Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL introducing a European services e-card and related administrative facilities
Date: 2017-01-10
Institutions: Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, European Commission
Subjects: Internet, administrative formalities, building industry, expatriate worker, freedom to provide services, information system, provision of services, service, single market, trade licence

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   EUROPEAN COMMISSION  Brussels, 10.1.2017  COM(2016) 824 final 2016/0403 (COD)   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL introducing a European services e-card and related administrative facilities (Text with EEA relevance) {SWD(2016) 439 final} {SWD(2016) 442 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

With  services  accounting  for  around  70%  of  EU  GDP  and  employment,  promoting  the 
competitiveness of EU services markets is central for the creation of jobs and growth in the 
EU.  The  Services  Directive,  adopted  in  2006,  set  general  provisions  facilitating  the 
establishment of service providers and their ability to offer services cross-border in the single 
market. The Directive prompted a number of reforms across the EU Member States, adding 
an estimated 0.9% to the GDP of the EU over ten years. 

There is nevertheless still a large potential  for growth  and jobs  that remains to  be captured. 
EU  services  markets  would  benefit  from  faster  productivity  growth  and  a  more  efficient 
allocation of resources. Cross-border trade  and investment in  services remain low.  Tackling 
remaining  obstacles  to  more  cross-border  activities  in  services  will  help  to  strengthen 
competition,  resulting  in  more  choice  and  better  prices  for  consumers  as  well  as  increased 
innovation. Addressing these barriers under the framework already provided by the Services 
Directive  offers  a  potential  of  generating  an  additional  1.7%  to  the  GDP  of  the  EU.1  In 
addition,  better  functioning  services  markets  will  positively  affect  the  competitiveness  of 
industry  as  the  EU  manufacturing  sector  represents  an  important  buyer  and  final  user  of 
services. In fact, services account for 40% in the value of a final manufacturing product in the 
EU.  A  competitive  manufacturing  sector  is  therefore  conditional  upon  well-functioning 
services markets.  

For these reasons the European Council underlined that "delivering a deeper and fairer Single 
Market  will  be  instrumental  in  creating  new  jobs,  promoting  productivity  and  ensuring  an 
attractive climate for investment and innovation".2 A better functioning internal market is one 
of the ten priorities  for the European Commission.  In  its Single Market Strategy adopted in 
October  2015,  the  Commission  announced  a  series  of  actions  to  make  the  single  market 
without borders for services a reality.3 The objective is clear: reduce  hurdles to make it easier 
for  service  providers  to  pursue  new  business  opportunities,  while  guaranteeing  quality 
services for consumers. This proposal follows up on the Single Market Strategy.  

The  Services  Directive  provides  a  balanced  legal  framework  to  achieve  these  objectives.  It 
ensures  that  national  regulation  is  non-discriminatory,  justified  and  proportionate  to  meet 
public  interest  objectives.    In  addition,  it  requires  Member  States  to  reduce  obstacles  of 
administrative  nature  dissuading  in  practice  service  providers  to  operate  cross-border.  The 
Services Directive  and the important principles it established will remain unaffected by this 
proposal. 

These principles introduced by the Services Directive have enabled positive progress towards 
a better functioning of EU services markets. At the same time, obstacles to increased single 
market  integration  are  still  present  in  a  number  of  key  services  sectors.    This  is  the  case 
particularly  in  several  business  services  and  the  construction  sector  where  service providers 
can  often  not  easily  pursue  business  opportunities  in  other  Member  States.  They  are  faced 

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European Commission, "Update of the study on the economic impact of the Services Directive", 2015 
European Council Conclusions; 28 June 2016. 
Communication from the Commission on Upgrading the Single Market: more opportunities for people 
and business, 28 October 2015. 

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with administrative obstacles when expanding abroad. This was confirmed through extensive 
contacts with service providers.4  

Service  providers  face  administrative  complexity  when  going  cross-border.  This  includes  a 
lack  of  clarity  on  how  to  comply  with  existing  rules  dissuading  companies,  notably  SMEs, 
from attempting to exploit business opportunities in other Member States. Service providers 
find  it  difficult  to  obtain  information  on  applicable  regulatory  requirements  and  procedures 
that need to be completed to access another Member State's market. In addition, national rules 
often  account  only  for  national  situations  without  clarifying  how  they  should  be  applied  to 
service  providers  from  other  EU  Member  States.  As  a  result,  service  providers  trying  to 
establish a permanent presence in another Member State or to provide cross-border services 
on  a  temporary  basis  often  find  it  difficult  to  understand  which  rules  to  apply  and  how. 
Administrative  formalities  in  different  Member  States  are  often  complicated  and  costly  for 
service providers to complete.  

The European services e-card therefore aims to reduce administrative complexity for service 
providers that want to expand their activities to other Member States. It will at the same time 
ensure  that  Member  States  can  apply  justified  regulation.  It  would  be  offered  to  service 
providers on a voluntary basis as an alternative route to show compliance with the applicable 
national  rules.  It  allows  service  providers  to  use  a  fully-electronic  EU-level  procedure  to 
complete formalities when expanding abroad, hereby offering them increased legal certainty 
and significantly reducing administrative complexity. Through the e-card they will be able to 
avoid administrative obstacles such as uncertainty as to which requirements apply, filling-in 
disparate forms in foreign languages, translating, certifying or authenticating documents and 
non-electronic procedural steps. Cost savings related to the formalities covered by the e-card 
procedure  would  be  significant  compared  to  the  existing  situation,  potentially  going  up  to 
50% or even more.5 

Where  a  service  provider  plans  to  provide  a  service  temporarily  cross-border,  the  e-card 
would be issued by the home Member State. The host Member States would be able to object 
to issuance of the e-card where the Services Directive already allows them to do so under one 
of the overriding reasons of public interest listed in Article 16. Once issued, the e-card would 
allow the service provider to provide services on a temporary  cross-border basis in the host 
Member State. Decision-making powers of host Member States to reject an application for a 
European  services  e-card  remain  accordingly  unchanged,  in  line  with  Article  16  of  the 
Services Directive. 

Where  a  service  provider  plans  to  provide  services  through  a  branch,  agency  or  office  in 
another Member State, the e-card is issued by the host Member State. In this case the service 
provider would  still request the  e-card with  his home country  authorities, who would  check 
that the service provider is established on its territory in line with its applicable rules. But in a 
second  step,  the  home  Member  States  authorities  would  initiate  a  process  with  the  relevant 
host  country  administration  to  allow  the  latter  to  verify  if  the  requesting  service  provider 
meets its host country regulatory requirements in compliance with the Services Directive. As 
a result, there would be no unequal treatment between domestic and foreign service providers. 
Once  issued,  the  e-card  would  allow  its  holder  to  provide  services  through  a  secondary 
establishment (in the form of a branch, agency or office) in the host Member State concerned.  

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Including 9 workshops organised by the Commission with service providers in cross-border regions. 
Commission  Staff  Working  Document,  "Impact  Assessment  accompanying  the  Proposal  for  a 
Regulation of the European Parliament and of the Council introducing a European services e-card and 
related administrative facilities", 2017. 

