COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on the implementation of the Services Directive. A partnership for new growth in services 2012-2015
Date: 2012-06-08
Institutions: European Commission
Subjects: administrative formalities, consumer protection, economic growth, freedom to provide services, job creation, national implementing measure, recognition of vocational training qualifications, single market, tertiary sector

EUROPEAN COMMISSION 

Brussels, 8.6.2012  
COM(2012) 261 final 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN 
ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE 
REGIONS 

on the implementation of the Services Directive. 

A partnership for new growth in services  
2012-2015 

{SWD(2012) 146 final} 
{SWD(2012) 147 final} 
{SWD(2012) 148 final} 

EN 

   EN 

 
 
 
 
  
 
 
I. 

INTRODUCTION: MAKING SERVICES WORK FOR GROWTH AND JOBS 

The services sector is a significant driver of growth in the EU as it represents more than 
65%  of  EU  GDP  and  employment.  The  Services  Directive  is  the  key  instrument  at 
European  level  for  promoting  structural  reform  in  the  services  sector,  and  it  covers 
services which account for more than 45% of EU GDP. Implementation of the Directive 
has resulted in a major step forward in terms of removing barriers and moving towards a 
truly  integrated  internal  market  for  services.  Hundreds  of  national  laws  have  been 
modernised  and 
thousands  of  discriminatory,  unjustified  or  disproportionate 
requirements  have  been  eliminated  throughout  the  EU.  The  tools  which  have  been 
created ('Points  of Single  Contact') to  support implementation of the Directive are now 
operational in most Member States and are helping to reduce significantly administrative 
burdens in this area. 

  Source: Eurostat, National Accounts St atist ics, Gross value added, 2009 

Note: The darker part on t he right  shows the services covered by the Services D irective 

The figure shows the contribution to the EU economy of the sectors that are covered by the Directive, about 45% of 
GDP, and those that are not. 

Most of the sectors not covered by the Directive are covered by sector specific legislation (see Annex 1). 

Services of General Economic Interest are present in many service sectors; they are more specifically addressed in the 
Commission's  Communication  of  20  December  2011  on  'A  quality  framework  for  Services  of  General  Interest  in 
Europe'. 

The measures which Member States have adopted to implement the Services Directive is 
bringing  an  additional  0.8%  of  EU  GDP  over  time,  with  the  majority  of  the  effect 
materializing during the 5-10 years following implementation.1 It is clear, however, that 
service providers still face obstacles when they want to operate cross-border and, unlike 
in  the  internal  market  for  goods,  consumers  are  still  not  always  able  to  access  easily 
services from across the EU. Economic analysis has shown that if Member States were to 

1   Commission Study 'The Economic Impact of the Services Directive: a first assessment following 

implementation', published on 
http://ec.europa.eu/economy_finance/publications/economic_paper/2012/index_en.htm 

 
 
 
 
 
 
 
                                                 
abolish almost all the remaining restrictions, the total economic gain would be more than 
three times what we have already achieved - about 2.6% of GDP.2 

Much  more  can  therefore  be  done  to  maximise  the  economic  benefits  that  the  Services 
directive  offers.  Member  States,  in  line  with  calls  from  the  European  Council3,  should 
ensure that the Directive can deploy its full force. Full implementation will significantly 
improve  the  functioning  of  the  Single  Market  for  Services,  in  particular  by  facilitating 
market  access  for  SMEs  and  widening  choice  for  consumers.  It  will  also  contribute  to 
enhanced competitiveness in the EU, growth and jobs. This Communication shows how 
this can be done, and responds to the reporting obligation of the Commission as set out in 
article  41  of  the  Directive,  the  requests  from  the  European  Council  and  the  European 
Parliament to monitor closely and report on the implementation of the Directive and on 
the  initiatives  to  improve  and  reinforce  the  Single  Market  for  services.  It  sets  out  the 
actions that Member States and the Commission should take to ensure that the Directive 
has the greatest possible impact. These actions are based on the detailed information on 
the implementation of the Services Directive in each Member State and on the outcome 
of the Performance Checks provided in the accompanying Staff Working Documents.4  

The  actions  will  be  monitored  using  the  measures  to  improve  governance  of  the  single 
market which the Commission has presented in a Communication adopted alongside this 
one.  This  monitoring  will  be  part  of  the  surveillance  carried  out  in  the  context  of  the 
European Semester and reflected when necessary in country specific recommendations. 
The  Commission  already  proposed  country-specific  recommendations  on  structural 
reforms in the services sector for 12 Member States on 30 May 2012.5  

II.  DELIVERING THE FULL EFFECT OF THE SERVICES DIRECTIVE  

The  Directive  covers  a  large  variety  of  sectors  ranging  from  traditional  activities  to 
knowledge-based  services.  The  impact  of  the  Directive  is  wide-ranging  and  affects 
service providers both large and small, including thousands of SMEs. 

The Commission will focus its efforts on those service sectors with significant economic 
weight, and with above average growth potential. 

–  business services representing 11.7% of GDP, 

–  construction representing 6.3% of GDP, 

–  tourism representing 4.4 % of GDP, and  

–  retail representing 4.2% of GDP. 

