A new survey by Eurochambres of its member chambers of commerce indicates that only nine out of the 27 EU member states have so far complied fully with the Services Directive. Implementation in the remaining 18 countries is either “average” or downright “unsatisfactory,” according to the association. The deadline for implementation was 28 December 2009. The survey points to shortcomings concerning both legislative screening (of whether existing national regulations constitute barriers) and slow establishment of key points of single contact (PSCs) to facilitate entry of non-national companies on home markets.

INFRINGEMENT PROCEDURES

Speaking at the presentation of the Eurochambres report, an official promised that the European Commission will put pressure on member states, including infringement procedures “when required”. “We are not going to shy away,” said the official. The Commission also hopes that further pressure will come from member states in the Council itself. Both the Ecofin, in February, and the Competitiveness Council, in March, will examine the issue of implementation of the Services Directive. On 27 April, the European Parliament, too, will meet with national parliaments to discuss the legal and technical challenges of implementation. “Political engagement by member states is key to implementation of the directive,” noted Malcolm Harbour (ECR, UK).

Implementation problems had been signalled before. In an exclusive interview with Europolitics,Evelyne Gebhardt (S&D, Germany) accused member states of “not doing what they should” to ensure timely implementation (see Europolitics3862). Gebhart, the Parliament’s rapporteur in 2005 and 2006, also accused some member states of misusing the process of implementation to push through further liberalisation and deregulation.

The previous six-monthly Eurochambres survey, published in July 2009, also indicated significant worries as to the member states’ ability and willingness to comply. Then some 40% of the European national chambers of commerce surveyed did not think their country will have fully implemented the directive by the deadline. As with the current survey, difficulties identified by Eurochambres included incomplete legislative screening in many countries and late operational implementation of PSCs.

FAULTY SCREENING PROCESS

In terms of legislation, the Eurochambres report further notes that around half of the member states have not yet finalised the so-called screening process. Even in countries that have formally completed the process, implementing laws have not yet been adopted due to legal or political reasons. Harbour stresses the positive side. “A number of pieces of legislation have been amended or repealed due to the directive,” he said. “The Services Directive and its impact has been significantly under-rated in its effect on improving the overall business climate,” he added.

Nonetheless, Eurochambres also points to failings due to the unsatisfactory establishment of PSCs to aid non-national companies seeking to enter foreign markets. The report notes that in about a quarter of member states, the basic preparations for PSC set-up have not yet been completed. Half of the national PSCs also suffer due to solely providing information in the national language(s). The Commission, too, is a wary, noting that, whilst 21 member states have set up PSCs, only 14 allow for full completion of registration procedures. A Commission official, admitting difficulties due to electronic signatures and e-documents, points out that the purpose is not simply to provide information but also allow for registration and other administrative procedures.

“Some member states did not use the three-year implementation period properly,” argues Eurochambres’ Secretary-General Arnaldo Abruzzini. “We now expect the European Commission to take the appropriate steps vis-à-vis those countries which are lagging behind.”

The survey is available at www.europolitics.info > Search = 265630

Background

Services represent around 70% of the EU’s GDP and total employment. Nonetheless, the sector lags behind goods in terms of market integration. Despite this, it took almost two years of wrangling for Parliament and the Council to finally adopt the Services Directive (2006/123/EC), in November 2006. This followed a first draft presented by then Commissioner Frits Bolkestein, in January 2004. The directive aims to remove barriers to the cross-border provision (and establishment) of a very wide range of services, from gardening and catering to construction, real estate and even private nannies. It also establishes simpler procedures and formalities for service providers. A number of sectors are explicitly excluded, such as financial services, transport, health care, temporary work agencies, private security, audiovisual, gambling, notaries and bailiffs, as well as certain social state or charity services.

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