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The idea of the European services e-card is similar to the European professional card (EPC), 
which Member States' authorities are already familiar with. The EPC was made available in 
January 2016 and there has been a significant take-up by the selected professionals covered, 
showing that this type of simplification tool provides practical benefits to its users. Both the 
European  services  e-card  and  the  EPC  are  voluntary  electronic  procedures  running  at  EU-
level.  The  use  of  a  European  services  e-card  is  voluntary  for  service  providers.  The  home 
country authority of the applicant acts as the single contact point. In addition, the functioning 
of  both  systems  relies  on  pre-defined  and  binding  workflows  of  cooperation  between  home 
and  host  Member  States  implemented  via  the  existing  Internal  Market  Information  System 
(IMI) established by the IMI Regulation6.  

At  the  same  time,  both  systems  have  different  objectives.  The  EPC  facilitates  provision  of 
services  across  borders  through  the  recognition  of  professional  qualifications  for  natural 
persons  as  workers  or  self-employed  service  providers  in  accordance  with  the  Professional 
Qualifications Directive (PQD).  

The  European  services  e-card  addresses  a  much  wider  range  of  requirements.  It  would  be 
available for both natural persons who are self-employed but also for companies who want to 
provide services in another Member State. In contrast with the EPC, the European services e-
card  would  also  offer  technical  facilities  to  facilitate  compliance  with  administrative 
formalities  related  to  posting  of  staff  into  the  territory  of  those  Member  States  that  have 
communicated to  the Commission  that  they wish to  make  use  of  IMI  for this purpose.  This 
possibility to make use of IMI will in no way alter the substance of the applicable rules laid 
down in Directive 2014/67/EU. Rules to facilitate obtaining insurance coverage for services 
provided across borders are also included.  

The e-card would cover requirements falling under the Services Directive and accordingly not 
areas such as tax, labour and social security. Nevertheless, authorities in Member States shall 
not require the e-card holder to provide any information which is already contained in the e-
card for procedures or formalities imposed on a provider in relation to the award of a public 
contract, a design contest or a concession, formation of subsidiaries or registration of branches 
under company law and registration with mandatory social insurance schemes.  

The  European  services  e-card  would  apply  –  in  a  first  stage  –  to  business  services  and 
construction  services  –  to  the  extent  the  related  activities  fall  already  under  the  Services 
Directive.  Both  sectors  are  of  key  importance  for  the  EU  economy.7  Service  providers  of 
construction or business services often face high administrative complexity when expanding 
abroad. In addition, productivity growth over the last decade has been very low in both sectors 
and  there  is  limited  cross-border  trade  and  investment.  Increased  cross-border  competition 
would help preserve and improve the competitiveness of both sectors.  

This proposal also includes review clauses for future consideration of the effectiveness of the 
European service e-card, including  as regards compliance with  the formalities  necessary for 
the posting of workers and taking account of the experience of those Member States that may 
have opted for the possibility provided for in Article 6(3) of this draft Regulation to allow for 
the relevant formalities to be carried out through an electronic platform connected to IMI. 

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Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on 
administrative cooperation through the Internal Market Information System and repealing Commission 
Decision 2008/49/EC ( ‘the IMI Regulation’ ) (OJ L 316, 14.11.2012, p. 1) 
Both sectors cover about 20% of EU GDP and employment - Eurostat 

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• 

Consistency with existing policy provisions in the policy area 

This  Regulation  is  presented  together  with  a  Directive.  The  Regulation  introduces  the 
European services e-card without modifying the underlying EU rules. It sets up tools which 
are available for service providers throughout the EU. In addition, it facilitates the solution of 
issues related to insurance coverage of a service provider active cross border. The Directive 
sets out the legal and operational framework of the European services e-card, regulating inter 
alia the conditions of eligibility, the competences of the home and the host Member States, the 
validity of the European service e-card and the conditions for revoking or suspending it.  

This  Regulation  fully  preserves  the  existing  EU  provisions  on  social  issues,  employment 
conditions (in particular posting of workers, workers' rights and the social pillar), health and 
safety  and  protection  of  the  environment.  It  does  not  change  or  put  into  question  existing 
safeguards in this respect. The e-card would provide further information about the company. 
The Member State's power to carry out on-site inspections would be completely untouched. 
The rules on posting of workers under Directives 96/71/EC and 2014/67/EU will continue to 
apply in the context of the European services e-card but further facilities shall be provided in 
order to comply with these rules. Where Member States have set up procedures that allow for 
a declaration relating to the posting of workers pursuant to Article 9 of Directive 2014/67/EU 
to be completed by electronic means, the European services e-card shall direct the card holder 
to the relevant national procedures. Providers who hold a European services e-card may also 
submit this declaration through an electronic platform connected to IMI where a host Member 
State has communicated to the Commission that this possibility should apply for the posting 
of workers in its territory. 

The  proposal  for  a  European  services  e-card  is  complementary  to  other  policy  initiatives  in 
the context of services announced in the Single Market Strategy to prevent the introduction of 
barriers to cross-border service provision at national level. In this respect, it is complementary 
to the Commission proposal [XX] for a Directive reforming the procedure by which Member 
States must notify authorisation schemes and requirements related to services.  

This  proposal  will  also  be  complemented  by  the  initiative  of  the  Single  Digital  Gateway, 
announced  in  the  Single  Market  Strategy  for  2017.  The  Gateway,  on  which  a  public 
consultation  was  conducted  in  autumn  2016,  will  address  the  current  information  gaps  for 
businesses  and  citizens  by  integrating,  completing  and  improving  the  relevant  EU  and 
national-level  online  information.  It  will  also  link  up  with  assistance  services.  Moreover,  it 
will  aim  to  push  the  further  digitalisation  of  national  procedures  relevant  for  citizens  and 
businesses exercising their Single Market rights. The scope of the Single Digital Gateway is 
intended to go beyond the sectors covered by the present initiative.   

In comparison, the European services e-card should offer a fully harmonised and standardised 
instrument  for  cross-border  provision  of  services,  reducing  compliance  costs  for  specific 
services  markets  largely  dominated  by  SMEs.  It  is  serving  the  objective  of  administrative 
simplification  with  the  involvement  of  the  Member  State  where  the  service  provider  comes 
from but that (home) Member State has no say on what requirements a service provider has to 
satisfy  in  other  Member  States.  Under  the  European  services  e-card,  it  is  up  to  the  latter  to 
inform  of  and  ensure  compliance  in  the  framework  of  a  predefined  and  fully  standardized 
workflow. The Single Digital Gateway will link up with this procedure and make it easy to 
find for its beneficiaries. 

The  implementation  of  the  European  services  e-card  will  be  fully  aligned  with  the 
development of the Single Digital Gateway project and respect the principles outlined in the 

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eGovernment  action  plan  (in  particular:  digital,  interoperable,  cross-border,  once-only  and 
inclusive by default)8.  

Finally, this proposal is complementary to the enforcement policy of the Commission, which 
it  pursues  in  parallel,  to  tackle  unjustified  or  disproportionate  national  restrictions  to  the 
freedom of establishment and the free provision of services. 