2   The figure 2.6% includes the above mentioned 0.8% of additional EU GDP as well as additional gains 
of up to 1.8% of GDP which could be achieved under a more ambitious scenario in which Member 
States abolish almost all restrictions. 

3   Statement of the Members of the European Council, 30 January 2012. 

4   Commission  Staff  Working  Document  'Detailed  information  on  the  implementation  of  Directive 
2006/123/EC on services in the internal market'; Commission Staff Working Document 'Results of the 
performance checks of the internal market for services (construction, business services and tourism)'. 

5   COM(2012) 299 Action for Stability, Growth and Jobs, 30 May 2012 

3 

 
 
                                                 
By  ensuring  better  implementation  and  better  delivery  on  the  ground  we  can  get  much 
more  out  of  what  has  already  been  agreed.  This  is  an  opportunity  that  the  EU  cannot 
afford to ignore to deliver short-term results for growth and jobs.  

Member  States  and  the  Commission  should  concentrate  primarily  on  ensuring  a  more 
ambitious and full implementation of the Services Directive with a view to releasing its 
untapped  potential  before  extending  its  scope.  Almost  all  commercial  service  activities 
are  already  covered  by  EU  legislation  (see  Annex  1).  The  Commission  therefore 
considers that there is no need at present to modify the Directive. 

The  most  significant  benefits  of  the  Directive  so  far  have  been  for  service  providers 
wishing  to  start  a  business  in  their  own  or  another  Member  State.  In  contrast,  service 
providers  wishing  to  provide  cross-border  services  are  still  unsure  about  the  regulatory 
frameworks  applied  by  Member  States  and  continue  to  face  obstacles.  In  some  cases 
problems arise because of inconsistent or incorrect application of other EU instruments 
such as the Directive on Recognition of Professional Qualifications or the E-Commerce 
Directive. 

1.  'Zero tolerance' policy for non-compliance 

The Commission will apply a 'zero tolerance' policy in cases of non-compliance with the 
unequivocal  obligations  indicated  below  that  the  Directive  imposes  on  Member  States. 
The  Directive  prohibits  a  number  of  discriminatory  and  particularly  burdensome 
requirements listed in its Article 14. Member States have removed them to a large extent. 
However,  remaining  discriminatory  requirements  have  been  identified  and  must  be 
eliminated.  

The  Directive  introduces  specific  obligations  to  simplify  authorisation  procedures:  (1) 
tacit approval, i.e. silence from the administration means approval, is foreseen in Article 
13(4)  and  (2)  nationwide  validity  of  authorisations  provided  for  in  Article  10(4).  A 
number of Member States apply these obligations only to a limited extent and with too 
many exceptions. Urgent action is required to implement these obligations properly.  

The  Directive  bans  the  total  prohibition  of  commercial  communications  for  regulated 
professions  in  Article  24.  However,  in  ten  Member  States  total  bans  on  commercial 
communications still exist and must be removed.  

Establishment  requirements  render  impossible  the  provision  of  cross-border  services. 
They are one of the most restrictive requirements addressed by Article 16 of the Services 
Directive (the freedom to provide services clause), in its paragraph 2 and Member States 
may not impose it on service providers.. Residence and nationality requirements are also 
prohibited  by  Article  14  of  the  Services  Directive.  Violations  of  these  unequivocal 
prohibitions still remain in Member States and must be eliminated.6 

6   See Commission Staff Working Document 'Detailed information on the  implementation of Directive 

2006/123/EC on services in the internal market'. 

4 

 
 
 
 
                                                 
Actions 

Member  States  must  commit  to  make  their  legislation  fully  compliant  with  the 
Services Directive by putting an end to remaining instances of non-compliance with 
unequivocal  obligations  in  the  Services  Directive  in  their  legislation  as  a  matter  of 
urgency.  

The  Commission  will  apply  its  zero  tolerance  policy  through  infringement 
procedures, where necessary.  

2.  Maximizing the economic effect of the Services Directive 

The Directive allows Member States discretion on many aspects of its implementation. In 
particular, Article 15 of the Services Directive refers to requirements such as legal forms, 
shareholding  requirements,  quantitative  and  territorial  restrictions  and  tariffs,  which 
Member States are allowed to maintain only to the extent that they are proportionate and 
justified by an overriding reason of general interest and proportionate.  

There  is  a  great  deal  of  variation  in  the  extent  to  which  Member  States  have  used  this 
discretion.  Often  they  have  chosen  to  preserve  the  status  quo  instead  of  being  more 
ambitious  in  opening  up  their  services  markets.  Even  if  these  options  may  not  always 
constitute a violation of the Directive, these requirements are liable to hamper economic 
growth  and  Member  States  should  revisit  them.  This  should  take  us  some  way  to  the 
additional growth identified. 

Member  States  should  therefore  reassess  the  way  in  which  they  have  used  their 
discretion. They should examine as a priority requirements limiting company structures 
and capital ownership which are an obstacle to the development of professional services. 
The  progress  achieved  and  on-going  reforms  in  a  number  of  Member  States  show  that 
these services can benefit from a lighter regulatory regime without jeopardizing quality 
or undermining the independence of professionals.  

