles which, up to now, has been an administrative nightmare for citizens. Many expats are acquainted with the long, drawn-out process they have had to go through with the authorities to register a used vehicle in another EU country. Depending on which member state it is, registration bodies have previously required complicated additional evidence of the type of registration, payment of additional marketing duties, customs procedures, and payment of recycling charges or further technical inspection
The problems and obstacles to cross-border vehicle traffic in the single market have up to now been so great, they were counted by European citizens in a poll on the 20 most significant 'trouble spots' in the single market as being a daily-life obstacle for them, resulting in numerous court rulings in member states.
"Problems and obstacles to cross-border vehicle traffic in the single market have up to now been so great, they were counted by European citizens in a poll on the 20 most significant 'trouble spots' in the single market"
Companies also have problems re-registering vehicles. Car rental companies wanting to move part of their fleet of vehicles from one country to another, because demand in some holiday destinations varies depending on the season, encounter major obstacles. Leasing a car in another EU member state has previously been troublesome. The European parliament, prior to the EU elections, laid the foundation for cross-border vehicle registration to be as easy in other EU member states as it is nationally.
The new regulations, which require approval by the governments of the member states after re-referral to the internal market and consumer protection committee, will not only reduce the formalities required to register a vehicle in another EU member state, but also stipulates cross-border recognition of recent technical inspections carried out in the country of origin. Data exchange between registration authorities in the member states are also to be carried out electronically. The existing European car and driving licence information system is to be expanded throughout Europe for this purpose. National contact points shall in future provide all the information and steps required to re-register the vehicle in a user-friendly summary. Where an online vehicle application could previously be made it should also be possible via the internet to register a vehicle in a member state other than the previous one. Difficulties arising from short-term registration for the mere transport of vehicles over the border will likewise be eliminated.
As driving with no current valid insurance constitutes a danger to other road users, having car insurance remains a prerequisite for vehicle registration. Companies operating internationally will be unable to register their whole fleet of vehicles in a single EU member state, but will be able to use them in other countries, thus preventing fraud and tax evasion. The mutual access registration authorities will also make it easier to combat vehicle theft. The aim I and my colleagues in the internal market committee have pursued has been to simplify essential procedures and create clear conditions and procedures for vehicle re-registration.
"Simplifying the regulations for vehicle re-registration will save businesses, citizens and public authorities at least €1.4bn a year"
The fact that matching vehicles are registered everywhere in the EU and are subject to the same regulations is not just a matter of common sense or of being friendly to citizens – it also results in economic benefits. According to the European commission, simplifying the regulations for vehicle re-registration will save businesses, citizens and public authorities at least €1.4bn a year, and will make it easier for citizens moving from one EU country to another to take their car with them. Only thus will the advantages of the single market be greatly noticeable.
In April of this year, the plenary assembly of the European parliament was set to clarify its position on the proposal in its first reading. This position was the result of constructive negotiations between the political groups. A number of advances and technological improvements were made through previous negotiations with the council. However, these were, to my great regret, thwarted as the council requested a further analysis of the potential impact on national tax revenues to be carried out, in addition to the existing impact assessment, 18 months after the introduction of the proposed regulation. Rather than council regulation, a number of member states have a preference beyond the legal form of a directive. Because of these outstanding issues, we voted at the last plenary session of the parliamentary term that, rather than having any legal text or any of our amendment requests, the proposal should instead be referred back to the committee prior to the conclusion of the first reading. I am confident that, on the basis of the work already completed, negotiations will continue smoothly over the summer, such that the regulations will be implemented to the benefit of all EU citizens at the earliest possible juncture.