Amended proposal for a Directive of the European Parliament and of the Council on services in the internal market
Date: 2006-04-04
Institutions: European Commission
Subjects: EC Directive, domestic market, freedom to provide services, provision of services, right of establishment, services contract

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.4.2006 
COM(2006) 160 final 

2004/0001 (COD) 

Amended proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on services in the internal market 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

The  Commission  presents  an  amended  proposal  for  a  Directive  of  the  European  Parliament 
and  of  the  Council  on  services  in  the  internal  market.  The  amended  proposal  incorporates 
those amendments proposed by the European Parliament in first reading which are acceptable 
to  the  Commission  as  well  as  many  of  the  clarifications  which  have  been  discussed  by  the 
Council. It also fully respects the European Council conclusions, stressing the need to make 
the internal market for services fully operational, while preserving the European social model.  

1. 

BACKGROUND 

The Commission adopted its proposal on 13 January 2004. It was formally transmitted to the 
European Parliament and to the Council on 6 February 2004. 

The  Committee  of  the  Regions  gave  its  opinion  on  29  September  2004  and  the  European 
Economic  and  Social  Committee  gave  its  opinion  on  9  February  2005.  The  European 
Parliament  adopted  a  legislative  resolution  at  its  first  reading  on  16  February  2006,  and 
proposed amendments to the Commission proposal. 

2. 

AIM OF THE COMMISSION PROPOSAL  

Improve the basis for economic growth and employment in the EU. The proposal is part 
of the process of economic reform launched by the Lisbon Strategy. As services account for 
the bulk of the EU economy, competitive services markets are essential for economic growth. 
At  present,  a  wide  range  of  Internal  Market  barriers  prevent  many  service  companies, 
especially SMEs, from growing across national borders and fully benefiting from the Internal 
Market.  This  also  undermines  the  global  competitiveness  not  only  of  EU  service  providers, 
but also of the EU manufacturing sector, which increasingly relies on high quality services. It 
also makes Europe a less attractive place for foreign investment. 

Achieve  a  genuine  Internal  Market  in  services  by  removing  legal  and  administrative 
barriers  to  the  development  of  service  activities.  Those  barriers  arise  both  when  service 
providers from one Member State wish to establish themselves in another Member State and 
when they wish to provide a service from their Member State of establishment  into  another 
Member State, for example by moving to the other Member State on a temporary basis. The 
proposal seeks to facilitate the exercise of these two fundamental freedoms enshrined in the 
EC Treaty – the freedom of establishment and the freedom to provide services- and to give 
service providers greater legal certainty. 

Strengthen the rights of consumers as users of services. The consumer demand for cross-
border services is not being met due to considerable legal and administrative difficulties and a 
lack  of  information  on,  and  of  trust  and  confidence  in,  services  from  other  Member  States. 
The  proposal  will  address  these  problems  by  imposing  obligations  on  Member  States  to 
remove  restrictions  on  the  use  of  cross-border  services,  by  applying  the  principle  of  non-
discrimination and by requiring greater transparency and information from services providers.  

Establish  legally-binding  obligations  for  effective  administrative  co-operation  between 
Member  States.  Efficient  and  well-functioning  administrative  co-operation  is  essential  to 
making  the  Internal  Market  work  properly.  Regulatory  authorities  in  Member  States  have 
little knowledge of, and therefore little trust in, the legal framework and supervision in other 
Member States. This results in duplication of rules and controls for cross-border activities and 

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can  also  be  used  by  rogue  traders  to  avoid  supervision  or  to  circumvent  applicable  national 
rules, with the consequent risk for users of services. The proposal establishes legal obligations 
of  information  exchange  and  mutual  assistance  between  Member  States,  underpinned  by  an 
effectively-functioning electronic information system which will allow competent authorities 
to easily identify their relevant interlocutors in other Member States and to communicate with 
one another. 

3. 

OPINION OF THE COMMISSION ON THE EUROPEAN PARLIAMENT'S AMENDMENTS  

3.1. 

Scope of application and other general provisions (Articles 1-4) 

Services of General Interest. Amendments 13, 44, parts of 72 and 289, relating to Articles 
1 and 2 and corresponding recitals, make clear that Services of General Economic Interest 
are  included  in  the  scope  of  application  of  the  Directive,  but  that  the  Directive  does  not 
provide  for  their  liberalisation  or  for  the  privatisation  of  public  entities  providing  such 
services,  nor  does  it  deal  with  their  funding  or  with  state  aids.  Amendment  73  clarifies  in 
Article  2  that  Services  of  General  Interest  fall  outside  the  scope  of  the  Directive.  The 
Commission agrees with amendments 44, relevant parts of 72 and 289. The Commission also 
accepts  amendments  13  and  73,  however,  it  slightly  redrafts  the  text  of  amendment  73 
(Article 2) as well as the text of amendment 13 (new Recital 7a) explaining that –subject to 
explicit exclusions of certain specific sectors – Services of General Economic Interest fall 
within  the  scope  of  application  of  the  Directive  because  these  services  are  of  an  economic 
nature.  

Healthcare services. Amendment 78 excludes from the scope of application both private and 
public healthcare services, adding the corresponding modification in Article 2. Amendment 
304 specifies in Recital 10c that this exclusion covers healthcare and pharmaceutical services 
provided by regulated health professionals to patients to assess, maintain or restore their state 
of health. Amendments 233/403 explain in Article 1 that the Directive does not affect public 
healthcare  services  or  access  to  public  funding  by  healthcare  providers.  Amendment  305 
adds a new Recital 10d explaining that the Directive does not affect the reimbursement of the 
costs  of  healthcare  provided  in  another  Member  State  and  stresses  that  this  issue  should  be 
addressed  in  another  legal  instrument  in  order  to  achieve  greater  legal  certainty  and  clarity. 
The  Commission  accepts  the  exclusion  of  healthcare  services  from  the  scope  of  application 
and  confirms  its  commitment  to  come  forward  with  a  specific  initiative  on  health  services. 
Therefore,  amendments  78,  304  and  305  are  accepted.  Amendments  233/403  on  public 
healthcare have become obsolete due to the overlapping with the definition in Article 2.  

Social  services.  Amendment  292,  states,  in  Article  1,  that  the  Directive  does  not  affect 
services  pursuing  social  welfare  objectives  and  amendment  252,  relating  to  Article  2, 
excludes  social  services  such  as  social  housing  services,  childcare  and  family  services  from 
the  scope  of  the  Directive.  Amendments  294  and  296  provide  for  two  new  recitals  which 
explain the nature of social services and, in particular, of social housing, childcare and support 
to families. Amendment 295 introduces a recital which specifies that the Directive does not 
deal with the funding of, or aids linked to, social housing or with the criteria or conditions set 
by Member States for social housing services. Furthermore, amendment 10 adds, in another 
recital, that the Directive does not concern requirements governing access to public funds, for 
example  for  social  services.  The  Commission  is  of  the  opinion  that  any  exclusion  from  the 
Directive  must  be  clearly  defined  so  as  to  ensure  increased  legal  certainty  and  to  avoid 
diverging  interpretations  in  Member  States.  Accordingly,  the  Commission  redrafts  the 

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definition  of  amendment  252  (Article  2)  and  merges  amendments  294  and  296  in  a  new 
Recital  10h,  in  order  to  specify  that  the  exclusion  from  the  Directive  concerns  those  social 
services  relating  to  social  housing,  childcare  and  support  to  families  and  persons  in  need 
which, because of their interest for society, are either provided by the State, or by providers 
mandated by the State, with the objective of ensuring support to those who are in a particular 
state of need. It follows that amendment 292 becomes redundant. The text of amendment 295 
is redrafted to clarify that it concerns social services in general and not only social housing. 
Amendment 10 is accepted in its entirety. Amendment 232 highlights the specific social role 
of  non-profit  sport  activities.  It  is  accepted  and  inserted  in  new  Recital  16a,  subject  to 
redrafting to ensure the legal coherence of the text. 

Other sectorial exclusions and full exclusion of taxation. Amendments 300 and 302/332 
concern Article 2 and exclude respectively temporary work agencies and security services 
from the scope of the Directive. Corresponding recitals, added by amendments 301 and 303, 
underline that the rules applicable to these sectors should be fully harmonised. Amendment 
77 excludes legal services to the extent they are governed by other Community instruments. 
Amendment  79,  80  and  81,  relating  to  Article  2,  and  amendments  16,  17  and  18,  on  the 
corresponding  recitals,  exclude  from  the  scope  of  application  audiovisual  services  - 
regardless  of  their  mode  of  production,  distribution  and  transmission-  gambling  activities, 
and professions connected with the exercise of official authority, notaries in particular. The 
Commission  accepts  the  exclusion  of  services  of  temporary  work  agencies  and  private 
security  services  provided  by  amendments  300  and  302/333.  However,  the  need  for  full 
harmonisation for temporary work agencies and security services has not been proved and, as 
a  consequence,  amendments  301  and  303  cannot  be  accepted.  The  Commission  does  not 
accept amendment 77 on the exclusion of legal services; this is not required given that Article 
3  already  provides  that  in  case  of  conflict  between  the  provisions  of  the  Services  Directive 
and a provision of another Community instrument governing specific aspects of the services 
activity  the  provision  of  the  latter  will  prevail.  With  regard  to  audiovisual  services,  the 
Commission accepts the exclusion provided by amendment 79 and has redrafted amendment 
19  (new  Recital  10e)  to  align  it  with  the  amendment  to  the  article  and  to  clarify  that  the 
Directive  does  not  apply  to  aids  granted  in  the  audiovisual  sector  which  are  covered  by 
Community  rules  on  competition.  The  Commission  also  accepts  in  spirit  the  exclusion  of 
gambling services but redrafts the texts of amendments 17 and 80 in order to limit it clearly to 
gambling  activities  as  such  .  The  Commission  accepts  only  in  part  amendments  18  and  81, 
regarding professions connected with the exercise of official authority and brings the wording 
of the exclusion into line with the precise limits set out by Article 45 of the EC Treaty, which 
provides  for  a  derogation  from  the  freedom  of  establishment  and  the  freedom  to  provide 
services for specific activities which involve direct and specific participation in the exercise of 
official authority, and not for whole professions as such.  

The  Commission  accepts  the  full  exclusion  of  taxation  provided  by  amendments  82,  on 
Article 2, and amendment 19 (Recital 11).  

Amendments  14,  15,  20,  74,  75  and  306  concern  sectorial  exclusions  (in  Article  2  and 
correspondent  recitals)  originally  proposed  as  regards  financial  services,  electronic 
communication  services  and  transport  services  but  provide  additional  clarification.  The 
Commission  can  accept  amendments  14,  15,  20,  74  and  306  in  their  entirety  or  subject  to 
redrafting to ensure the legal coherence of the text (see Article 2 and Recitals 9, new 10a, new 
10b),  but  cannot  accept  Amendment  75,  because  Recital  10a  already  contains  the  relevant 
explanation on telecommunications services. 

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Specific areas of law. Amendment 298 clarifies in article 1, the relationship of the Directive 
with  fundamental  rights  as  recognised  in  the  Member  States  and  by  the  Charter  of 
Fundamental  Rights,  and  amendment  299  introduces  a  new  recital  stipulating  that  the 
Directive  should  be  interpreted  in  such  a  way  as  to  reconcile  the  exercise  of  fundamental 
rights  with  the  fundamental  freedoms  laid  down  in  Articles  43  and  49  of  the  Treaty. 
Amendment  8  clarifies  that  the  Directive  fully  respects  Community  initiatives  based  on 
Article 137 of the Treaty concerning the promotion of employment and improved living and 
working conditions. Amendment 297, relating to Article 1, and amendment 9, relating to the 
corresponding recital, state that the Directive shall not apply to or affect labour law i.e. any 
legal  or  contractual  provision  concerning  employment  conditions,  working  conditions, 
including health and safety at work, and the relationship between employers and workers, and 
that it shall fully respect the relations between social partners including the right to industrial 
action  and  not  affect  social  security  legislation  of  the  Member  States.  Amendments  290, 
relating  to  Article  1,  and  291  (recital)  state  that  the  Directive  should  not  affect  rules  of 
criminal law. Amendments 7 and part of amendment 72 clarify, both in a recital and in the 
text  of  Article  1,  that  the  Directive  does  not  affect  measures  taken  by  Member  States,  in 
accordance with Community law, in relation to the protection or promotion of cultural and 
linguistic  diversity  and  media  pluralism.  The  Commission  accepts,  in  relation  to 
fundamental rights issues, amendment 298, subject to redrafting to ensure the legal coherence 
of  the  text,  and  amendment  299,  in  its  entirety.  Concerning  labour  law,  the  Commission 
agrees that the Directive does not affect labour law as set out in Amendment 297, including 
the right to take industrial action as well as Member States' social security law. However, in 
order  to  ensure  the  legal  coherence  of  the  text  and  to  improve  clarity  and  ease  of 
understanding,  the  Commission  streamlines  the  texts  of  Amendments  297  and  298  so  that 
labour  law  is  addressed  by  Article  1,  paragraph  6  and  the  issue  of  fundamental  rights 
including  rights  regarding  collective  agreements  by  Article  1,  paragraph  7.  With  regard  to 
criminal  law,  the  Commission  accepts  amendment  290  stating  that  the  Directive  does  not 
affect  criminal  law  provisions,  as  well  as  amendment  291  (new  recital  6e)  subject  to 
redrafting  in  order  to  further  clarify  that  criminal  law  rules  should  not  be  misused  to 
circumvent  the  rules  laid  down  in  the  Directive.  Concerning  protection  or  promotion  of 
cultural and linguistic diversity and media pluralism, the Commission accepts amendment 7 in 
its entirety and redrafts the relevant part of amendment 72 to ensure the legal coherence of the 
text. Finally, the Commission accepts in its entirety Amendment 8 (new Recital 6f).  

Relationship of the Directive with other provisions of Community law. Amendments 83 
and 21 address this issue, in Article 3 and corresponding Recital 13. The Commission accepts 
further  clarification  contained  in  Amendment  83  that  the  Directive  does  not  override  other 
Community instruments and that in the event of a conflict with other Community instruments 
governing specific aspects  of access to and exercise of a services activity, the provisions of 
those specific aspects in such instruments shall prevail. In order to ensure overall consistency 
of the text and to bring the work of the European Parliament and the Council closer together, 
the  Commission  has  added  additional  clarifications  (Recitals  13a  and  13b).  In  addition, 
amendments 307 and 219 (merged with amendment 83) states that this Directive is without 
prejudice  to  private  international  law,  in  particular,  private  international  law  governing 
contractual  and  non-contractual  obligations,  and  explain  the  effect  for  consumer  protection 
rules.  The  Commission  accepts  amendment  307  and  amendment  219  subject  to  minor 
redrafting to make the reference to consumer protection legally sound.  

Definitions  (Article  4).  Amendments  23  to  26,  39,  84  to  90,  308,  92  to  98  relate  to  the 
definitions of the terms contained in the text of the Directive (see Article 4 and corresponding 

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recitals). The Commission accepts amendments 25-26, 93-94 and 97-98 in their entirety and 
amendments  23-24  subject  to  minor  redrafting  and  merging  them.  In  addition,  the 
Commission accepts amendments 39, 84, 88 to 90, 95 and 308, in principle, but has redrafted 
them in order to make the text consistent with the Community acquis or with the scope of the 
Directive. However, the Commission cannot accept amendments 85 and 86. Amendment 96, 
on  the  definition  of  "worker",  is  also  redundant  in  relation  to  the  re-defined  scope  of 
application  and  is  not  accepted.  Amendment  92,  with  regard  to  the  notion  of  "competent 
authorities", and amendment 87, on the notion of "provider" are not accepted for reasons of 
clarity and coherence of the text with the Community acquis. Finally the Commission cannot 
accept amendment 22, deleting the exemplificative list of services covered by the Directive 
contained in Recital 14. This recital is useful to clarify the Directive and it is thus reinstated, 
with minor drafting modifications to reflect the new scope of application. In addition, in order 
to  draw  on  the  useful  additional  clarification  provided  by  the  Council,  the  Commission  has 
completed Recital 18a (amendment 25) and Recital 20a and added new Recital 18b. 

The Commission accepts in their entirety or subject to minor redrafting, amendments 1 to 3, 
5, 6, 11, which relate to recitals describing the general objectives of the Directive, and its non 
interference  with  the  internal  allocation  of  powers  within  the  Member  States,  but  cannot 
accept amendment 4. 

3.2. 

Administrative simplification (Articles 5-8)  

Simplification  of  procedures  (Article  5).  Amendment  99  transforms  section  1  of  the 
Chapter  on  the  right  of  establishment  for  service  providers  in  a  distinct  new  Chapter  on 
"Administrative  Simplification".  Amendment  27  clarifies  that  the  rules  relating  to 
administrative procedures do not aim at harmonising national administrative law, but rather at 
the  removal  of  overly  burdensome  elements  which  hinder  the  freedom  of  establishment. 
Amendment  100  states,  in  Article  5,  that  Member  States  shall  examine  (the  verb 
'authenticate' used in the amendment does not seem accurate) and if appropriate simplify the 
procedures  and  formalities  applicable  to  access  to,  and  exercise  of,  a  service  activity.  In 
addition,  it  introduces  an  obligation  for  Member  States,  "in  conjunction  with  the 
Commission",  to  introduce  harmonised  European  forms  (the  same  flows  from  amendment 
29) and adds a list of existing Community legislation to which Article 5(1a) and (2) shall not 
apply.  Amendment  100  also  explains  that  Member  States’  right  to  require  “non-certified" 
translations of documents in their official languages is not affected. Amendment 30 stresses 
that  formal  requirements,  such  as  presentation  of  original  documents  including  certified 
translations, cannot be imposed unless justified by an overriding reason relating to the public 
interest.  The  Commission  accepts  amendments  99,  27  and  29-30  in  their  entirety  and 
amendment 100 in principle, subject to redrafting necessary to make the text legally coherent 
and to draw on the work at the Council. In particular, the Commission text makes it clear that 
the  establishment  of  European  forms  will  be  carried  out  according  to  the  comitology 
procedure and adds a new Recital (22b) which suggests a number of parameters that Member 
States  may  take  into  account  while  examining  the  need  for  simplifying  procedures  and 
formalities. 

Points  of  single  contact  (Article  6).  Amendment  102  explains  that,  in  cases  where  a  pro 
forma registration is required, it must be available by electronic means at the points of single 
contact. Amendment 103 requires the Commission to co-ordinate points of single contact by 
establishing a European point of single contact. Amendment 104 clarifies that the creation of 
points of single contact is without prejudice to the allocation of functions and powers among 
authorities  within  national  systems.  Amendment  309  sets  out  a  new  timetable  for  the 

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establishment  of  points  of  single  contact.  Amendment  310  stipulates  that  it  should  also  be 
possible  to  complete  all  procedures  and  formalities  necessary  for  the  supervision  of 
compliance  with  Directive  96/71/EC  at  these  points.  The  Commission  accepts  amendments 
309 and 104 and furthermore clarifies in new Recital 25a, reflecting the work in the Council, 
that  the  fee  that  points  of  single  contact  may  charge  should  be  proportionate  to  the  cost  of 
procedures  and  formalities.  However,  the  Commission  cannot  accept  amendment  102  since 
pro  forma  registration  with  the  points  of  single  contact  would  be  an  unnecessary 
administrative  burden.  The  Commission  cannot  accept  amendment  103  either,  because  a 
European point of single contact would represent an unnecessary administrative structure and 
would  be  contrary  to  the  principle  of  subsidiarity  (since  administrative  cooperation  can  be 
best dealt with by Member States themselves). Amendment 310 cannot be accepted because 
reference to the supervision of compliance with Directive 96/71/EC, which is not affected in 
any way by the present proposal, is inappropriate. 

Right  to  information  (Article  7).  Amendment  105  makes  it  clear  that  the  right  to 
information  only  concerns  means  of  redress  generally  available.  Amendments  31,  106  and 
110 clarify that the obligation for competent authorities to provide assistance does not cover 
legal advice in individual cases; that the obligation to provide information can be fulfilled by 
making  it  accessible  through  a  website;  that  advice  could  include  a  step-by-step  guide;  and 
that information shall be provided in plain and intelligible language. Amendment 107 states 
that information and assistance should be accessible, inter alia, at a distance and by electronic 
means.  Amendment  108  sets  out  a  deadline  for  implementation  of  information  obligations 
and amendment 109 clarifies that the availability of the information in other languages has to 
be compatible with Member States' legislation on the use of languages. Amendment 33, by 
introducing  a  new  recital,  reinforces  the  provisions  in  Article  7.  The  Commission  accepts 
amendments  105-106,  108-110,  31,  33  and,  in  line  with  the  work  of  the  Council,  adds  in 
amendment  31  (Recital  25c),  that  issues  such  as  liability  for  incorrect  or  misleading 
information are for Member States to determine. On the other hand, the Commission cannot 
accept  amendment  107  since  it  would  remove  the  obligation  to  provide  information  by 
electronic means, which is an essential tool for making administrative simplification a reality. 

Procedures by electronic means (Article 8). Amendment 111 sets out a revised timetable 
for  implementation,  explains  that  the  procedures  and  formalities  may  be  easily  completed, 
inter alia, by electronic means (as does amendment 32) and that electronic procedures should 
not  apply  to  cases  when  original  documentation  can  be  requested.  The  Commission  cannot 
accept  amendment  111,  apart  from  the  revised  timetable,  or  amendment  32  because,  as 
mentioned  above,  electronic  procedures  are  an  essential  measure  of  administrative 
simplification and they can also be used for original documentation since proof of authenticity 
can be provided by electronic authentication. However, the Commission deems it fit to clarify 
on the basis of amendment 32 (Recital 26), which draws on the work of the Council, that the 
obligation  to  provide  for  procedures  by  electronic  means  does  not  prevent  Member  States 
from  offering  other  means,  in  addition  to  electronic  ones,  to  complete  procedures  and 
formalities. 

3.3. 

Freedom of establishment for providers (Articles 9-15) 

Authorisation  schemes.  Amendment  35  clarifies  in  Recital  27c  that  the  provisions  of  the 
Directive  dealing  with  authorisation  schemes  concern  neither  decisions  by  authorities  to  set 
up a public or private entity nor the conclusion of contracts by authorities. Amendment 37 
indicates  that  overriding  reasons  relating  to  the  public  interest  such  as  public  health  may 
justify  the  application  of  authorisation  schemes  and  other  restrictions  to  social  services,  on 

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condition  that  the  principles  of  non-discrimination,  necessity  and  proportionality  are 
respected.  Amendments  112-113  reorganise  and  rename  the  Chapter  and  the  Section 
respectively.  Amendment  116  (as  well  as  amendment  209)  excludes  authorisation  schemes 
from  the  mutual  evaluation  process.  The  Commission  accepts  amendments  35,  112-113  in 
their  entirety  and  amendment  37  subject  to  minor  drafting  changes.  On  the  other  hand,  the 
Commission cannot accept amendments 116 and 209 because the obligation to evaluate and 
report on authorisation schemes is an essential measure for facilitating the access to and the 
exercise of service activities. However, the Commission specifies in a new Recital (27d), in 
accordance  with  the  work  in  the  Council,  that  the  reporting  obligation  concerns  only  the 
existence of authorisation schemes and not the criteria and conditions for the granting of an 
authorisation.  As  regards  amendments  114,  115  and  117,  which  contain  mainly  technical 
changes, the Commission accepts amendment 115 and amendment 117, subject to redrafting 
necessary  for  legal  coherence.  However,  the  Commission  cannot  accept  amendment  114, 
which would make the text less clear.  

Conditions  for  granting  of  authorisation.  Amendments  34  and  121  stipulate  that  the 
authorisation  should  normally  cover  the  entire  national  territory  except  if  a  more  limited 
geographical scope is justified by an overriding reason relating to the public interest, such as 
environmental  protection.  Amendments  34  and  123  provide  that  local  and  regional 
competencies in the granting of authorisations are not affected by the Directive. Amendment 
119 adds "transparency" and "accessibility" to the criteria with which authorisation schemes 
must comply. Amendment 120 clarifies that, in assessing whether the conditions for granting 
an  authorisation  are  equivalent  or  essentially  comparable  to  those  to  which  the  provider  is 
already  subject  in  another  Member  State  (non-duplication),  not  only  their  objective  and 
purpose but also their effect and the effectiveness of their enforcement need to be considered. 
Amendment 122 excludes decisions to grant an authorisation from the requirement to state 
reasons and to  provide  for means of  redress before the courts.  Amendment 118 deletes the 
word  'objective'  from  the  phrase  "justified  by  an  overriding  reason  relating  to  the  public 
interest"  in  Article  10.  The  Commission  accepts  amendments  34,  118,  119  and  123  in  their 
entirety. As far as amendment 120 is concerned, acceptance is coupled by the insertion of a 
new  Recital  (27g):  this  aims  to  clarify  that  the  requirement  of  non-duplication  does  not 
prevent  Member  States  from  applying  their  own conditions but merely require them to take 
into account equivalent conditions already satisfied by the provider in another Member States. 
In  addition,  the  Commission  agrees  with  the  substance  of  amendment  121,  but  opts  for  a 
different wording. On the other hand, the Commission cannot accept amendment 122 because 
the  exclusion  of  decisions  to  grant  an  authorisation  from  the  obligation  to  state  reasons  is 
capable  of  rendering  judicial  review  of  an  administrative  decision,  in  particular  for  third 
parties, less effective or even virtually impossible.  