Similarly, the freedom to provide services clause laid down in Article 16 of the Directive 
requires  an  assessment  of  the  justification  and  proportionality  of  requirements  which 
Member  States  impose  on  service  providers  established  in  other  Member  States  when 
they  provide  cross-border  services  in  their  territory.  Businesses  and  professionals 
providing  cross-border  services  are  still,  far  too  often,  uncertain  about  the  rules 
applicable to them. What is worse, they may sometimes have to comply with virtually all 
the laws of the Member State where they provide services in addition to their obligations 
under the legislation of their own Member State. National legislation implementing the 
Services Directive's rules on the cross-border provision of services must be improved so 
as to provide legal certainty and put an end to this double regulatory burden.  

Insurance obligations in particular can be a problem for service providers. They exist for 
many  activities  in  order  to  protect  service  recipients.  Some  of  these  requirements 
duplicate requirements already complied with in the Member State of establishment, thus 
increasing costs for businesses. Even more importantly, finding insurers in the Member 
State  of  establishment  or  in  the  Member  State  where  the  service  is  provided  for  cross-
border service activities can be difficult, notably in the construction and tourism sectors.  

5 

 
Actions  

The Commission, together with the Member States, will launch in 2012 a peer review 
process  and  exchange  of  best  practices  focusing  on  requirements  limiting  company 
structures  and  capital  ownership  and  on  the  freedom  to  provide  services  clause. 
Member  States  should  commit  to  a  thorough  review  of  their  legislation  in  these 
matters. Results will be assessed by mid-2013.  

Member  States  must  eliminate  all  restrictions  and  authorisations  which  are  not 
justified on the basis of the Directive, and in particular should review the necessity 
and  proportionality  of  requirements  imposed  on  service  providers.  For  any 
remaining  restrictions  which  may  be  justified  on  the  basis  of  the  Directive,  they 
should  assess  the  economic  benefits  of  eliminating  them  and  take  action  where 
necessary. 

The Commission will make country-specific recommendations on priority actions in 
the context of the European Semester for 2013. If necessary, in the light of the results 
achieved, the Commission will consider proposing additional legislation on specific 
issues. 

Member  States  should  step  up  efforts  to  enhance  the  use  of  the  Internal  Market 
Information  System  (IMI).  The  Commission will  closely  monitor and  assist  Member 
States in doing so.  

The Commission will encourage the development of measures by the insurance sector 
with the aim of providing service providers with adequate insurance cover, including 
when  they  provide  services  in  other  Member  States.  In  particular,  insurance 
companies  established  in  several  Member  States  that  provide  insurance  policies 
covering  service  provision  should  cover  service  providers  when  they  provide  cross 
border services in these Member States.  

The Commission will assess the progress achieved by the insurance sector by the end 
of  2013.  Depending  on  progress  or  the  lack  thereof,  the  Commission  will  consider 
alternative solutions, including proposing legislation. 

3.  Professional services: Modernisation of the regulatory framework  

There  are  around  800  categories  of  regulated  professions.  Discrepancies  in  regulating 
professional services have been identified amongst Member States. The effects of these 
divergences  are  made  worse  by  cumbersome  procedures  for  the  recognition  of 
qualifications. The European Council has stressed the importance of making progress on 
enhancing the mutual recognition of professional qualifications, reducing the number of 
regulated  professions  and  removing  unjustified  regulatory  barriers7.  The  recently 
proposed  modernisation  of  the  Professional  Qualifications  Directive  addresses  these 
issues.  To  ensure  that  progress  is  made  as  quickly  as  possible,  the  Commission  has 
addressed  country  specific  recommendations  on  this  issue  to  8  Member  States8  which 
will be followed up in the European Semester exercise for 2013. 

With  regard  to  cross-border  service  provision,  the  proposal  for  the  revised  Directive 
provides that Member States will have to clearly identify and justify those cases where 
they want to make use of the exceptional possibility to check the qualification of service 

7   European Council Conclusions, March 2012. 

8   COM(2012) 299 30 May 2012. 

6 

 
                                                 
providers before they can offer services. Member States will also have to ensure that the 
annual  declaration  that  service  providers  may  have  to  make  is  valid  for  the  whole 
territory  of  the  Member  State.  This  will  reduce  red  tape  and  remove  uncertainty  for 
professionals.  The  transparency  and  mutual  evaluation  mechanism  proposed  will 
contribute to reducing the complexity due to divergences in the regulation of professions. 
Member  States  should  review  at  national  level  the  qualifications  requirements  imposed 
on regulated professions and the scope of reserved activities.  

the  proposal  has  been  adopted, 

Once 
to  present  a 
Communication  in  2013.  The  Communication  will  draw  on  progress  made  with  the 
country specific recommendations and other developments in Member States as regards 
the regulation of professions.  

the  Commission 

intends 

Actions 

The European Parliament and the Council should adopt before the end of 2012 the 
proposal  for  a  modernised  Professional  Qualifications  Directive  as  urged  by  the 
European Council of October 2011.  

