Brussels, 31/07/2002 (Agence Europe) - Discriminatory administrative formalities, complex authorisation procedures or uncertain recognition of professional qualifications …. there are still many obstacles to the free provision of services in the European Union although the "internal market is supposed to have been completed ten years ago", the European Commission notes in a report on the situation of the internal market for services. It warns that, at this stage, it is obvious that the aim fixed by the European Council of Lisbon to make the European economy the world's most competitive economy cannot be reached without making fundamental changes to the working of the internal market for services in the near future. Now in its stride, the Commission announces that it plans to present, in 2003, a series of initiatives including a "global and horizontal" framework directive to overcome the main obstacles. It also intends to give priority to information and assistance to consumers and to businesses.
Adopted in the context of the strategy for the internal services market dated December 2000, the report draws up an inventory of the obstacles encountered by companies and consumers, on the basis of consultation or an inventory of the complaints. On the other hand, it does not, at this stage, seek to take a stance on whether each obstacle is justified or not. These obstacles affect the whole range of services: consultancy, real estate agencies, engineering, construction, distribution, tourism, leisure activities or transport. They appear at every stage of the commercial process, from when the business is created to the use of labour, and from advertising to after sales services. Giving examples but without citing the Member States concerned, the report lists the following obstacles:
Legal borders: Restrictions imposed for the establishment, use of material, promotion, distribution, sale and after sales. Among the restrictions regarding establishment, the Commission cites the example of a Member State where it is prohibited, it says, for real estate agencies to carry out other professional activities such as property management, financial advisory services or cleaning. Restrictions on the "use of inputs" mainly appear in social and tax legislation applicable to posted workers or technical norms. For example, national rules governing the transport of funds make the provision of this kind of service difficult between Member States, whereas with the introduction of the Euro, the banks could find it advantageous to get their supplies in other Member States.
Non-legal borders: cultural and legal obstacles and the lack of information on the regulatory environment (authorisation systems, identification of the competent authorities etc.) and on the principles of the internal market (laws on countering non-discriminatory measures, for example).
Common characteristics of legal borders: are specifically demonstrated through long and discretionary administrative practices or "regionalisation" of the borders. The report quotes the case of a Member State where the debt recovery activities are subject to a different authoritative body in each province, which means that covering national territory would require around 100 different approval procedures. The report also mentions the difficulties linked to the application of Community law, such as the divergences of interpretation of the notion of "protection of the general interest", written into the insurance directives.
Border costs: the report gives some examples of the costs: a chain of shops which had to employ a manager for 8 months (EUR 20,000) to adjust its sales strategy in one State where the group wanted to set up. SMEs and service users are the most affected by these borders. The report can be found on http: //http://www.europa.eu.int/comm/internal_market/fr/services/services/index.htm.