Duration  of  authorisation.  Selection  from  among  several  candidates.  Amendments  128 
and 36 state that Member States' ability to revoke authorisations, especially when conditions 
for their granting are no longer met, is not affected. Amendments 124-127, 129, 38 and 30 
provide  useful  clarifications  in  Article  11  and  corresponding  recitals.  Amendment  130 
provides that Member States may take into account, in applying their selection procedure, a 
number  of  public  interest  objectives.  The  Commission  accepts  amendments  128  and  36, 
limited to situations where conditions for granting of the authorisation are no longer met. In 
addition,  the  Commission  accepts  amendments  124-127,  129,  38  in  their  entirety  or  in  part 
and amendments 130 and 30 subject to minor drafting adjustments.  

Authorisation  procedures.  Amendment  134  and  28  delete  the  rule  according  to  which  in 
the  absence  of  a  response  within  the  set  time  limit,  the  authorisation  shall  be  deemed  to  be 

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granted  ("tacit  authorisation").  Amendment  135  states  that  an  acknowledgement  of  receipt 
for applications should only be provided at the request of the applicant and does not need to 
specify the available means of redress. Amendments 131-133 and 136-137 contain technical 
clarifications  which  the  Commission  can  accept,  subject  to  minor  changes  as  far  as 
amendments  136-137  are  concerned.  On  the  other  hand,  the  Commission  cannot  accept 
amendments  134  and  28  because  tacit  authorisation  (in  the  absence  of  a  reply  from  the 
authorities)  is  key  to  facilitating  the  freedom  of  establishment.  However,  the  Commission 
clarifies in a new Recital (28a), in accordance with the work of the Council, that, as regards 
tacit authorisation different arrangements may be put in place in respect of certain activities 
where  they  are  objectively  justified  by  overriding  reasons  relating  to  the  public  interest. 
Likewise,  the  Commission  cannot  accept  amendment  135,  because  this  would  create  an 
additional burden for the applicants and render judicial review more difficult. 

Prohibited  requirements  (Article  14).  Amendment  138  modifies  the  title  of  this  section. 
Amendment  140  (and  41)  clarifies  that  the  prohibition  of  a  case-by-case  application  of  an 
economic  test  does  not  concern  planning  requirements  which  do  not  pursue  economic  aims 
but serve overriding reasons relating to the public interest. Amendment 141 clarifies that the 
prohibition  on  involving  directly  or  indirectly  competing  operators  in  the  granting  of 
authorisations  does  not  concern  the  consultation  of  organisations  such  as  chambers  of 
commerce  on  matters  other  than  individual  applications.  Amendment  40  provides  that  in 
some cases it may be justified to compel a service provider to be present in person during the 
exercise of the activity. Amendment 142 explains that the prohibition on requiring a financial 
guarantee or insurance from a service provider established in a Member State’s territory does 
not  affect  Member  States'  ability  to  require  financial  guarantees  as  such,  or  to  require  that 
insurance be taken out from an undertaking with special or exclusive rights, nor that it affects 
requirements  relating  to  participation  in  a  collective  compensation  fund.  Amendment  143 
clarifies the requirement of previous registration. The Commission accepts amendments 138, 
140,  141,  143  and  41  in  full,  amendment  40  subject  to  an  additional  clarification.  The 
Commission accepts the spirit of amendment 142, but redrafts the relevant provision to make 
it  coherent  with  Community  law  and  added  further  clarification  in  new  Recital  32a,  in  line 
with  the  Council's  work.  In  addition,  amendment  143  provides  for  technical  clarifications 
which  the  Commission  accepts,  whilst  at  the  same  time  providing  in  a  new  Recital  (32b) 
based on the Council's work, further clarification about the prohibition of pre-registration.  

Requirements  to  be  evaluated  (Article  15).  Amendment  42  clarifies  that  the  mutual 
evaluation  process  does  not  affect  the  freedom  of  Member  States  to  set  a  high  level  of 
protection  of  the  public  interest  in  their  legislation  and  that  the  evaluation  has  to  take  into 
account  the  specificity  of  Services  of  General  Economic  Interest  and  of  the  particular  tasks 
assigned  to  them,  which  might  justify  certain  restrictions  on  the  freedom  of  establishment. 
Amendments 144 and 145 remove examples of requirements concerning the provider's legal 
form or the shareholding of the company. Amendments 147/242 exclude from the evaluation 
process requirements concerning selling below cost and sales. Amendments 149/242 deletes 
the word 'objectively' from the phrase "justified by an overriding reason relating to the public 
interest" Amendments 148/242 (as well as amendment 43) exclude "must-carry" obligations 
from  the  evaluation  process.  Likewise,  amendment  150  excludes  Services  of  General 
Economic  Interest  and  social  insurance  schemes  from  Article  15,  paragraphs  1  to  4.  In 
addition,  amendment  150,  together  with  amendment  151,  removes  the  prohibition  on 
Member  States  to  introduce  any  new  requirement  of  a  similar  kind  unless  these  fulfil  the 
criteria of non-discrimination, necessity and proportionality, and the corresponding obligation 
of  Member  States  to  notify  such  new  laws,  regulations  or  administrative  provisions. 

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Amendment  146  adds  a  reference  to  the  Professional  Qualification  Directive.  The 
Commission accepts amendments 42, 147 and 148/149/242. The Commission also accepts the 
deletion  of  examples  from  the  relevant  articles  as  in  amendments  144  and  145.  The 
Commission also adds in Recital 34, in line with the work of the Council, a clarification that 
the  evaluation  of  requirements  imposing  minimum  and/or  maximum  tariffs  only  concerns 
tariffs imposed by competent authorities for the provision of certain services, whereas it does 
not  concern  general  rules  on  price  determination  such  as  for  the  renting  of  houses.  The 
Commission  accepts  in  principle  amendment  150  relating  to  Services  of  General  Economic 
Interest  and  it  specifies  that  paragraphs  1  to  3  of  Article  15  only  apply  to  legislation  in  the 
field of Services of General Economic Interest in so far as the application of such rules does 
not  obstruct  the  performance,  in  law  or  in  fact,  of  the  particular  task  assigned  to  them. 
Deletion  of  the  notification  obligations  (amendment  151)  would  seriously  water  down  the 
evaluation  process  and  therefore  cannot  be  accepted.  Finally,  amendments  146,  148  and 
149/242  propose  technical  changes  which  the  Commission  accepts  (as  far  as  146  is 
concerned, however, reference is made to the Professional Qualification Directive as a whole 
and not to its Title II only).  

3.4. 

Freedom to provide services and derogations (Articles 16-19) 

Freedom  to  provide  services  (Article  16).  Amendment  152  (concerning  the  title  of  the 
Chapter)  and  amendment  293/rev4  (concerning  Article  16)  replace  the  former  country  of 
origin  principle  by  a  provision  on  the  freedom  to  provide  services.  Amendment  293/rev4 
confirms the right of service providers to provide a service in a Member State other than the 
one  where  he  is  established  and  obliges  the  Member  State  where  the  service  is  provided  to 
ensure free access to and free exercise of the service activity within its territory. Paragraph 1 
of  Article  16  additionally  stipulates  that  the  Member  State  where  the  service  is  provided 
cannot  apply  its  own  national  requirements  to  service  providers  established  in  another 
Member  State  unless  these  are  justified  on  grounds  of  public  policy,  public  security,  public 
health  or  the  protection  of  the  environment,  they  are  non-discriminatory,  necessary  and 
proportionate.  Paragraph 3  again  confirms  the  possibility  of  Member  States  provided  for  in 
paragraph  1  to  impose  their  national  rules  where  they  are  justified  on  grounds  of  public 
policy, public security, public health or the protection of the environment on service providers 
from  other  Member  States  moving  into  its  territory.  Paragraph  3  also  clarifies  that  Member 
States,  in  conformity  with  Community  law,  are  not  prevented  from  applying  their 
employment  conditions.  Article  16  paragraph  2  establishes  a  list  of  requirements,  such  as  a 
requirement  to  have  an  establishment  in  the  territory  in  order  to  be  allowed  to  provide  a 
service,  which  Member  States  may  not  impose  on  service  providers  established  in  other 
Member States.  Amendment  293/rev4  also provides that the Commission, after  consultation 
of  the  Member  States  and  the  social  partners,  shall  submit  a  report  on  the  application  of 
Article 16 including consideration of the need to propose harmonising measures.  

The Commission accepts amendments 152 and 293/rev4 subject to minor drafting adjustments 
in  paragraph  3  clarifying  that  –  in  accordance  with  the  jurisprudence  of  the  ECJ  –  national 
requirements  always  have  to  be  non-discriminatory,  necessary  and  proportionate.  The 
Commission  also  accepts  –  subject  to  drafting  adjustments  –  amendment  45  on  Recital  37, 
indicating  that  Member  States  can  impose  their  requirements  which  are  indispensable  for 
reasons of public policy, public security, public health and the protection of the environment 
as well as amendments 46-47 which delete recitals referring to the former country of origin 
principle.  Furthermore,  the  Commission,  in  accordance  with  the  work  of  the  Council,  adds 
further explanatory recitals, one recital referring to the jurisprudence of the ECJ on the right 
of  Member  States  to  take  measures  in  order  to  prevent  service  providers  from  abusively 

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taking advantage of the Internal Market principles (Recital 37a), another recital stressing the 
necessity of ensuring that providers are able to take equipment which is an integral part of the 
provision of the service with them when providing services in another Member State (Recital 
39a) as well as one additional recital explaining the concept of equipment (Recital 39b).  

Additional  derogations  from  the  freedom  to  provide  services  (Article  17).  Amendment 
400 renames Article 17 and stipulates that the  provision on the freedom to provide services 
shall not apply to Services of General Economic Interest provided in another Member State, 
inter  alia  to  postal  services,  electricity,  gas  and  water  distribution,  waste  water  services  and 
the treatment of waste. The Commission accepts amendment 400.In addition, the Commission 
clarifies, based on the work of the Council, in a Recital (40a) that  the derogation for postal 
services  covers  both  activities  reserved  to  the  universal  service  provider  and  other  postal 
services. Furthermore, amendment 165 clarifying the derogation in Article 17 point 12 for the 
authorisation regime provided for in Articles 3 and 4 of Council Regulation (EEC) No 259/93 
on  the  supervision  and  control  of  shipments  of  waste  within,  into  and  out  of  the  European 
Union, can also be accepted. 

Concerning  activities  of  lawyers  and  notaries,  amendment  160  deletes  the  derogation  for 
matters  covered  by  Council  Directive  77/249/EEC  to  facilitate  the  effective  exercise  by 
lawyers  of  the  freedom  to  provide  services  and  amendment  166  deletes  the  derogation  for 
acts requiring by law the involvement of a notary. These amendments become obsolete given 
that  the  Commission  does  not  accept  a  general  exclusion  of  the  activities  of  lawyers  of  or 
notaries from the scope of application of the Directive. These derogations should therefore be 
maintained.  Concerning  the  judicial  recovery  of  debts,  amendment  161  introduces  a  new 
derogation  which  can  be  accepted  by  the  Commission.  At  the  same  time  the  Commission 
clarifies in a new recital (40b) in line with the Council work, the scope of this derogation.  

Concerning  requirements  which  reserve  an  activity  to  a  particular  profession, 
amendment 162/404 adds – in addition to the derogation concerning matters covered by Title 
II  of  Directive  2005/36/EC  on  the  recognition  of  professional  qualifications  –  a  new 
derogation.  Amendment  162/404  as  well  as  amendment  48  which  explains  this  new 
derogation  in  a  recital  (41c)  can  be  accepted  in  principle  subject  to  redrafting  to  make  its 
wording more precise. 

Concerning  the  free  movement  of  persons  and  their  residence,  amendment  163  clarifies 
the derogation relating to Directive 2004/38/EC and can be accepted.  

Concerning the derogation for the movement of third country nationals in the context of 
the  provision  of  a  service,  amendment  164  reformulates  the  wording  of  the  derogation 
contained in Article 17 point 11. Since Article 25 has been deleted, the derogation in Article 
17  point  11  had  to  be  further  reworded.  Amendments  50  and  51  which  introduce  Recitals 
41a  and  41b  providing  explanations  on  the  derogation  for  the  Posting  of  Workers  Directive 
are accepted subject to minor drafting changes.  

Concerning specific prohibitions and specific requirements justified by reasons relating 
to  public  policy,  public  security,  public  health  or  the  protection  of  the  environment, 
amendments 167 and 168 provide for modifications of the derogations contained in Article 
17  point  16  and  17.  In  the  Commission's  view  these  amendments  are  obsolete  since,  as  a 
consequence of the fact that Article 16 now gives Member States in more general terms the 
possibility  to  impose  national  requirements  relating  to  public  policy,  public  security,  public 
health and the protection of the environment, the more specific derogations in Article 17 point 

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16  and  17  have  become  superfluous.  Consequently  they  are  deleted  together  with  the 
corresponding recitals. 

Concerning reimbursement of hospital care, amendment 169 deletes the derogation for the 
authorisation  system  applicable  to  the  reimbursement  of  hospital  care.  In  line  with  the 
exclusion of health services from the scope of application and the deletion of Article 23 on the 
assumption of health care costs, the Commission accepts amendment 169.  

Concerning private international law, amendment 170 introduces in Article 17 a derogation 
for all provisions of private international law, particularly those dealing with contractual and 
non-contractual  obligations,  including  the  form  of  contracts.  The  Commission  accepts  this 
amendment which is required in Article 17 because the provision on the freedom to provide 
services is the provision of this Directive that could possibly conflict with the application of 
rules of private international law. Amendments 171, 172 and 173 delete the derogations for 
consumer contracts, formal validity of contracts relating to immovable property and the non-
contractual  liability  of  the  provider  in  case  of  an  accident  which  are  now  covered  by  the 
broader  derogation  for  all  provisions  of  private  international  law.  The  Commission  accepts 
these amendments as well as the corresponding changes in the Recitals (amendments 53 and 
54 relating to Recitals 45 and 46). 

In  addition,  the  Commission  has  added  technical  clarifications  reflecting  the  work  of  the 
Council.  

Transitional derogations (Article 18). Amendment 174 fully deletes Article 18 containing 
transitional  derogations  from  the  (former)  country  of  origin  principle.  The  Commission 
accepts this because gambling activities have been excluded from the scope of application of 
this  Directive,  the  access  to  the  activity  of  judicial  recovery  of  debts  is  covered  by  a  new 
derogation  in  Article  17  point  7a  and  transport  of  cash  and  valuables  has  been  included  in 
Article 40(1). 

Case-by-case derogations (Article 19). Amendment 175 adapts the title in line with the new 
renamed Article 16. Amendment 176 refers to the conditions under which the case-by-case 
derogation can be taken and removes the obligation to comply first with the mutual assistance 
procedure before taking such measures. The case-by-case derogations relating to public health 
and public policy and to the exercise of health professions have become obsolete due to the 
exclusion of healthcare from the scope of application of the Directive and due to the fact that 
Article 16 now allows Member States in more general terms to impose requirements relating 
to public policy and public health. The Commission therefore deletes the corresponding case-
by-case derogations and limits Article 19 to the safety of services. However, the Commission 
cannot accept the deletion of the mutual assistance procedure which is essential to ensure that 
this derogation does not lead to unnecessary restrictions to the freedom to provide services.  

3.5. 

Rights of recipients of services (Articles 20-23) 

Prohibited  restrictions/Non-discrimination.  Amendments  177  and  55,  relating  to  Article 
21  and  Recital  50  state  that  the  recipient  of  services  should  not  be  made  subject  to 
discriminatory  requirements  based  "solely"  on  his  nationality  or  place  of  residence.  The 
Commission cannot accept this addition to the non discrimination clause set out in Article 21, 
because  this  could  be  interpreted  as  allowing  discrimination  if  they  are  based  also  on  other 
grounds. The rest of amendment 55 clarifies Recital 50 and can be accepted. In addition, the 

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Commission adds some clarifications in line with the Council's work concerning the concept 
of financial assistance mentioned in Article 20 (see Recital 48 and new Recital 48a).  

Assistance  for  recipients.  Amendment  178,  concerning  Article  22,  on  the  assistance  for 
recipients  of  services  clarifies  a  number  of  points  on  information  and  advice  given  by  the 
points of single contact to recipients. In addition this amendment deletes the contact points of 
the  European  Consumer  Centres  Network  from  those  associations  and  organisations  whose 
contact details recipients should be informed of and who  could provide practical assistance. 
Amendment 179 adds a new Article 22a concerning the possibility for a service provider to 
complete  all  procedures  and  formalities  with  the  points  of  single  contact.  The  Commission 
accepts amendment 178, except the part which deletes the reference to European Consumer 
Centres Network, which, for the Commission, should play a particularly active role in giving 
practical  assistance  to  consumers.  The  Commission  cannot  accept  amendment  179  and  the 
provision of a new Article 22a, given that role and responsibilities of single points of contacts 
are  already  sufficiently  dealt  with  in  the  Chapter  of  the  Directive  on  administrative 
simplification.  

Reimbursement of healthcare received in another Member State. Amendments 56 to 62 
and 180/247  delete Article 23, the provisions dealing with the reimbursement of healthcare 
received in another Member State, and corresponding recitals. The Commission accepts these 
deletions and, as mentioned above,  it  will come forward  with a separate  initiative on health 
services.  

3.6. 

Posting of workers (Articles 24-25) 

Specific  provisions  on  posting  of  workers  and  posting  of  third  country  nationals. 
Amendments  181,  182/248,  63-64,  183/249  and  65-66  delete  the  relevant  provisions 
regarding the removal of administrative obstacles and regarding obligations of Member States 
to  cooperate  regarding  the  posting  of  workers  and  the  posting  of  third  country  nationals. 
While  the  Commission  believes  that  it  is  of  high  importance  to  address  any  undue 
administrative burdens which hinder the opportunities for service providers to provide cross-
border  services  by  posting  their  staff  and  that  it  is  important  to  improve  administrative 
cooperation in order to combat black labour and social dumping, the Commission accepts the 
deletion  of  these  provisions  as  part  of  an  overall  compromise.  In  order  to  address  undue 
administrative  burdens  and  to  establish  a  better-functioning  system  of  administrative 
cooperation the Commission will provide guidance for Member States on these issues.  

3.7. 

Quality of services (Articles 26-32) 

Information on providers and their services (Article 26). Amendments 184 and 186 set 
out a systematic obligation for service providers to make information to be given to recipients 
available via the points of single contact. Amendment 185 introduces an obligation to make 
available  to  the  recipients  information  on  the  legal  form  of  the  service  provider.  The 
Commission  accepts  amendment  185  subject  to  minor  redrafting.  On  the  contrary,  the 
Commission  cannot  accept  amendments  184  and  186  because  they  would  create  an 
unnecessary burden to service providers. 

Professional liability insurance (Article 27). The first sentence of amendment 187 deletes 
the  obligation  for  Member  States  to  ensure  that  service  providers  whose  services  present  a 
particular  risk  to  the  health  or  safety  of  the  recipient  or  a  particular  financial  risk  to  the 
recipient take out professional liability insurance and replaces it by a mere declaration of the 

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possibility  for  Member  States  to  require  such  insurance  coverage.  The  second  sentence 
specifies  that  the  insurance  shall  also  cover  risks  presented  by  such  services  when  they  are 
provided in other Member States. The Commission accepts both sentences of this amendment 
subject  to  minor  drafting  adjustments.  Furthermore,  amendment  67  adding  Recital  63a  is 
accepted subject to necessary adjustments reflecting the changes in Article 27(1). Recital 63 
was adjusted accordingly. Amendments 188, 189 and 190 are accepted by the Commission 
as far as they are necessary and do not create an additional burden for service providers. In 
addition, based on the work in the Council, the Commission clarifies the text of Article 27 and 
the  corresponding  Recitals,  in  particular  on  the  scope  of  application  of  this  Article,  and 
addresses  the  risk  of  failure  of  the  insurance  market  by  providing  for  the  possibility  to 
establish a procedure dealing with situations of verifiable failure of the insurance market.  

After-sales  guarantees  (Article  28).  Amendment  191  deletes  the  obligation  for  service 
providers to provide information on the after-sales guarantees they supply. Amendment 192 
deletes  the  provision  clarifying  that  after-sales  guarantees  provided  for  in  other  Community 
instruments should not be affected. The Commission cannot accept amendment 191 because 
the  relevant  information  on  after-sales  guarantees  must  be  provided  to  recipients  by  service 
providers.  Moreover,  the  Commission  cannot  accept  amendment  192  because  the  link  with 
other Community legislation on after-sales guarantees has to be explicitly mentioned. 

Commercial communications (Article 29). The Commission clarifies the text reflecting the 
work  in  the  Council,  according  to  which  professional  rules  on  commercial  communications 
must comply with the principles of non-discrimination, necessity and proportionality. 

Multidisciplinary  activities  (Article  30).  Amendment  193  (as  well  as  amendment  210) 
excludes  multidisciplinary  activities  from  the  mutual  evaluation  process.  The  Commission 
cannot  accept  amendments  193  and  210  because  the  obligation  to  evaluate  and  report  on 
restrictions on multidisciplinary activities is an essential measure for facilitating access to, and 
exercise of, service activities. The Commission, on the basis of the Council's work, provides 
further  clarification  on  what  restrictions  may  be  justified  and  explains  this  in  a  new  recital 
(64a). 

Policy on quality of services (Article 31). Amendment 194 clarifies that Member States in 
cooperation  with  the  Commission  shall  encourage  the  development  of  voluntary  European 
standards. The Commission accepts amendment 194, whilst stressing at the same time, on the 
basis of the Council's work, the role of consumer associations. 

Settlement of disputes (Article 32). Amendment 195 introduces further contact details to be 
supplied by providers. Amendment 196 replaces the word 'appropriate' by 'satisfactory'. The 
Commission  accepts  amendments  195  and  196,  whilst  clarifying  at  the  same  time,  on  the 
basis of the Council's work, what equivalent financial guarantees are to be deemed equivalent 
within the meaning of this Article explains this in a new recital (65a). 

3.8. 

Administrative co-operation (Articles 34-38) 

Mutual  assistance  and  supervision.  Amendments  199  to  202  and  amendments  68  to  69 
reorganise  the  chapter  on  administrative  cooperation  and  clarify  the  obligations  of  the 
respective Member States. Amendment 199 renames the chapter. Amendments 200-202 aim 
to set out more clearly  the  distribution of tasks  between  the  Member  State  of  establishment 
and  the  Member  State  where  the  service  is  provided.  In  particular,  the  Member  State  of 
establishment is responsible for the supervision of service providers established in its territory 

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and  cannot  refuse  to  take  supervisory  or  implementing  measures  on  the  ground  that  the 
service has been provided in another Member State. The Member State of establishment must 
carry  out  checks,  inspections  and  investigations  as  well  as  provide  information  on  service 
providers  established  in  its  territory  at  the  request  of  another  Member  State.  The  Member 
State  where  the  service  is  provided  is  responsible  for  the  supervision  of  the  activity  of  the 
service  provider  in  its  territory  with  regard  to  matters  in  respect  of  which  it  can  impose  its 
national  requirements  in  accordance  with  Article  16  paragraph  1  (Article  21  paragraph  1  in 
the  consolidated  text  of  the  Parliament).  In  other  cases,  it  shall  carry  out  the  checks, 
inspections and investigations on the spot when objectively justified and non-discriminatory 
or  when  requested  by  the  Member  State  of  establishment.  Amendment  69  explains  that 
effective  administrative  co-operation  is  necessary  in  order  to  avoid  proliferation  of  rules 
applicable  to  service  providers  or  duplication  of  controls  for  cross-border  activities  and  to 
remove  the  possibility  for  rogue  traders  to  avoid  supervision  or  circumvent  applicable 
national rules on services. Amendment 68 sets out the need for a well functioning electronic 
information  system.  The  Commission  accepts  amendments  68-69  in  their  entirety  and 
amendments  200-202  in  spirit.  Recognising  the  need  to  set  out  clearly  the  tasks  and 
obligations of the Member State of establishment and the Member State where the service is 
provided  in  order  to  have  effectively  working  administrative  cooperation,  the  Commission 
incorporates the amendments of the European Parliament into the structure drawn up by the 
Council.  

Alert  mechanism.  Amendment  203  sets  out  an  alert  mechanism,  in  case  a  Member  State 
becomes aware of serious specific acts or circumstances that could cause serious damage to 
the health or safety of persons, to inform immediately the Commission and the Member States 
concerned. The Commission accepts amendment 203 and has also added the environment to 
the  reasons  which  come  under  the  alert  mechanism.  However,  this  new  system  serves  a 
different purpose than the mutual assistance system in the event of case-by-case derogations 
and cannot therefore replace it.  

Information on the good repute of providers. Amendment 197 adds that the information 
Member States' must supply at the request of a competent authority in another Member State 
must be directly relevant to the service provider's competence and that the request itself must 
be duly substantiated. Amendment 198 stipulates that the provisions on information requests 
must comply with rules on the provision of personal data and that any information which is 
public  should  be  accessible  to  consumers.  The  Commission  accepts  both  amendments  and 
further  clarifies,  reflecting  the  work  of  the  Council,  that  Member  States  shall  supply 
information  on  disciplinary  or  administrative  actions  or  criminal  sanctions  and  decisions 
concerning insolvency or bankruptcy, in conformity with their national law; that the sanctions 
and actions shall only be communicated where a final decision has been taken; and that the 
provisions on the good repute of providers do not pre-empt initiatives in the area of police and 
judicial co-operation in criminal matters (new Recital 66f).  