The Commission will: 

-  assist  Member  States  with 
the  country  specific 
recommendations on professional services as part of the European Semester exercise 
for 2013 and in this context launch an exercise in 2012 with Member States in order 
to make progress as rapidly as possible. 

implementation  of 

the 

- present a Communication in 2013, following the adoption of the revised Directive, 
to  take  stock  of  progress  made  in  Member  States  and  to  facilitate  the  mutual 
evaluation of regulated professions foreseen in the Directive.  

4.  Ensuring the Services Directive works for consumers  

Facilitating  the  provision  of  services  across  national  borders  is  not  enough  for  the 
establishment  of  a  genuine  single  market  for  services.  It  is  equally  important  to  ensure 
that recipients of services can easily enjoy the opportunities that the single market offers 
to them.  

To  enhance  the  rights  of  consumers  and  strengthen  their  confidence  in  the  internal 
market, the Services Directive obliges Member States to remove regulatory obstacles for 
service  recipients  wanting  to  buy  services  supplied  by  providers  established  in  other 
Member States. It also ensures that consumers can make informed choices when buying 
services in other Member States by means of information obligations that apply both to 
providers and to Member States authorities (for example by the creation of the so-called 
Article  21  bodies  that  assist  consumers).  Finally,  the  Directive  aims  to  put  an  end  to 
practices  by  service  providers  that  unjustifiably  hamper  access  to  their  services  by 
consumers resident in other Member States. In this regard, the 'non-discrimination' clause 
is a major step in giving consumers unimpeded access to the Single Market.  

Article 20 of the Directive prohibits discrimination against service recipients on the basis 
of  their  nationality  or  country  of  residence.  This  applies  to  refusals  to  supply  or  offers 
subject  to  inferior  conditions  when  they  cannot  be  justified  on  objective  grounds. 

7 

 
Situations  of  this  type  should  no  longer  arise  if  Article  20  is  fully  implemented  in  the 
Member States.   

The  non-discrimination  clause  requires  a  case-by-case  assessment.9  Particular  attention 
should  be  given  to  cases  where  consumers  face  higher  charges  than  would  be  imposed 
for  a  domestic  transaction  when  they  wish  to  pay  for  a  service  provided  in  another 
Member State by credit transfer or direct debit in euro. Consumers should, in principle, 
no  longer  be  refused  supply  on  the  ground  that  it  is  impossible  to  physically  deliver 
goods  in  another  Member  State.  Similarly,  service  providers  should  not  rely  on  mere 
geographic factors in order to engage in practices that artificially partition markets within 
the EU single market to the detriment of consumers. 

To  the  extent  that  impediments  to  cross-border  service  provision  continue  to  exist, 
initiatives are underway at EU level to reduce them and to improve the functioning of the 
single  market.  This  includes  the  completion  of  the  Single  Euro  Payments  Area,  the 
Commission's  proposal 
the 
implementation  of  the  Consumer  Rights  Directive,  the  proposal  to  establish  one-stop-
shops for the processing of VAT, the proposals to establish alternative dispute resolution 
(ADR) entities for the resolution of consumer disputes and the EU-wide online platform 
for cross-border  complaints (ODR)  and  forthcoming  initiatives in  the  area of collective 
management of copyright and private copying and reprography levies.  

for  an  optional  Common  European  Sales  Law, 

Actions  

'non-
Member  States  must  enforce  national  provisions 
discrimination' clause as a matter of priority. The Commission will engage with the) 
national  bodies  treating  complaints  of  discriminatory  treatment  as  well  as  with  the 
competent enforcement authorities to ensure consumers are able to fully benefit from 
the  Single  Market.  In  particular,  the  Commission  will  propose  targeted  actions  by 
mid-2013  to  monitor  application  and  to  take  remedial  enforcement  action  where 
deficiencies are detected. 

implementing 

the 

The  Commission  has  come  forward  with  initial  clarifications  on  the 
'non-
discrimination'  clause  and  will  closely  monitor  its  enforcement.  Additional  specific 
guidance will be issued by the end of 2013 on the basis of further experience with the 
national  implementation  of  this  provision.  This  guidance  will  take  into  account 
regulatory  developments  which  reduce  the  remaining  obstacles  for  businesses 
offering their services cross-border. 

The  Commission  will  immediately  start  work  with  businesses  for  example  through 
representative  organisations  and  chambers  of  commerce,  to  improve  transparency 
and  support  efforts  to  ensure  that  customers  can  shop  cross-border  in  the  single 
market. The Commission will support providers in specific sectors with the voluntary 
establishment  of  quality  charters  that  include  commitments  concerning  the  cross-
border conditions of access to their services. Progress made shall be evaluated by the 
Commission by mid-2013. 

The  Commission  in  close  cooperation  with  Member  States  will  inform  consumers 
about  their  single  market  rights  under  the  Services  Directive  in  the  context  of  the 
awareness  raising  campaign  which  will  be  carried  out  in  2013  as  part  of  the 
European Year of Citizens. 

9   See for more detail: Commission Staff Working Document with a view to establishing guidance on the 

application of Article 20(2) of Directive 2006/123/EC on services in the internal market. 

