Europaudvalget 2005-06
KOM (2004) 0002
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Practical Examples of
Commission's amended
Directive
the benefits of the
proposal for Services
Enhancing the benefits of the EU Single Market
The amended proposal for a Services Directive aims to maximise the benefits of the
Single Market for
citizens, consumers and businesses.
In the decade after the completion of the first Single Market programme in 1993, the
removal of barriers created at least 2.5 million extra jobs and an increase in wealth of
nearly €900 billion (on average about €6,000 per family in the EU).
Competition has increased as companies find new markets in other Member States.
In many areas, prices have come down and the range and quality of products
available to consumers have increased.
But most of the benefits that we have seen so far have occurred in
goods
markets.
For services, the Single Market is not yet working as well as it should.
There
are still barriers hindering service providers from establishing themselves in other
Member States – or trading across borders. This needs to be addressed because
services are important to the EU. They account for between 60 and 70% of
economic activity in the 25 Member States of the EU.
The Commission's amended proposal for a Services Directive,
following the agreement in the European Parliament, will tackle this
situation in a number of ways…….
1. Businesses will be able to establish themselves anywhere in the EU –
saving time and money
Service providers will be able to obtain information and complete administrative
formalities through
single points of contact
in each Member State. This will
speed up authorisation and reduce costs.
A business wishing to build and run a
hotel or a store in another Member State will no longer have to deal with several
different authorities at national, regional and local level.
A service provider will be able to
complete all formalities to set up a
business online.
They will avoid the expense and inconvenience of multiple
visits to authorities in the Member State into which they intend to provide
services.
Authorisation schemes
in Member States will be clearer, more transparent,
less restrictive and non-discriminatory.
Currently, getting authorisation can be
an unpredictable and time-consuming exercise involving substantial delays and
cost in terms of legal fees, staff dealing with negotiations and foregone profits.
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All
discriminatory administrative requirements
and all
"economic needs"
tests
will be prohibited. ("Economic
needs" tests require businesses to
commission market studies, often costing hundreds of thousands of Euros, to
prove to the authorities that they will not "destabilise" local competition.)
2. Businesses will find it easier to provide services across borders
Service providers
will be able freely to provide their services across
borders into other Member States,
except where prohibited by Member State
requirements that are non-discriminatory, proportionate and necessary for
reasons relating to public policy, public security, public health and the protection
of the environment.
It will be possible to
provide services in a Member State without having to
establish there.
Currently a business has to have a permanent presence to
provide certain types of services. Removing a requirement to establish – and
the associated investment in time and money – will make it possible for more
businesses to offer services on a temporary or occasional basis. Activities
covered by an establishment requirement in some Member States include many
tourism-related services, e.g. mountain guides, yacht and sailing boat hire, ski
instructors etc.
Businesses will
no longer be required by a Member State to take on a
particular legal form in order to provide services into that territory.
Current
examples of burdensome requirements in Member States include a requirement
for real estate agencies to be "natural persons" in order to be allowed to provide
the service, which excludes real estate agencies which are companies from
other Member States.
3. Consumers will be properly protected
Consumers will benefit from
better information on businesses and the
services they offer.
They will know more about price and quality.
It will
not be possible to discriminate against consumers on grounds of
residence or nationality.
All EU citizens will enjoy the same rights wherever
they live.
For example, museums will not be able to charge non-residents higher
prices and organisers of sports events, such as marathons, will not be allowed
to charge non-residents higher participation fees.
4. Supervision will be better due to more effective cross-border
cooperation between authorities
Member States will have to step up administrative cooperation between them to
ensure improved and effective supervision of service providers without
duplication.
This will be underpinned by a new
electronic system
allowing for
the direct and efficient exchange of information between Member States.
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