The Competitiveness Council of 25 May looked into the evaluation of the Services Directive, adopted in 2006, whose three-year implementation period expired on 28 December 2009. The Council took note of information communicated by the European Commission on the implementation of this directive, for which 20 of the 27 member states have adapted their respective national legislation.

The Commission recalls that in Austria, Cyprus and Luxembourg, transposition via the adaptation of horizontal legislation is still under debate at the parliament, and that in Ireland and Portugal this process remains uncompleted. In Germany, where the chosen option is to include the general principles of the directive in several texts, the work appears to have been completed, whereas it is still ongoing in France. The adaptation of existing legislative texts in order to ensure their compliance with the directive is the most complex part of the implementation: 12 member states have accomplished their amendments of sectoral legislation. A specific application of the Internal Market Information (IMI) system has been developed in order to allow member states to better organise the administrative cooperation to which 4,600 authorities are currently registered. Moreover, the EU executive underlined that urgent action was required in countries where one-stop-shops do not yet exist or remain insufficient (Greece, Italy, Romania, Slovakia and Slovenia).

PRESIDENCY REPORT

The Council also examined the Presidency’s report on the mutual evaluation process making it possible to list best practice in the area, establish dialogue with member states and prepare future orientations. Based on the results of the examination of national legislation carried out by member states during the implementation period, this evaluation will lead to a report by the Commission, to be submitted to the Council and the European Parliament by 28 December 2010. The Presidency stressed that it sees this process as an essential project able to include additional initiatives to further improve the functioning of the internal services market. It suggested that this process should be closely linked to the internal market’s horizontal policies, which are currently being developed, such as ‘Europe 2020’ and the follow-up of Mario Monti’s report. It also indicated that member states have invited the Commission to use this policy tool to envisage new measures in the area of services.

IMPORTANT STRUCTURAL REFORM

Spain’s Secretary of State for the EU, Diego López Garrido, defended the importance of developing as much as possible the opportunities offered by the single market, which he described as the EU’s “ jewel in the crown ” due to its strategic value in the expansion of the Union and for future growth. With a view to ensuring optimum development, it is important to combat protectionist measures and reduce the administrative burdens, which prevent it from functioning correctly. To this end, it is necessary to complete, as best as possible, transposition of the Services Directive which, according to López Garrido, is “one of the most important structural reforms in the history of the EU,” insofar as the services sector represents 60% of the entire EU economy and one third of jobs. He also recalled that this directive intends to put an end to the protectionist measures and administrative burdens further weighing down the services provided by enterprises within the Union. Additionally, he stressed that further encouragement must be provided in terms of transnational services.

During the meeting, the former Commissioner for the Internal Market and Financial Services, Michel Barnier, underlined that if the Services Directive were fully applied, it would represent between 1.3% and 1.5% of GDP in addition. Mario Monti, one of his predecessors in this position, presented the main elements of the report with which he has been entrusted in order to boost and develop the single market over the coming years.

The reports are available at www.europolitics.info > Search = 273006