8 

 
 
                                                 
5.  Making Single Market rules work on the ground  

The Directive does not exist in isolation. It can achieve its full effect only when applied 
together  with  other  Single  Market  Directives  in  a  coherent  way.  This  is  particularly 
important  in  the  case  of  the  Professional  Qualifications  Directive  and  the  E-Commerce 
Directive.  

Procedures for the recognition of professional qualifications are long and cumbersome in 
many Member States. 

Cross-border  services  are  increasingly  provided  on  line.  Despite  the  simplification 
introduced by the Services Directive and the E-Commerce Directive, barriers still exist.  

Actions 

Member States must commit to make their legislation and procedures fully compliant 
with the Professional Qualifications and E-Commerce Directives. National law must 
take full account of the combined effects of these Directives. Necessary adaptations 
must be made as a matter of urgency.  

The Commission will vigorously enforce these Directives, with particular attention to 
their  combined  application,  to  ensure  positive  results  on  the  ground  for  service 
providers. The Commission will use infringement procedures where necessary. 

6.  Sector-specific needs 

The  performance  checks  exercise10  has  identified  the  need  to  address  a  number  of 
bottlenecks for growth in specific sectors. 

6.1 Specialist services: Making mutual recognition a reality  

the 
Cross-border  specialist  services  may  be  subject 
implementation  of  sector-specific  EU  rules  that  require  the  authorisation  of  experts  for 
activities  involving  fluorinated  greenhouse  gas  (F-gas)  in  refrigeration  systems,  the 
energy efficiency of buildings or waste treatment and transport. Where such experts are 
subject  to  a  system  of  accreditation  Regulation  (EC)  765/2008  facilitates  mutual 
recognition of accreditation certificates. Its full effect should be ensured. 

to  requirements  due 

to 

When EU sector-specific legislation provides for authorisation or accreditation schemes 
at  national  level,  it  should  ensure  that  authorised  or  accredited  service  providers  can 
exercise  their  activities  in  other  Member  States  on  the  basis  of  the  authorisation  or 
accreditation obtained in their home Member State. 

Actions 

The Commission will aim at ensuring an increased use of mutual recognition clauses 
in future proposals of sector-specific legislation setting up authorisation schemes for 
experts providing specialised services.  

10   Commission  Staff Working Document  'Results  of  the  performance  checks  of  the  internal  market  for 

services (construction, business services and tourism)'. 

9 

 
                                                 
When  applying  existing  sector-specific  legislation,  Member  States  must  give  full 
effect to Article 56 TFEU and to EU legislation facilitating the provision of services 
by  experts  from  other  Member  States  such  as  the  Professional  Qualifications 
Directive when the profession is regulated or Regulation 765/2008 on accreditation 
where applicable. Member States should make use of IMI to facilitate the verification 
of compliance with requirements in other Member States.  

Technical  standards  should  be  further  aligned,  in  particular  by  using  EU 
standardisation mechanisms (CEN), in areas where there are significant divergences 
in the national implementation of EU legislation, as is the case for the certification of 
the energy performance of buildings. 

6.2 Consumer protection legislation  

A  significant  part  of  the  existing  consumer  protection  acquis  has  been  based  on 
minimum  harmonisation.  In  areas  where  minimum  harmonisation  applies,  Member 
States have gone very often beyond the minimum harmonisation rules. This results in a 
situation  where  service  providers  may  be  faced  with  heterogeneous  requirements 
depending on where they wish to provide their services, which can lead to distortions in 
the single market. The Commission can address this in two ways: by means of further or 
even  full  harmonisation,  as  done  recently  with  the  Consumer  Rights  Directive  and  as 
proposed  in  January  2012  in  the  General  Data  Protection  Regulation;  or  by  means  of 
optional  harmonisation  as  proposed  in  October  2011  with  the  optional  Common 
European Sales Law. Both methods are complementary and should be used depending on 
the  state  of  the  acquis,  the  need  to  respect  the  principle  of  subsidiarity  and  the  public 
interests  involved  as  well  as  the  need  to  ensure  a  high  level  of  consumer  protection 
notably when it comes to online services.  

Actions  

The  Commission  will  aim  at  accelerating  legislative  procedures  on  measures 
affecting consumers which are of key importance for the single market for services. 

The  Commission  will  aim,  when  proposing  new  legislation,  at  ensuring,  where 
appropriate,  increased  levels  of  harmonisation  in  future  EU  consumer  protection 
legislation.  The  European  Parliament  and  the  Council  should  join  efforts  in 
achieving this purpose to ensure that the single market can take full effect.  

As  concerns  the  tourism  sector  in  particular  and  as  announced  in  the  Consumer 
Agenda11,  the  Commission  will  propose  an  updated  Package  Travel  Directive  by 
early 2013 which will seek further harmonisation of national laws notably as regards 
online offers. 

In  consumer  protection  legislation  where  minimum  harmonisation  applies,  the 
Commission  will  work  together  with  national  enforcement  authorities  to  ensure  the 
correct  implementation  of  the  whole  EU  consumer  acquis  in  a  coherent  and 
encompassing manner, taking due account of single-market rights and rules. 