Accompanying  measures.  Amendment  68  describes  the  need  for  a  well-functioning 
electronic information system to improve administrative cooperation between Member States. 
The Commission acceps amendment 68, transfers its contents to an Article and explains this 
in  a  new  recital  (66g).  Moreover,  the  Commission,  reflecting  the  work  of  the  Council, 
introduces  another  accompanying  measure  for  the  exchange  of  officials  in  charge  of  the 
implementation of mutual assistance. 

EN 

15 

   EN 

 
3.9. 

Convergence programme and final provisions (Articles 39-48) 

Codes  of  conduct  (Article  39).  Amendments  205  and  70  stress  the  importance  of  codes  of 
conducts at Community level drawn up, in particular, by professional bodies, organisation and 
associations,  and  clarify  that  the  codes  of  conducts  are  complementary  to  Member  States' 
legal  requirements.  Amendment  71  moves  into  a  recital  the  description  of  the  areas  which 
should be included in the codes of conduct. The Commission accepts these amendments and 
adds, reflecting the work of the Council, a new recital (67b) which describes the objective of 
the codes of conduct. 

Additional  harmonisation  (Article  40).  In  line  with  the  redefined  scope,  amendment  206 
deletes  gambling  activities  and  amendment  208  deletes  other  subjects  from  matters  for 
possible  additional  harmonisation,  such  as  those  identified  through  the  case-by-case 
derogations  or  the  mutual  evaluation  procedure.  Amendment  207  adds  security  services  to 
the  list  of  subjects  to  be  assessed  for  additional  harmonisation.  The  Commission  accepts 
amendments  206,  208  and  207,  while  specifying  that  an  assessment  of  the  possibility  of 
additional  harmonisation  for  security  services  and  transport  of  cash  and  valuables  will  be 
made, one year after the date of implementation of the Directive.  

In addition, the Commission accepts amendments 211-212 which concern the date when the 
Commission shall present the report on mutual evaluation and the review clause. 

Finally, amendment 213 sets out a 3-year deadline for the transposition of the Directive into 
Member States' laws. Due to the urgency of advancing the Internal Market for services, the 
Commission considers that 2-year deadline for transposition should be preserved.  

4. 

AMENDED PROPOSAL  

Pursuant to Article 250(2) of the EC Treaty, the Commission amends its proposal as described 
above. 

EN 

16 

   EN 

 
2004/0001 (COD) 

Amended proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on services in the internal market 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular the first 
and third sentence of Article 47(2) and Articles 55, 71 and 80(2) thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the procedure referred to in Article 251 of the Treaty, 

Whereas:  

(1) 

The  European  Union  is  seeking  to  forge  ever  closer  links  between  the  States  and 
peoples  of  Europe  and  to  ensure  economic  and  social  progress.  In  accordance  with 
Article  14(2)  of  the  Treaty,  the  internal  market  comprises  an  area  without  internal 
frontiers in which the free movement of services and the freedom of establishment are 
ensured. The elimination of obstacles to the development of service activities between 
Member  States  is  essential  in  order  to  strengthen  the  integration  of  the  peoples  of 
Europe  and  to  promote  balanced  and  sustainable  economic  and  social  progress.  In 
eliminating  such  barriers  it  is  essential  to  ensure  that  the  development  of  service 
activities contributes to the fulfilment of the task laid down in Article 2 of the Treaty 
of  promoting  throughout  the  Community  a  harmonious,  balanced  and  sustainable 
development  of  economic  activities,  a  high  level  of  employment  and  of  social 
protection,  equality  between  men  and  women,  sustainable  and  non-inflationary 
growth,  a  high  degree  of  competitiveness  and  convergence  of  economic 
performance,  a  high  level  of  protection  and  improvement  of  the  quality  of  the 
environment, the raising of the standard of living and quality of life, and economic 
and social cohesion and solidarity among Member States. 

1 
2 
3 

COM(2004) 2, 13.1.2004. 
OJ C 221, 8.9.2005, p. 113. 
OJ C 43, 18.2.2005, p. 18. 

EN 

17 

   EN 

 
 
 
                                                 
(1a)  A  competitive  market  in  services  is  essential  in  order  to  promote  economic  growth 
and create jobs in the EU. At present numerous barriers within the internal market 
prevent service providers, particularly small and medium-sized enterprises (SMEs), 
from extending their operations beyond their national borders and from taking full 
advantage  of  the  internal  market.  This  weakens  the  worldwide  competitiveness  of 
European Union service providers. A free market which compels the Member States 
to eliminate restrictions on cross-border provision of services while at the same time 
increasing transparency and the information for consumers would give consumers 
wider choice and better services at lower prices. 

(2) 

(3) 

The report from the Commission on "The State of the Internal Market for Services"4 
drew up an inventory  of a large number of barriers which  are  preventing or slowing 
down  the  development  of  services  between  Member  States,  in  particular  those 
provided  by  SMEs,  which  are  predominant  in  the  field  of  services.  The  report 
concludes that a decade after the envisaged completion of the internal market, there is 
still a huge gap between the vision of an integrated European Union economy and the 
reality as experienced by European citizens and service providers. The barriers listed 
affect  a  wide  variety  of  service  activities  across  all  stages  of  the  service  provider’s 
activity and have a number of common features, including, in particular, the fact that 
they  often  arise  from  administrative  burdens,  the  legal  uncertainty  associated  with 
cross-border activity and the lack of mutual trust between Member States. 

Since services constitute the engine of economic growth and account for 70% of GDP 
and employment in the majority of Member States, this fragmentation of the internal 
market  has  a  negative  impact  on  the  entire  European  economy,  in  particular  on  the 
competitiveness  of  SMEs  and  the  movement  of  workers,  and  prevents  consumers 
from  gaining  access  to  a  greater  variety  of  competitively  priced  services.  It  is 
important to point out that the services sector is a key employment sector for women 
in particular, and that they therefore stand to benefit greatly from new opportunities 
offered  by  the  completion  of  the  internal  market  for  services.  The  European 
Parliament and the Council have emphasised that the removal of legal barriers to the 
establishment of a genuine internal market is a matter of priority for achieving the goal 
set  by  the  Lisbon  European  Council  of  improving  employment  and  social  cohesion 
and  achieving  sustainable  economic  growth  so  as  to  make  the  European  Union  the 
most  competitive  and  dynamic  knowledge-based,  employment-boosting  economy  in 
the world by 2010. Removing those barriers, while ensuring an advanced European 
social model, is thus a basic condition for overcoming the difficulties encountered in 
implementing  the  Lisbon  Strategy  and  for  reviving  the  European  economy, 
particularly  in  terms  of  employment  and  investment.  It  is  therefore  important  to 
achieve  an  internal  market  for  services,  with  the  right  balance  between  market 
opening and preserving public services and social and consumer rights. 

(4) 

It is therefore necessary to remove barriers to the freedom of establishment for service 
providers in Member States and barriers to the free movement of services as between 
Member States and to guarantee recipients and providers the legal certainty necessary 
for the exercise in practice of those two fundamental freedoms of the Treaty. Since the 
barriers  in  the  internal  market  for  services  affect  operators  who  wish  to  become 
established in other Member States as well as those who provide a service in another 

4 

COM(2002) 441. 

EN 

18 

   EN 

 
                                                 
(5) 

(6) 

Member  State  without  being  established  there,  it  is  necessary  to  enable  service 
providers  to  develop  their  service  activities  within  the  internal  market  either  by 
becoming  established  in  a  Member  State  or  by  making  use  of  the  free  movement  of 
services.  Service  providers  should  be  able  to  choose  between  those  two  freedoms, 
depending on their strategy for growth in each Member State. 

Those barriers cannot be removed solely by relying on direct application of Articles 43 
and 49 of the Treaty, since, on the one hand, addressing them on a case-by-case basis 
through  infringement  procedures  against  the  Member  States  concerned  would, 
especially  following  enlargement,  be  extremely  complicated  for  national  and 
Community institutions, and,  on the  other hand, the lifting of many barriers  requires 
prior coordination of national legal schemes, including the setting up of administrative 
cooperation.  As  the  European  Parliament  and  the  Council  have  recognised,  a 
Community  legislative  instrument  makes  it  possible  to  achieve  a  genuine  internal 
market for services.  

This Directive establishes a general legal framework which benefits a wide variety of 
services  while  taking  into  account  the  distinctive  features  of  each  type  of  activity  or 
profession  and  its  system  of  regulation.  That  framework  is  based  on  a  dynamic  and 
selective approach consisting in the removal, as a matter of priority, of barriers which 
may  be  dismantled  quickly  and,  for  the  others,  the  launching  of  a  process  of 
evaluation,  consultation  and  complementary  harmonisation  of  specific  issues,  which 
will  make  possible  the  progressive  and  coordinated  modernisation  of  national 
regulatory  systems  for  service  activities  which  is  vital  in  order  to  achieve  a  genuine 
internal market for services by 2010. Provision should be made for a balanced mix of 
measures involving targeted harmonisation, administrative cooperation, the provision 
on the freedom to provide services and encouragement of the development of codes of 
conduct  on  certain  issues.  That  coordination  of  national  legislative  regimes  should 
ensure a high degree of Community legal integration and a high level of protection of 
general interest objectives, especially protection of consumers, which is vital in order 
to  establish  mutual  trust  between  Member  States.  This  Directive  also  takes  into 
account  other  general 
the 
environment, public security and public health as well as of the need to comply with 
labour law.  

interest  objectives, 

the  protection  of 

including 

(6a)  Since the objectives of the proposed action, namely the elimination of barriers to the 
freedom  of  establishment  for  service  providers  in  the  Member  States  and  to  the  free 
provision of services between Member States, cannot be sufficiently achieved by the 
Member  States  and  can  therefore,  by  reason  of  the  scale  of  the  action,  be  better 
achieved  at  Community  level,  the  Community  may  adopt  measures,  in  accordance 
with  the  principle  of  subsidiarity  as  set  out in Article  5 of the Treaty. In accordance 
with the principle of proportionality, as set out in that Article, this Directive does not 
go beyond what is necessary to achieve those objectives. 

(6b) 

It  is  appropriate  that  the  provisions  of  this  Directive  concerning  the  freedom  of 
establishment and the free movement of services should apply only to the extent that 
the activities in question are open to competition, so that they do not oblige Member 
States either to liberalise services of general economic interest or to privatise public 
entities  which  provide  such  services  or  to  abolish  existing  monopolies  for  other 
activities or certain distribution services.  

EN 

19 

   EN 

 
(6c)  This Directive does not concern requirements governing access to public funds for 
certain  service  providers.  Such  requirements  include  notably  those  laying  down 
conditions  under  which  service  providers  are  entitled  to  receive  public  funding, 
including specific contractual conditions, and in particular quality standards which 
need  to  be  observed  as  a  condition  to  receive  public  funds,  for  example  for  social 
services.  

(6d)  This  Directive  does  not  interfere  with  Member  States'  measures  taken,  in 
accordance  with  Community  law,  in  relation  to  the  protection  or  promotion  of 
cultural and linguistic diversity and media pluralism, including the funding thereof. 

(6e)  This  Directive  aims  at  creating  a  legal  framework  to  ensure  the  freedom  of 
establishment  and  the  free  movement  of  services  between  the  Member  States  and 
does not harmonise or prejudice criminal law. Therefore, rules of criminal law will 
generally not be affected by this Directive. However, it should not be possible for a 
Member State to circumvent the rules laid down in this Directive and to restrict the 
freedom  to  provide  services  by  applying  criminal  law  provisions  which  specifically 
affect the access to or the exercise of a service activity. 

(6f) 

It is equally important that this Directive fully respects Community initiatives based 
on Article 137 of the Treaty with a view to achieving the objectives of Article 136 of 
the  Treaty  concerning  the  promotion  of  employment  and  improved  living  and 
working conditions. 

(6g)  This  Directive  does  not  affect  terms  and  conditions  of  employment,  including 
maximum work periods and minimum rest periods, minimum paid annual holidays, 
minimum  rates  of  pay  as  well  as  health,  safety  and  hygiene  at  work,  nor  does  it 
affect  relations  between  social  partners,  including  the  rights  to  negotiate  and 
conclude collective agreements, the right to strike and to take industrial actions, nor 
does  it  apply  to  services  provided  by  temporary  work  agencies.  This  Directive  does 
not affect the social security legislation of the Member States. 

(6h)  This  Directive  should  be  interpreted  in  such  a  way  as  to  reconcile  the  exercise  of 
fundamental  rights  as  recognised  in  the  Member  States  and  by  the  Charter  of 
Fundamental  Rights  of  the  European  Union  with  the  fundamental  freedoms  laid 
down in Articles 43 and 49 of the Treaty. Those fundamental rights include i.a. the 
right to take industrial action. This Directive should be interpreted in such a way as 
to give full effect to those fundamental rights and the fundamental freedoms. 

(6i) 

This  Directive  concerns  only  service  providers  established  in  a  Member  State  and 
does  not  cover  external  aspects.  It  does  not  concern  negotiations  within 
international  organisations  on  trade  in  services,  in  particular  in  the  framework  of 
GATS. 

[Recital 7 deleted]  

(7a)  This  Directive  covers  only  services  which  are  performed  for  an  economic 
consideration.  Services  of  General  Interest  are  not  covered  by  the  definition  in 
Article 50 of the Treaty and therefore do not fall within the scope of this Directive. 
Services  of  General  Economic  Interest  are  services  that  are  performed  for  an 
economic  consideration  and  therefore  do  fall  within  the  scope  of  this  Directive. 

EN 

20 

   EN 

 
However,  certain  Services  of  General  Economic  Interest,  such  as  those  that  may 
exist  in  the  field  of  transport,  are  excluded  from  the  scope  of  application  of  this 
Directive and certain other Services of General Economic Interest, for example, that 
may  exist  in  the  area  of  postal  services,  are  derogated  from  the  provision  on  the 
freedom  to  provide  services.  This  Directive  does  not  deal  with  the  funding  of 
Services of General Economic Interest and does not apply to systems of aids granted 
by Member States, in particular in the social field, in accordance with Community 
rules  on  competition.  This  Directive  does  not  deal  with  the  follow-up  to  the 
Commission White Paper on Services of General Interest.  

[Recital 8 moved] 

(9) 

Financial  services  should  be  excluded  from  the  scope  of  this  Directive  since  these 
activities are subject of specific Community legislation aimed, as is this Directive, at 
achieving a genuine internal market for services. Consequently, this exclusion covers 
all  financial  services  such  as  banking,  credit,  insurance,  including  reinsurance, 
occupational  or  personal  pensions,  securities, 
investment,  funds,  payments, 
investment advice, including the services listed in Annex I to Directive 2000/12/EC 
of the European Parliament and of the Council relating to the taking up and pursuit 
of the business of credit institutions5. 

(10) 

In  view  of  the  adoption  in  2002  of  a  package  of  legislative  instruments  relating  to 
electronic  communications  networks  and  services,  as  well  as  to  associated  resources 
and services, which has established a regulatory framework to facilitate access to those 
activities  within  the  internal  market,  notably  through  the  elimination  of  most 
individual authorisation schemes, it is necessary to exclude issues dealt with by those 
instruments from the scope of this Directive. 

(10a)  The  exclusions  from  the  scope  of  application  regarding  matters  of  electronic 
communications  services  as  covered  by  Directives 2002/19/EC6,  2002/20/EC7, 
2002/21/EC8, 2002/22/EC9 and 2002/58/EC10 of the European Parliament and of the 
Council should apply not only to questions specifically dealt with in these Directives 
but  also  to  matters  for  which  the  Directives  explicitly  leave  to  Member  States  the 
possibility of adopting certain measures at national level. 

(10b)  Transport services, including urban transport, taxis, and ambulances as well as port 

services are excluded from the scope of this Directive.  

(10c)  The exclusion of healthcare covers healthcare and pharmaceutical services provided 
by health professionals to patients to assess, maintain or restore their state of health 
where those activities are reserved to a regulated health profession in the Member 
State in which the services are provided.  

5 

6 
7 
8 
9 
10 

OJ L 126, 26.5.2000, p. 1. Directive as last amended by Commission Directive 2004/69/EC (OJ L 125, 
28.4.2004, p. 44). 
OJ L 108, 24.4.2002, p. 7. 
OJ L 108, 24.4.2002, p. 21. 
OJ L 108 24.4.2002, p. 33. 
OJ L 108, 24.4.2002, p. 51. 
OJ L 201, 31.7.2002, p. 37. 

EN 

21 

   EN 

 
                                                 
(10d)  This  Directive  does  not  affect  the  reimbursement  of  healthcare  provided  in  a 
Member  State  other  than  that  in  which  the  recipient  of  the  care  is  resident.  This 
issue  has  been  addressed  by  the  Court  of  Justice  on  numerous  occasions,  and  the 
Court has recognised patients' rights. It is important to address this issue in another 
Community legal instrument in order to achieve greater legal certainty and clarity to 
the extent that this issue is not already addressed in Council Regulation (EEC) No 
1408/71 on the coordination of social security systems11. 

(10e)  Audiovisual  services,  whatever  their  mode  of  transmission,  including  within 
cinemas, should also be excluded from the scope of this Directive. Furthermore, the 
Directive does not apply to aids granted by Member States in the audiovisual sector 
which are covered by Community rules on competition.  

(10f)  Gambling  activities,  including  lottery  and  betting  transactions,  should  be  excluded 
from  the  scope  of  this  Directive,  in  view  of  the  specific  nature  of  these  activities, 
which entail implementation by Member States of policies relating to public policy 
and consumer protection.  

(10g)  This  Directive  is  without  prejudice  to  the  application  of  Article  45  of  the  Treaty 
concerning notably certain activities, of notaries and of other professions, related to 
the power of authentication and certification. 

(10h)  This Directive does not cover those social services in the area of housing, childcare 
and  support  to  families  and  persons  in  need  provided  by  the  State  or  by  providers 
mandated  by  the  State  –  at  national,  regional  or  local  level  –  with  the  objective  of 
ensuring  support  to  those  who  are  in  a  particular  state  of  need  because  of  their 
insufficient family income, total or partial lack of independence or to those who risk 
to be marginalised. These services are essential to guarantee the fundamental right 
to  human  dignity  and  integrity  and  are  a  manifestation  of  the  principles  of  social 
cohesion and solidarity and should not be affected by this Directive. 

(10i)  This  Directive  does  not  deal  with  the  funding  of,  or  the  system  of  aids  linked  to, 
social services. Nor does it affect the criteria or conditions set by Member States to 
ensure that social services effectively carry out a function to the benefit of the public 
interest and social cohesion. 

(11) 

In view of the fact that the Treaty provides specific legal bases for taxation matters and 
for the Community instruments already adopted in that field, it is necessary to exclude 
the field of taxation from the scope of this Directive. 

[Recital 12 moved] 

(13)  There  is  already  a  considerable  body  of  Community  law  on  service  activities.  This 
Directive  builds  on,  and  thus  complements,  the  Community  acquis.  Conflicts 
between this Directive and other Community instruments have been identified and 
are provided for in this Directive, including by means of derogations. However, it is 
necessary to provide a rule for any residual and exceptional cases where there is a 
conflict between a provision of this Directive and a provision of another Community 

11 

OJ  L  149,  5.7.1971,  p.  2.  Regulation  as  last  amended  by  Regulation  (EC)  No  647/2005  (OJ  L  117, 
4.5.2005, p. 1). 

EN 

22 

   EN 

 
                                                 
instrument.  The  existence  of  such  a  conflict  should  be  determined  in  compliance 
with the rules of the Treaty on the right of establishment and the free movement of 
services.  A  conflict  between  a  provision  of  the  Directive  and  a  future  Community 
instrument should be avoided in the drafting and negotiation of such an instrument. 

for 

example  professional 

(13a)  This  Directive  is  consistent  with  and  does  not  affect  Directive  2005/36/EC  of  the 
European  parliament  and  the  Council12  on  the  recognition  of  professional 
qualifications.  It  deals  with  questions  other  than  those  relating  to  professional 
commercial 
qualifications, 
communications,  multidisciplinary  activities  and  administrative  simplification. 
Concerning  temporary  cross-border  service  provision  a  derogation  from  the 
provision on the freedom to provide services in this Directive ensures that Title II on 
the  free  provision  of  services  of  Directive  2005/36/EC  on  the  recognition  of 
professional  qualifications  is  not  affected.  Therefore,  none  of  the  measures 
applicable  in  the  Member  State  where  the  service  is  provided  under  Directive 
2005/36/EC is affected by the provision on the freedom to provide services.  

insurance, 

liability 

(13b)  This  Directive  is  consistent  with  other  Community  initiatives  concerning  services, 
particularly  those  relating  to  the  safety  of  services.  It  is  also  consistent  with  other 
initiatives concerning the internal market, and those concerning consumer protection, 
such as Directive 2005/29/EC of the European Parliament and of the Council on unfair 
commercial  practices13  and  Regulation  (EC)  No  2006/2004  of  the  European 
Parliament and of the Council on cooperation between national authorities responsible 
for  the  enforcement  of  consumer  protection  laws  ("the  Regulation  on  consumer 
protection cooperation")14. 

(14)  The  services  covered  by  this  Directive  concern  a  wide  variety  of  ever-changing 
activities,  including  business  services  such  as  management  consultancy,  certification 
and  testing;  facilities  management,  including  office  maintenance;  advertising; 
recruitment services; and the services of commercial agents. The services covered are 
also  services  provided  both  to  businesses  and  to  consumers,  such  as  legal  or  fiscal 
advice; real estate services such as estate agencies; construction, including the services 
of  architects;  distributive  trades;  the  organisation  of  trade  fairs;  car  rental;  travel 
agencies.  Consumer  services  are  also  covered,  such  as  those  in  the  field  of  tourism, 
including tour guides; leisure services, sports centres and amusement parks; and, to the 
extent  that  they  are  not  excluded  from  the  scope  of  application  of  the  Directive, 
household support services, such as help for the elderly. Those activities may involve 
services requiring the proximity of provider and recipient, services requiring travel by 
the  recipient  or  the  provider  and  services  which  may  be  provided  at  a  distance, 
including via the Internet. 

[Recital 15 deleted]  

(16)  According  to  the  jurisprudence  of  the  Court  of  Justice,  the  assessment  of  whether 
certain  activities,  in  particular  activities  which  are  publicly  funded  or  provided  by 
public entities, constitute a "service" has to be carried out on a case by case basis in 

12 
13 
14 

OJ L 255, 30.9.2005, p. 22. 
OJ L 149, 11.6.2005, p. 22. 
OJ L 364, 9.12.2004, p. 1. 

EN 

23 

   EN 

 
                                                 
the  light  of  all  their  characteristics,  in  particular  the  way  they  are  provided, 
organised and financed in the Member State concerned. The Court has held that the 
essential  characteristic  of  remuneration  lies  in  the  fact  that  it  constitutes 
consideration for the services in question and has recognized that the characteristic 
of remuneration is absent in the case of activities performed, for no consideration, by 
the State or on behalf of the State in the context of its duties in the social, cultural, 
educational  and  judicial  fields,  such  as  courses  provided  under  the  national 
education  system,  or  the  management  of  social  security  schemes  which  do  not 
engage  in  economic  activity.  The  payment  of  a  fee  by  recipients,  for  example,  a 
tuition or enrolment fee paid by students in order to make a certain contribution to 
the  operating  expenses  of  a  system,  does  not  in  itself  constitute  remuneration 
because the service is still essentially financed by public funds. These activities are, 
therefore, not covered by the definition of service in Article 50 of the Treaty and do 
not therefore fall within the scope of this Directive. 

(16a)  Non profit making amateur sporting activities are of considerable social importance. 
They  often  pursue  wholly  social  or  recreational  objectives.  Thus  they  might  not 
constitute economic activities within the meaning of Community law and fall outside 
the scope of this Directive.  

[Recital 17 moved] 

(18)  The concept of provider covers any natural person who is a national of a Member State 
or any legal person who is engaged in a service activity there, in exercise either of the 
freedom of establishment or of the free movement of services. The concept of provider 
is thus not limited solely to cross-border service provision within the framework of the 
free movement of services but also covers cases in which an operator establishes itself 
in a Member State in order to develop its service activities there. On the other hand, 
the  concept  of  a  provider  does  not  cover  the  case  of  branches  in  a  Member  State  of 
companies from third countries because, under Article 48 of the Treaty, the freedom of 
establishment and free movement of services may benefit only companies constituted 
in  accordance  with  the  laws  of  a  Member  State  and  having  their  registered  office, 
central  administration  or  principal  place  of  business  within  the  Community.  The 
notion  of  recipient  also  covers  third  country  nationals  who  already  benefit  from 
rights  conferred  upon  them  by  Community  acts  such  as  Regulation  (EEC)  No 
1408/7115  or  Directive  2003/109/EC16,  Regulation  (EEC)  No  859/200317  and 
Directive 2004/38/EC18. Furthermore, Member States have the possibility to extend 

15 

16 

17 

18 

Regulation  (EEC)  No  1408/71  of  the  Council  of  14  June  1971  on  the  application  of  social  security 
schemes  to  employed  persons  and  their  families  moving within  the  Community  (OJ L  149, 5.7.1971, 
p. 2). 
Council Directive 2003/109/EC of 25 November 2003 concerning the status of third-country nationals 
who are long-term residents (OJ L 16, 23.1.2004, p. 44). 
Council Regulation (EC) No 859/2003 of 14 May 2003 extending the provisions of Regulation (EEC) 
No  1408/71  and  Regulation  (EEC)  No  574/72  to  nationals  of  third  countries  who  are  not  already 
covered by those provisions solely on the ground of their nationality (OJ L 124, 20.5.2003, p. 1). 
Directive 2004/38/EC of the European Parliament and of the Council of 29 April 2004 on the right of 
citizens  of  the  Union  and  their  family  members  to  move  and  reside  freely  within  the  territory  of  the 
Member  States  amending  Regulation  (EEC)  No  1612/68  and  repealing  Directives  64/221/EEC, 
68/360/EEC,  72/194/EEC,  73/148/EEC,  75/34/EEC,  75/35/EEC,  90/364/EEC,  90/365/EEC  and 
93/96/EEC (OJ L 158, 30.4.2004, p. 77). 

