Looking at the texts. The proposal aimed at liberalising services in the Union, the so-called "Bolkestein Directive" after the Commissioner entrusted with the dossier, has raised a few eyebrows (see this column yesterday). Let's go back and look at the texts. The proposal, approved by the Commission on 13 January this year (and summarised in our bulletin of 14 January) had been preceded, in July 2002, by a detailed report on the situation and by broad consultation. Our title summarised the aim of the objective: Removing the many obstacles to achieve a real single market for services. The same day, Mr Bolkestein had explained that his scheme could be the strongest impetus given to the internal market since its creation in 1993. At the same time, he stressed the progressive nature of the approach. Some "unwieldy and archaic national restrictions", which are harmful not only for citizens but also for enterprise (which needs efficient services to achieve the Lisbon goals), must disappear. The directive, however, takes account of the characteristics of the different service categories. Some barriers can be dismantled rapidly, while an assessment, consultation and harmonisation process will be launched for others, "allowing progressive and coordinated modernisation of the national regulatory systems". A real internal market for services is not foreseen before 2010. The result, Mr Bolkestein says, will be better growth and expansion of job creation, thanks to the suppression of "discriminatory requirements based on nationality" as well as complex, long and costly authorisation and approval procedures.
I recalled in this column yesterday that the general objective, including the timetable, was approved by the Brussels Summit on 25 and 26 March this year. This had logically led to the Irish Council Presidency making the project a priority, and six meetings at expert level had preceded the ministerial sittings that were to discuss the matter. A note from the Presidency stressed that the services targeted represent nearly 50% of the Union's economic activity and that the result expected by encouraging cross-border economic activity and stimulating competition was to improve the quality of services and bring prices down in favour of consumers and user businesses.
Major problems to be resolved. The expert meetings had allowed it to be noted that, if the aims of the proposal were shared by all Member States, major issues were to be resolved in order to strike a good balance between the interests at stake, with issues concerning above all: a) the "principle of country of origin" regarding applicable legislation; b) the scope of exclusions and derogations to liberalisation; c) the covering of healthcare costs in another Member State; d) posting of workers in the context of cross-border service provision; and e) the implementation of administrative simplification measures such as one- stop-shops and electronic procedures.
These issues to be addressed cover all practical aspects of the project. One might say in order to simplify that, in practice, nothing has been settled. The 18 May press release on the results of the Competitiveness Council is, moreover, clear. It stresses the "complex and sensitive nature of certain issues raised by the proposal", adding that "no debate has been foreseen in Council at this stage". In the meantime, there has been an explosion of differences, going beyond the muffled atmosphere of Council meetings and causing many different stances to be taken. I took only a quick glimpse at them yesterday. The "healthcare" aspect, involving the right for those in need to be cared for in a country other than their own at the cost of the social security of the country of origin, raises the question of prior authorisation and the maintaining in each Member State of a high level of benefits. The "posted worker" aspect in the country where a service is carried out, with application of the system in the country of origin, has caused fear of social dumping. Mr Bolkestein's spokesperson, however, denied that this danger exists, stressing that the project keeps acquis communautaire in force as far as respect for European norms on working conditions and minimum wage are concerned in the country where the workers are posted (Directive 96/71/EC). The "derogation and exclusion" aspect is essential. Transport, financial services and electronic communications are ruled out of the project, which also provides for the possibility for a State to apply national rules to foreign firms concerning postal services, electricity, gas and water provision. But some Member States call for other explicit exclusions (education, health) and had raised additional questions concerning the audiovisual sector and even gambling and lotteries.
The most reticent country of all is Belgium (which devoted a governmental meeting to the issue, and whose mayors see the project as an attack on municipal autonomy), followed by France.
Clarification and appeasement is therefore necessary. The next Parliament and the next European Commission (of which Mr Bolkestein will be part) will deal with it.
(F.R.)