11   A European Consumer Agenda - Boosting confidence and growth, COM (2012) 225 final. 

10 

 
 
 
                                                 
6.3 Retail and business services: Specific initiatives  

The performance of the retail sector is impeded by a number of problems, many of which 
were  identified  in  the  Retail  Market  Monitoring  Report12  and  by  the  European 
Parliament13.  In  view  of  the  economic  importance  of  this  sector,  the  Commission  is 
preparing a European Retail Action Plan to set an EU strategy for the retail sector for the 
coming years.  

Business services have been identified as a service sector where the level of productivity 
could  be  significantly  improved.  The  Commission,as  announced  in  the  Single  Market 
Act and "the Industrial Policy for the Globalisation Era" Communication, is setting up a 
High-Level  Group  on  Business-Related  Services  to  study  the  shortcomings  of  this 
particular  sector.  This  Group  will  focus  on  four  specific  business  services  sectors:  (i) 
marketing  and  advertising;  (ii)  facility  management;  (iii)  technical  and  engineering 
services;  and  (iv)  design.  A  special  emphasis  will  be  placed  on  the  links  between  EU 
business  services  and  manufacturing,  as  well  as  on  the  development  of  voluntary 
European  standards  that  have  the  potential  to  improve  quality  of  services  and 
comparability  between  services  provided  by  service  providers  in  different  Member 
States. 

Actions  

The Commission will adopt in 2012 a European Retail Action Plan setting out an EU 
strategy for this sector.  

The  Commission  will  create  a  High-Level  Group  on  Business-Related  Services  to 
study the shortcomings of this particular sector by autumn 2012.  

7.  Towards second generation Points of Single Contact  

The  Points  of  Single  Contact  (PSCs)  aim  to  make  life  easier  for  service  providers  by 
providing  them  with  one  interface  to  access  all  the  necessary  information  and  by 
allowing  them  to  complete  the  relevant  administrative  procedures  online.  They  also 
facilitate  informed  choices  by  recipients  who  wish  to  buy  services.  PSCs  offer  them 
essential information such as the contact details of the competent authorities and means 
of redress generally available in case of dispute.  

But there are large variations in the user-friendliness of the information provided by the 
PSCs on the rules for the main service sectors. 

Many  PSCs  provide  information  in  at  least  one  foreign  language,  which  is  a  major 
benefit  for  service  providers.  However,  many  administrative  procedures  are  not  yet 
online  and  whenever  they  are  available  at  national  level,  they  are  often  inaccessible  to 
users from abroad.  

It is essential to tackle these deficiencies and to make PSCs function as they should for 
the  benefit  of  users.  This  means  that  Member  States  still  need  to  overcome  major 

12   Retail  market  monitoring  report  'Towards  more  efficient  and  fairer  retail  services  in  the  internal 

market for 2020', COM (2010) 355. 

13   Report  of  the  European  Parliament  of  1  June  2011  on  a  more  efficient  and  fairer  retail  market 

(2010/2109(INI). 

11 

 
                                                 
challenges  in  terms  of  further  simplification  and  streamlining  of  procedures,  greater 
back-office integration and necessary technical adaptations, in particular to ensure cross-
border access. It is also important to make business aware of the existence of PSCs and 
their usefulness.  

Actions  

Member  States  must  make  their  PSCs  fully  compliant  with  the  requirements  of  the 
Services Directive as a matter of urgency. 

By  the  end  of  2014  Member  States,  assisted  by  the  Commission  are  encouraged  to 
develop  the  second  generation  PSCs  which  should  (1)  cover  all  procedures  during 
the  business  life  cycle,  (2)  be  multilingual,  and  (3)  be  more  user-friendly.  The 
Commission will agree with Member States criteria for the second generation PSCs 
in the form of a 'PSC Charter'. 

The  Commission  will  launch  a  communication  campaign  on  PSCs  in  2013, 
coordinate with Member States to improve the internet presence of PSCs and engage 
with  business  organisations  to  make  businesses  more  aware  of  PSCs  and  further 
promote their use.  

III. 

 CONCLUSION 

Services  are  a  major  driving  force  of  the  European  economy.  A  more  integrated  and 
better  functioning  Single  Market  for  services  is  vital  to  contribute  to  the  economic 
recovery of the EU.  

All  Member  States  have  made  significant  efforts  to  implement  the  Services  Directive. 
They  have  removed  many  unjustified  barriers  and  have  modernised  their  regulatory 
framework applicable to services. This will boost the EU economy.  

However,  growth  and  job  creation  in  the  services  sector  are  still  hampered  by  a  wide 
range  of  obstacles.  More  growth  is  possible  if  action  is  taken  now  to  release  the  full 
potential of the Services Directive.  

In line with the Communication on Better Governance for the Single Market, we should 
concentrate our efforts on making what already exists work better. This Communication 
proposes  ways  forward  to  maximise  the  economic  effect  of  the  Services  Directive  in 
particular in services sectors of significant economic importance.  

–  Member  States  should  step  up  their  level  of  ambition  as  regards  the  Services 
Directive.  Any  remaining  obstacles  should  be  thoroughly  assessed  as  to  their 
economic impact. 

–  The Commission has put forward a proposal to modernise the legal framework for the 

mobility of professional services; Member States should adopt it swiftly. 

–  The Single Market must work for consumers. Businesses should not partition it in an 

artificial way to the detriment of service recipients. 

