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					                   Phare Business Support Programme III
                           of the European Union
                            UEAPME - SME FIT II




Provision of Services within the EU




 This project is funded by the European Union under the Phare Business Support Programme and
 implemented by UEAPME and its partners. The content of this document does not necessarily reflect the
 opinion of the European Commission.
                       Agenda



   Economic importance of services
   Objectives and content of the Services Directive
   Added Value?
   Transitional Arrangements
    Economic Importance of Services


 70% of GDP and employment within EU

 68,6 % of GDP and 76,6% of employment in Austria

 Some 60% of GDP and 53% of employment in Bulgaria

 Services account only for 20% of Intra-Community Trade
Services Directive
                      Objectives


 Establish a genuine Internal Market in Services

 Legal Security

 Economic Growth and Job Creation

 No liberalisation of SGEI, no privatisation of public
  entities
                                Scope I

   “All” services covered

   Directive does not cover:
    Non-economic services of general interest, financial services,
    electronic communications services, transport services, temporary
    work agencies, healthcare services, audiovisual services, gambling,
    official authority, social services, private security services, notaries,
    taxation
                           Scope II


   Private International Law unchanged

   Labour Law (Posting of Workers Directive) unchanged

   Recognition of professional qualifications unchanged
  Recognition of Professional Qualifications



 Directive 2005/36/EC came into force on 20 October
  2007

 Requirements if profession is regulated in host MS

 Different requirements for
    Service provision (temporary and occasional)
    Establishment (permanent business)
  Recognition of Professional Qualifications



 Service Provision:
    profession regulated in home MS: immediate service
     provision

    profession not regulated in home MS: 2 years
     experience during precedent 10 years

    public health and safety implications: additional
     checks/requirements possible
  Recognition of Professional Qualifications



 Establishment:
   General system: mutual recognition of diplomas,
    certificates, attestations; aptitude tests and
    adaptation periods possible
   Recognition of experience: most crafts and trade
    professions covered; proof of experience and training
    leads to recognition
   Specific automatic recognition: medical professions
          Administrative Simplification


 Simplification of procedures

 Points of single contact
      Right to information
    Complete all procedures /formalities needed

 Procedures by electronic means
                 Freedom of establishment

   Permanent change to other MS
   Authorisation may be required, if:
       Non discriminatory, necessary, proportionate
       Transparent and predictable criteria and procedures
       No duplication of requirements
   Prohibited requirements
       e.g. Nationality, residence, economic test
   Requirements to be evaluated
       e.g. Quantitative/territorial restrictions, minimum number of
        employees, fixed minimum and/or maximum tariffs
            Free movement of services

 Temporary and occasional work in other MS
 Country of origin principle changed into „principle of non
  obstruction“
 Requirements only if
      Non-discrimination
      Necessity (public policy/security/health, environment)
      Proportionality
      Safeguard clause
 Black list (e.g. establishment, authorisation, ban on
  infrastructure, equipment)
 Screening
             Limited Harmonisation


 Information obligations on providers (name, contact
  details, authorisation, after-sales guarantee,
  price/main features of the service,…)

 Professional liability insurance and guarantees

 Measures to promote service quality (certification,
  quality charter, standards, settlement of disputes)
         Administrative cooperation


 Obligation to cooperate

 Information exchange and mutual assistance

 Supervision by MS best placed

 Internal Market Information System
                The Directive is …


 No revolution
   Social, labour, environmental standards
     maintained and quality secured

 Value Added – less bureaucracy, less barriers, more
  legal security

 Unsolved
   Enforcement of administrative decisions
   Control measures for posted workers
        Transitional arrangements for services


   Specific “safeguard clause” for Austria and Germany
   Restrictions may stay in force up to 7 years („2+3+2 arrangement“)
   Freedom to provide services involving movement of workers may be
    restricted in specific sectors.
   Sectors concerned:
       Austria + Germany: Construction and related services, industrial cleaning
       Austria: Social work and home nursing, security activities,
        horticulture/gardening services, cutting, shaping and finishing of stone,
        manufacture of metal structures and parts of structures
       Germany: interior decorators
           Phare Business Support Programme III
                   of the European Union
                    UEAPME - SME FIT II




                 Thank you!
Markus Stock
Austrian Federal Economic Chamber
markus.stock@wko.at

				
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