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Services Directive: state of play in national transposition Carlos Almaraz Deputy Director

This article provides an overview of the current state of transposition of the Services Directive in Europe, highlighting the importance of services in the economy and the barriers that still exist. It discusses the expected benefits of the Directive, such as simplified rules and procedures, reduced red tape, and administrative cooperation. The article also presents key findings from a BUSINESSEUROPE report on national screening and the establishment of points of single contact. It concludes with an examination of electronic procedures and the freedom to provide services.

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Services Directive: state of play in national transposition Carlos Almaraz Deputy Director

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  1. Services Directive: state of play in national transposition Carlos Almaraz Deputy Director Legal Affairs and Internal Market Departments

  2. Importance of services • In Europe: 70% GDP, 68% employment, 96% new jobs and 30% exports • In Iceland: 68.5% GDP, 76% employment • In US: 79% GDP, 78% employment Carlos Almaraz 28 November 2008

  3. Not yet a real single market • Services: only 20% intra-EU trade • Why? Too many barriers • divergent national, regional and local laws • administrative obstacles: quantitative restrictions, registration requirements, aptitude/economic tests • lack of confidence between Member States and protectionist tendencies • SMEs prevented from taking advantage of the Single Market Carlos Almaraz 28 November 2008

  4. Services Directive • Adopted on 27 December 2006 • Transposition deadline: 28 December 2009 • Internal Market instrument intended to remove barriers to establishment and cross-border provision of services • Horizontal approach as opposed to sector- by-sector harmonisation Carlos Almaraz 28 November 2008

  5. Expected benefits of the Directive • Simpler and more common rules: • revision of national rules and procedures • notification on national requirements • Less red tape and bureaucracy: • point(s) of single contact, better information and easier formalities • electronic procedures • Administrative cooperation: • trust and assistance between authorities Carlos Almaraz 28 November 2008

  6. BUSINESSEUROPE report • Based on information from BUSINESSEUROPE national federations • Covers all EU Member States, excluding Romania and Latvia, plus Iceland and Norway (EEA countries) • Replies weighted by gross value added by national services sectors • Facts may change as national transposition continues Carlos Almaraz 28 November 2008

  7. National Screening Member States: • to review and simplify existing rules and procedures relating to services covered • to report on existing service requirements on establishment and free movement of services • to remove unjustified restrictions and keep requirements only if non-discriminatory, proportionate and justified by overriding reasons of public interest Carlos Almaraz 28 November 2008

  8. BUSINESSEUROPE key findings • All countries have started screening but progress is often slow and fragmented • Lack of information and adequate stakeholder consultation from national authorities • Less administrative burden expected in 17 countries (54% of services market) • In 8 countries (26%) no substantial changes are expected Carlos Almaraz 28 November 2008

  9. Point(s) of single contact • Member States to set up a single contact where service providers and recipients can: • obtain relevant information • complete necessary formalities • Point(s) must be also accessible to providers and recipients from other Member States • Member States free to decide who carries out tasks of point(s) of single contact • Bureaucracy, time and costs should be reduced Carlos Almaraz 28 November 2008

  10. BUSINESSEUROPE key findings • No one-size-fits-all model of point of single contact, various models under consideration • 19 countries (60% of services market) plan combination of electronic and physical points • 10 countries (29%) envisage more than one point of single contact • In 23 countries (86%), points will fulfil the two tasks (in Ireland, only for information) Carlos Almaraz 28 November 2008

  11. Electronic procedures • Access to information and completion of formalities must be possible at distance, by electronic means • Smooth operation and compatibility of electronic procedures must be possible at national and EU level • Development of e-government, cross-border and national interoperability of electronic tools and procedures play paramount role: • for facilitation of establishment • for provision of services Carlos Almaraz 28 November 2008

  12. BUSINESSEUROPE key findings • In 14 countries (45% of services market) governments’ efforts on e-procedures are insufficient • Disparate national approaches for e-signatures, e-certificates and authentication • General concerns about difficulties of ensuring interoperability of e-procedures • 15 countries (38%) to use English in addition to official national language(s) Carlos Almaraz 28 November 2008

  13. Freedom to provide services • Legal certainty and removal of obstacles to cross-border provision of services at heart of directive • Member States are able to impose national requirements on foreign service providers if certain strict conditions are met • By 28 December 2009, Member States to report to Commission on national requirements applicable to foreign service providers with justifications Carlos Almaraz 28 November 2008

  14. BUSINESSEUROPE key findings • 22 countries (85% of services market) to transpose via new horizontal law with amendments to relevant sectoral laws • All federations believe notification obligations by national governments are important or very important for legal certainty • Many federations believe too much room for interpretation of article 16 is left to Member States and expect frequent recourse to ECJ Carlos Almaraz 28 November 2008

  15. Better regulation • Key for competitiveness and confidence in Single Market • Legislation must be simple, clear and cost-effective, and reduce administrative burden • It means: • meeting transposition deadlines • impact assessment • consultation of representative stakeholders • use of adequate and accurate evidence/data Carlos Almaraz 28 November 2008

  16. BUSINESSEUROPE key findings • Dialogue with private sector generally satisfactory except in Greece, Norway, Portugal, Slovakia and Slovenia • 17 countries (65% of services market) are expected to meet transposition deadline • In 9 countries (33%), risk of partial delays in: • implementation of electronic procedures • point(s) of single contact • cooperation between public authorities Carlos Almaraz 28 November 2008

  17. Priorities for action by Member States 1. Increase efforts to accomplish high quality, uniform and timely transposition 2. National screenings to be speeded up and lead to simplification and modernisation of existing national rules Carlos Almaraz 28 November 2008

  18. Priorities for action • Point(s) of single contact to be equipped and staffed to fulfil provision of relevant information and completion of formalities 4. Electronic procedures and interoperability to be developed: • Use of foreign languages, particularly English to be promoted Carlos Almaraz 28 November 2008

  19. Priorities for action 5. EU-wide public registry to be created with information on national transposition • E.g. website in all EU languages 6. Consultation with representative stakeholders, including leading national business federations to be strengthened Carlos Almaraz 28 November 2008

  20. Priorities for action 7. National governments to organise broad communication campaign with assistance of Commission to explain opportunities created by directive Carlos Almaraz 28 November 2008

  21. BUSINESSEUROPE message Thank you for your attention! Information on the Services Directive is available at: www.businesseurope.eu Carlos Almaraz 28 November 2008

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