–  Other  Single  Market  instruments,  such  as  the  Directive  on  the  Recognition  of 
Professional Qualifications and the E-Commerce Directive, and the Services Directive 
should  be  applied  in  a  streamlined  way.  Where  necessary,  Union  law  should  be 

12 

 
 
modernised  to  meet  specific  services'  needs  and  to  ensure  that  the  legal  framework 
works effectively on the ground for both service providers and recipients. 

–  Member States should develop the Points of Single Contact to become fully-fledged e-
government  tools  responding  adequately  to  the  needs  of  service  providers  and 
recipients. 

This requires a political commitment by all European institutions and Member States to 
give  the  necessary  priority  to  delivering  the  required  actions  within  the  set  time-scale. 
The  Commission  will  work  with  Member  States  in  a  partnership  to  create  new  growth 
and jobs in services and will monitor progress closely in its Annual Growth Survey.  

13 

 
 
ANNEX  1  - EU LEGISLATION APPLYING TO SERVICES SECTORS  

Main sectors covered by the Services Directive (2006/123/EC) 

•  Business Services including professional services (, lawyers, architects, accountants, tax advisers, consulting agencies, communication and marketing agencies, patent 

agents, certification services, sport intermediaries, artist managers, recruitment agencies, interpreters, veterinaries, land surveyors …) 

•  Construction services and crafts acitivites 
•  Retail 
•  Real-Estate 
• 
• 

Tourism (Hotels, restaurants, cafés, travel agents, tourist guides…) 
Private Education 

Services Sectors 

Main EU legal instruments covering the sector 

Energy 

Internal market for natural gas 

•  Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003 concerning common rules for the internal market in natural gas and repealing 

Directive 98/30/EC. 
Internal market in electricity  

•  Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing 

Directive 2003/54/EC (Text with EEA relevance). 
Internal market in gas 

•  Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing 

Directive 2003/55/EC (Text with EEA relevance). 

Action plan for Financial Services and follow-ups 
(Directive 2006/43/EC, Directive 2006/46/EC, Directive 2007/63/EC, Directive 2007/44/EC, Directive 2009/14/EC, Directive 2007/36/EC, Directive 2007/64/EC, 
Directive 009/111/EC, Directive 2009/44/EC, Directive2010/76/EU, Directive 2009/49/EC, Directive 2011/61/EU, Directive 2011/89/EU) 

•  Directive 2011/24/EU of the European Parliament and of the Council of 9 March 2011 on the application of patients’ rights in cross-border healthcare. 
•  Directive 2005/36/EC of the European Parliament and of the Council of 7 September 2005 on the recognition of professional qualifications 

Financial Services 

Healthcare 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Postal Services 

Telecom 

•  Directive 97/67/CE  
•  Directive 2002/39/CE  
•  Directive 2008/06/CE 

•  Regulation (EC) No 1211/2009 of the European Parliament and of the Council of 25 November 2009 establishing the Body of European Regulators for Electronic 

Communications  

•  Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002  on universal service and users' rights relating to the electronic communications 

networks and services as amended by Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009  

•  Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks 

and services as amended by Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009 

•  Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services as 

amended by Directive 2009/140/EC. 

•  Directive 2002/19/EC of the European Parliament and of the Council of 7 March 2002 on access to, and interconnection of, electronic communications networks and 

associated facilities as amended by Directive 2009/140/EC. 

•  Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the 

electronic communications sector as amended by Directive 2006/24/EC and Directive 2009/136/EC 

Transport 

Road transport 

•  Regulation (EC) No 1072/2009 of the European Parliament and of the Council of 21 October 2009 on common rules for access to the international road haulage 

market 

•  Regulation (EC) No 1073/2009 of the European Parliament and of the Council of 21 October 2009 on common rules for access to the international market for coach 

and bus services 

•  Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road and 

repealing Council Regulations (EEC) Nos 1191/69 and 1107/70 
Maritime transport 

•  Council Regulation (EEC) No 4055/86 of 22 December 1986 applying the principle of freedom to provide services to maritime transport 
•  Council Regulation (EEC) No 3577/92 of 7 December 1992 applying the principle of freedom to provide services to maritime transport within Member States 

(maritime cabotage) 
Rail transport 

•  Council Directive 91/440/EEC of 29 July 1991 on the development of the Community's railways, OJ L 237, 24.8.1991, p. 25. 
•  Regulation (EU) No 913/2010 of the European Parliament and of the Council of 22 September 2010 concerning a European rail network for competitive freight 

15 

 
 
 
 
 
 
 
 
 
 
 
Air transport 

•  Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the 

Community 

•  Council Directive 96/67/EC of 15 October 1996 on access to the ground handling market at Community airports) 

Inland navigation 

•  Council Regulation (EC) No 1356/96 on common rules applicable to the transport of goods or passengers by inland waterway between Member States with a view to 

establishing freedom to provide such transport services 

•  Council Regulation (EEC) No 3921/91 laying down the conditions under which non-resident carriers may transport goods or passengers by inland waterway within a 