The implementation of this Regulation will be supported by the Internal Market Information 
System (IMI) established by the IMI Regulation.9 IMI can be used by around 5000 authorities 
since  2011;  it  is  subject  to  constant  user  surveys  and  has  proven  its  potential  with  the 
European professional card introduced in January 2016.  

• 

Consistency with other Union policies 

The proposal for a European services e-card under this regulation and the proposed directive 
are fully consistent with a number of other Union policies, in particular with those pursuing 
the  same  objectives  of  administrative  simplification  and  reducing  requirements  to  service 
providers.  

Simplification  of  formalities  regarding  documents  would  follow  closely  the  solutions  to  be 
introduced under the Regulation (EU) 2016/1191 on the promotion of the free movement of 
citizens  by  simplifying  the  requirements  for  presenting  certain  public  documents  in  the 
European Union10. 

In the area of recognition of professional qualifications, a similar tool fostering administrative 
simplification  -  the  above-mentioned  European  professional  card  -  was  introduced  in  2013 
and  is  available  for  a selected  number  of  professions  (nurses,  pharmacists,  physiotherapists, 
mountain  guides  and  real  estate  agents)  since  January  2016.  In  order  to  avoid  any  risk  of 
duplications,  the  present  proposal  ensures  that  professionals  who  can  apply  for  a  European 
professional card cannot obtain a European services e-card.    

In  the  context  of  the  European  services  e-card  procedure,  coordinating  authorities  and 
competent  authorities  shall  make  use  of  all  available  interconnections  of  national  registers 
including  the  interconnection  of  company  registers  (BRIS),  as  required  by  Directive 
2009/101/EC, and of insolvency registers under Regulation (EU) 2015/848 before any other 
means  of  obtaining  or  verifying  previously  obtained  information  for  the  purposes  of  this 
procedure. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

This  legislative action  falls  within the area of shared competence in  accordance with  article 
4(2)(a)  TFEU.  It  aims  to  facilitate  establishment  and  the  provisions  of  services  by  the 
adoption  of  measures  on  approximation  of  the  provisions  laid  down  by  law  which  have  as 

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COM(2016)179. 

EU  eGovernment  Action  Plan  2016-2020  –  Accelerating  the  digital  transformation  of  government  - 

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Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on 
administrative cooperation through the Internal Market Information System and repealing Commission 
Decision 2008/49/EC ( ‘the IMI Regulation’ ) (OJ L 316, 14.11.2012, p. 1) 
Regulation (EU) 2016/1191 of the European Parliament and of the Council of 6 July 2016 on promoting 
the free movement of citizens by simplifying the requirements for presenting certain public documents 
in the European Union and amending Regulation (EU) No 1024/2012 (OJ L 200, 26.07.2016, p.1) 

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their  object  the  functioning  of  the  internal  Market.  This  Regulation  is  based  on  Article  114 
TFEU which is the general legal basis for adoption of such measures.  

• 

Subsidiarity (for non-exclusive competence)  

The overall objective of this legislative proposal is to ensure the smooth functioning of the EU 
single  market  for  services,  which  is  not  limited  to  the  territory  of  one  Member  State,  but 
covers the entire territory of the EU. Given the transnational nature of the EU single market, 
and the necessity to address situations in cross-border contexts in the most coherent manner, 
making use of an existing IT tool running across the EU – the IMI –, constitutes an efficient 
response which can only be provided by action at EU-level. 

• 

Proportionality 

The  measures  introduced  by  this  Regulation  are  proportionate  to  its  objective  of  further 
integrating  the  services  markets  at  EU  level,  by  enabling  increased  market  dynamics  and 
cross-border  competition.  They  are  also  proportionate  to  the  objectives  of  increasing 
transparency,  reducing  costs  and  simplifying  procedures  that  Member  States  impose  to 
service providers in cross-border situations, in particular in the procedures for the posting of 
staff  and  regarding  professional  liability  insurance.  In  addition,  it  builds  on  the  IMI,  an 
existing  EU-level  IT  instrument  funded  by  the  EU  budget  and  already  used  by  national 
administrations. The EU-level procedure will only bring limited adjustments to IMI, resulting 
in limited costs at EU and national level. Such limited costs have been assessed with respect 
to existing similar procedures, such as the European professional card. 

These measures do not extend beyond what is necessary to solve the identified problems and 
to achieve the identified objectives. Although the EU-level procedure requires an active role 
of Member State’s administrations, the financial efforts to be expected by Member States will 
be  limited  through  the  use  of  the  Internal  Market  Information  system,  a  platform  already 
existing  and  set  in  place  with    EU  funds.  In  addition,  prospects  brought  by  the  use  of  the 
European  services  e-card  of  additional  competition  in  services  markets  with  more  market 
players, and additional turnover, shall have a positive effect on Member States’ economies. 

The use of a European services e-card will be voluntary for service providers.  

• 

Choice of the instrument 

This Regulation is based on article 114 TFEU. It includes provisions to facilitate the exercise 
of  secondary  establishment  and  freedom  to  provide  services  and  temporary  cross-border 
situations.  Building  on  this  Treaty  provision,  the  Regulation  also  introduces  practical  tools 
regarding  professional  liability  insurance  which  service  providers  are  seeking  for  their 
activities abroad. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

In preparation of this proposal, the Commission has carried out an in-depth evaluation of the 
Services Directive. This evaluation showed that the implementation of the Services Directive 
has  been  only  partially  effective  so  far.  The  Services  Directive  has  been  able  to  generate 
additional  growth  through  Member  States'  reforms.  Nevertheless,  service  providers  in  key 
services sectors (such as business services and construction) still face an important number of 
barriers. In addition, the system of administrative cooperation between Member States is not 
delivering all its benefits. An in-depth analysis carried out on the functioning and usability of 

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the  PSCs  concluded  that  most  PSCs  have  not  yet  led  to  all  the  expected  simplification  in 
administration in terms for providing temporary cross-border services or setting up a business.  

In  addition,  evaluation  from  the  Commission  revealed  that  Member  States  take  a  very 
heterogeneous approach as regards insurance obligations and access to insurance for provision 
of services, making it difficult and costly for service providers to contract insurance coverage 
for cross-border provision of services, in particular in business services and construction. 

All  these remaining  obstacles  are to  the  detriment  of  the  development  of  more  cross-border 
trade and investment in the field of services. 

• 

Stakeholder consultations 

The Commission has carried out several analyses and consultations to gather evidence on the 
remaining obstacles to a fully functioning Single Market for services, with a greater focus on 
the  practical  effects  of  the  provisions  on  the  ground.  Economic  assessment  has  been 
conducted  to  evaluate  the  effects  of  national  reform  in  services  markets  and  access  to 
insurance  for  service  providers.  In  addition,  stakeholder  workshops  have  been  organised  as 
part of the Single Market Forum in 2014, 2015 and 2016. These looked into the challenges of 
small  and  medium-sized  enterprises  to  develop  in  cross-border  regional  markets,  or  into 
specific  challenges  in  services  sectors  (in  particular  business  services  and  construction 
services) which are hampered by low cross-border trade and investment at the EU level. The 
contributions  and  input  gathered  revealed  that  despite  some  progress  over  the  past  years, 
service  providers  in  several  economically  important  sectors  still  face  a  range  of  obstacles 
when seeking to expand across Member States’ borders.  

