Brussels, 29/02/2016 (Agence Europe) - The question of how to apply the country of origin and progress with the issue of the European passport for services occupied most of the morning discussions between the Ministers for the Economy and Industry meeting up at the Competitiveness Council in Brussels on Monday 29 February.
This draft legislative initiative is part of the single market strategy (see EUROPE 11417). According to the Commission, the main barrier to expanding services beyond national borders involves access to reliable information about what rules apply. The Commission is therefore planning to introduce a legislative initiative that will help service providers operate outside the countries of origin, by publishing a single online document that proves their compliance with the conditions applicable to them in the host country where they intend to operate. The roles and responsibilities incumbent on the country of origin and host country still need to be worked out.
During the meeting, France and Germany expressed concern about the principle of the application of country of origin, which would allow services to use tax and social conditions applicable in the country of origin and which were more favourable than those in the host country, explained one source close to the dossier. This point had already been raised during the previous informal Competitiveness Council (see EUROPE 11477) and resonates with the heated debates held on the subject of posted workers. The Commission will, however, attempt to provide reassurances and has intimated the existence of provisions in this connection.
Attention subsequently mainly focused on paragraph 12 of the Council conclusions (initially paragraph 11 in the provisional conclusions). The member states have significantly watered down the provisional conclusions and now intend to include a possible extension to other sectors once the Commission's thoroughgoing evaluation is concluded, but no deadline has as yet been set out. In this paragraph, there is no mention in the conclusions of the construction and business services sectors, despite them being explicitly targeted in the European Commission strategy.
Finally, the majority of member states insisted on the need for this initiative to avoid increasing red tape for business and service providers or create new regulatory restrictions. The United Kingdom emphasised the need to apply existing legislation. London also insisted on strengthening the principle of mutual recognition.
The project outlines still remain vague and the European Commission is expected to carry out a public consultation at the beginning of spring, as well as an impact study in the next few months, in addition to presenting an initiative by the end of the year. Debates will therefore be able to move forward. (Original version in French by Pascal Hansens)