EN 

24 

   EN 

 
                                                 
the notion of recipient to other third country nationals that are present within their 
territory. 

(18a)  The  place  at  which  a  service  provider  is  established  should  be  determined  in 
conformity with the case-law of the Court of Justice according to which the concept 
of establishment involves the actual pursuit of an economic activity through a fixed 
establishment for an indefinite period. This requirement may also be fulfilled where 
a  company  is  constituted  for  a  given  period  or  where  it  rents  the  building  or 
installation  through  which  it  pursues  its  activity.  It  may  also  be  fulfilled  where  a 
Member  State grants  authorisations  for  a  limited  duration  only  in  relation  to 
particular services. An establishment does not need to take the form of a subsidiary, 
branch or agency, but can consist of an office managed by a provider’s own staff or 
by a person who is independent but authorised to act on a permanent basis for the 
undertaking,  as  would  be  the  case  with  an  agency.  According  to  this  definition 
which  requires  the  actual  pursuit  of  an  economic  activity  at  the  place  of 
establishment  of  the  service  provider,  a  mere  letter  box  does  not  constitute  an 
establishment.  In  cases  where  a  provider  has  several  places  of  establishment  it  is 
important  to  determine  from  which  place  of  establishment  the  actual  service 
concerned  is  provided.  In  cases  where  it  is  difficult  to  determine  from  which  of 
several  places  of  establishment  a  given  service  is  provided,  this  is  the  place  where 
the provider has the centre of his activities relating to this particular service.  

(18b)  The Treaty provisions on establishment leave economic operators free to choose the 
legal  form  which  they  deem  suitable  for  carrying  out  their  activity.  Accordingly, 
"legal  persons",  within  the  meaning  of  the  Treaty,  means  all  entities  constituted 
under, or governed by, the law of a Member State, irrespective of their legal form. 

[Recital 19 moved] 

(20)  The concept of authorisation scheme covers, inter alia, the administrative procedures 
for granting authorisations, licences, approvals or concessions, and also the obligation, 
in  order  to  be  eligible  to  exercise  the  activity,  to  be  registered  as  a  member  of  a 
profession or entered in a register, roll or database, to be officially appointed to a body 
or  to  obtain  a  card  attesting  to  membership  of  a  particular  profession.  Authorisation 
may be granted not only by a formal decision but also by an implicit decision arising, 
for  example,  from  the  silence  of  the  competent  authority  or  from  the  fact  that  the 
interested  party  must  await  acknowledgement  of  receipt  of  a  declaration  in  order  to 
commence the activity in question or for the latter to become lawful. 

(20a)  The  notion of  overriding reasons relating to the public interest to which reference is 
made in certain provisions of this Directive has been developed progressively by the 
Court of Justice in its case-law in relation to Articles 43 and 49 of the Treaty and may 
continue to evolve. The notion as recognised in the case law of the Court of Justice 
covers  at  least  the  following  grounds:  public  policy,  public  security  and  public 
health, within the meaning of Articles 46 and 55 of the Treaty; the maintenance of 
order in society; social policy objectives; the protection of the recipients of services; 
consumer  protection;  the  protection  of  workers,  including  the  social  protection  of 
workers; the preservation of the financial balance of the social security system; the 
prevention  of  fraud;  the  prevention  of  unfair  competition;  the  protection  of  the 
environment and the urban environment, including town and country planning; the 
protection  of  creditors;  safeguarding  the  sound  administration  of  justice;  road 

EN 

25 

   EN 

 
safety;  the  protection  of  intellectual  property;  cultural  policy  objectives,  including 
safeguarding  the  freedom  of  expression  of  various  elements,  in  particular  social, 
cultural,  religious  and  philosophical  values  of  society;  the  maintenance  of  press 
diversity  and  the  promotion  of  the  national  language;  the  preservation  of  national 
historical and artistic heritage; and veterinary policy.  

[Recital 21 deleted] 

(21a)  The  rules  relating  to  administrative  procedures  do  not  aim  at  harmonising 
administrative  procedures  but  at  removing  overly  burdensome  authorisation 
schemes,  procedures  and  formalities  that  hinder  the  freedom  of  establishment  and 
the creation of new services undertakings resulting therefrom. 

it 

level, 

is  necessary 

(22)  One of the fundamental difficulties faced, in particular by SMEs, in accessing service 
activities  and  exercising  them  is  the  complexity,  length  and  legal  uncertainty  of 
administrative  procedures.  For  this  reason,  following  the  example  of  certain 
modernising  and  good  administrative  practice  initiatives  undertaken  at  Community 
and  national 
to  establish  principles  of  administrative 
simplification, inter alia through the introduction, coordinated at Community level, of 
a system of points of single contact, limitation of the obligation of prior authorisation 
to  cases  in  which  it  is  essential  and  the  introduction  of  the  principle  of  tacit 
authorisation by the competent authorities after a certain period of time elapsed. Such 
modernising  action,  while  maintaining  the  requirements  on  transparency  and  the 
updating of information relating to operators, is intended to eliminate the delays, costs 
and  dissuasive  effects  which  arise,  for  example,  from  unnecessary  or  excessively 
complex  and  burdensome  procedures,  the  duplication  of  procedures,  the  red  tape 
involved  in  submitting  documents,  the  use  of  arbitrary  powers  by  the  competent 
authorities,  indeterminate  or excessively long periods before  a response is given,  the 
limited  duration  of  validity  of  authorisations  granted  and  disproportionate  fees  and 
penalties.  Such  practices  have  particularly  significant  dissuasive  effects  on  providers 
wishing  to  develop  their  activities  in  other  Member  States  and  require  coordinated 
modernisation within an enlarged internal market of twenty-five Member States. 

(22a)  Member  States  should  introduce,  where  appropriate,  forms  harmonised  at 
Community  level,  as  established  by  the  Commission,  which  will  serve  as  an 
equivalent  to  certificates,  attestations  or  any  other  document  in  relation  to 
establishment. 

(22b)  In  order  to  examine  the  need  for  simplifying  procedures  and  formalities  Member 
States  may  in  particular  take  into  account  their  necessity,  number,  possible 
duplication,  cost,  clarity, accessibility  as well as the delay and  practical difficulties 
that they could give rise to for the service provider concerned. 

(23) 

In order to facilitate access to service activities and the exercise thereof in the internal 
market,  it  is  necessary  to  establish  an  objective,  common  to  all  Member  States,  of 
administrative simplification and to lay down provisions concerning, inter alia, points 
of  single  contact,  the  right  to  information,  procedures  by  electronic  means  and  the 
establishment  of  a  framework  for  authorisation  schemes.  Other  measures  adopted  at 
national  level  to  meet  that  objective  may  involve  reduction  of  the  number  of 
procedures  and  formalities  applicable  to  service  activities  and  the  restriction  of  such 
procedures  and  formalities  to  those  which  are  essential  in  order  to  achieve  a  general 

EN 

26 

   EN 

 
interest  objective  and  which  do  not  duplicate  each  other  in  terms  of  content  or 
purpose.  

(24)  With  the  aim  of  administrative  simplification,  general  formal  requirements,  such  as 
presentation of original documents, certified copies or a certified translation, should 
not be imposed, except where objectively justified by an overriding reason relating to 
the public interest, such as the protection of workers, public health, the protection of 
the environment or the protection of consumers. It is also necessary to ensure that an 
authorisation normally permits access to, or exercise of, a service activity throughout 
the national territory, unless a new authorisation for each establishment, for example 
for each new hypermarket, or an authorisation that is restricted to a specific part of 
the  national  territory  is  objectively  justified  by  an  overriding  reason  relating  to  the 
public interest. 

(25) 

It  is  appropriate  to  provide  for  points  of  single  contact  in  order  to  ensure  that  each 
provider  has  a  single  point  at  which  he  can  complete  all  procedures  and  formalities. 
The  number  of  points  of  single  contact  per  Member  State  may  vary  according  to 
regional or local competencies or according to the activities concerned. The creation of 
points  of  single  contact  does  not  interfere  with  the  allocation  of  functions  among 
competent  authorities  within  each  national  system.  Where  several  authorities  at 
regional  or  local  level  are  competent,  one  of  them  may  assume  the  role  of  point  of 
single  contact  and  coordinator.  Points  of  single  contact  may  be  set  up  not  only  by 
administrative  authorities  but  also  by  chambers  of  commerce  or  crafts,  or  by  the 
professional  organisations  or  private  bodies  to  which  a  Member  State  decides  to 
entrust  that  function.  Points  of  single  contact  have  an  important  role  to  play  in 
providing assistance to providers either as the authority directly competent to issue the 
documents  necessary  to  access  a  service  activity  or  as  an  intermediary  between  the 
provider and the authorities which are directly competent. In its Recommendation of 
22  April  1997  on  improving  and  simplifying  the  business  environment  for  business 
start-ups19,  the  Commission  was  already  encouraging  Member  States  to  introduce 
points of contact to simplify formalities. 

(25a)  The fee which may be charged by points of single contact should be proportionate to 
the cost of procedures and formalities with  which they  deal. This  does not prevent 
Member  States  to  entrust  the  points  of  single  contact  with  the  collection  of  other 
administrative fees such as the fee of supervisory bodies. 

(25b)  Providers  and  recipients  of  services  must  have  easy  access  to  certain  types  of 
information.  This  should  include  in  particular  information  on  procedures  and 
formalities,  contact  details  of  the  competent  authorities,  conditions  for  access  to 
public registers and data bases and information concerning available remedies and 
the  contact  details  of  associations  and  organisations  from  which  providers  or 
recipients  can  obtain  practical  assistance.  This  information  must  be  easily 
accessible, i.e. it should be available to the public easily and without obstacles. This 
information should be provided in a clear and unambiguous manner. 

(25c)  The  obligation  for  Member  States  to  ensure  that  relevant  information  is  easily 
accessible  to  providers  and  recipients  can  be  fulfilled  by  making  this  information 

19 

OJ L 145, 5.6.1997, p. 29. 

EN 

27 

   EN 

 
                                                 
accessible  through  a  website.  The  obligation  for  competent  authorities  to  assist 
providers and recipients does not include the provision of legal advice in individual 
cases.  Nevertheless,  general  information  on  the  way  in  which  requirements  are 
usually  interpreted  or  applied  should  be  given.  The  way  in  which  information  is 
provided  to  providers  and  recipients  is  for  each  Member  State  to  determine  within 
the  framework  of  the  Directive.  Issues  such  as  liability  for  providing  incorrect  or 
misleading information are for Member States to determine. 

(26)  The  setting  up,  in  the  reasonably  near  future,  of  electronic  means  of  completing 
procedures and formalities will be vital for administrative simplification in the field of 
service activities, for the benefit of providers, recipients and competent authorities. In 
order to meet that obligation as to results, national laws and other rules applicable to 
services  may  need  to  be  adapted.  This  obligation  does  not  prevent  Member  States 
from  providing  other  means  of  completing  such  procedures  and  formalities,  in 
addition  to  electronic  means.  The  fact  that  it  must  be  possible  to  complete  those 
procedures and formalities at a distance means in particular that Member States must 
ensure  that  they  may  be  completed  across  borders.  The  obligation  as  to  results  does 
not  cover  procedures  or  formalities  which  by  their  very  nature  are  impossible  to 
complete  at  a  distance.  Furthermore,  this  does  not  interfere  with  Member  States' 
legislation on the use of languages.  

(27)  The  possibility  of  gaining  access  to  a  service  activity  may  be  made  subject  to 
authorisation by the competent authorities only if that decision satisfies the criteria of 
non-discrimination,  necessity  and  proportionality.  That  means,  in  particular,  that 
authorisation  schemes  should  be  permissible  only  where  an  a  posteriori  inspection 
would not be effective because of the impossibility of ascertaining the defects of the 
services  concerned  a  posteriori,  due  account  being  taken  of  the  risks  and  dangers 
which could arise in the absence of a prior inspection. However, the provision to that 
effect  made  by  this  Directive  cannot  be  relied  upon  in  order  to  justify  authorisation 
schemes  which  are  prohibited  by  other  Community 
instruments  such  as 
Directive 1999/93/EC  of  the  European  Parliament  and  the  Council  on  a  Community 
framework  for  electronic  signatures20,  or  Directive  2000/31/EC  of  the  European 
Parliament and of the Council on certain legal aspects of information society services, 
in  particular  electronic  commerce,  in  the  internal  market  ('Directive  on  electronic 
commerce')21. The results of the process of mutual evaluation will make it possible to 
determine, at Community level, the types of activity for which authorisation schemes 
should be eliminated.  

(27a)  This Directive is without prejudice to the possibility for Member States to withdraw 
authorisations after they have been issued, if the conditions for the granting of the 
authorisation are no longer fulfilled. 

(27b)  According  to  the  case  law  of  the  Court  of  Justice,  public  health,  consumer 
protection,  animal  health  and  the  protection  of  the  urban  environment  constitute 
overriding  reasons  relating  to  the  public  interest.  Such  overriding  reasons  may 
justify the application of authorisation schemes and other restrictions applicable to 
social  services.  However,  no  such  authorisation  scheme  or  restriction  may 

20 
21 

OJ L 13, 19.1.2000, p. 12. 
OJ L 178, 17.7.2000, p. 1. 

EN 

28 

   EN 

 
                                                 
discriminate  on  grounds  of  nationality.  Further,  the  principles  of  necessity  and 
proportionality must always be respected. 

(27c)  The  provisions  of  this  Directive  relating  to  authorisation  schemes  should  concern 
cases  where  the  access  to  or  exercise  of  a  service  activity  by  economic  operators 
requires  a  decision  by  a  competent  authority.  This  concerns  neither  decisions  by 
competent  authorities  to  set  up  a  public  or  private  entity  for  the  provision  of  a 
particular  service  nor  the  conclusion  of  contracts  by  competent  authorities  for  the 
provision of a particular service which is governed by rules on public procurement.  

(27d)  In  order  to  facilitate  access  to  and  exercise  of  service  activities,  it  is  important  to 
evaluate and report on authorisation schemes and their justification. This reporting 
obligation concerns only the existence of authorisation schemes and not the criteria 
and conditions for the granting of an authorisation. 

(27e)  The authorisation should normally enable the provider to have access to the service 
activity,  or  to  exercise  that  activity,  throughout  the  national  territory,  except  if  a 
territorial  limit  is  justified  by  an  overriding  reason  relating  to  the  public  interest. 
For  example,  environmental  protection  may  justify  the  requirement  to  obtain  an 
individual  authorisation  for  each  installation  on  the  national  territory.  This 
provision  does  not  affect  regional  or  local  competences  for  the  granting  of 
authorisations within the Member States. 

(27f)  This  Directive,  and  in  particular  the  provisions  concerning  authorisation  schemes 
and  the  territorial  scope  of  an  authorisation,  do  not  interfere  with  the  division  of 
regional  or  local  competences  within  the  Member  States,  including  regional  and 
local self-government and the use of official languages. 

(27g)  The  provision  relating  to  the  non  duplication  of  conditions  for  the  granting  of 
authorisation  does  not  prevent  Member  States  from  applying  their  own  conditions 
which  are  specified  in  the  authorisation  scheme.  It  only  requires  that  competent 
authorities,  when  considering  whether  these  conditions  are  met  by  the  applicant, 
take into account the equivalent conditions which have already been satisfied by the 
applicant in another Member State. This provision does not require the application 
of  the  conditions  for  the  granting  of  authorisation  provided  in  the  authorisation 
scheme of another Member State. 

(28) 

In cases where the number of authorisations available for an activity is limited because 
of  scarcity  of  natural  resources  or  technical  capacity,  as  may  be  the  position,  for 
example, with regard to the award of analogue radio frequencies or the exploitation of 
hydro-electric plant, a procedure for selection from among several potential candidates 
must be adopted, with the aim of developing through open competition the quality and 
conditions  for  supply  of  services  available  to  users.  Such  a  procedure  must  provide 
guarantees  of  transparency  and  impartiality  and  the  authorisation  thus  granted  must 
not  have  an  excessive  duration,  or  be  subject  to  automatic  renewal,  or  confer  any 
advantage  on  the  successful  provider.  In  particular,  the  duration  of  the  authorisation 
granted must be fixed in such as way that it does not restrict or limit free competition 
beyond what is necessary to enable the provider to recoup the cost of investment and 
to make a fair return on the capital invested. This provision does not prevent Member 
States from limiting the number of authorisations for reasons other than scarcity of 

EN 

29 

   EN 

 
natural  resources  or  technical  capacity.  These  authorisations  remain  in  any  case 
subject to the other provisions of this Directive relating to authorisation schemes. 

(28a)  This  Directive  provides  that  failing  a  response  within  a  time  period,  authorisation 
shall be deemed to have been granted. However, different arrangements may be put 
in  place  in  respect  of  certain  activities,  where  objectively  justified  by  overriding 
reasons relating to public interest. 

[Recital 29 moved] 

(30) 

In order to establish a genuine internal market for services, it is necessary to abolish 
any  restrictions  on  the  freedom  of  establishment  and  the  free  movement  of  services 
which  are  still  enshrined  in  the  laws  of  certain  Member  States  and  which  are 
incompatible with Articles 43 and 49 of the Treaty respectively. The restrictions to be 
prohibited  particularly  affect  the  internal  market  for  services  and  should  be 
systematically dismantled as soon as possible. 

(31)  The  Court  of  Justice  has  consistently  held  that  the  freedom  of  establishment  is 
predicated,  in  particular,  upon  the  principle  of  equal  treatment,  which  entails  the 
prohibition  not  only  of  any  discrimination  on  grounds  of  nationality  but  also  of  any 
indirect  discrimination  based  on  other  grounds  but  capable  of  producing  the  same 
result.  Thus,  access  to  a  service  activity  or  the  exercise  thereof  in  a  Member  State, 
either as a principal or secondary activity, may not be made subject to criteria such as 
place  of  establishment,  residence,  domicile  or  principal  provision  of  the  service 
activity. In certain cases, however, overriding reasons relating to the public interest 
may  justify  compelling  a  service  provider,  or  one  of  his  employees  or  a 
representative, to be present during the exercise of his activity. Similarly, a Member 
State  may  not  restrict  the  legal  capacity  or  the  right  to  bring  legal  proceedings  of 
companies incorporated in accordance with the law of another Member State on whose 
territory  they  have  their  primary  establishment.  Moreover,  a  Member  State  may  not 
confer  any  advantages  on  providers  having  a  particular  national  or  local  socio-
economic link; nor may it restrict, on grounds of place of establishment, the provider’s 
freedom to acquire, exploit or dispose of rights and goods or to access different forms 
of  credit  or  accommodation  in  so  far  as  those  choices  are  useful  for  access  to  his 
activity or for the effective exercise thereof.  

(32)  The  prohibition  of  economic  tests  as  a  prerequisite  for  the  grant  of  authorisation 
covers economic tests as such, but not requirements which are objectively justified by 
overriding  reasons  relating  to  the  public  interest,  such  as  protection  of  the  urban 
environment,  social  policy  and  public  health  objectives.  That  prohibition  does  not 
affect  the  exercise  of  the  powers  of  the  authorities  responsible  for  applying 
competition law.  

(32a)  With respect to financial guarantees or insurance, the prohibition of requirements 
only  concerns  the  obligation  that  the  requested  financial  guarantees  or  insurance 
must  be  obtained  from  a  financial  institution  established  in  the  Member  State 
concerned. 

(32b)  With  respect  to  pre-registration,  the  prohibition  of  requirements  only  concerns  the 
obligation that the provider, prior to the establishment, be pre-registered for a given 
period in a register held in the Member State concerned. 

EN 

30 

   EN 

 
(33) 

In order to coordinate the modernisation of national rules and regulations in a manner 
consistent  with  the  requirements  of  the  internal  market,  it  is  necessary  to  evaluate 
certain  non-discriminatory  national  requirements  which,  by  their  very  nature,  could 
severely restrict or even prevent access to an activity or the exercise thereof under the 
freedom  of  establishment.  This  evaluation  process  is  limited  to  the  compatibility  of 
these  requirements  with  the  criteria  already  established  by  the  Court  of  Justice  on 
the  freedom  of  establishment.  It  does  not  concern  the  application  of  Community 
competition  law.  Where  such  requirements  are  discriminatory  or  not  objectively 
justified  by  an  overriding  reason  relating  to  the  public  interest  or  where  they  are 
disproportionate,  they  must  be  abolished  or  amended.  The  outcome  of  this 
assessment will be different according to the nature of the activities and the public 
interest  concerned.  In  particular,  according  to  the  jurisprudence  of  the  Court  of 
Justice,  such  requirements  could  be  fully  justified  when  they  pursue  social  policy 
objectives. 

(33a  For  the  purposes  of  this  Directive,  services  may  only  be  considered  as  Services  of 
General  Economic  Interest  in  this  Directive  and  without  prejudice  to  Article  16  of 
the  Treaty,  if  they  are  provided  in  application  of  a  special  task  of  public  interest 
entrusted to the provider by the Member State concerned. This assignment must be 
made by way of one or more acts, the form of which is determined by each Member 
State, and must specify the precise nature of the special task. 

(33b)  The  mutual  evaluation  process  provided  for  in  this  Directive  does  not  affect  the 
freedom  of  Member  States  to  set  in  their  legislation  a  high  level  of  protection  of 
public  interests,  in  particular  of  social  policy  objectives.  Furthermore,  the  mutual 
evaluation process has to take fully into account the specificity of services of general 
economic  interest  and  of  the  particular  tasks  assigned  to  them.  These  may  justify 
certain  restrictions  on  the  freedom  of  establishment,  in  particular  where  such 
restrictions  pursue  the  protection  of  public  health  and  social  policy  objectives  and 
where they satisfy the conditions in Article 15(3)(a) to (c). For example, concerning 
the obligation to take a specific legal form in order to exercise certain services in the 
social  field,  the  Court  of  Justice  has  already  recognised  that  it  may  be  justified  to 
submit the service provider to a requirement to be non-profit making.  

(34)  The  restrictions  to  be  examined  include  national  rules  which,  on  grounds  other  than 
those  relating  to  professional  qualifications,  reserve  access  to  certain  activities  to 
particular providers. These restrictions also include obligations on a provider to take 
a  specific  legal  form,  in  particular  to  be  a  legal  person,  to  be  a  company  with 
individual ownership, to be a non-profit making organisation or a company owned 
exclusively by natural persons, and requirements which relate to the shareholding of 
a  company,  in  particular  obligations  to  hold  a  minimum  amount  of  capital  for 
certain  service activities or to have  a  specific qualification in order to hold capital 
in,  or  to  manage  certain  companies.  The  evaluation  of  the  compatibility  of  fixed 
minimum and/or maximum tariffs with the freedom of establishment concerns only 
tariffs  imposed  by  competent  authorities  specifically  for  the  provision  of  certain 
services and not, for example, general rules on price determination such as for the 
renting of houses. 

(34a)  The  mutual  evaluation  process  means  that  during  the  transposition  period,  Member 
States will first have to conduct a "screening" of their legislation in order to ascertain 
whether above mentioned requirements exist in their legal systems and, at the latest by 

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31 

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the end of the transposition period, Member States must draw up a report on the results 
of  their  screening.  Each  report  will  be  submitted  to  all  other  Member  States  and 
interested parties. Member States will then have six months in which to submit their 
observations  on  these  reports.  At  the  latest  by  31 December 2008,  the  Commission 
will  draw  up  a  summary  report,  accompanied  where  appropriate  by  proposals  for 
further  initiatives.  If  necessary  the  Commission,  in  cooperation  with  the  Member 
States, will assist the Member State in order to design a common methodology. 

[Recital 35 deleted] 

(36)  The  fact  that  this  Directive  specifies  a  number  of  requirements  to  be  abolished  or 
evaluated by the Member States during the transposition period is without prejudice to 
any  infringement  proceedings  against  a  Member  State  for  failure  to  fulfil  its 
obligations under Articles 43 or 49 of the Treaty. 

(36a)  This  Directive  does  not  concern  the  application  of  Articles  28  to  30  of  the  Treaty 
relating  to  the  free  movement  of  goods.  The  restrictions  prohibited  pursuant  to  the 
provision  on  the  freedom  to  provide  services  cover  the  requirements  applicable  to 
access to service activities or to the exercise thereof and not those applicable to goods 
as such. 