Stakeholders have expressed different views on the possible ways to improve the framework 
to which the services markets are subject in the EU and at national level.  Stakeholders almost 
unanimously oppose reopening the Services Directive. This Regulation does not modify any 
substantive  rules  on  cross-border  service  provision  of  services  as  laid  down  in  the  Services 
Directive, nor any rules related to posting of workers, health and safety or protection of the 
environment. 

An  online  public  consultation    ran  from  3  May  to  26  July  2016.  The  consultation  gathered 
further views from stakeholders, as well as first-hand experiences on the remaining barriers in 
these services sectors in particular, to the cross-border provision of services in the EU. 

The  Commission  also  gathered  views  from  stakeholders  at  several  occasions  on  problems 
faced  by  service  providers  in  obtaining  insurance  cover  when  providing  services  in  another 
Member State on a temporary basis, in particular via two public consultations in 2013 and in 
2015.  

The  results  of  all  these  exercises  have  confirmed  that  unjustified  or  disproportionate 
requirements  still  persist  at  national  level,  to  the  detriment  of  service  providers  and  service 
recipients  in  the  Single  Market.  In  addition,  they  have  given  specific  indications  of  what 
policy responses are expected from stakeholders. The majority of them supported the need to 
address the remaining barriers to cross-border provision of services, and to facilitate access to 
insurance  coverage  in  these  situations,  while  maintaining  the  EU  acquis  on  social, 
employment,  health  and  safety  or  the  environment,  and  while  pursuing  an  ambitious 
enforcement  policy.  In  this  respect,  the  Commission  has  adopted  a  comprehensive 
enforcement package in November 2016 to address disproportionate restrictions introduced in 
the field of services in nine Member States. 

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This  initiative aimed to  enhance the development of cross-border services  markets was also 
supported  by  the  Competitiveness  Council  in  its  Conclusions  of  29  February  2016  on  the 
Single Market Strategy11 and by the European Council in its Conclusions of 28 June 201612. It 
has  also  been  supported  by  the  European  Parliament  in  its  report  on  the  Single  Market 
Strategy adopted on 26 May 201613. 

• 

Collection and use of expertise 

The  results  of  a  mutual  evaluation  process  with  Member  States  in  2010-11,  performance 
checks carried out in 2011-12 and peer review undertaken in 2012-2013 all contributed to the 
preparation  of  this  proposal  for  a  Regulation.  In  addition,  the  results  of  different  public 
consultations,  including  the  one  conducted  in  summer  2016,  have  offered  a  solid  basis  of 
expertise.  

On insurance aspects, the outcome of the public consultation launched in 2013 on difficulties 
faced  by  service  providers  in  obtaining  insurance  coverage  in  cross-border  contexts,  and  in 
December 2015 for a possible Green Paper on retail financial services, have also been taken 
into  account.  This  last  consultation  also  dealt  with  specific  issues  related  to  access  to 
professional  indemnity  insurance  in  a  cross-border  context.  In  addition,  regular  discussions 
have been held with representatives of the insurance sector. 

The  Commission  has  carried  out  multiple  workshops  with  stakeholders,  in  particular  social 
partners,  gathering  expertise  on  difficulties  encountered  due  to  important  administrative 
requirements across Member States. Data has also been gathered through external studies and 
reports.  Furthermore,  the  Commission  relied  on  regular  exchanges  at  technical  level  in  the 
context of its Experts Group on the Implementation of the Services Directive. 

• 

Impact assessment 

An impact assessment was carried out in preparation of this initiative. The resubmitted report 
takes into account the recommendations made by the Regulatory Scrutiny Board in its initial 
negative opinion of 14 October 201614 as well as the additional points raised by the Board in 
its final positive opinion of 8 November 201615. In particular, the problem description and the 
scope  of  the  impact  assessment  have  been  clarified,  the  various  policy  options  have  been 
regrouped into clearly recognizable option packages and administrative cost reductions have 
been estimated with greater precision. 

Individual  policy  options  have  been  considered  in  the  impact  assessment  and  grouped  into 
"packages" of policy options. The following packages of policy options have been examined: 

  A  first  option  package  would  allow  the  service  provider  to  obtain  a  certificate 
regarding  legal  establishment  in  the  home  Member  State  and  confirmation  of 
existing insurance coverage for activities also in the home Member State;  

  A second option package would allow the service provider to make use of an EU-
level  procedure  to  facilitate  access  to  the  market  of  another  Member  State, 
including  an  advanced  electronic  mechanism  connected  to  IMI  to  facilitate 
compliance  with  formalities  for  posted  staff  which  the  host  Member  State  can 

11 
12 
13 
14 

15 

Council Conclusions on “The Single Market Strategy for services and goods", 29 February 2016. 
European Council Conclusions, 28 June 2016. 
European Parliament resolution of 26 May 2016 on the Single Market Strategy. 
The  main  recommendations  of  the  Board  in  its  initial  opinion  on  the  impact  assessment  were  to 
strengthen  the  problem  definition,  reconsider  the  design  and  articulation  of  the  different  options  and 
provide more information on possible costs for Member States and stakeholder views.    
http://ec.europa.eu/smart-regulation/impact/ia_carried_out/cia_2016_en.htm 

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choose to make use of. In addition, it would address practical obstacles related to 
insurance in cross-border situations;  

  A third option package would in addition to package 2 reduce regulatory disparity 
in  a  number  of  key  business  services  (architectural,  engineering  and  accounting 
services) through harmonisation of a limited number of requirements applicable to 
service  providers  in  these  three  services  (namely  legal  form  restrictions, 
requirements laying down the percentage of shareholding that should be reserved 
for professionals and restrictions to the provision of multidisciplinary activities); 

  A  fourth  option  package  would  in  addition  to  package  3  introduce  specific 
solutions  to  address  the  regulatory  disparities  mentioned  above  in  the  case  of 
secondary  establishment  (branches  and  agencies),  exempting  foreign  service 
providers  from  certain  requirements  while  allowing  the  host  Member  State  to 
introduce alternative safeguards.  

The  first  package  would  generate  certain  simplification  effects  which  are  however  more 
limited  compared  to  the  other  packages.  While  both  packages  3  and  4  would  have  even 
stronger effects than package 2 given that they also address regulatory obstacles (in addition 
to administrative simplification), the Commission decided to go for package 2, based on the 
following reasoning:  The removal of the most restrictive requirements covered by packages 3 
and  4  through  targeted  enforcement  action,  complemented  by  specific  recommendations 
tackling  the  whole  regulatory  framework  applicable  to  the  profession  providing  the  service, 
appears  more  proportionate  than  a  legislative  proposal  introducing  minimum  harmonisation 
for  a  limited  number  of  requirements  in  a  limited  number  of  services  sectors.  In  addition, 
Package 4 is discarded also because it would give rise to perceptions of introducing a solution 
driven by a country of origin approach under which foreign service providers are subject to 
their  home  member  States  legislation  only,  leading  to  a  reverse  discrimination  of  domestic 
service providers.  

