The reservations expressed about the particularly sensitive issue of the “services” package, presented on Tuesday 10 January by the European Commission oscillated between outright rejection and lukewarm approval.
The package seeks to enhance internal market integration in the services arena (see EUROPE 11700). Since its announcement as part of the digital single strategy (see EUROPE 11420) many fears and concerns have been expressed by both business leaders and trade unions (see EUROPE 11699). These feelings were not exactly dismissed with the European Commission’s announcement, despite the many guarantees provided by the latter.
This is particularly the case for the construction sector, which is primarily concerned by the introduction of the European Services e-Card (ESC). Riccardo Viaggi, the Secretary General of the European Builders Confederation (EBC), which represents SMEs in the sector, informed us that, “We never called for this kind of mechanism and we are opposed to it”. He believes that the Commission wants to apply a model that does not correspond to the needs of the sector. He also informed us that the ESC is adapted to services whose production is already at an established level but not for mobile products, which is the antithesis of what is happening in the construction sector whose activities are essentially locally based, particularly for SMEs and which are rarely at a cross border level. Mr Viaggi added that “less scrupulous companies” would be able to take advantage of this card to propose local services, whilst practicing social dumping. This concern is also shared by the European Trade Union Confederation (ETUC).
The employers’ organisation, BusinessEurope, welcomed the Commission proposal but considers that work still needs to be done on the services card. The organisation’s director-general, Markus J. Beyrer, said that they needed the card to provide genuine added value for the services sector, “by making things simpler for business”. He also warned that “this new approach will not work” and highlighted the fact that regulatory barriers had to be scrapped as much as possible.
Eurochambres represents the chambers of commerce and industry and it expressed a similar view. It gave the initiative “a conditional thumbs up” but is concerned by the lack of commitment provided by member states to open up the borders. This organisation believes that the card would not be necessary if the member states had respected their commitments. Similarly to BusinessEurope, Eurochambres also considers that they need to get to “the roots of the problem”, namely, regulatory barriers.
Insurance Europe, represents the insurance industry at a European level and also expressed a number of reservations. It believes that the Commission’s starting point is incorrect because the majority of insurance companies already propose services in other markets in addition to their own. They have concerns that these new proposals will be yet more pointless and cumbersome red tape.
Eurocommerce represents retailers and wholesalers and appears to be the only organisation giving the Commission proposal unmitigated support. This organisation is particularly pleased that the proposal calls on the member states to provide notification of draft laws in the services field before they are adopted. (Original version in French by Pascal Hansens)