(36b)  Where an operator travels to another Member State to exercise a service activity there, 
a  distinction  should  be  made  between  situations  covered  by  the  freedom  of 
establishment  and  those  covered,  due  to  the  temporary  nature  of  the  activities 
concerned, by the free movement of services. As regards the distinction between the 
application  of  the  freedom  of  establishment  and  the  free  movement  of  services 
respectively according to the case-law of the Court of Justice the key element is the 
question  whether  the  economic  operator  is  established  or  not  in  the  Member  State 
where  he  provides  the  service  concerned.  If  he  is  established  in  the  Member  State 
where  he  provides  his  services,  he  comes  under  the  scope  of  application  of  the 
freedom of establishment. If by contrast the economic operator is not established in 
the Member State where the service is provided, his activities are covered by the free 
movement  of  services. The  Court  of  Justice  has  consistently  held  that  the  temporary 
nature  of  the  activities  in  question  must  be  determined  in  the  light  not  only  of  the 
duration of the provision of the service, but also of its regularity, periodical nature or 
continuity. In any case, the fact that the activity is temporary does not mean that the 
service provider may not equip himself with some forms of infrastructure in the host 
Member  State,  such  as  an  office,  chambers  or  consulting  rooms,  in  so  far  as  such 
infrastructure is necessary for the purposes of providing the service in question. 

(37) 

In  order  to  secure  effective  implementation  of  the  free  movement  of  services  and  to 
ensure that recipients and providers can benefit from and supply services throughout 
the  Community  regardless  of  frontiers,  it  is  necessary  to  clarify  to  which  extent 
requirements of the Member State where the service is provided can be imposed. It is 
indispensable to provide that the provision on the freedom to provide services does 
not  prevent  the  Member  State  where  the  service  is  provided  from  imposing,  in 
compliance  with  the  principles  set  out  in  Article  16(1)(a)  to  (c),  its  specific 
requirements for reasons of public policy or public security or for the protection of 
public health or the environment. 

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32 

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(37a)  The Court of Justice has consistently held that a Member State retains the right to 
take measures in order to prevent service providers from abusively taking advantage 
of the internal market principles. Abuse by a provider must be established on a case 
by case basis. 

[Recital 38 deleted] 

[Recital 39 deleted] 

(39a)  It is necessary to ensure that providers are able to take equipment which is integral 
to  the  provision  of  their  service  with  them  when  they  travel  to  provide  services  in 
another  Member  State.  In  particular,  it  is  important  to  avoid  cases  in  which  the 
service  could  not  be  provided  without  the  equipment,  situations  in  which  service 
providers  incur  additional  costs,  for  example,  by  hiring  or  purchasing  different 
equipment  to  that  which  they  habitually  use  or  by  needing  to  change  significantly 
the way they habitually carry out their activity. 

(39b)  The  concept  of  equipment  does  not  refer  to  physical  objects  which  are  either 
supplied by the provider to the client or become part of a physical object as a result 
of  the  service  activity  such  as  building  materials  or  spare  parts  or  which  are 
consumed or left in situ in the course of the service provisions such as combustible 
fuels, explosives, fireworks, pesticides, poisons or medicines. 

(40) 

It is necessary to provide that the provision on the freedom to provide services may be 
departed  from  only  in  the  areas  covered  by  derogations.  Those  derogations  are 
necessary in order to take into account the level of integration of the internal market or 
certain  Community  instruments  relating  to  services  pursuant  to  which  a  provider  is 
subject  to  the  application  of  a  law  other  than  that  of  the  Member  State  of 
establishment. Moreover, by way of exception, measures against a given provider may 
also  be  adopted  in  certain  individual  cases  and  under  certain  strict  procedural  and 
substantive  conditions.  In  addition,  any  restriction  of  the  free  movement  of  services 
should  be  permitted,  by  way  of  exception,  only  if  it  is  consistent  with  fundamental 
rights which, as the Court of Justice has consistently held, form an integral part of the 
general principles of law enshrined in the Community legal order.  

(40a)  The  derogation  from  the  provision  on  the  freedom  to  provide  services  concerning 
postal  services  covers  both  activities  reserved  to  the  universal  service  provider  and 
other postal services. 

(40b)  The derogation from the provision on the freedom to provide services relating to the 
judicial  recovery  of  debts  and  the  reference  to  a  possible  future  harmonisation 
instrument concerns only the access to and the exercise of activities which consist, 
notably, in bringing actions before a Court relating to the recovery of debts.  

[Recital 41 moved] 

(41a)  This  Directive  should  not  affect  terms  and  conditions  of  employment  which, 
pursuant to Directive 96/71/EC, apply to workers posted to provide a service in the 
territory of another Member State. In such cases, Directive 96/71/EC stipulates that 
service providers have to comply with terms and conditions of employment in a listed 
number  of  areas  applicable  in  the  Member  State  where  the  service  is  provided. 

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33 

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These  are:  maximum  work  periods  and  minimum  rest  periods,  minimum  paid 
annual holidays, minimum rates of pay, including overtime rates, the conditions of 
hiring out of workers, in particular the protection of workers hired out by temporary 
employment  undertakings, health,  safety and hygiene  at work,  protective measures 
with  regard  to  the  terms  and  conditions  of  employment  of  pregnant  women  or 
women who have recently given birth and of children and young people and equality 
of treatment between men and women and other provisions on non-discrimination. 
This  does  not  only  concern  terms  and  conditions  of  employment  which  are  laid 
down by law but also those laid down in collective agreements or arbitration awards 
that are officially declared or de facto universally applicable within the meaning of 
Directive  96/71/EC.  Moreover,  this  Directive  should  not  prevent  Member  States 
from  applying  terms  and  conditions  of  employment  on  matters  other  than  those 
listed in Article 3 paragraph 1 of Directive 96/71/EC on the grounds of public policy 
provisions.  

(41b)  This  Directive  should  neither  affect  terms  and  conditions  of  employment  in  cases 
where the worker employed for the provision of a cross-border service is recruited in 
the  Member  State  where  the  service  is  provided.  Furthermore,  this  Directive  does 
not affect the right for the Member States where the service is provided to determine 
the  existence  of  an  employment  relationship  and  the  distinction  between  self-
employed  persons  and  employed  persons,  including  "false  self-employed  persons". 
In  that  respect,  according  to  the  case  law  of  the  Court  of  Justice,  the  essential 
characteristic of an employment relationship within the meaning of Article 39 of the 
Treaty is the fact that for a certain period of time a person provides services for and 
under the direction of another person in return for which he receives remuneration; 
any  activity  which  a  person  performs  outside  a  relationship  of  subordination  must 
be classified as an activity pursued in a self-employed capacity for the purposes of 
Articles 43 and 49 of the Treaty. 

(41c)  The provision on the freedom to provide services does not apply in cases where, in 
conformity  with  Community  law,  in  a  Member  State,  an  activity  is  reserved  to  a 
particular  profession,  for  example  requirements  which  reserve  legal  advice  to 
lawyers. 

[Recital 42 deleted] 

[Recital 43 deleted] 

(44)  The  derogation  from  the  provision  on  the  freedom  to  provide  services  of  matters 
relating  to  the  registration  of  vehicles  leased  in  a  Member  State  other  than  that  in 
which  they  are  used  follows  from  the  case-law  of  the  Court  of  Justice,  which  has 
recognised  that  a  Member  State  may  impose  such  an  obligation,  in  accordance  with 
proportionate  conditions,  in  the  case  of  vehicles  used  on  its  territory.  That  exclusion 
does not cover occasional or temporary rental. 

(45)  Contractual relations between the service provider and the client as well as between 
an  employer  and  employee  should  not  be  subject  to  this  Directive.  The  applicable 
law  regarding  the  contractual  or  the  extra-contractual  obligations  of  the  service 
provider shall be determined by the rules of private international law. 

[Recital 46 deleted] 

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34 

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(47) 

It  is  necessary  to  allow  Member  States  the  possibility,  exceptionally  and  on  a 
case-by-case  basis,  of  taking  measures  which  derogate  from  the  provision  on  the 
freedom  to  provide  services  in  respect  of  a  provider  established  in  another  Member 
State, on grounds of the safety of services. It should be possible to take such measures 
only in the absence of harmonisation at Community level. 

(48)  Restrictions on the free movement of services, contrary to this Directive, may arise not 
only from measures applied to providers, but also from the many barriers to the use of 
services  by  recipients,  especially  consumers.  This  Directive  mentions,  by  way  of 
illustration, certain types of restriction applied to a recipient wishing to use a service 
performed  by  a  provider  established  in  another  Member  State.  Such  discriminatory 
restrictions  include  national  rules  according  to  which  financial  assistance 
concerning the costs of language or vocational training are limited to cases where 
such  training  is  carried  out  in  the  territory  of  the  Member  State  concerned.  This 
also includes cases where recipients of a service are under an obligation to obtain 
authorisation from or to make a declaration to their competent authorities in order 
to receive a service from a provider established in another Member State. This does 
not concern general authorisation schemes which also apply to the use of a service 
supplied by a provider established in the Member State of the recipient. 

(48a)  The concept of financial assistance provided for the use of a particular service does 
not  apply  to  systems  of  aids  granted  by  Member  States,  in  particular  in  the  social 
field or in the cultural sector, which are covered by Community rules on competition 
or  to  general  financial  assistance  not  linked  to  the  use  of  a  particular  service,  for 
example grants or loans to students.  

(49) 

In accordance with the Treaty rules on the free movement of services, as interpreted by 
the  Court  of  Justice,  discrimination  on  grounds  of  the  recipient’s  nationality  or 
national or local residence is prohibited. Such discrimination could take the form of an 
obligation,  imposed  only  on  nationals  of  another  Member  State,  to  supply  original 
documents,  certified  copies,  a  certificate  of  nationality  or  official  translations  of 
documents  in  order  to  benefit  from  a  service  or  from  more  advantageous  terms  or 
prices. However, the prohibition of discriminatory requirements does not preclude the 
reservation  of  advantages,  especially  as  regards  tariffs,  to  certain  recipients,  if  such 
reservation is based on legitimate, objective criteria. 

(50)  Whilst  this  Directive  is  not  intended  to  harmonise  artificially  prices  across  the 
European  Union,  in  particular  where  market  conditions  vary  from  country  to 
country, if an internal area without frontiers is to be effectively achieved, the principle 
of  non-discrimination  imposes  that  Community  citizens  must  neither  be  prevented 
from benefiting  from  a service  which is technically accessible on the market, nor be 
made subject to different conditions and tariffs by reason of their nationality or place 
of residence. The persistence of  such  discrimination with respect to the recipients of 
services  highlights,  for  the  Community  citizen,  the  absence  of  a  genuine  internal 
market  in  services  and,  in  a  more  general  sense,  compromises  the  integration  of  the 
peoples  of  Europe.  The  principle  of  non-discrimination  within  the  internal  market 
means that access by a recipient, and especially by a consumer, to a service on offer to 
the  public  may  not  be  denied  or  hampered  by  application  of  a  criterion,  included  in 
general conditions made available to the public, relating to the recipient's nationality 
or  place  of  residence.  It  does  not  follow  that  it  will  be  unlawful  discrimination  if 
provision were made in such general conditions for different tariffs and conditions to 

EN 

35 

   EN 

 
apply  to  the  provision  of  a  service,  where  those  tariffs,  prices,  and  conditions  are 
justified  for  objective  reasons  that  can  vary  from  country  to  country,  such  as 
additional costs effectively incurred because of the distance involved or the technical 
characteristics of the provision of the service, or different market conditions, such as 
higher or lower demand influenced by seasonality, different vacation periods in the 
Member  States  and  pricing  by  different  competitors,  or  extra  risks  linked  to  rules 
differing from those of the Member State of establishment. 

(50a)  The  way  in  which  information  is  provided  to  recipients  in  their  Member  State  of 
residence  is  for  that  Member  State  to  determine  within  the  framework  of  this 
Directive. Issues such as liability for providing incorrect or misleading information 
are for Member States to determine. 

[Recital 51 deleted] 

[Recital 52 deleted] 

[Recital 53 deleted] 

[Recital 54 deleted] 

[Recital 55 deleted] 

[Recital 56 deleted] 

[Recital 57 deleted] 

[Recital 58 deleted] 

[Recital 59 deleted] 

[Recital 60 deleted] 

[Recital 61 deleted] 

(62) 

It is appropriate to provide that, as one of the means by which the provider may make 
the information which he is obliged to supply easily accessible to the recipient, he is to 
supply  his  electronic  address,  including  that  of  his  website.  Furthermore,  the 
obligation  to  present  certain  information  in  the  provider’s  information  documents 
presenting  his  services  in  detail  should  not  cover  commercial  communications  of  a 
general nature, such as advertising, but rather documents giving a detailed description 
of the services proposed, including documents on a website. 

(63)  Any  operator  providing  services  involving  a  direct  and  particular  health,  safety  or 
financial  risk  for  the  recipient  or  a  third  person  should  in  principle  be  covered  by 
appropriate professional liability insurance, or by another form of guarantee which is 
equivalent  or  comparable,  which  means,  in  particular,  that  normally  he  should  have 
adequate  insurance  coverage  for  services  provided  in  one  or  more  Member  States 
other than the Member State of establishment. 

(63a)  The  insurance  or  guarantee  should  be  appropriate  to  the  nature  and  extent  of  the 
risk.  That  means  that  service  providers  should  have  cross-border  coverage  only  if 

EN 

36 

   EN 

 
they actually provide services in other Member States. Member States should not lay 
down  more  detailed  rules  concerning  the  insurance  coverage  and  fix  for  example 
minimum  thresholds  for  the  insurance  sum  or  limits  on  exclusions  from  the 
insurance  coverage.  Service  providers  and  insurance  companies  should  maintain 
the  necessary  flexibility  to  negotiate  insurance  policies  precisely  targeted  to  the 
nature and scope of the risk. Furthermore, it is not necessary that an obligation of 
appropriate insurance is laid down by law. It is sufficient if an insurance obligation 
is  part  of  the  deontological  rules  laid  down  by  professional  bodies.  Finally,  there 
should be no obligation for insurance companies to provide insurance cover. 

(64) 

It is necessary to put an end to the total prohibitions of commercial communications 
by  the  regulated  professions,  not  by  removing  bans  on  the  content  of  a  commercial 
communication  but  rather  those  which,  in  a  general  way  and  for  a  given  profession, 
forbid  one  or  more  forms  of  commercial  communication,  such  as  a  ban  on  all 
advertising  in  one  or  more  given  media.  As  regards  the  content  and  methods  of 
commercial communication, it is necessary to encourage professionals to draw up, in 
accordance with Community law, codes of conduct at Community level. 

(64a)  It is necessary and in the interest of recipients, in particular consumers, to ensure 
that service providers have the possibility to offer multidisciplinary services and that 
restrictions in this regard be limited to what is necessary to ensure the impartiality 
and  independence  and  the  integrity  of  regulated  professions.  This  does  not  affect 
restrictions or prohibitions to carry out particular  activities which aim at ensuring 
independence in cases in which a Member State entrusts a service provider with a 
particular task notably in the area of urban development.  

(65) 

In  order  to  increase  transparency  and  promote  assessments  based  on  comparable 
criteria with regard to the quality of the services offered and supplied to recipients, it is 
important that information on the meaning of quality labels and other distinctive marks 
relating  to  these  services  be  easily  accessible.  That  obligation  of  transparency  is 
particularly important in areas such as tourism, especially the hotel business, in which 
the  use  of  a  system  of  classification  is  widespread.  Moreover,  it  is  appropriate  to 
examine  the  extent  to  which  European  standardisation  could  facilitate  compatibility 
and quality of services. European standards are drawn up by the European standards-
setting  bodies,  the  European  Committee  for  Standardisation  (CEN),  the  European 
Committee  for  Electrotechnical  Standardisation  (CENELEC)  and  the  European 
Telecommunications  Standards  Institute  (ETSI).  Where  appropriate,  the  Commission 
may,  in  accordance  with  the  procedures  laid  down  in  Directive  98/34/EC  of  the 
European Parliament and of the Council22 laying down a procedure for the provision 
of  information  in  the  field  of  technical  standards  and  regulations  and  of  rules  on 
Information Society services, issue a mandate for the drawing up of specific European 
standards 

(65a)  In  order  to  solve  potential  problems  with  compliance  with  a  judicial  decision,  it  is 
appropriate  to  provide  that  Member  States  recognise  equivalent  guarantees  lodged 
by  institutions  or  bodies  such  as  banks,  insurance  providers,  or  other  financial 
services providers established in another Member State. 

22 

OJ  L  204,  21.7.1998,  p.  37.  Directive  as  last  amended  by  Directive  98/48/EC  of  the  European 
Parliament and the Council  of 20.7.1998 (OJ L 217 5.8.1998, p. 18). 

EN 

37 

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(66)  The  development  of  a  network  of  Member  State  consumer  protection  authorities, 
which is the subject of Regulation (EC) No 2006/2004 of the European Parliament 
and of the Council on cooperation between national authorities responsible for the 
enforcement  of  consumer  protection  laws23,  complements  the  cooperation  provided 
for in this Directive. The application of consumer protection legislation in cross-border 
cases, in particular with regard to new marketing and selling practices, as well as the 
need  to  remove  certain  specific  obstacles  to  cooperation  in  this  field,  necessitates  a 
higher degree of cooperation between Member States. In particular, it is necessary in 
this  area  to  ensure  that  Member  States  require  the  cessation  of  illegal  practices  by 
operators in their territory who target consumers in another Member State. 

(66a)  Administrative  cooperation  is  essential  to  make  the  internal  market  in  services 
function  properly.  Lack  of  cooperation  between  Member  States  results  in 
proliferation  of  rules  applicable  to  service  providers  or  duplication  of  controls  for 
cross-border activities, and can also be used by rogue traders to avoid supervision or 
to  circumvent  applicable  national  rules  on  services.  It  is,  therefore,  essential  to 
provide  for  clear,  legally  binding  obligations  for  Member  States  to  cooperate 
effectively. 

(66b)  For  the  purposes  of  the  Chapter  on  administrative  co-operation,  “supervision” 
refers  to  activities  such  as  monitoring  and  fact  finding,  problem  solving, 
enforcement and imposition of sanctions, and subsequent follow-up activities. 

(66c)  In  normal  circumstances  mutual  assistance  shall  take  place  directly  between 
competent authorities. The points of contact designated  by  Member States shall be 
required to facilitate this process only in the event of difficulties being encountered, 
for instance if assistance is required to identify the relevant competent authority. 

(66d)  Certain  obligations  of  mutual  assistance  apply  to  all  matters  covered  by  this 
Directive,  including  those  relating  to  cases  where  a  service  provider  establishes  in 
another Member State. Other obligations of mutual assistance apply only in cases of 
cross-border  provision  of  services,  where  the  provision  on  the  freedom  to  provide 
services  applies.  A  further  set  of  obligations  apply  in  all  cases  of  cross-border 
provision  of  services,  including  areas  not  covered  by  the  provision  on  freedom  to 
provide  services.  Cross-border  provision  of  services  includes  cases  where  services 
are  provided  at  a  distance  and  where  the  recipient  travels  to  the  Member  State  of 
establishment of the service provider in order to receive services. 

(66e)  In  cases  where  a  provider  moves  temporarily  to  a  Member  State  other  than  the 
Member  State  of  establishment,  it  is  necessary  to  provide  for  mutual  assistance 
between  those  two  States  so  that  the  former  can  carry  out  checks,  inspections  and 
enquiries at the request of the Member State of establishment or carry out such checks 
on its own initiative if these are merely factual checks.  

(66ea) It should not be possible for Member States to circumvent the rules laid down in this 
Directive, including the provision on the freedom to provide services, by conducting 
checks, inspections or investigations which are discriminatory or disproportionate.  

23 

OJ L 364, 9.12.2004, p. 1. 

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38 

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(66f)  The provisions of this Directive concerning the exchange of information regarding 
the  good  repute  of  providers  do  not  pre-empt  initiatives  in  the  area  of  police  and 
judicial  cooperation  in  criminal  matters,  in  particular  on  the  exchange  of 
information  between  law  enforcement  authorities  and  criminal  records  of  the 
Member States. 

(66g)  Cooperation  between  Member  States  requires  a  well-functioning  electronic 
information  system  in  order  to  allow  competent  authorities  easily  to  identify  their 
relevant  interlocutors  in  other  Member  States  and  to  communicate  in  an  efficient 
way. 

(67) 

It is necessary to provide that the Member States, in cooperation with the Commission, 
are  to  encourage  interested  parties  to  draw  up  codes  of  conduct  at  Community  level 
aimed  in  particular  at  promoting  the  quality  of  services  and  taking  into  account  the 
specific  nature  of  each  profession.  Those  codes  of  conduct  should  comply  with 
Community  law,  especially  competition  law.  They  may  not  be  incompatible  with 
legally  binding  rules  governing  professional  ethics  and  conduct  in  the  Member 
States. 

(67a)  Member States should encourage the setting up of codes of conduct particularly by 
professional bodies, organisations and associations at Community level. These codes 
of conduct should include, as appropriate to the specific nature of each profession, 
rules for commercial communications relating to regulated professions, and rules of 
professional ethics and conduct of the regulated professions which aim in particular 
at  ensuring  independence,  impartiality  and  professional  secrecy.  In  addition,  the 
conditions to which the activities of estate agents are subject should be included in 
such  codes  of  conduct.  Member  States  should  take  accompanying  measures  to 
encourage  professional  bodies,  organisations  and  associations  to  implement  at 
national level the codes of conduct adopted at Community level. 

(67b)  Codes  of  conduct  at  Community  level  are  intended  to  set  minimum  standards  of 
conduct and are complementary to Member States' legal requirements. They do not 
preclude  Member  States,  in  accordance  with  Community  law,  from  taking  more 
stringent measures in law or national professional bodies from providing for greater 
protection in their national codes of conduct.  

[Recital 68 deleted ] 

[Recital 69 deleted] 

[Recital 70 moved] 

[Recital 71 moved] 

[Recital 72 deleted]  

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39 

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(73)  The measures necessary for the implementation of this Directive should be adopted in 
accordance  with  Council  Decision  1999/468/EC  laying  down  the  procedures  for  the 
exercise of implementing powers conferred on the Commission24, 

HAVE ADOPTED THIS DIRECTIVE: 

Chapter I 
General provisions 

Article 1 
Subject-matter 

1. 
This Directive establishes general provisions facilitating the exercise of the freedom of 
establishment for service providers and the free movement of services, while maintaining a 
high quality of services. 

2. 
This Directive does not deal with the liberalisation of services of general economic 
interest,  reserved  to  public  or  private  entities,  nor  with  the  privatisation  of  public  entities 
providing services.  

3. 
This Directive does not deal with the abolition of monopolies providing services nor 
with aids granted by Member States which are covered by Community rules on competition. 

This Directive does not affect the freedom of Member States to define, in conformity with 
Community law, what they consider to be services of general economic interest, how those 
services  should  be  organised  and  financed,  in  compliance  with  the  State  Aid  rules,  and 
what specific obligations they should be subject to. 

4. 
This  Directive  does  not  affect  measures  taken  at  Community  level,  or  at  national 
level,  in  conformity  with  Community  law,  in  order  to  protect  or  promote  cultural  or 
linguistic diversity or media pluralism. 

5. 

This Directive does not affect Member States' rules of criminal law. 

6. 
This Directive does not affect labour law, that is any legal or contractual provision 
concerning  employment  conditions,  working  conditions,  including  health  and  safety  at 
work and the relationship between employers and workers, which Member States apply in 
compliance with Community law. Equally this Directive does not affect the social security 
legislation  of  the  Member  States,  as  referred  to  in  Article  4  of  Regulation  (EEC)  No 
1408/71 on the coordination of social security systems25. 

7. 
This  Directive  does  not  affect  the  exercise  of  fundamental  rights  as  recognised  in 
the  Member  States  and  by  the  Charter  of  Fundamental  Rights  of  the  European  Union, 
including  the  right  to  negotiate  conclude  and  enforce  collective  agreements  and  to  take 
industrial action. 

24 
25 

OJ L 184, 17.7.1999, p. 23. 
OJ  L  149,  5.7.1971,  p.  2.  Regulation  as  last  amended  by  Regulation  (EC)  No  647/2005  (OJ  L  117, 
4.5.2005 p.1). 

EN 

40 

   EN 

 
 
                                                 
Article 2 
Scope 

This Directive shall apply to services supplied by providers established in a Member 

1. 
State. 

2. 

This Directive shall not apply to the following activities: 

(-a)  Services of General Interest; 

(a) 

(b) 

financial  services,  such  as  banking,  credit,  insurance  and  re-insurance, 
occupational  or  personal  pensions,  securities,  investment,  funds,  payment, 
investment  advice,  including  the  services  listed  in  Annex  I  to  Directive 
2000/12/EC  of  the  European  Parliament  and  of  the  Council  relating  to  the 
taking up and pursuit of the business of credit institutions26; 

electronic communications services and networks, and associated facilities and 
to  matters  covered  by  Directives 2002/19/EC27, 
services,  with  respect 
2002/20/EC28, 2002/21/EC29, 2002/22/EC30 and 2002/58/EC31 of the European 
Parliament and of the Council ; 

(c) 

transport  services  and  transport  related  services  falling  within  the  scope  of 
title V of the EC Treaty;  

(ca)  port services;  

(cb)  services of temporary work agencies;  

(cc)  healthcare services whether or not they are provided via healthcare facilities, 
and  regardless  of  the  ways  in  which  they  are  organised  and  financed  at 
national level or whether they are public or private; 

(cd)  audiovisual  services,  whatever  their  mode  of  production,  distribution  and 

transmission, including radio broadcasting and the cinema; 

(ce)  gambling  activities  which  involve  wagering  a  stake  with  pecuniary  value  in 
games  of  chance,  including  lotteries,  gambling  in  casinos  and  betting 
transactions; 

(cf)  activities which are connected with the exercise of official authority as set out 

in Article 45 of the Treaty; 

(cg)  social  services  relating  to  social  housing,  childcare  and  support  of  families 

and persons in need; 

26 

27 
28 
29 
30 
31 

OJ  L  126,  26.5.2000,  p.  1,  as  last  amended  by  Commission  Directive  2004/69/EC  (OJ  L  125, 
28.4.2004, p. 44). 
OJ L 108, 24.4.2002, p. 7. 
OJ L 108, 24.4.2002, p. 21. 
OJ L 108, 24.4.2002, p. 33. 
OJ L 108, 24.4.2002, p. 51. 
OJ L 201, 31.7.2002, p. 37. 