The  package  chosen  is  expected  to  lead  to  increased  legal  certainty  and  cost  savings  for 
service providers going cross-border. It is liable to generate an increase in market dynamics 
and competition levels, hereby increasing choice and value added for consumers.  

• 

Regulatory fitness and simplification 

The  proposal  for  a  regulation  introducing  a  European  services  e-card  will  contribute  to 
regulatory  fitness  regarding  market  access  for  service  providers  and  simplification  by 
improving  the  modalities  by  which  service  providers  are  given  access  to  another  Member 
State’s market.  This does not alter the prerogatives of host Member States under the Services 
Directive. 

• 

Fundamental rights 

This  proposal  promotes  rights  enshrined  in  the  Charter  of  Fundamental  Rights.  More 
specifically, protection of personal data shall be ensured in line with Article 8 of the Charter. 
In addition, the main objective of this initiative is to facilitate the rights of establishment and 
the  right  to  provide  services  in  any  Member  State,  as  prescribed  by  Article  15(2)  of  the 
Charter,  ensuring  no  discrimination,  even  indirect,  is  in  place  on  grounds  of  nationality 
(further  implementing  Article  21(2)  of  the  Charter).  Moreover,  the  EU-level  procedure  is 
envisaged to put in place an impartial, fair and reasonably speedy procedure, also in regards to 
Commission  participation,  as  required  by  Article  41  of  the  Charter.  Finally,  prohibition  of 
abuse  of  rights,  namely  of  the  freedom  to  provide  service,  shall  be  duly  considered,  as 
prescribed by Article 54 of the Charter.  

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4. 

BUDGETARY IMPLICATIONS 

The proposal is expected to have implications for the EU budget to the extent that the future 
European  services  e-card  will  use  the  Internal  Market  Information  System  ("IMI")  as  its 
operational  backbone.  The  IMI  will  have  to  be  adapted  to  support  the  European  services  e-
card  procedure  and  storage  requirements  and  supplemented  with  some  additional  functions, 
namely  a  public  interface  for  service  providers,  interconnections  to  other  relevant  systems, 
and  a  back-office  functionality  for  national  authorities.  This  is  due  to  the  fact  that  for  the 
European services e-card purposes IMI will be offered as a tool for the effective exchange of 
information  and  mutual  assistance  between  competent  authorities  within  a  certain  Member 
State,  without  prejudice  to  other  solutions  put  in  place  by  Member  States.  The  implications 
for  the  EU  budget  will  be  modest  in  view  of  the  fact  that  using  the  IMI  to  underpin  the 
European  services  e-card  will  provide  important  economies  of  scale  and  scope.  In  addition, 
the main existing IMI capabilities and those currently under development are to a large extent 
compliant  with  the  requirements  of  the  European  services  e-card.  The  adaptation  and 
development costs will therefore be substantially reduced. 

Any necessary allocations will however be met through redeployment; no budgetary impact is 
expected  on  EU  budget  over  and  beyond  the  appropriations  already  foreseen  in  the  official 
financial programming of the Commission. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

An evaluation of this Regulation is foreseen for every five years after implementation of the 
European services e-card. This evaluation shall also include an assessment of the cooperation 
between coordinating authorities in Member States, and shall consider the need to adapt the 
procedures  for  the  European  services  e-card  in  light  of  the  latest  developments  in  e-
Government. Member States, service providers, social partners and other stakeholders would 
also  be  invited  to  evaluate  the  functioning  of  the  initiative.  Specific  indicators  allowing 
assessing  the  impacts  of  the  Regulation  such  as  the  number  of  service  providers  using  the 
European services e-card, their experience related to administrative burden, the speed  of the 
procedures  used  or  the  number  of  information  exchanges  between  Member  States  will  be 
considered. 

Given that a review of certain aspects of Directive 2014/67/EU is foreseen for June 2019, the 
potential  of  the  facilities  to  be  offered  under  Article  6  should  be  reassessed  as  part  of  that 
review.  The  review  shall  take  account  of  the  experience  of  those  Member  States  that  may 
have  opted  for  the  possibility  foreseen  in  Article  6(3)  of  this  draft  Regulation  to  allow  for 
formalities  for  the  posting  of  workers  to  be  carried  out  through  the  electronic  platform 
connected to IMI. 

• 

Detailed explanation of the specific provisions of the proposal 

Article  1  specifies  the  subject  matter  of  the  proposed  Regulation,  which  introduces  the 
European services e-card and related administrative facilities which can be used by providers 
to  provide  services  across  the  borders.  It  also  clarifies  that  the  coordination  of  national 
provisions necessary to make available such an e-card is laid down in Directive (ESC) to be 
adopted at the same time. 

Article 2 defines the scope of the activities for which the European service e-card is available, 
as  well  as  the  specific  activities,  fields  and  matters  which  are  not  covered  by  the  e-card, 
following the pattern of Directive 2006/123/EC.  

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11 

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It  also  states  that,  similarly  to  Directive  2006/123/EC,  this  Regulation  does  not  affect  the 
definition or organisation of services of general economic interest or  the rules governed by 
competition  law.  It  does  also  not  affect  cultural  or  linguistic  diversity  or  media  pluralism. 
Finally, the Regulation does not affect provisions of general criminal law, labour law, tax law 
or social security law. 

As  is  the  case  for  Directive  2006/123/EC,  it  is  clarified  that  this  Regulation  shall  not  apply 
when it conflicts with other Union acts governing specific aspects of access to or exercise of a 
service activity in specific sectors or for specific sectors or specific professions. 

Article 3 contains the relevant definitions for the Regulation. 

Article  4  defines  the  essential  elements  of  applications  for  the  European  services  e-card, 
which  should  be  the  same  throughout  the  EU,  and  confers  implementing  powers  to  the 
Commission to specify the standard form and technical details as well as delegated powers to 
further  specify  the  type  of  supporting  information  and,  under  exceptional  circumstances 
justifying their need, documents to be provided in the application. 

Article 5 establishes an obligation imposed on insurance distributors and bodies appointed by 
a  Member  State  to  provide  compulsory  insurance,  to  deliver  an  insurance  certificate  upon 
request  of  their  policyholders.  It  also  defines  the  essential  elements  of  such  certificate  and 
envisages the possibility for the Commission to define a standard form through implementing 
acts. 

Articles  6  allows  holders  of  a  European  services  e-card  to  fulfil  the  formalities  for 
secondment  of  staff  pursuant  to  Directive  2005/36/EC  through  an  electronic  platform 
connected to IMI  under the coordination  of the coordinating authority in the home Member 
State.  For  posting  of  workers  pursuant  to  Directive  96/71/EC  and  2014/67/EC  the  same 
possibility  applies  in  relation  to  those  Member  States  that  communicate  to  the  Commission 
that  this  possibility  should  apply  for  the  posting  of  workers  in  their  territories.  In  addition, 
where  Member  States  have  set  up  procedures  that  allow  for  the  declaration  relating  to  the 
posting  of  workers  pursuant  to  Article  9  of  Directive  2014/67/EU  to  be  completed  by 
electronic means, the electronic platform connected to IMI shall direct the card holder to the 
relevant national procedures.  