Member State 

Sectors not covered as such by secondary EU legislation 

•  Gambling 
•  Activities which are connected with the exercise of official authority (as set out in Article 51 of the Treaty) 
• 
•  Notaries, bailiffs 
• 

Private security services 

Taxis and port services 

16 

 
 
 
 
 
 
 
 
 
 
 
 
ANNEX II – LIST OF INITIATIVES WITH TIMELINE 

Policy areas 

Actions  

Timeline 

1. Zero tolerance for 
non-compliance  

2. Maximizing 
economic effect of 
the Services 
Directive 

(cid:190)  Member States make their legislation fully compliant with the Services Directive. 

immediately 

(cid:190)  Commission apply zero tolerance policy via infringement procedures, in particular in priority sectors. 

immediately 

(cid:190)  Commission launch peer review with Member States to reassess specific legislation in priority 

sectors.  

launch 2012  
results assessed mid 2013 

(cid:190)  Member States eliminate all remaining unjustified or diproportionate restrictions and assess 

immediately 

economic benefits of eliminating justified requirements. 

(cid:190)  Priority actions to be taken by Member States reflected in country-specific recommendations in the 

European semester. 

as of 2012 

(cid:190)  Member States increase efforts to enhance use of Internal Market Information System (IMI).  

immediately 

(cid:190)  Commission engage with insurance sector to ensure adequate insurance cover for service providers 

immediately 

including for activities in other Member States.  

17 

 
 
 
 
 
 
 
 
3. Modernisation of 
regulatory 
framework for 
professional 
services 

4. Ensuring Services 
Directive works for 
consumers  

(cid:190)  Commission assess progress achieved and consider alternative solutions, including proposing 

by end 2013 

legislation if necessary. 

(cid:190)  European Parliament and Council adopt proposal for a modernised Professional Qualifications 

before end 2012 

Directive.  

(cid:190)  Commission assist Member States with implementation of country specific recommendations on 

2012 - 2013 

professional services as part of the European Semester exercise for 2013. 

(cid:190)  Commission present a Communication to facilitate mutual evaluation of regulated professions. 

2013 

(cid:190)  Member States enforce national provisions implementing the 'non-discrimination' clause. 

immediately 

(cid:190)  Commission propose targeted actions to monitor application and to take action where deficiencies 

mid 2013 

are detected. 

(cid:190)  Commission issues additional specific guidance on Article 20. 

end 2013 

(cid:190)  Commission work with businesses to ensure that customers can shop cross-border.  

immediately 
assess progress mid 2013 

(cid:190)  Commission in close cooperation with Member States inform consumers about their single market 
rights under the Services Directive in the context of the awareness raising campaign as part of the 
European Year of Citizens. 

2013 

18 

 
 
 
 
 
 
 
 
(cid:190)  Member States make their legislation and procedures fully compliant with the Professional 

immediately 

Qualifications and E-commerce Directives.  

(cid:190)  Commission vigorously enforce these Directives; use infringement procedures where necessary. 

immediately 

5. Making Internal 
Market rules work 
on the ground  

6. Sector-specific 
needs: 

6.1 Mutual 
recognition for 
specialist services 

(cid:190)  Commission ensure full effect of Treaty freedoms by aiming at increased use of mutual recognition 
clauses in future proposals for sector-specific legislation setting up authorisation schemes for 
experts providing specialised services.  

when adopting future 
proposals  

(cid:190)  Member States give full effect to EU legislation requiring acceptance of experts from other Member 
States and make use of IMI to facilitate verification of compliance with requirements in other 
Member States.  

immediately 

(cid:190)  Further align technical standards, in particular by using EU standardisation mechanisms (CEN), in 
areas where there are significant divergences in the national implementation of EU legislation. 

on-going 

6.2 Consumer 
protection 
legislation: 
increased 
harmonisation in 
certain sectors  

(cid:190)  Commission aim at ensuring increased levels of harmonisation where appropriate in future EU 
consumer protection legislation. European Parliament and the Council should join efforts in 

when adopting future 
proposals 

19 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
achieving this purpose to ensure that the single market can take full effect.  

(cid:190)  Commission review Package Travel Directive.  

2012 

(cid:190)  Commission work together with national enforcers to ensure correct implementation of EU 

Early 2013 

consumer acquis in a coherent and encompassing manner, taking due account of single-market 
rights and rules. 

(cid:190)  Commission adopt a European Retail Action Plan setting out an EU strategy for this sector.  

2012 

(cid:190)  Commission create a High-Level Group on Business-Related Services to study shortcomings of this 

autumn 2012 

sector.  

(cid:190)  Member States make their PSCs fully compliant with the Services Directive. 

immediately 

(cid:190)  Member States develop the second generation PSCs: (1) cover all procedures during the business life 

2012-2014 

cycle, (2) multilingual, and (3) more user-friendly. Commission will agree with Member States 
criteria for the second generation PSCs in the form of a 'PSC Charter'. 

(cid:190)  Commission launch a communication campaign on PSCs, coordinate with Member States to 

2013 

improve PSCs' internet presence and engage with business organisations to make businesses better 
aware of PSCs and further promote their use.  

6.3 Retail and 
business services: 
Specific initiatives  

7. Towards second 
generation Points of 
Single Contact  

20