EN 

41 

   EN 

 
                                                 
(ch)  private security services. 

3. 

This Directive does not apply to the field of taxation. 

Article 3 
Relationship with other provisions of Community law  

If  the  provisions  of  this  Directive  conflict  with  a  provision  of  another  Community 
1. 
act governing specific aspects of access to or exercise of a service activity in specific sectors 
or for specific professions, the provision of the other Community act shall prevail and shall 
apply to those specific sectors or professions. These include: 

a) Directive 96/71/EC of the European Parliament and the Council concerning the posting 
of workers in the framework of the provision of services32; 

b) Council Regulation (EEC) No 1408/71 on the application of social security schemes to 
employed  persons,  to  self-employed  persons  and  members  of  their  families  moving  within 
the Community33; 

c)  Council  Directive  89/552/EEC  concerning  the  pursuit  of  television  broadcasting 
activities34; 

d)  Directive  2005/36/EC  of  the  European  Parliament  and  the  Council35  concerning  the 
recognition of professional qualifications. 

2.  This  Directive  does  not  affect  rules  of  private  international  law,  in  particular  rules 
governing  the  law  applicable  to  contractual  and  non  contractual  obligations.  As  a 
consequence, consumers will, in principle, benefit from the protection granted to them by 
the consumer protection rules laid down in the consumer legislation in force in his Member 
State. 

Member  States  shall  apply  the  provisions  of  this  Directive  in  compliance  with  the 

3. 
rules of the Treaty on the right of establishment and the free movement of services. 

For the purposes of this Directive, the following definitions shall apply: 

Article 4 
Definitions 

(1) 

(2) 

32 
33 
34 
35 

"service"  means  any  self-employed  economic  activity,  normally  provided  for 
remuneration, as referred to in Article 50 of the Treaty; 

"provider"  means  any  natural  person  who  is  a  national  of  a  Member  State,  or  any 
legal  person,  as  referred  to  in  Article  48  of  the  Treaty,  established  in  a  Member 
State, who offers or provides a service;  

OJ L 18, 21.1.1997, p. 1. 
OJ L 149, 5.7.1971, p. 2, as last amended by Regulation (EC) 647/2005 (OJ L 117, 4.5.2005, p. 1). 
OJ L 298, 17.10.1998, p. 23, as last amended by Directive 97/36/EC (OJ L 202, 30.7.1997, p. 60). 
OJ L 255, 30.9.2005, p. 22. 

EN 

42 

   EN 

 
                                                 
(3) 

(4) 

(5) 

(6) 

(7) 

(7a) 

(8) 

"recipient" means any natural person who is a national of a Member State or who 
benefits from rights conferred upon him by Community acts, or any legal person, as 
referred  to  in  Article  48  of  the  Treaty,  established  in  a  Member  State  who,  for 
professional or non-professional purposes, uses, or wishes to use, a service;  

"Member  State  of  establishment"  means  the  Member  State  in  whose  territory  the 
provider of the service concerned is established; 

"establishment"  means  the  actual  pursuit  of  an  economic  activity,  as  referred  to  in 
Article  43  of  the  Treaty,  by  the  provider  for  an  indefinite  period  and  through  a 
stable  infrastructure  from  where  the  business  of  providing  services  is  actually 
carried out; 

"authorisation scheme" means any procedure under which a provider or recipient is 
in effect required to take steps in order to obtain from a competent authority a formal 
decision,  or  an  implied  decision,  concerning  access  to  a  service  activity  or  to  the 
exercise thereof;  

"requirement"  means  any  obligation,  prohibition,  condition  or  limit  provided  for  in 
the  laws,  regulations  or  administrative  provisions  of  the  Member  States  or  in 
consequence of case-law, administrative practice the rules of professional bodies, or 
the  collective  rules  of  professional  associations  or  other  professional  organisations, 
adopted  in  the  exercise  of  their  legal  autonomy;  rules  laid  down  in  collective 
agreements  negotiated  by  the  social  partners  shall  not  as  such  be  seen  as 
requirements within the meaning of this Directive; 

“overriding  reasons  relating  to  the  public  interest”  means  reasons  recognised  as 
such  in  the  case  law  of  the  Court  of  Justice,  including  the  following  grounds: 
public policy; public security; public safety; public health; preserving the financial 
equilibrium of the social security system; the protection of consumers, recipients of 
services  and  workers;  fairness  of  trade  transactions;  combating  fraud;  the 
protection of the environment and the urban environment; the health of animals; 
intellectual property; the conservation of the national historic and artistic heritage; 
social policy objectives and cultural policy objectives; 

"competent  authority"  means  any  body  or  authority  which  has  a  supervisory  or 
regulatory  role  in  a  Member  State  in  relation  to  service  activities,  including,  in 
particular,  administrative  authorities,  professional  bodies,  and  those  professional 
associations or other professional organisations which, in the exercise of their legal 
autonomy, regulate in a collective manner access to service activities or the exercise 
thereof; 

(9) 

deleted 

(10) 

deleted 

(11) 

"Member State where the service is provided" means the Member State where the 
service is supplied by a service provider established in another Member State; 

(12) 

deleted 

EN 

43 

   EN 

 
(13) 

(14) 

"regulated  profession"  means  a  professional  activity  or  a  group  of  professional 
activities as referred to in Article 3(1)(a) of Directive 2005/36/EC of the European 
Parliament and of the Council on the recognition of professional qualifications36; 

"commercial  communication"  means  any  form  of  communication  designed  to 
promote,  directly  or  indirectly,  the  goods,  services  or  image  of  an  undertaking, 
organisation  or  person  engaged  in  commercial,  industrial  or  craft  activity  or 
practising  a  regulated  profession.  The  following  do  not  in  themselves  constitute 
commercial communications: 

(a) 

(b) 

information  enabling  direct  access  to  the  activity  of  the  undertaking, 
organisation  or  person,  including  in  particular  a  domain  name  or  an 
electronic-mailing address; 

communications  relating  to  the  goods,  services  or  image  of  the  undertaking, 
organisation or person, compiled in an independent manner, particularly when 
provided for no financial consideration. 

Chapter II 
Administrative simplification 

Article 5 
Simplification of procedures 

Member States shall examine and, if need be, simplify the procedures and formalities 

1. 
applicable to access to a service activity and to the exercise thereof.  

The  Commission  may  introduce  harmonised  forms  at  Community  level,  in 
1a. 
accordance with the procedure referred to in Article 42(2). These forms shall be equivalent 
to certificates, attestations and any other documents required of a service provider. 

Where Member States require a provider or recipient to supply a certificate, attestation 
2. 
or  any  other  document  proving  that  a  requirement  has  been  satisfied,  they  shall  accept  any 
document from another Member State which serves an equivalent purpose or from which it is 
clear  that  the  requirement  in  question  has  been  satisfied.  They  may  not  require  that  a 
document from another Member State be produced in its original form, or as a certified copy 
or as a certified translation, save in the cases provided for in other Community instruments or 
where  such  a  requirement  is  justified  by  an  overriding  reason  relating  to  the  public  interest 
including public order and security.  

The first subparagraph shall not affect the right of Member States to require non-certified 
translations of documents in one of their official languages. 

3. 
Paragraph  2  shall  not  apply  to  the  documents  referred  to  in  Article  50  of  Directive 
2005/36/EC37  of  the  European  Parliament  and  of  the  Council  on  the  recognition  of 

36 
37 

OJ L 255, 30.9.2005, p. 22. 
OJ L 255, 30.9.2005, p. 22. 

EN 

44 

   EN 

 
                                                 
professional qualifications, in Articles 45(3), 46, 49 and 50 of Directive 2004/18/EC38 of the 
European Parliament and of the Council on the coordination of procedures for the award of 
public  works  contracts,  supply  contracts  and  public  service  contracts,  in  Article  3(2)  of 
Directive 98/5/EC39 of the European Parliament and of the Council to facilitate practice of 
the profession of lawyer on a permanent basis in a Member State other than that in which 
the  qualification  was  obtained;  in  Council  Directive  68/151/EEC40,  as  amended  by 
Directive  2003/58/EC41  of  the  European  Parliament  and  of  the  Council,  as  regards 
disclosure  requirements  in  respect  of  certain  types  of  companies  ;  and  in  the  Eleventh 
Council Directive 89/666/EEC42 concerning disclosure requirements in respect of branches 
opened  in  a  Member  State  by  certain  types  of  company  governed  by  the  law  of  another 
State. 

Article 6 
Points of single contact 

Member  States  shall  ensure  that,  by  three  years  after  the  entry  into  force  of  this 
1. 
Directive  at  the  latest,  it  is  possible  for  a  service  provider  to  complete  the  following 
procedures  and  formalities  in  accordance  with  the  provisions  of  this  Chapter  and  Chapter 
IIa at contact points known as points of single contact:  

a) 

all  procedures  and  formalities  needed  for  access  to  his  service  activities,  in 
particular,  all  necessary  declarations,  notifications  or  applications  for 
authorisation  from  the  competent  authorities,  including  applications  for 
inclusion  in  a  register,  a  roll  or  a  database,  or  for  registration  with  a 
professional body or association; 

b) 

any applications for authorisation needed to exercise his service activities. 

The  establishment  of  points  of  single  contact  shall  be  without  prejudice  to  the 

2. 
allocation of functions and powers among the authorities within national systems. 

Article 7 
Right to information 

Member  States  shall  ensure  that  the  following  information  is  easily  accessible  to 

1. 
providers and recipients through the points of single contact: 

(a) 

(b) 

requirements applicable to providers established in their territory, in particular 
those requirements concerning the procedures and formalities to be completed 
in order to access and to exercise service activities; 

the  contact  details  of  the  competent  authorities  enabling  the  latter  to  be 
contacted directly, including the particulars of those authorities responsible for 
matters concerning the exercise of service activities; 

38 
39 
40 
41 
42 

OJ L 134, 30.4.2004, p. 114. 
OJ L 77, 14.3.1998, p. 36. 
OJ L 65, 14.3.1968, p. 8. 
OJ L 221, 4.9.2003, p. 13. 
OJ L 395, 30.12.1989, p. 36. 

EN 

45 

   EN 

 
                                                 
(c) 

(d) 

(e) 

the  means  of  and  conditions  for  accessing  public  registers  and  databases  on 
providers and services; 

the  means  of  redress  which  are  generally  available  in  the  event  of  dispute 
between the competent authorities and the provider or the recipient, or between 
a provider and a recipient or between providers; 

the  contact  details  of  the  associations  or  organisations,  other  than  the 
competent authorities, from which providers or recipients may obtain practical 
assistance. 

2. 
Member States shall ensure that it is possible for providers and recipients to receive, at 
their request, assistance from the competent authorities, consisting in information on the way 
in  which  requirements  referred  to  in  point  (a)  of  paragraph  1  are  generally  interpreted  and 
applied.  Where  appropriate,  such  advice  shall  include  a  simple  step-by-step  guide.  The 
information shall be provided in plain and intelligible language.  

3. 
Member  States  shall  ensure  that  the  information  and  assistance  referred  to  in 
paragraphs 1  and  2  are  provided  in  a  clear  and  unambiguous  manner,  that  they  are  easily 
accessible at a distance and by electronic means, and that they are kept up-to-date.  

4. 
Member  States  shall  ensure  that  the  points  of  single  contact  and  the  competent 
authorities  respond  as  quickly  as  possible  to  any  request  for  information  or  assistance  as 
referred  to  in  paragraphs 1  and  2  and,  in  cases  where  the  request  is  faulty  or  unfounded, 
inform the applicant accordingly without delay. 

Member States shall implement paragraphs 1 to 4 by three years after the entry into 

5. 
force of this Directive at the latest. 

6. 
Member  States  and  the  Commission  shall  take  accompanying  measures  in  order  to 
encourage  points  of  single  contact  to  make  the  information  provided  for  in  this  article 
available in other Community languages as far as this is compatible with their legislation on 
the use of languages. 

The obligation for competent authorities to assist providers and recipients does not 
7. 
require  these  authorities  to  provide  legal  advice  in  individual  cases  but  concerns  only 
general information on the way in which requirements are usually interpreted or applied.  

Article 8 
Procedures by electronic means  

Member  States  shall  ensure  that,  by  three  years  after  the  entry  into  force  of  this 
1. 
Directive  at  the  latest,  all  procedures  and  formalities  relating  to  access  to  a  service  activity 
and to the exercise thereof may be easily completed, at a distance and by electronic means, at 
the relevant point of single contact and with the relevant competent authorities. 

2. 
Paragraph 1  shall  not  apply  to  the  inspection  of  premises  on  which  the  service  is 
provided or of equipment used by the provider or to physical examination of the capability of 
the provider.  

EN 

46 

   EN 

 
3. 
The  Commission  shall  in  accordance  with  the  procedure  referred  to  in  Article 42(2) 
adopt  detailed  rules  for  the  implementation  of  paragraph  1  with  a  view  to  facilitating  the 
interoperability  of  information  systems  and  use  of  procedures  by  electronic  means  between 
Member States.  

Chapter IIa 
Freedom of establishment for service providers 

SECTION 1 
AUTHORISATIONS 

Article 9 
Authorisation schemes 

Member  States  shall  not  make  access  to  a  service  activity  or  the  exercise  thereof 

1. 
subject to an authorisation scheme unless the following conditions are satisfied: 

(a) 

the authorisation scheme does not discriminate against the provider in question; 

(b) 

(c) 

the  need  for  an  authorisation  scheme  is  justified  by  an  overriding  reason 
relating to the public interest;  

the objective pursued cannot be attained by means of a less restrictive measure, 
in particular because an a posteriori inspection would take place too late to be 
genuinely effective. 

In the report referred to in Article 41, Member States shall identify their authorisation 

2. 
schemes and give reasons showing their compatibility with paragraph 1. 

This  section  shall  not  apply  to  those  aspects  of  authorisation  schemes  which  are 

3. 
subject to harmonisation under other Community instruments. 

Article 10 
Conditions for the granting of authorisation 

1. 
Authorisation  schemes  shall  be  based  on  criteria  which  preclude  the  competent 
authorities from exercising their power of assessment in an arbitrary or discretionary manner. 

2. 

The criteria referred to in paragraph 1 must be: 

(a) 

non-discriminatory; 

(b) 

justified by an overriding reason relating to the public interest; 

(c) 

proportionate to that public interest objective;  

(d)  precise and unambiguous; 

EN 

47 

   EN 

 
(e) 

objective; 

(f)  made public in advance; 

(fa) 

transparent and accessible. 

3. 
The conditions for granting authorisation for a new establishment shall not duplicate 
requirements  and  controls  which  are  equivalent  or  essentially  comparable  as  regards  their 
purpose,  to  which  the  provider  is  already  subject  in  another  Member  State  or  in  the  same 
Member  State.  The  contact  points  referred  to  in  Article  33  and  the  provider  shall  assist  the 
competent  authority  by  providing  any  necessary  information  on  those  requirements.  In 
assessing whether conditions are equivalent or essentially comparable, their effect and the 
effectiveness of their enforcement shall be considered, besides their objective and purpose. 

4. 
The authorisation shall enable the provider to have access to the service activity, or to 
exercise  that  activity,  throughout  the  national  territory,  including  by  setting  up  agencies, 
subsidiaries,  branches  or  offices,  except  where  an  authorisation  for  each  individual 
establishment or a limitation of the authorisation to a certain part of the territory is justified 
by an overriding reason relating to the public interest. 

The authorisation shall be granted as soon as it has been established, in the light of an 

5. 
appropriate examination, that the conditions for authorisation have been met. 

Any refusal or other response from the competent authorities, including the refusal or 
6. 
withdrawal  of  an  authorisation,  shall  be  fully  reasoned,  in  particular  with  regard  to  the 
provisions of this Article, and shall be open to challenge before the courts. 

This Article shall not call into question the allocation of the competences, at local or 

7. 
regional level, of the Member States' authorities that grant such authorisation. 

Article 11 
Duration of authorisation  

An authorisation granted to a provider shall not be for a limited period, except in cases 

1. 
where: 

(a) 

(b) 

(c) 

the  authorisation  is  being  automatically  renewed  or  is  subject  only  to  the 
continued fulfilment of requirements; 

the  number  of  available  authorisations  is  limited  by  an  overriding  reason 
relating to the public interest; or 

a limited authorisation period can be justified by an overriding reason relating 
to the public interest. 

Paragraph 1  shall  not  concern  the  maximum  period  during  which  the  provider  must 

2. 
actually commence his activity after receiving authorisation. 

Member States shall require a provider to inform the relevant point of single contact 

3. 
provided for in Article 6 of the following changes:  

EN 

48 

   EN 

 
- 

- 

the  creation  of  subsidiaries  whose  activities  fall  within  the  scope  of  the 
authorisation system; 

changes in his situation which result in the conditions for authorisation no 
longer being met.  

This  Article  shall  be  without  prejudice  to  the  Member  States’  ability  to  revoke 

4. 
authorisations, when the conditions for authorisation are no longer met. 

Article 12 
Selection from among several candidates 

1. 
Where the number of authorisations available for a given activity is limited because of 
the scarcity of available natural resources or technical capacity, Member States shall apply a 
selection procedure to potential candidates which provides full guarantees of impartiality and 
transparency,  including,  in  particular,  adequate  publicity  about  the  launch  of  the  procedure, 
the conduct thereof and its completion. 

2. 
In  the  cases  referred  to  in  paragraph 1,  authorisation  must  be  granted  for  an 
appropriate  limited  period  and  may  not  be  open  to  automatic  renewal,  nor  confer  any  other 
advantage on the provider whose authorisation has just expired or on any person having any 
particular links with that provider. 

3. 
Subject  to  paragraph  1  and  to  Articles  9  and  10,  Member  States  may  take  into 
account,  in  establishing  the  rules  for  the  selection  procedure,  considerations  of  public 
health, social policy objectives, the health and safety of employees or self-employed persons, 
the  protection  of  the  environment,  the  preservation  of  the  cultural  heritage  and  other 
overriding reasons relating to the public interest, in conformity with Community law. 

Article 13 
Authorisation procedures 

1. 
Authorisation  procedures  and  formalities  shall  be  clear,  made  public  in  advance  and 
such  as  to  provide  the  applicants  with  a  guarantee  that  their  application  will  be  dealt  with 
objectively and impartially. 

Authorisation procedures and formalities shall not be dissuasive and shall not unduly 
2. 
complicate  or  delay  the  provision  of  the  service.  They  shall  be  easily  accessible  and  any 
charges  which  the  applicants  may  incur  from  their  application  shall  be  proportionate  to  the 
cost  of  the  authorisation  procedures  in  question  and  shall  not  exceed  the  cost  of  the 
procedure.  

3. 
Authorisation procedures and formalities shall provide applicants with a guarantee that 
their  application  will  be  processed  as  quickly  as  possible  and,  in  any  event,  within  a 
reasonable period which is fixed and published in advance. The period shall run only from 
the time when all documentation has been submitted. 

4. 
Failing  a  response  within  the  time  period  set  in  accordance  with  paragraph  3, 
authorisation shall be deemed to have been granted. Different arrangements may nevertheless 

EN 

49 

   EN 

 
be put in place in respect of certain specific activities, where justified by overriding reasons 
relating to the public interest.  

All  applications  for  authorisation  shall  be  acknowledged  as  quickly  as  possible.  The 

5. 
acknowledgement must specify the following: 

(a) 

the period for response referred to in paragraph 3; 

(b) 

the available means of redress; 

(c) 

a  statement  that  in  the  absence  of  a  response  within  the  period  specified,  the 
authorisation shall be deemed to have been granted. 

6. 
In the case of an incomplete application the applicant must be informed as quickly as 
possible of the need to supply any additional documentation, as well as any possible effects 
on the reasonable period of processing referred to in paragraph 3. 

When a request is rejected because it fails to comply with the required procedures or 

7. 
formalities, the applicant must be informed of the rejection as quickly as possible. 

SECTION 2 
REQUIREMENTS PROHIBITED OR SUBJECT TO EVALUATION 

Article 14 
Prohibited requirements 

Member States shall not make access to or the exercise of a service activity in their territory 
subject to compliance with any of the following: 

(1) 

discriminatory requirements based directly or indirectly on nationality or, in the case 
of companies, the location of the registered office, including in particular: 

(a) 

(b) 

nationality  requirements  for  the  provider,  his  staff,  persons  holding  the  share 
capital or members of the provider’s management or supervisory bodies; 

a requirement that the provider, his staff, persons holding the share capital or 
members  of  the  provider’s  management  or  supervisory  bodies  be  resident 
within the territory; 

(2) 

(3) 

a prohibition on having an establishment in more than one Member State or on being 
entered in the registers or enrolled with professional bodies or associations of more 
than one Member State;  

restrictions  on  the  freedom  of  a  provider  to  choose  between  a  principal  or  a 
secondary  establishment,  in  particular  an  obligation  on  the  provider  to  have  his 
principal  establishment  in  their  territory,  or  restrictions  on  the  freedom  to  choose 
between establishment in the form of an agency, branch or subsidiary; 

EN 

50 

   EN 

 
(4) 

(5) 

(6) 

(7) 

(8) 

conditions of reciprocity with the Member State in which the provider already has an 
establishment,  save  in  the  case  of  conditions  of  reciprocity  provided  for  in 
Community instruments concerning energy; 

the case-by-case application of an economic test making the granting of authorisation 
subject  to  proof  of  the  existence  of  an  economic  need  or  market  demand,  or  an 
assessment  of  the  potential  or  current  economic  effects  of  the  activity,  or  an 
assessment of the appropriateness of the activity in relation to the economic planning 
objectives  set  by  the  competent  authority;  this  prohibition  does  not  concern 
planning  requirements  which  do  not  pursue  economic  aims  but  serve  overriding 
reasons relating to the public interest; 

the  direct  or  indirect  involvement  of  competing  operators,  including  within 
consultative  bodies,  in  the  granting  of  authorisations  or  in  the  adoption  of  other 
decisions of the competent authorities, with the exception of professional bodies and 
associations or other organisations acting as the competent authority; this prohibition 
does not concern the consultation of organisations such as chambers of commerce 
or social partners on matters other than individual applications for authorisation; 

an  obligation  to  provide  or  participate  in  a  financial  guarantee  or  to  take  out 
insurance from a service-provider or body established in their territory. This does not 
affect  the  possibility  for  Member  States  to  require  financial  guarantees  as  such, 
nor  does  it  affect  requirements  relating  to  the  participation  in  a  collective 
instance  for  members  of  professional  bodies  or 
compensation  fund,  for 
organisations; 

an obligation to have been pre-registered, for a given period, in the registers held in 
their territory or to have previously exercised the activity for a given period in their 
territory. 

Article 15 
Requirements to be evaluated 

Member  States  shall  examine  whether,  under  their  legal  system,  any  of  the 
1. 
requirements  listed  in  paragraph  2  are  imposed  and  shall  ensure  that  any  such  requirements 
are compatible with the conditions laid down in paragraph 3. Member States shall adapt their 
laws,  regulations  or  administrative  provisions  so  as  to  make  them  compatible  with  those 
conditions. 

Member  States  shall  examine  whether  their  legal  system  makes  access  to  a  service 
the  following 

to  compliance  with  any  of 

it  subject 

2. 
activity  or 
non-discriminatory requirements: 

the  exercise  of 

(a) 

quantitative  or  territorial  restrictions  in  particular  in  the  form  of  limits  fixed 
according  to  population,  or  of  a  minimum  geographical  distance  between 
service-providers; 

(b) 

an obligation on a provider to take a specific legal form; 

(c) 

requirements which relate to the shareholding of a company; 

EN 

51 

   EN 

 
(d) 

requirements,  other  than  those  concerning  matters  covered  by  Directive 
2005/36/EC  of  the  European  Parliament  and  the  Council43  on  the 
recognition of professional qualifications or provided for in other Community 
instruments,  which  reserve  access  to  the  service  activity  in  question  to 
particular providers by virtue of the specific nature of the activity; 

(e) 

a ban on having more than one establishment in the territory of the same State; 

(f) 

requirements fixing a minimum number of employees; 

(g) 

fixed minimum and/or maximum tariffs with which the provider must comply;  

(h)  deleted 

(i) 

deleted 

(j) 

an obligation on the provider to supply other specific services jointly with his 
service. 