Article 7 allows applicants of a European services e-card to fulfil the formalities necessary for 
the free movement of self-employed pursuant to Directive 2005/36/EC, through an electronic 
platform connected to IMI, under the coordination of the coordinating authority in the home 
Member  State.  It  also  allows  for  replacing  the  attestations  on  professional  qualifications 
required pursuant to Directive 2005/36/EC with a completed application form for a European 
services e-card.  

Article  8  establishes  that  the  procedures  for  applications,  issuance,  update,  suspension, 
revocation  and  cancellation  of  European  services  e-cards  shall  be  fully  electronic  and 
available  through  an  electronic  platform  connected  to  IMI,  without  prejudice  to  the  internal 
procedural workflow between the coordinating authorities and the competent authorities in the 
Member  States.  It  also  confers  implementing  powers  to  the  Commission  to  adopt  technical 
specifications for the abovementioned electronic procedures. 

Article 9 provides  for common rules  concerning the form  and language of documents to  be 
submitted  in  the  context  of  the  procedure  for  the  European  service  e-card.  It  also  confers 
implementing  powers  to  the  Commission  to  adopt  technical  rules  for  translation  of 
information and of documents used in the context of the procedure for the European service e-
card. .  

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12 

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Article 10 defines principles clarifying which fees may be charged by home and host Member 
State, which shall not exceed the costs which Member States directly incur. It also confers on 
the Commission implementing powers to lay down technical rules on the payment modalities 
and procedures. 

Article  11  establishes  an  obligation  on  insurance  distributors  to  issue  upon  request  of  a 
policyholder a statement relating to third party liability claims concerning the activities of the 
policyholder.  It  also  empowers  the  Commission  to  adopt  implementing  rules  on  a  standard 
format of the statement.  

Article 12 requires insurance distributers and bodies appointed by a Member State to provide 
compulsory insurance, to take duly into account in a non-discriminatory manner the statement 
of claims presented by a provider in their acceptance policy and calculation of premiums.  

Article  13  requires  professional  organisations  offering  group  cover  related  to  professional 
indemnity insurance to their members or other specific service providers to grant access to it 
on non-discriminatory terms to providers from other Member States who express an interest, 
including to holders of a European services e-card. 

Article 14 provides  for a  mutual  obligation of exchange  of information  among coordinating 
authorities  involved.  Implementing  powers  are  also  conferred  to  the  Commission  to  define 
technical details for processing such exchange of information. 

Article 15 regulates the exercise of delegation by the Commission as provided for in Article 4. 

Article 16 defines the Committee assisting the Commission in the adoption of implementing 
acts and the applicable procedure in accordance with Regulation (EU) 182/2011.  

Article  17  provides  for  an  obligation  on  Member  States  to  designate  the  coordinating 
authority empowered to perform the tasks foreseen in the Regulation and the Directive setting 
out  an  operational  framework  for  a  European  services  e-card,  communicate  it  to  the 
Commission and register it in IMI. 

Articles  18  and  19  impose  on  the  Commission  monitoring  and  review  obligations  on  the 
impact  of  this  Regulation  on  the  freedom  of  establishment  and  freedom  to  provide  services 
across Member States. It also refers to the review of the facilities offered under Article 6 as 
part of the review under Directive 2014/67/EU.  

Article 20 provides for the amendment to Regulation (EU) No 1024/2012 on IMI in order to 
include the European services e-card into the scope of that Regulation. 

Article 21 deals with  entry into  force and application.  The relevant  dates are adapted to  the 
dates proposed for the Directive.  

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2016/0403 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

introducing a European services e-card and related administrative facilities 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 114 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee16,  
Having regard to the opinion of the Committee of the Regions17,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

The  Treaty  on  the  Functioning  of  the  European  Union  (TFEU)  guarantees  service 
providers the freedom of establishment in Member States and the freedom to provide 
services across Member States. 
Directive  2006/123/EC  of  the  European  Parliament  and  of  the  Council18  establishes 
general provisions facilitating the exercise of the freedom of establishment of service 
providers and the free movement of services. It provides inter alia that Member States 
should  provide  for  administrative  simplification,  such  as  making  use  of  Points  of 
Single Contact, as well as accepting equivalent professional indemnity insurance that 
service providers already hold in their home Member State. 

Directive  2006/123/EC  requires  Member  States  to  put  in  place  and  keep  constantly 
updated Points of Single Contacts where a service provider wishing to establish or to 
provide services can find all relevant information about requirements to be complied 
with and e-procedures in respect of all formalities, authorisations and notifications to 
go  through.  However,  costly  information  challenges  and  difficulties  complying  with 
national  procedures  at  a  distance  remain  to  date  for  service  providers,  namely  for 
sector-related  requirements.  Cooperation  between  the  administrations  of  different 
Member  States  should  in  principle  take  place  via  the  Internal  Market  Information 
System  (IMI),  an  IT-platform  offered  for  cross-border  exchange  of  information  and 
mutual assistance between authorities in different Member States under that Directive. 

16 
17 
18 

OJ C , , p. . 
OJ C , , p. . 
Directive  2006/123/EC  of  the  European  Parliament  and  of  the  Council  of  12 December 2006  on 
services in the internal market (OJ L 376, 27.12.2006, p. 36). 

EN 

14 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Despite  the  fact  that  authorities  sometimes  have  doubts  with  regard  to  the  legal 
establishment of a provider in another Member State, the possibilities for cooperation 
currently provided in IMI are not exploited to their full potential.  

Requirements remain in place which make expansion of service providers' operations 
across the internal market burdensome and unappealing, such as multiple and disparate 
authorisation schemes before different authorities and, which, regarding establishment, 
fail  to  achieve  mutual  recognition  of  conditions  previously    complied  with  in  other 
Member  States  or,  regarding  temporary  cross-border  provision  of  services  apply 
disproportionate  or  unjustified  restrictions.  As  a  consequence,  service  providers  face 
multiple and disproportionate compliance costs when going cross-border. 

Formalities associated with authorisations and notifications often require paper forms 
to be filled in and paper documents to be submitted, to be translated at significant cost, 
which  must  even  comply  with  particular  form  requirements  such  as  certification  or 
authentication. Information regarding these obstacles is either not available online or is 
scarce,  incomplete,  dispersed  and  difficult  to  interpret  in  relation  to  the  particular 
circumstances  of  a  provider  expanding  across  borders,  as  they  often  target  purely 
domestic  situations.  Service  providers  often  risk  resubmitting  information  and 
documents  and  undergoing  duplication  of  controls  with  different  authorities  in  the 
same  Member  State.  Significant  translation  costs  work  also  as  an  important 
disincentive for companies to take the first steps when going cross-border.  

Cross-border  trade  and  cross-border  investment  in  certain  business  and  construction 
services  are  particularly  low  showing  a  potential  for  better  integration  of  services 
markets with significant negative repercussions for the remaining part of the economy. 
This  underperformance  leads  to  situations  where  the  potential  for  more  growth  and 
jobs in the Single Market has not been fully exploited.  

