Making the Services Directive Work

1. Making the Services Directive Work Dublin 6 March 2014 Services Directive and why it matters

2. Outline of the presentation • I. General introduction to the Services Directive • - A framework Directive with exclusions • - Economic importance • - Contents of the Services Directive • - Implementation and future notifications. • II. Points of Single Contact

3. Services Directive • Horizontal “framework” Directive: • covers all service activities unless they are explicitly excluded: e.g. • - commerce and retailing, • - construction and crafts, • - business- related services (consultancy, advertising etc.), • - most regulated professions, • - tourism, etc. • Complements the existing EU “acquis”: specific provisions of EU law prevail in case of conflict

4. Exclusions • financial services, telecommunications, transport services • healthcare services • certain social services • audiovisual services • temporary work agencies • private security services • gambling services • services provided by notaries and bailiffs

5. Economic importance of services in general • Services represent around 70% of EU GDP and total employment • Over the last decade, rapid and sustained shift from industrial production to knowledge-based services • Services have been the source of all net job creation in recent years / 9 out of 10 new jobs • About 75% of services trade concerns the supply of services to other business, in particular industry

6. Economic importance of the sectors Services covered under the Services Directive: 45% of EU GDP

7. Economic importance of the implementation of the Directive • + 0,8% of EU GDP within 5 to 10 years as implemented. • + 2,6% of EU GDP within 5 to 10 years if Member States eliminated almost all remaining barriers • Impact differs between Member States depending on: • Extent of barrier reduction • Barrier reduction by trading partners • Economic importance of the services sector

9. Contents of the Services Directive • Administrative simplification and Points of Single Contact • Freedom of establishment (internal and cross-border cases) – remove unnecessary barriers • Freedom to provide/receive cross-border services – remove • Quality of services (insurance) • Administrative cooperation (Internal Market information System (IMI)

10. Implementation until 2009 and in the future • Toimplementthe Services Directivecorrectly: • needtoknowwhatisexistingandwhatneedstobedone/amended, i.e. needto SCREEN theexistinglegislation, coveredbythe Services Directive • Initiallylinked also totheobligationtoreportto COM (art 39) forspecificrequirements. • May needseveraliterations.

11. Notifications via Internal Marekt Information System (IMI) • Foranynewlegislation: obligationtonotifythe COM andother MS requirementsfallingunder: • Art 15 (establishementrequirementstobeassessed) • Art 16 (requirementsimposed on cross-borderserviceprovision) • Disproportionnatebarrierstobusinessandtotrade? • Recommended tonotifydraftregulationstoeasechangesifneeded.

12. Point of Single Contact (PSC) • Administrative simplification(Art. 5): • MS need to examine and simplify their existing • procedures and formalities • In principle, authorities should not ask for: • Original documents • Certified copies of documents • Certified translations

13. Points of Single Contact (PSC) • A most tangible benefit for businesses: one interlocutor to get information and complete procedures • Linked to the general obligation to simplify procedures • First “horizontal” legal obligation for Member States to provide for e-government services for businesses • Accessible for national & foreign users 6/04/2014

14. PSC: information provision • Obligation to provide information on all procedures and formalities necessary for given activities. No need to contact different authorities/bodies anymore • company registration, professional qualifications • Information to be covered: • requirements for procedures and documents to be submitted, contact details of the authorities, means of redress etc. • Use of plain and intelligible language • Assistance to questions from business

15. PSC: completion of procedures online • Businesses should be able to complete the necessary procedures and formalities to start or exercise an activity by electronic means and at a distance • Both for national users but also for users from other MS (using their own means). • Cross-border access is a MAJOR CHALLENGE

16. PSC: what is not mandatory but would be best practice for business? • PSC to become a comprehensive e-government for business • Cover procedures and sectors outside the SD • Income tax, VAT, social security registrations etc. • Take business user's perspective • Provide also information & assistance on other issues relevant for the business users (e.g. access to finance) • Foreign language availability

17. Support tools available • EUGO Network– cooperation with other MS and sharing of best practices • E-Procedures • Legal framework • Practical tools to support creation and validation of e-signatures (open source software)

23. PSCs in the MS – results so far (June 2012)

24. PSC Charter: towards more ambitious PSCs • Agreement at political level to go beyond the SD for business purposes; • Regular benchmarking against common criteria, covering: • Quality and availability of information • E-procedures • Accessibility for foreign users • Usability

25. Thank you for your attention!