Member  States  shall  verify  that  requirements  referred  to  in  paragraph  2  satisfy  the 

3. 
following conditions: 

(a) 

non-discrimination:  requirements  must  be  neither  directly  nor  indirectly 
discriminatory according to nationality or, with regard to companies, according 
to the location of the registered office; 

(b)  necessity: requirements must be justified by an overriding reason relating to the 

public interest; 

(c) 

proportionality:  requirements  must  be  suitable  for  securing  the  attainment  of 
the objective pursued; they must not go beyond what is necessary to attain that 
objective; and it must not be possible to replace those requirements with other, 
less restrictive measures which attain the same result. 

4. 
Rules  provided  for  in  paragraphs  1  to  3  only  apply  to  legislation  in  the  field  of 
Services of General Economic Interest in so far as the application of such rules does not 
obstruct the performance, in law or in fact, of the particular task assigned to them. 

In the mutual evaluation report provided for in Article 41, Member States shall specify 

5. 
the following: 

(a) 

the  requirements  that  they  intend  to  maintain  and  the  reasons  why  they 
consider  that  those  requirements  comply  with  the  conditions  set  out  in 
paragraphs 3 and 4; 

(b) 

the requirements which have been abolished or made less stringent. 

43 

OJ L 255, 30.9.2005, p. 22. 

EN 

52 

   EN 

 
                                                 
6. 
From the date of entry into force of this Directive, Member States shall not introduce 
any  new  requirement  of  a  kind  listed  in  paragraph  2,  unless  that  requirement  satisfies  the 
conditions laid down in paragraph 3 and the need for it arises from new circumstances.  

Member  States  shall  notify  to  the  Commission  any  new  laws,  regulations  or 
7. 
administrative provisions which set requirements as referred to in paragraph 5, together with 
the  reasons  for  those  requirements.  The  Commission  shall  communicate  the  provisions 
concerned  to  the  other  Member  States.  Such  notification  shall  not  prevent  the  adoption  by 
Member States of the provisions in question.  

Within a period of 3 months from the date of notification, the Commission shall examine the 
compatibility  of  any  new  requirements  with  Community  law  and,  as  the  case  may  be,  shall 
adopt a decision requesting the Member State in question to refrain from adopting them or to 
abolish them.  

Chapter III 
Free movement of services 

SECTION 1 
FREEDOM TO PROVIDE SERVICES AND RELATED DEROGATIONS 

Article 16 
Freedom to provide services  

Member  States  shall  respect  the  right  of  service  providers  to  provide  services  in  a 

1. 
Member State other than that in which they are established. 

The  Member  State  in  which  the  service  is  provided  shall  ensure  free  access  to  and  free 
exercise of a service activity within its territory. 

Member  States  shall  not  make  access  to  or  exercise  of  a  service  activity  in  their  territory 
subject to compliance with any requirements which do not respect the following principles: 

(a)  non-discrimination:  the  requirement  may  be  neither  directly  nor  indirectly 
discriminatory  with  regard  to  nationality  or,  in  the  case  of  legal  persons,  with 
regard to the Member State in which they are established, 

(b) necessity: the requirement must be justified for reasons of public policy, public 
security, public health or the protection of the environment, 

(c) proportionality: the requirement must be suitable for securing the attainment of 
the  objective  pursued,  and  must  not  go  beyond  what  is  necessary  to  attain  that 
objective. 

2. 
Member  States  may  not  restrict  the  freedom  to  provide  services  in  the  case  of  a 
provider  established  in  another  Member  State  by  imposing  any  of  the  following 
requirements: 

EN 

53 

   EN 

 
(a) an obligation on the provider to have an establishment in their territory; 

(b) an obligation on the provider to obtain an authorisation from their competent 
authorities including entry in a register or registration with a professional body or 
association  in  their  territory,  except  where  provided  for  in  this  Directive  or  other 
instruments of Community law; 

(c)  a  ban  on  the  provider  setting  up  a  certain  infrastructure  in  their  territory, 
including an office or chambers, which the provider needs to supply the services in 
question; 

(d) the application of specific contractual arrangements between the provider and 
the recipient which prevent or restrict service provision by the self-employed; 

(e)  an  obligation  on  the  provider  to  possess  an  identity  document  issued  by  its 
competent authorities specific to the exercise of a service activity; 

(f) requirements, unless those necessary for health and safety at work, which affect 
the  use  of  equipment  and  material  which  are  an  integral  part  of  the  service 
provided; 

(g) restrictions on the freedom to provide the services referred to in Article 20. 

The Member State to which the service provider moves shall not be prevented from 
3. 
imposing  requirements  with  regard  to  the  provision  of  a  service  activity,  where  they  are 
justified for reasons of public policy, public security, public health or the protection of the 
environment,  and  in  accordance  with  paragraph  1.  Nor  shall  that  Member  State  be 
prevented  from  applying,  in  conformity  with  Community  law,  its  rules  on  employment 
conditions, including those laid down in collective agreements. 

4. 
By five years after the entry into force of this Directive at the latest, the Commission 
shall, after consultation of the Member States and the social partners at Community level, 
submit  to  the  European  Parliament  and  the  Council  a  report  on  the  application  of  this 
article,  in  which  it  shall  consider  the  need  to  propose  harmonisation  measures  regarding 
service activities covered by this Directive. 

Article 17 
Additional derogations from the freedom to provide services  

Article 16 shall not apply to:  

(1) 

Services  of  General  Economic  Interest  which  are  provided  in  another  Member 
State, inter alia:  

(a) 

in the postal sector, services covered by Directive 97/67/EC44 of the European 
parliament and of the Council; 

44 

OJ L 15, 21.1.1998, p. 14. 

EN 

54 

   EN 

 
                                                 
(b) 

(c) 

in  the  electricity  sector,  services  covered  by  Directive  2003/54/EC45  of  the 
European Parliament and of the Council; 

in the gas sector, services covered by Directive 2003/55/EC46 of the European 
Parliament and of the Council; 

(d)  water distribution and supply services and waste water services; 

(e) 

treatment of waste; 

deleted 

deleted 

deleted 

matters  covered  by  Directive  96/71/EC47  of  the  European  Parliament  and  the 
Council  concerning  the  posting  of  workers  in  the  framework  of  the  provision  of 
services; 

matters  covered  by  Directive  95/46/EC48  of  the  European  Parliament  and  of  the 
Council on the protection of individuals with regard to the processing of personal 
data and on the free movement of such data; 

matters  covered  by  Council  Directive  77/249/EEC49  to  facilitate  the  effective 
exercise by lawyers of freedom to provide services; 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(7a) 

the activity of judicial recovery of debts; 

(8) 

(9) 

(10) 

matters  covered  by  title  II  of  Directive  2005/36/EC  of  the  European  Parliament 
and  the  Council50  on  the  recognition  of  professional  qualifications,  as  well  as 
requirements in the Member State where the service is provided which reserve an 
activity to a particular profession;  

matters covered by Council Regulation (EEC) No 1408/71 on the coordination of 
social security systems51 ; 

as regards administrative formalities concerning the free movement of persons and 
their residence, matters covered by the provisions of Directive 2004/38/EC52 of the 
European Parliament and the Council on the right of citizens of the Union and their 
family members to move and reside freely within the territory of the Member States, 

45 
46 
47 
48 
49 
50 
51 

52 

OJ L 176, 15.7.2003, p. 37. 
OJ L 176, 15.7.2003, p. 57. 
OJ L 18, 21.1.1997, p. 1. 
OJ L 281, 28.11.1995, p. 1. 
OJ L 78, 26.3.1977, p. 17. 
OJ L 255, 30.9.2005, p. 22. 
OJ  L  149,  5.7.1971,  p.  2.  Regulation  as  last  amended  by  Regulation  (EC)  No  647/2005  (OJ  L  117, 
4.5.2005 p. 1). 
OJ L 158, 30.4.2004, p. 77. 

EN 

55 

   EN 

 
                                                 
that lay down the administrative formalities that beneficiaries must undertake before 
the competent authorities of the Member State where the service is provided; 

(11) 

(12) 

(13) 

as  regards  third  country  nationals  who  move  to  another  Member  State  in  the 
context  of  the  provision  of  a  service  the  possibility  for  Member  States  to  require 
visa  or  residence  permits  for  third  country  nationals  who  are  not  covered  by  the 
mutual  recognition  regime  provided  for  in  Article  21  of  the  Convention 
implementing  the  Schengen  Agreement  or  the  possibility  to  oblige  third  country 
nationals to report to the competent authorities of the Member State in which the 
service is provided on or after their entry; 

the  authorisation  regime  provided  for  in  Articles  3  and  4  of  Council  Regulation 
(EEC) No 259/93 on the supervision and control of shipments of waste within, into 
and out of the European Community53; 

copyright, neighbouring rights, rights covered by Council Directive 87/54/EEC54 and 
by  Directive  96/9/EC  of  the  European  Parliament  and  of  the  Council55  as  well  as 
industrial property rights;  

(14) 

acts requiring by law the involvement of a notary; 

(15) 

matters  covered  by  Directive  …/…/EC  of  the  European  Parliament  and  the 
Council  on  statutory  audit  of  annual  accounts  and  consolidated  accounts  and 
amending Council Directives 78/660/EEC56 and 83/349/EEC57; 

(16) 

deleted 

(17) 

deleted 

(18) 

deleted 

(19) 

the registration of vehicles leased in another Member State; 

(20) 

provisions  regarding  contractual  and  non-contractual  obligations,  including  the 
form of contracts, determined pursuant to the rules of private international law. 

53 

54 
55 
56 
57 

OJ  L  30,  6.2.1993,  p.  1.  Regulation  as  last  amended  by  Commission  Regulation  (EC)  No  2557/2001 
(OJ L 349, 31.12.2001, p. 1). 
OJ L 24, 27.1.1987, p. 36. 
OJ L 77, 27.3.1996, p. 20. 
OJ L 222, 14.8.1978, p. 11. 
OJ L 193, 18.7.1983, p. 1. 

EN 

56 

   EN 

 
                                                 
[Article 18 deleted] 

Article 19 
Case-by-case derogation  

1. 
By  way  of  derogation  from  Article  16,  and  in  exceptional  circumstances  only,  a 
Member  State  may,  in  respect  of  a  provider  established  in  another  Member  State,  take 
measures relating to the safety of services. 

[(a), (b) and (c) deleted] 

The measures provided for in paragraph 1 may be taken only if the mutual assistance 
2. 
procedure  laid  down  in  Article  37  is  complied  with  and  all  the  following  conditions  are 
fulfilled: 

(a) 

(b) 

(c) 

the national provisions in accordance with which the measure is taken have not 
been  subject  to  Community  harmonisation  in  the  field  referred  to  in 
paragraph 1;  

the  measures  provide  for  a  higher  level  of  protection  of  the  recipient  than 
would be the case in a measure taken by the Member State of establishment in 
accordance with its national provisions; 

the  Member  State  of  establishment  has  not  taken  any  measures  or  has  taken 
measures which are insufficient as compared with those referred to in Article 
37(2); 

(d) 

the measures are proportionate. 

3. 
Paragraphs 1 and 2 shall be without prejudice to provisions, laid down in Community 
instruments,  which  guarantee  the  freedom  to  provide  services  or  which  allow  derogations 
therefrom. 

SECTION 2 
RIGHTS OF RECIPIENTS OF SERVICES 

Article 20 
Prohibited restrictions 

Member States may not impose on a recipient requirements which restrict the use of a service 
supplied  by  a  provider  established  in  another  Member  State,  in  particular  the  following 
requirements:  

(a) 

an obligation to obtain authorisation from or to make a declaration to their competent 
authorities; 

EN 

57 

   EN 

 
(b) 

(c) 

limits  on  the  grant  of  financial  assistance  by  reason  of  the  fact  that  the  provider  is 
established  in  another  Member  State  or  by  reason  of  the  location  of  the  place  at 
which the service is provided;  

requirements  which  subject  the  recipient  to  discriminatory  or  disproportionate  fees 
on the equipment necessary to receive a service at a distance from another Member 
State.  

Article 21 
Non-discrimination 

Member  States  shall  ensure  that  the  recipient  is  not  made  subject  to  discriminatory 

1. 
requirements based on his nationality or place of residence. 

2. 
Member States shall ensure that the general conditions of access to a service, which 
are  made  available  to  the  public  at  large  by  the  provider,  do  not  contain  discriminatory 
provisions  relating  to  the  nationality  or  place  of  residence  of  the  recipient,  but  without 
precluding the possibility of providing for differences in the conditions of access where those 
differences are directly justified by objective criteria. 

Article 22 
Assistance for recipients 

1. 

Member States shall ensure that recipients can obtain via the points of single contact: 

a) 

b) 

c) 

information on the requirements applicable in other Member States relating to 
access  to  and  exercise  of  service  activities,  in  particular  those  relating  to 
consumer protection; 

general information on the means of redress available in the case of a dispute 
between a provider and a recipient; 

the contact details of associations or organisations, including the contact points 
of  the  European  Consumer  Centres  Network  (ECC-Net),  from  which 
providers or recipients may obtain practical assistance. 

Where  appropriate,  advice  from  the  competent  authorities  shall  include  a  simple  step-by-
step guide. 

Information and assistance shall be provided in a clear and unambiguous manner, shall be 
easily accessible at a distance including by electronic means, and shall be kept up-to-date. 

2. 
Member  States  may  confer  responsibility  for  the  task  referred  to  in  paragraph  1  to 
points  of  single  contact  or  to  any  other  body,  such  as  the  contact  points  of  the  European 
Consumer Centres Network (ECC-Net), consumer associations or Euro Info Centres. 

By  the  date  specified  in  Article  45  at  the  latest,  Member  States  shall  communicate  to  the 
Commission  the  names  and  contact  details  of  the  designated  bodies.  The  Commission  shall 
transmit them to all Member States. 

EN 

58 

   EN 

 
3. 
In order to be able to send the information referred to in paragraph 1, the relevant body 
approached by the recipient shall contact the relevant body for the Member State concerned. 
The  latter  shall  send  the  information  requested  as  soon  as  possible.  Member  States  shall 
ensure that those bodies give each other mutual assistance and shall put in place all possible 
measures for effective cooperation. 

4. 
The Commission shall, in accordance with the procedure referred to in Article 42(2), 
adopt  measures  for  the  implementation  of  paragraphs  1,  2  and  3,  specifying  the  technical 
mechanisms  for  the  exchange  of  information  between  the  bodies  of  the  various  Member 
States and, in particular, the interoperability of information systems. 

[Article 23 deleted] 

[Article 24 deleted] 

[Article 25 deleted] 

Chapter IV  
Quality of services 

Article 26 
Information on providers and their services 

Member States shall ensure that providers make the following information available to 

1. 
the recipient: 

(a) 

(b) 

(c) 

(d) 

the  name  of  the  service  provider,  his  legal  status  and  form,  the  geographic 
address  at  which  he  is  established,  and  the  details  which  enable  him  to  be 
contacted rapidly and communicated with directly and, as the case may be, by 
electronic means; 

where the provider is registered in a trade or other similar public register, the 
name  of  that  register  and  the  provider's  registration  number,  or  equivalent 
means of identification in that register; 

where the activity is subject to an authorisation scheme, the particulars of the 
relevant competent authority or the single point of contact; 

where  the  provider  exercises  an  activity  which  is  subject  to  VAT,  the 
identification  number  referred  to  in  Article  22(1)  of  Sixth  Council  Directive 
77/388/EEC58; 

58 

OJ L 145, 13.6.1977, p. 1. 

EN 

59 

   EN 

 
                                                 
(e) 

in  the  case  of  the  regulated  professions,  any  professional  body  or  similar 
institution with which the provider is registered,  the professional title and the 
Member State in which that title has been granted; 

(f) 

the general conditions and clauses, if any, used by the provider; 

(g) 

contractual  clauses  concerning  the  law  applicable  to  the  contract  and/or  the 
competent courts. 

Member States shall ensure that the information referred to in paragraph 1, according 

2. 
to the provider's preference: 

(a) 

is supplied by the provider on his own initiative; 

(b) 

(c) 

(d) 

is easily accessible to the recipient at the place where the service is provided or 
the contract concluded; 

can  be  easily  accessed  by  the  recipient electronically  by  means  of  an  address 
supplied by the provider; 

appears in any information documents supplied to the recipient by the provider, 
setting out a detailed description of the service he provides. 

Member  States  shall  ensure  that,  at  the  recipient’s  request,  providers  supply  the 

3. 
following additional information: 

(a) 

the main features of the service; 

(b) 

the  price  of  the  service  or,  if  an  exact  price  cannot  be  given,  the  method  for 
calculating the price so that the recipient can check it, or a sufficiently detailed 
estimate;  

[(c) deleted] 

(d) 

as  regards  the  regulated  professions,  a  reference  to  the  professional  rules 
applicable in the Member State of establishment and how to access them.  

4. 
Member  States  shall  ensure  that  the  information  which  a  provider  must  supply  in 
accordance with this Chapter is made available or communicated in a clear and unambiguous 
manner,  and  in  good  time  before  conclusion  of  the  contract  or,  where  there  is  no  written 
contract, before the service is provided.  

The  information  requirements  laid  down  in  this  Chapter  are  in  addition  to 
5. 
requirements already provided for in Community law and do not prevent Member States from 
imposing  additional  information  requirements  applicable  to  providers  established  in  their 
territory. 

6. 
The Commission may, in accordance with the procedure referred to in Article 42(2), 
specify  the  content  of  the  information  provided  for  in  paragraphs  1  and  3  of  this  Article 
according  to  the  specific  nature  of  certain  activities  and  may  specify  the  practical  means  of 
implementing paragraph 2. 

EN 

60 

   EN 

 
 
Article 27 
Professional liability insurance and guarantees  

1. 
Member  States  may  ensure  that  providers  whose  services  present  a  direct  and 
particular  risk  to  the  health  or  safety  of  the  recipient  or  a  third  person,  or  to  the  financial 
security of the recipient, subscribe to professional liability insurance appropriate to the nature 
and extent of the risk, or provide any guarantee or similar arrangement which is equivalent or 
essentially comparable as regards its purpose. The professional liability insurance or other 
guarantee  shall  cover  risks  presented  by  such  services  when  they  are  provided  in  other 
Member  States  in  the  same  way  as  when  they  are  provided  in  the  Member  State  of 
establishment of the service provider. 

Member  States  shall  ensure  that  providers  supply  a  recipient,  at  his  request,  with 
2. 
information  on  the  insurance  or  guarantees  referred  to  in  paragraph  1,  and  in  particular  the 
contact details of the insurer or guarantor and the territorial coverage.  

When a provider establishes himself in their territory, Member States may not require 
3. 
professional liability insurance or a guarantee from the provider where he is already covered 
by a guarantee which is equivalent, or essentially comparable as regards its purpose and the 
coverage  it  provides  in  terms  of  the  insured  risk,  the  insured  sum  or  a  ceiling  for  the 
guarantee and possible exclusions from the coverage, in another Member State in which the 
provider is already established. Where equivalence is only partial, Member States may require 
a supplementary guarantee to cover those aspects not already covered. 

When a Member State requires service providers established in its territory to subscribe to 
professional liability insurance or to provide any other guarantee that Member State shall 
accept  as  sufficient  evidence  attestations  of  such  insurance  coverage  issued  by  credit 
institutions and insurers established in other Member States. 

Paragraphs  1,  2  and  3  do  not  affect  professional  insurance  or  guarantee 

4. 
arrangements provided for in other Community instruments. 

5. 
For the implementation of paragraph 1, the Commission may, in accordance with the 
procedure  referred  to  in  Article  42(2),  establish  a  list  of  services  which  exhibit  the 
characteristics referred to in paragraph 1 and establish common criteria for defining, for the 
purposes of the insurance or guarantees referred to in that paragraph, what is appropriate to 
the  nature  and  scope  of  the  risk.  In  accordance  with  the  procedure  referred  to  in  Article 
42(2)  the  Commission  may  also  establish  a  procedure  which  would,  in  the  event  of 
verifiable  failure  of  the  insurance  market  to  provide  adequate  insurance  and  subject  to 
specific  conditions  including  notification  to  the  Commission,  allow  Member  States  for  a 
limited  period  of  time  to  replace  the  obligation  in  this  Article  by  an  information 
requirement. 

6. 

For the purpose of this Article 

-"direct and particular risk" means a risk arising directly from the delivery of the service; 

- "health and safety" means, in relation to a recipient or a third person, the prevention of 
death or serious personal injury; 

EN 

61 

   EN 

 
- "financial security" means, in relation to a recipient, the prevention of substantial losses 
of money or of value of property; 

- "professional liability insurance" means insurance taken out by a provider in respect of 
potential  liabilities  to  recipients  and,  where  applicable,  third  parties  arising  out  of  the 
provision of the service. 

Article 28 
After-sales guarantees 

1. 
Member  States  shall  ensure  that  providers  supply  a  recipient,  at  his  request,  with 
information on the existence or otherwise of an after-sales guarantee, on its content and on the 
essential criteria for its application, in particular, its period of validity and territorial cover.  

2. 
Member States shall ensure that the information referred to in paragraph 1 appears in 
any  information  documents  supplied  by  providers,  setting  out  a  detailed  description  of  the 
services offered. 

Paragraphs 1 and 2 do not affect the regulation of after-sales guarantees provided for 

3. 
in other Community instruments. 

Article 29 
Commercial communications by the regulated professions  

Member States shall remove all total prohibitions on commercial communications by 

1. 
the regulated professions. 

2. 
Member  States  shall  ensure  that  commercial  communications  by  the  regulated 
professions comply with professional rules, in conformity with Community law, which relate, 
in  particular,  to  the  independence,  dignity  and  integrity  of  the  profession,  as  well  as  to 
professional  secrecy,  in  a  manner  consonant  with  the  specific  nature  of  each  profession. 
Professional rules on commercial communications must be non-discriminatory, justified by 
an overriding reason relating to the public interest and proportionate. 

Article 30  
Multidisciplinary activities 

1. 
Member States shall ensure that providers are not made subject to requirements which 
oblige  them  to  exercise  a  given  specific  activity  exclusively  or  which  restrict  the  exercise 
jointly or in partnership of different activities.  

However, the following providers may be made subject to such requirements: 

(a) 

the  regulated  professions,  in  so  far  as  is  justified  in  order  to  guarantee 
compliance  with  the  rules  governing  professional  ethics  and  conduct,  which 
vary according to the specific nature of each profession, and it is necessary to 
ensure their independence and impartiality;  

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(b)  providers  of  certification,  accreditation,  technical  monitoring,  test  or  trial 
services  in  so  far  as  is  justified  in  order  to  ensure  their  independence  and 
impartiality. 

Where multidisciplinary activities between service providers referred to in paragraph 

2. 
1 (a) and (b) are authorised, Member States shall ensure the following:  

(a) 

that  conflicts  of  interest  and  incompatibilities  between  certain  activities  are 
prevented; 

(b) 

that the independence and impartiality required for certain activities is secured;  

(c) 

that the rules governing professional ethics and conduct for different activities 
are compatible with one another, especially as regards matters of professional 
secrecy. 

Member  States  shall  ensure  that  providers  supply  the  recipient,  at  his  request,  with 
3. 
information on their multidisciplinary activities and partnerships and on the measures taken to 
avoid conflicts of interest. That information shall be included in any information document in 
which providers give a detailed description of their services. 

4. 
In the report  referred to in Article  41, Member States  shall indicate  which providers 
are  subject  to  the  requirements  laid  down  in paragraph  1,  the  content  of  those  requirements 
and the reasons for which they consider them to be justified. 

Article 31 
Policy on quality of services 

1. 
Member  States  shall,  in  cooperation  with  the  Commission,  take  accompanying 
measures  to  encourage  providers  to  take  action  on  a  voluntary  basis  in  order  to  ensure  the 
quality of service provision, in particular through use of one of the following methods: 

(a) 

by having their activities certified or assessed by independent bodies; 

(b)  by drawing up their own quality charter or participating in quality charters or 

labels drawn up by professional bodies at Community level.  

2. 
Member States shall ensure that information on the significance of certain labels and 
the  criteria  for  applying  labels  and  other  quality  marks  relating  to  services  can  be  easily 
accessed by recipients and providers.  

Member  States  shall,  in  cooperation  with  the  Commission,  take  accompanying 
3. 
measures  to  encourage  professional  bodies,  as  well  as  chambers  of  commerce  and  craft 
associations  and  consumer  associations,  within  Member  States  to  cooperate  at  Community 
level  in  order  to  promote  the  quality  of  service  provision,  especially  by  making  it  easier  to 
assess a provider’s competence.  

4. 
Member  States  shall,  in  cooperation  with  the  Commission,  take  accompanying 
measures  to  encourage  the  development  of  independent  assessments,  notably  by  consumer 
associations, in relation to the quality and defects of service provision, and in particular the 

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development at Community level of comparative trials or testing and the communication of 
the results. 

Member  States, 

5. 
the 
development  of  voluntary  European  standards  with  the  aim  of  facilitating  compatibility 
between  services  supplied  by  providers  in  different  Member  States,  information  to  the 
recipient and the quality of service provision. 

the  Commission,  shall  encourage 

in  cooperation  with 

Article 32 
Settlement of disputes 

Member  States  shall  take  the  general  measures  necessary  to  ensure  that  providers 
1. 
supply  contact  details,  in  particular  a  postal  address,  fax  number  or  e-mail  address  and  a 
phone number to which all recipients, including those resident in another Member State, can 
send  a  complaint  or  a  request  for  information  about  the  service  provided.  Providers  shall 
supply their legal address if this is not their usual address for correspondence. 