Addressing remaining obstacles to more cross-border activities in services will help to 
strengthen  competition,  resulting  in  more  choice  and  better  prices  for  consumers  as 
well  as  more  competitive  services  sectors  creating  new  jobs,  promoting  productivity 
and ensuring a more attractive climate for investment and innovation. 

This Regulation aims to facilitate the freedom of establishment and the free movement 
of  services  within  the  single  market  in  areas  already  covered  by  Directive 
2006/123/EC through the adoption of further measures on approximation of provisions 
which have as their object the establishment and functioning of the internal market. It 
should be based on Article 114 of the TFUE. 

In  view  of  this,  the  present  Regulation  introduces  a  European  services  e-card  which 
should facilitate certain service providers to  expand service provision  across internal 
market borders, either in the form of temporary provision of services or via secondary 
establishment through branches, agencies or offices.  

(10) 

In  so  doing,  this  Regulation  specifically  targets  business  and  construction  service 
sectors  included  in  scope  of  Directive  …[ESC  Directive]…  which  face  some  of  the 
most  stringent  regulatory  and  administrative  barriers  to  cross-border  expansion  and 
consequently have an unexploited potential for internal market integration.  

(11)  All  matters,  activities  and  fields  excluded  from  the  scope  of  Directive  2006/123/EC 
should  remain  excluded  from  the  scope  of  this  Regulation.  In  particular,  this 
Regulation  does  not  affect  matters,  activities  and  fields  such  as  those  deriving  from 
taxation,  social  security  and  labour  law,  including  any  legal  or  contractual  provision 
concerning employment conditions, working conditions, including health and safety at 

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15 

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work  and  the  relationship  between  employers  and  workers.  Equally  this  Regulation 
does not affect the social security legislation of the Member States. This Regulation is 
also without prejudice to any provision stemming from competition law as well as any 
rule on the applicable law or jurisdiction pursuant to private international law. 

to 

(12)  For reasons of coherence, possible conflicts between the present Regulation and other 
EU  acts  governing  specific  aspects  of  access  or  exercise  of  a  service  activity  in  a 
specific sector should be solved as provided for in Article 3 of Directive 2006/123/EC 
for conflicts between that Directive and such acts, with the application of those other 
acts.  As  a  result,  the  provisions  in  the  present  Regulation  cannot  be  relied  upon  in 
order 
justify  prior  authorisation  schemes,  prior  notification  schemes  or 
establishment requirements which are prohibited by other EU acts governing specific 
aspects of access or exercise of a service activity in a specific sector such as Directive 
2000/31/EC  of  the  European  Parliament  and  of  the  Council  of  8  June  200019.  As  a 
further result, this Regulation does in no way affect the obligations service providers 
should respect in accordance with Directive 96/71/EC of the European Parliament and 
of  the  Council20  and  Directive  2014/67/EU  of  the  European  Parliament  and  of  the 
Council 21. 

(13)  A European services e-card should be introduced as a voluntary alternative to service 
providers. Service providers should continue to enjoy the possibility of demonstrating 
compliance with applicable requirements when expanding operations across borders in 
the context of other authorisations and notifications introduced under the national law 
of the Member States concerned. A service provider should always be able to choose 
not to apply for a European services e-card. 

(14)  The  European  services  e-card  should  be  fully  electronic,  rely  almost  exclusively  on 
data  provided  by  reliable  sources,  limit  the  use  of  documents  to  the  minimum 
necessary and allow for multilingual processing to avoid translation costs. In order to 
make the procedure fully electronic and allow for administrative cooperation between 
home  and  host  Member  States.  The  Internal  Market  Information  system  set  up  by 
Regulation  (EU)  No  1024/2012  of  the  European  Parliament  and  of  the  Council22 
should  be  used  under  this  Regulation.  A  specific  electronic  platform  should  be 
developed  for  the  purpose  of  issuing,  updating,  suspending,  revoking  or  cancelling 
European  services  e-cards,  as  well  as  to  make  valid  European  services  e-cards 
electronically available to their holders and to competent authorities. 

(15) 

In  order  to  submit  an  application  for  a  European  services  e-card,  a  harmonised 
multilingual form should be made  available ensuring that the elements necessary for 
identification of the provider and of the services for which the e-card is requested, as 
well as for the assessment of specific requirements applicable to the services at stake, 

19 
Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal 
aspects  of  information  society  services,  in  particular  electronic  commerce  in  the  internal  market  (OJ  L178, 
17.7.2000, p. 1) 
20 
the posting of workers in the framework of the provision of services (OJ L 18, 21.1.1997, p. 1) 
21 

Directive 96/71/EC of  the  European Parliament  and  of  the  Council  of 16 December  1996  concerning 

Directive  2014/67/EU  of  the  European  Parliament  and  of  the  Council  of  15  May  2014  on  the 
enforcement  of  Directive  96/71/EC  concerning  the  posting  of  workers  in  the  framework  of  the 
provision  of  services  and  amending  Regulation  (EU)  No  1024/2012  on  administrative  cooperation 
through the Internal Market Information System ( ‘the IMI Regulation’ ) (OJ L 159, 28.5.2014, p. 11) 
Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on 
administrative cooperation through the Internal Market Information System and repealing Commission 
Decision 2008/49/EC ( ‘the IMI Regulation’ ) (OJ L 316, 14.11.2012, p. 1) 

22 

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16 

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such  as  those  regarding  proof  of  its  establishment  in  the  home  Member  State,  good 
repute  or  insurance  coverage,  are  included  and  thus  made  available  to  coordinating 
authorities in both home and host Member States. 

(16)  The  power  to  adopt  acts  in  accordance  with  Article  290  of  the  Treaty  should  be 
delegated to the Commission to specify the details of the information to be contained 
in the standard application form and the documents to be included in the application as 
supporting  evidence.  It  is  of  particular  importance  that  the  Commission  carry  out 
appropriate  consultations  during  its  preparatory  work,  including  at  expert  level,  and 
that those consultations be conducted  in  accordance with the principles laid  down in 
the  Interinstitutional  Agreement  on  Better  Law-Making  of  13  April  2016.  In 
particular,  to  ensure  equal  participation  in  the  preparation  of  delegated  acts,  the 
European  Parliament  and  the  Council  receive  all  documents  at  the  same  time  as 
Member  States'  experts,  and  their  experts  systematically  have  access  to  meetings  of 
Commission expert groups dealing with the preparation of delegated acts.  

(17)  During  the  implementation  of  this  Regulation,  Member  States  should  inform  and 
update the Commission of procedures imposed under national law on incoming cross-
border providers wishing to provide services temporarily or through a branch, agency 
or office, including the information and documents to which those procedures pertain, 
to  allow  for  the  preparation  of  application  forms.  In  order  to  ensure  uniform 
implementation  concerning  the  necessary  information  to  be  provided  for  the 
application of the European service e-card, implementing powers should be conferred 
on the Commission. Those powers should be exercised in accordance with Regulation 
(EU) No 182/2011 of the European Parliament and of the Council23.  

