Making the Services Directive Work

Dublin 6 March 2014

Services Directive and why it matters

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

6/04/2014 2

Services Directive

Horizontal “framework” Directive: covers all service activities unless they are explicitly excluded: e.g.1.- commerce and retailing, 2.- construction and crafts, 3.- business- related services (consultancy, advertising etc.), 4.- most regulated professions, 5.- tourism, etc.

Complements the existing EU “acquis”: specific provisions of EU law prevail in case of conflict

6/04/2014 3

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

6/04/2014 4

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

6/04/2014 5

Economic importance of the sectors

Services covered under the Services Directive: 45% of EU GDP

6/04/2014

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

6/04/2014

04/19/23 8

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)

6/04/2014 9

Implementation until 2009 and in the future

To implement the Services Directive correctly:need to know what is existing and what needs to be done/amended, i.e. need to SCREEN the existing legislation, covered by the Services Directive

-Initially linked also to the obligation to report to COM (art 39) for specific requirements.-May need several iterations.

6/04/2014 10

Notifications via Internal Marekt Information System (IMI)

For any new legislation: obligation to notify the COM and other MS requirements falling under:

• Art 15 (establishement requirements to be assessed)

• Art 16 (requirements imposed on cross-border service provision)

• Disproportionnate barriers to business and to trade?

Recommended to notify draft regulations to ease changes if needed.

6/04/2014 11

Point of Single Contact (PSC)

Administrative simplification (Art. 5): MS need to examine and simplify their existingprocedures and formalities In principle, authorities should not ask for:

• Original documents• Certified copies of documents• Certified translations

6/04/2014 12

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

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

6/04/2014

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

6/04/2014

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

6/04/2014

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)

6/04/2014

19/04/23

19/04/23

19/04/23

19/04/23

19/04/23

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

6/04/2014

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

6/04/2014

Thank you for your attention!