2. 
Member  States  shall  take  the  general  measures  necessary  to  ensure  that  providers 
respond to the complaints referred  to in paragraph 1 in the shortest possible time and make 
best efforts to find satisfactory solutions. 

3. 
Member States shall take the general measures necessary to ensure that providers are 
obliged to demonstrate compliance with the obligations laid down in this Directive as to the 
provision of information and to demonstrate that the information is accurate. 

4. 
Where  a  financial  guarantee  is  required  for  compliance  with  a  judicial  decision, 
Member States shall recognise equivalent guarantees lodged by a credit institution or insurer 
established  in  another  Member  State.  Such  credit  institutions  must  be  authorised  in  a 
Member  State  in  accordance  with  Directive  2000/12/EC  of  the  European  Parliament  and 
the Council59 relating to the taking up and pursuit of the business of credit institutions and 
such  insurers  in  accordance,  as  appropriate,  with  Council  Directive  73/239/EEC60  on 
taking  up  and  pursuit  of  the  business  of  direct  insurance  other  than  life  insurance  and 
Directive  2002/83/EC  of  the  European  Parliament  and  the  Council61  concerning  life 
insurance.  

5. 
Member States shall take the general measures necessary to ensure that providers who 
are subject to a code of conduct, or are members of a trade association or professional body, 
which  provides  for  recourse  to  a  non-judicial  means  of  dispute  settlement,  inform  the 
recipient accordingly, and mention that fact in any document which presents their services in 
detail, specifying how to access detailed information on the characteristics of and conditions 
for the use of such a mechanism. 

59 
60 
61 

OJ L 126, 26.5.2000, p. 1. 
OJ L 228, 16.8.1973, p. 3. 
OJ L 345, 19.12.2002, p. 1. 

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Chapter V 
Administrative cooperation 

Article 33 
Mutual assistance - General obligations 

Member  States  shall  give  each  other  mutual  assistance,  and  shall  put  in  place  all 
1. 
possible  measures  for  effective  cooperation  with  one  another  in  order  to  ensure  the 
supervision of providers and the services they provide.  

For the purposes of this Chapter, Member States shall designate one or more points of 
2. 
contact, the contact details of which shall be communicated to the other Member States and 
the  Commission.  The  Commission  shall  publish  and  regularly  update  the  list  of  points  of 
contact. 

3. 
Information  requests  and  requests  to  carry  out  any  checks,  inspections  and 
investigations  under  this  Chapter  shall  be  duly  motivated,  in  particular  by  specifying  the 
reason for the request. Information exchanged shall be used only in respect of the matter 
for which it was requested. 

4. 
In  the  event  of  receiving  a  request  for  assistance  from  competent  authorities  in 
another  Member  State,  Member  States  shall  ensure  that  providers  established  in  their 
territory  supply  their  competent  authorities  with  all  the  information  necessary  for 
supervising their activities in compliance with their national laws.  

5. 
In  the  event  of  difficulty  in  meeting  a  request  for  information  or  in  carrying  out 
checks, inspections and investigations, the Member State in question shall rapidly inform the 
requesting Member State with a view to finding a solution.  

Member  States  shall  supply  the  information  requested  by  other  Member  States  or 

6. 
the Commission by electronic means and within the shortest possible period of time. 

Member  States  shall  ensure  that  registers  in  which  providers  have  been  entered,  and 
7. 
which may be consulted by the competent authorities in their territory, may also be consulted, 
in accordance with the same conditions, by the equivalent competent authorities of the other 
Member States. 

8. 
Member States shall communicate  to the  Commission information on cases where 
other Member States do not fulfil their obligations of mutual assistance. Where necessary, 
the Commission shall take appropriate steps, including proceedings provided for in Article 
226 of the Treaty, in order to ensure that the Member States concerned comply with their 
obligations of mutual assistance. The Commission shall periodically inform Member States 
about the functioning of the mutual assistance provisions. 

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Article 33a 
Mutual assistance – General obligations for the Member State of establishment  

1. 
With respect to providers providing services in another Member State, the Member 
State of establishment shall supply information on providers established in its territory when 
requested  to  do  so  by  another  Member  State  and,  in  particular,  confirmation  that  a  service 
provider is established in its territory and, to its knowledge, is not exercising his activities in 
an unlawful manner. 

2. 
The  Member  State  of  establishment  shall  undertake  the  checks,  inspections  and 
investigations requested by another Member State and shall inform the latter of the results 
and, as the case may be, of the measures taken. In so doing, the competent authorities shall 
act  to  the  extent  permitted  by  the  powers  vested  in  them  in  their  Member  State.  The 
competent  authorities  can  decide  on  the  most  appropriate  measures  to  be  taken  in  each 
individual case in order to meet the request by another Member State. 

Upon  gaining  actual  knowledge  of  any  conduct  or  specific  acts  by  a  provider 
3. 
established  in  its  territory  which  provides  services  in  other  Member  States,  that,  to  its 
knowledge,  could  cause  serious  damage  to  the  health  or  safety  of  persons  or  to  the 
environment, the Member State of establishment shall inform all other Member States and the 
Commission within the shortest possible period of time.  

Article 34 
Supervision by the Member State of establishment in the event of the temporary 
movement of a provider to another Member State  

With respect to cases not covered by Article 35(1), the Member State of establishment 
1. 
shall  ensure  that  compliance  with  its  requirements  is  supervised  in  conformity  with  the 
powers  of  supervision  provided  for  in  its  national  law,  in  particular  through  supervisory 
measures at the place of establishment of the service provider. 

2. 
The  Member  State  of  establishment  shall  not  refrain  from  taking  supervisory  or 
enforcement measures in its territory on the grounds that the service has been provided or 
caused damage in another Member State. 

3. 
The obligation laid down in Paragraph 1 shall not entail a duty on the part of the 
Member State of establishment to carry out factual checks and controls in the territory of 
the Member State where the service is provided. Such checks and controls are carried out 
by the authorities of the Member State where the service provider is temporarily operating, 
on  request  of  the  authorities  of  the  Member  State  of  establishment,  in  accordance  with 
Article 35. 

Article 35 
Supervision by the Member State where the service is provided in the event of the 
temporary movement of the provider 

1. 
With respect to national requirements which may be imposed pursuant to Article 16 
or  Article  17,  the  Member  State  where  the  service  is  provided  is  responsible  for  the 
supervision  of  the  activity  of  the  service  provider  in  its  territory.  In  conformity  with 
Community law, the Member State where the service is provided: 

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66 

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-  shall  take  all  measures  necessary  to  ensure  that  service  providers  comply  with  those 
requirements as regards the access to and the exercise of a service activity; 

-  shall  carry  out  the  checks,  inspections  and  investigations  necessary  to  supervise  the 
service provided. 

2. 
With respect to requirements other than the ones referred to in paragraph 1, where a 
provider  moves  temporarily  to  another  Member  State  in  order  to  provide  a  service  without 
being established there, the competent authorities of that Member State shall participate in the 
supervision of the provider in accordance with paragraphs 3 and 4. 

3. 
At the request of the Member State of establishment, the competent authorities of the 
Member  State  where  the  service  is  provided  shall  carry  out  any  checks,  inspections  and 
investigations  necessary  for  ensuring  effective  supervision  by  the  Member  State  of 
establishment. In so doing, the competent authorities shall act to the extent permitted by the 
powers vested in them in their Member State. The competent authorities can decide on the 
most appropriate measures to be taken in each individual case in order to meet the request 
by the Member State of establishment. 

On  their  own  initiative,  the  competent  authorities  of  the  Member  State  where  the 
4. 
service is provided may conduct checks, inspections and investigations on the spot, provided 
that those checks, inspections or investigations are not discriminatory, are not motivated by 
the fact that the provider is established in another Member State and are proportionate. 

[(a), (b) and (c) deleted] 

Article 36 
Alert mechanism 

1. 
Where  a  Member  State  becomes  aware  of  serious  specific  acts  or  circumstances 
relating  to  a  service  activity  that  could  cause  serious  damage  to  the  health  or  safety  of 
persons or to the environment in its territory or in other Member States, that Member State 
shall  inform  the  Member  State  of  establishment,  the  other  Member  States  concerned  and 
the Commission within the shortest possible period of time. 

The  Commission  shall  promote  and  take  part  in  the  operation  of  a  European 

2. 
network of Member States’ authorities in order to implement paragraph 1. 

3. 
The  Commission  shall  adopt  and  regularly  update,  in  accordance  with  the 
procedure  referred  to  in  Article 42(2),  detailed  rules  concerning  the  management  of  the 
network referred to in paragraph 2. 

Article 36a 
Information on the good repute of providers 

1. 
Member States shall, at the request of a competent authority in another Member State, 
supply information, in conformity with their national law, on disciplinary or administrative 
actions or criminal sanctions and decisions concerning insolvency or bankruptcy involving 
fraud, taken by their competent authorities in respect of the provider, directly relevant to the 

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67 

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service provider’s competence or professional reliability. The Member State which supplies 
the information shall inform the service provider thereof. 

A  request  made  pursuant  to  paragraph  1  must  be  duly  substantiated,  in  particular  as 
regards the reasons for the request for information.  

2. 
Sanctions and actions  referred to in  paragraph  1  shall  only  be communicated  if a 
final decision has been taken. With regard to other decisions referred to in paragraph 1, the 
Member  State  which  supplies  the  information  shall  specify  whether  a  particular  decision  is 
final or whether an appeal has been lodged in respect of it, in which case the Member State in 
question should provide an indication of the date when the decision on appeal is expected. 

Moreover, that Member State shall specify the provisions of national law pursuant to which 
the provider was found guilty or penalised. 

3. 
Implementation of paragraphs 1 and 2  must  comply  with rules  on  the  provision  of 
personal data and with rights guaranteed to persons found guilty or penalised in the Member 
States  concerned,  including  by  professional  bodies.  Any  information  in  question  which  is 
public shall be accessible to consumers. 

Article 36b 
Accompanying measures 

The Commission, in cooperation with Member States, shall establish an electronic 

1. 
system for the exchange of information between Member States. 

Member  States  shall,  with  the  assistance  of  the  Commission,  take  accompanying 
2. 
measures to facilitate the exchange of officials in charge of the implementation of mutual 
assistance and training of such officials including language and computer training.  

The  Commission  shall  assess  the  need  to  establish  a  multi-annual  programme  in 

3. 
order to organise relevant exchanges of officials and training. 

Article 37  
Mutual assistance in the event of case-by-case derogations  

1. 
Where a Member State intends to take a measure pursuant to Article 19, the procedure 
laid  down  in  paragraphs  2  to  6  of  this  Article  shall  apply  without  prejudice  to  proceedings 
before the courts including preliminary proceedings and acts carried out in the framework 
of a criminal investigation. 

2. 
The  Member  State  referred  to  in  paragraph  1  shall  ask  the  Member  State  of 
establishment  to  take  measures  with  regard  to  the  service  provider,  supplying  all  relevant 
information on the service in question and the circumstances of the case.  

The Member State of establishment shall check, within the shortest possible period of time, 
whether the provider is operating lawfully and verify the facts underlying the request. It shall 
inform  the  requesting  Member  State  within  the  shortest  possible  period  of  time  of  the 
measures  taken  or  envisaged  or,  as  the  case  may  be,  the  reasons  why  it  has  not  taken  any 
measures. 

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68 

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3. 
Following  communication  by  the  Member  State  of  establishment  as  provided  for  in 
the  second  subparagraph  of  paragraph  2,  the  requesting  Member  State  shall  notify  the 
Commission and the Member State of establishment of its intention to take measures, stating 
the following: 

the reasons why it believes the measures taken or envisaged by the Member State of 

(a) 
establishment are inadequate; 

the  reasons  why  it  believes  the  measures  it  intends  to  take  fulfil  the  conditions  laid 

(b) 
down in Article 19. 

The measures may not be taken until fifteen working days after the date of notification 

4. 
provided for in paragraph 3. 

5. 
Without  prejudice  to  the  possibility  for  the  requesting  Member  State  to  take  the 
measures  in  question  upon  expiry  of  the  period  specified  in  paragraph  4,  the  Commission 
shall, within the shortest possible period of time, examine the compatibility with Community 
law of the measures notified. 

Where the Commission concludes that the measure is incompatible with Community law, it 
shall adopt a decision asking the Member State concerned to refrain from taking the proposed 
measures or to put an end to the measures in question as a matter of urgency. 

In the case of urgency, a Member State which intends to take a measure may derogate 
6. 
from paragraphs 2, 3 and 4. In such cases, the measures shall be notified within the shortest 
possible period of time to the Commission and the Member State of establishment, stating the 
reasons for which the Member State considers that there is urgency. 

Article 38 
Implementing measures 

In accordance with the procedure referred to in Article 42(2), the Commission shall adopt the 
implementing measures necessary for the implementation of this Chapter, specifying the time-
limits provided for in Articles 33 and 37 and the practical arrangements for the exchange of 
the 
information  by  electronic  means  between  Member  States,  and 
interoperability provisions for information systems.  

in  particular 

Chapter VI  
Convergence programme 

Article 39 

1. 
Member  States  shall,  in  cooperation  with  the  Commission,  take  accompanying 
measures  to  encourage  the  drawing  up  at  Community  level,  particularly  by  professional 
bodies,  organisations  and  associations,  of  codes  of  conduct  aimed  at  facilitating  the 
provision  of  services  or  the  establishment  of  a  provider  in  another  Member  State,  in 
conformity with Community law. 

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Member  States  shall  ensure  that  the  codes  of  conduct  referred  to  in  paragraph  1  are 

2. 
accessible at a distance, by electronic means. 

3. 
Member States shall ensure that providers indicate, at the recipient’s request, or in any 
information documents which present their services in detail, any codes of conduct to which 
they are subject and the address at which these codes may be consulted by electronic means, 
specifying the language versions available. 

4. 

deleted 

Article 40 
Additional harmonisation 

The Commission shall assess, by one year after the date of transposition of this Directive at 
the  latest,  the  possibility  of  presenting  proposals  for  harmonisation  instruments  on  the 
following subjects: 

(a) 

deleted 

(b)  deleted; 

(c) 

access to the activity of judicial recovery of debts. 

(d)  private security services and transport of cash and valuables; 

2. 

deleted 

Article 41 
Mutual evaluation 

By the [date of transposition] at the latest, Member States shall present a report to the 

1. 
Commission, containing the information specified in the following provisions: 

(a)  Article 9(2), on authorisation systems; 

(b)  Article 15(4), on requirements to be evaluated;  

(c)  Article 30(4), on multidisciplinary activities. 

2. 
The Commission shall forward the reports provided for in paragraph 1 to the Member 
States, which shall submit their observations on each of the reports within six months. Within 
the same period, the Commission shall consult interested parties on those reports.  

The Commission shall present the reports and the Member States’ observations to the 

3. 
Committee referred to in Article 42(1), which may make observations.  

4. 
In  the  light  of  the  observations  provided  for  in  paragraphs 2  and  3,  the  Commission 
shall,  by  …*[one  year  after  the  date  referred  to  in  Article  45(1)]  at  the  latest,  present  a 
summary  report  to  the  European  Parliament  and  to  the  Council,  accompanied  where 
appropriate by proposals for additional initiatives. 

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Article 42 
Committee 

The Commission shall be assisted by a Committee, consisting of representatives of the 

1. 
Member States and chaired by the Commission representative. 

Where 

reference 

2. 
and  7  of 
Decision 1999/468/EC62  shall  apply,  in  accordance  with  the  provisions  of  Article  8  of  that 
Decision. 

this  paragraph,  Articles  3 

is  made 

to 

3. 

The Committee shall adopt its rules of procedure. 

Article 43 
Review clause 

Following the summary report referred to in Article 41(4), the Commission shall, every three 
years, present to the European Parliament and to the Council a comprehensive report on the 
application of this Directive, in particular of Articles 2 and 16 thereof, accompanied, where 
appropriate, by proposals for its amendment. 

Article 44 
Amendment of Directive 1998/27/EC 

In the Annex to Directive 1998/27/EC of the European Parliament and the Council63, the 
following point shall be added: 

"13.  Directive../../EC of the European Parliament and  of the Council of … on services in 
the internal market (OJ L […], […], p. […])". 

Chapter VII 
Final provisions 

Article 45 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
1. 
provisions  necessary  to  comply  with  this  Directive  by  ...*(2  years)  at  the  latest.  They  shall 
forthwith communicate to the Commission the text of those provisions and a correlation table 
between those provisions and this Directive. 

When Member States adopt those provisions, they shall contain a reference to this Directive 
or be accompanied by such a reference on the occasion of their official publication. Member 
States shall determine how such reference is to be made. 

62 
63 

OJ L 184, 17.7.1999, p. 23. 
OJ L 166, 11.6.1998, p. 51. 

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71 

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Member States shall communicate to the Commission the text of the main provisions 

2. 
of national law which they adopt in the field covered by this Directive. 

This  Directive  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 46 

Article 47 

This Directive is addressed to the Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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FOLLOW-UP LEGISLATIVE FINANCIAL STATEMENT 

Policy area(s): Internal Market 

Activit(y/ies): Internal Market for goods and services 

TITLE  OF  ACTION:  AMENDED  PROPOSAL  FOR  A  DIRECTIVE  OF  THE  EUROPEAN  PARLIAMENT 
AND OF THE COUNCIL ON SERVICES IN THE INTERNAL MARKET  

In January 2004, the Commission adopted a proposal for a directive on services in the Internal 
Market64. The proposal was accompanied by a legislative financial statement.  

The  European  Parliament  adopted  its  first  reading  report  on  this  proposal  on  16  February 
2006.  The  Commission  is  now  presenting  an  amended  proposal  largely  based  on  the  first 
reading of the European Parliament but also taking into account the discussions in the Council 
to date. The amended proposal contains the following changes, relative to the Commission's 
original proposal, which will entail Commission resources and will therefore have budgetary 
implications: 

The  amended  proposal  provides  for  the  establishment  of  an  electronic  Internal  Market 
information system for the exchange of information between Member States. This is aimed at 
ensuring that competent authorities have a practical system enabling them to fulfil more easily 
their obligations of administrative cooperation under the amended proposal by being able to 
easily identify their relevant interlocutors in other Member States and to communicate in an 
efficient  way.  Thus,  the  legal  obligations  of  administrative  cooperation  will  be  underpinned 
by  a  mechanism  enabling  it  to  work  effectively  in  practice.  This  will  entail  costs  for  the 
Commission in terms, firstly, of development of the system; and, secondly, the administration 
of the database.  

The  amended  proposal  also  sets  out  an  alert  mechanism  pursuant  to  which  a  Member  State 
becoming aware of serious specific acts or circumstances that could cause serious damage to 
the  health  or  safety  of  persons  or  to  the  environment  must  inform  the  Member  State  of 
establishment, the other Member States concerned and the Commission. The Commission is 
required to promote and take part in the operation of a European network of Member States' 
authorities in order to implement this alert mechanism, as well as adopt and regularly update 
detailed  rules  concerning  its  management,  in  accordance  with  the  Committee  procedure  set 
out in Article 42. The promotion and operation of this network will entail costs, particularly in 
terms of staff, for the Commission. 

The amended proposal provides for an assessment by the Commission of the need to establish 
a  multi-annual  programme  in  order  to  organise relevant  exchanges  of  officials  and  training. 
There  will  be  costs  for  the  Commission  in  relation  to  the  carrying  out  of  assessment  of  the 
need for a multi-annual programme. 

64 

Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  on  services  in  the  internal 
market - COM(2004) 2, 13.1.2004. 

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73 

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Estimates of the overall figures in terms of costs for the Commission are set out below. These 
have  been  updated  from  the  legislative  financial  statement  which  accompanied  the 
Commission's original proposal in order to take account the changes that have been made in 
the Commission's amended proposal. These changes include those set out above as well as the 
fact that the two studies initially foreseen will no longer be carried out. Part of the costs of the 
electronic  information  system  are  already  financed  under  the  IDABC  programme  and 
therefore the figures below only reflect the additional costs required. In addition, the Article 
42 committee was already foreseen in the original proposal. 

1. 

BUDGET LINE(S) + HEADING(S) 

12 02 01 Implementation and development of the internal market 

12 01 04 01 Implementation and development of the internal market – Expenditure 
on administrative management 

2. 

OVERALL FIGURES  

2.1. 

Total  allocation  for  action  (operational  expenditure):  EUR  0.900  million  in 
commitment  appropriations,  already  covered  by  existing  allocation  under 
internal market policy area in the financial programming.  

2.2. 

Period of application: 

2006 - 2011 

2.3. 

Overall multiannual estimate of expenditure: 

(a) 

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 3.1.1) 

(financial 

EUR million (to three decimal places) 

2006 

2007 

2008 

2009 

2010 

2011 
and 
subs. 
years 

Total 

Commitments 

Payments 

0.200 

0.100 

0.100 

(b) 

Technical and administrative assistance and support expenditure (see point 3.1.2) 

Commitments 

Payments 

Subtotal a+b 

Commitments 

Payments 

0.250 

0.250 

0.100 

0.100 

0.250 

0.250 

0.100 

0.100 

0.200 

0.250 

0.250 

0.100 

0.350 

0.250 

0.100 

0.100 

0.100 

0.100 

EN 

74 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(c) 

Overall  financial  impact  of  human  resources  and  other  administrative  expenditure  
(see points 4.2 and 4.3) 

Commitments/ 
payments 

TOTAL a+b+c 

Commitments 

Payments 

0.016 

1.085 

1.069 

0.064 

0.064 

0.016 

1.285 

1.319 

0.314 

0.164 

0.100 

0.016 

1.185 

1.419 

0.314 

0.164 

0.100 

3. 

FINANCIAL IMPACT 

3.1. 

Total  financial 
programming period) 
3.1.1.  Financial intervention 

impact  on  operational  expenditure  -  (over  the  entire 

Commitments (in EUR million to three decimal places) 

Breakdown 

2006 

2007 

2008 

2009 

2010 

Total 

2011 and 
subs. 
Years] 

Action 1 

Action 2 

etc. 

0.200 

TOTAL 

0.200 

3.1.2.  Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure 

(commitment appropriations) 

2006  

2007 

2008 

2009 

2010 

Total 

2011 and 
subs. 
Years 

1) 
administrative assistance 

Technical 

and 

Technical 

a) 
offices

assistance 

EN 

75 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
b)  Other 
administrative assistance: 

technical 

and 

- intra muros: 

- extra muros: 

of  which  for  construction 
and 
of 
maintenance 
computerised  management 
systems 

Subtotal 1 

2) Support expenditure 

a) Studies 

b) Meetings of experts 

Information 

c) 
publications 

and 

Subtotal 2 

TOTAL 

0.250 

0.250 

0.100 

0.100 

0.250 

0.250 

0.100 

0.100 

3.2. 

Calculation of costs by measure envisaged in operational expenditure (over the 
entire programming period) 

Commitments (in EUR million to three decimal places) 

Breakdown  

Type  
of outputs 
(projects, files ) 

Number of 
outputs 

Average unit 
cost 

(total for years 
2004-2010)  

Total cost 

(total for years 
2004-2010)  

Action 1 

-  Measure  1  (development  and 
monitoring of economic indicators) 

Study 

1 

0.200 

0.200 

TOTAL COST  

0.200 

0.200 

EN 

76 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE  

Human  and  administrative  resource  requirements  will  be  covered  from  within  the  budget 
allocated to the managing DG in the framework of the annual allocation procedure. 

4.1. 

Impact on human resources 

Staff to be assigned to management of the 
action using existing resources 

Description of tasks deriving from the 
action 

Types of post 

Total 

Number of 
permanent posts 

Number of 
temporary posts 

Officials 
temporary staff 

or 

A 

B 

C 

6.5 

2.5 

0.5 

Other human resources 

1 END 

Because  the  Directive  covers  a  wide 
range  of  services  activities  specific 
knowledge is needed on a multitude of 
sectors 
regulated 
(distribution, 
professions,  construction,  certification, 
craftsmen  etc.)  as  well  as  on  specific 
questions 
such  as  administrative 
simplification.  

6.5 

3.0 

1 

Total 

10 

0.5 

10.5 

4.2. 

Overall financial impact of human resources 

Type of human resources 

Amount (EUR) 

Method of calculation*  

EUR million to three decimal places 

Officials 

Temporary staff 

Other human resources 

0.972 

0.054 

0.043 

9* 0.108 

0.5* 0.108 

1* 0.043  

(specify budget line) 

Total 

1.069 

The amounts are total expenditure for twelve months. 

EN 

77 

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4.3. 

Other administrative expenditure deriving from the action 

EUR million to three decimal places 

Amount EUR 

Method of calculation 

0.064 

0.016 

96 experts*650 

24 experts* 650 

Budget line 

(number and heading) 

Overall allocation (Title A7) 

12 01 02 11 01 – Missions 

12 01 02 11 02 – Meetings, conferences 

12 01 02 11 03 – Committees (consultative committee) 

12 01 02 11 04 – Studies and consultations 

Other expenditure (specify) 

Information systems  

Other administrative expenditure (specify) 

The amounts are total expenditure for twelve months. 

Total 

0.080 

EUR million to three decimal places 

I. 

II. 

Annual total (4.2 + 4.3) 

Duration of action 

III. 

Total cost of action (I x II) 

1.149 

2 years 

2.298* 

* costs for human resources could be extended beyond the 2 years depending on the results of the negotiation 
and the subsequent work programme. 

EN 

78 

   EN