(18)  Description of the terms of coverage of a mandatory or voluntary insurance included 
in written contracts might be difficult to find. Insurance distributers, as well as bodies 
appointed  by  a  Member  State  to  provide  compulsory  insurance,  should  therefore 
provide a description of the core elements of coverage to their client in the format of 
an insurance certificate. This certificate should be annexed to the application form. In 
order to ensure uniform implementation of this part of the Regulation, implementing 
powers should be conferred on the Commission to adopt a harmonised format for the 
certificates. Those powers should be exercised in accordance with Regulation (EU) No 
182/2011 of the European Parliament and of the Council. 

(19)  Holders  of  a  European services  e-card  may  want  to  second  staff  into  the  territory of 
the  host  Member  State.  When  doing  so,  service  providers  may  be  subject  to 
requirements, such as prior declarations addressed to the host Member State, necessary 
for  the  protection  of  posted  workers.  The  European  Services  e-card  will  in  no  way 
affect  the  content  of  such  declarations  and  the  responsibilities  by  the  host  Member 
State in that regard. 

(20)  An electronic platform connected to IMI, to be developed by the Commission, should 
be  made  available  to  European  services  e-card  holders  to  facilitate  compliance  with 
those  formalities  which,  as  the  case  may  be,  need  to  be  completed  with  the  host 
Member  State.  These  formalities  concern  in  particular  the  possible  obligation  of 
declarations in advance of professional qualifications of workers that should be carried 

23 

Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by the Member States 
of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13) 

EN 

17 

   EN 

                                                 
out  in  accordance  with Directive  2005/36/EC  of  the  European  Parliament  and  of  the 
Council 24.  

(21)  As  regards  the  prior  declaration  that  may  be  required  under  Article  9  of  Directive 
2014/67/EU of the European Parliament and of the Council25, the electronic platform 
connected  to  IMI  should  direct  holders  of  a  European  services  e-card  to  electronic 
national procedures put in place in the host Member State where the workers will be 
posted, wherever such national procedures allow for the electronic submission of the 
above-mentioned prior declaration.  

(22)  The  electronic  platform  connected  to  IMI  should  be  made  available  by  the 
Commission  to  those  Member  States  that  have  previously  communicated  to  the 
Commission  their  intention  to  make  use  of  this  possibility.  Where  Member  States 
decide to allow for the use of IMI for the sending of the prior declaration in relation to 
workers posted in their territory, holders of a European services e-card shall be able to 
submit a declaration as referred to in Article 9 of Directive 2014/67/EU directly to the 
competent authority in the host Member State as defined in Article 2(a) of Directive 
2014/67/EU,  through  the  electronic  platform  connected  to  IMI.    To  that  end,  a  host 
Member State should provide all the elements required in accordance with point a) of 
paragraph 1 and paragraph 2 of Article 9 of Directive 2014/67/EU as the basis for a 
multi-lingual  form  to  be  submitted  for  the  declaration  of  posted  workers  on  its 
territory. The Commission should publish this form in the Official Journal and make it 
available  in  the  electronic  platform  connected  to  IMI.  The  relevant  information  with 
regard  to  the  elements  required  should  be  available  for  the  host  Member  State 
concerned in full compliance with the language requirements set out in Article 9(1)(a) 
of Directive 2014/67/EU. The experience of these Member States with the use of the 
electronic platform connected to IMI should be part of the assessment foreseen in the 
second subparagraph of Article 19 of this Regulation.  

(23) 

In order to ensure uniform implementation of this Regulation in relation to procedures 
to  issue  and  update  of  a  European  services  e-card,  as  well  for  formalities  regarding 
secondment of staff and movement of self-employed other than the one referred to in 
the preceding recital, implementing powers should be conferred on the Commission to 
adopt  rules  on  electronic  processing  of  those  procedures.  Those  powers  should  be 
exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council.  

(24)  Domestic  administrative  procedures  supporting  the  procedures  governed  by  this 
Regulation should be electronic if the Member States in question so decide. Member 
States  could however  make use  of the Internal Market Information  system set up by 
Regulation (EU) No 1024/2012 for domestic purposes of administrative cooperation. 

(25)  Procedures for issuing,  updating,  suspending or revoking  a European services e-card 
should make use of documents only in exceptional circumstances, when more detailed 
information is absolutely essential. In any case, all of such documents should be used 
and accepted in simple form. 

24 

25 

Directive  2005/36/EC  of  the  European  Parliament  and  of  the  Council  of  7  September  2005,  on  the 
recognition of professional qualifications (OJ L255, 30.9.2005) 
Directive  2014/67/EU  of  the  European  Parliament  and  of  the  Council  of  15  May  2014  on  the 
enforcement  of  Directive  96/71/EC  concerning  the  posting  of  workers  in  the  framework  of  the 
provision  of  services  and  amending  Regulation  (EU)  No  1024/2012  on  administrative  cooperation 
through the Internal Market Information System (‘the IMI Regulation’) (OJ L 159, 28.5.2014, p. 11) 

EN 

18 

   EN 

                                                 
(26)  EU law may allow, in the context of formalities for secondment of staff as regulated 
professionals  or  movement  of  self-employed  in  relation  to  control  of  professional 
qualifications, for documents to be submitted in special form, for example as certified 
or authenticated documents. Such certification and authentication, once performed in 
the  Member  State  of  original  issue  of  the  document  in  question,  should  be  accepted 
throughout the EU.  

(27)  Certified translation of documents should not be required under this Regulation. The 
electronic platforms dealing with procedures should provide for a technical solution to 
translate  their  content.  In  order  to  ensure  uniform  implementation  of  this  part  of  the 
Regulation  implementing  powers  should  be  conferred  on  the  Commission.  Those 
powers should be exercised in accordance with Regulation (EU) No 182/2011 of the 
European  Parliament  and  of  the  Council.  Rules  on  translation  of  documents  in  the 
context  of  posting  of  workers  and  application  for  attestations  regarding  their  social 
security contributions should not be covered by this Regulation. 

(28)  Member States are entitled to charge fees only to the extent of the specific costs borne 
to carry out the procedure. Costs borne already by the budget of the Union should not 
give rise to fees charged by Member States. Member States should communicate their 
fees charged to the Commission through IMI and publish such information. Given that 
IMI is in essence offering all necessary facilities, Member States should, inter alia, not 
charge fees to update, suspend, revoke or cancel a European services e-card.  In order 
to  ensure  uniform  implementation  of    the  provisions  on  the  payment  of  fees, 
implementing  powers  should  be  conferred  on  the  Commission  to  adopt  rules  on 
payment modalities and processing. Those powers should be exercised in accordance 
with Regulation (EU) No 182/2011 of the European Parliament and of the Council. 

(29)  This  Regulation  builds  on  enhanced  administrative  cooperation  between  home  and 
host  Member  States,  which  should  include  exchanges  of  information  and  use  of 
interconnected  national  registers  to  obtain  or  verify  previously  obtained  information 
such  as  registers  required  under  Directive  2009/101/EC  of  the  European  Parliament 
and of the Council 26 or under Regulation (EU) 2015/848 of the European Parliament 
and of the Council27. In order to ensure uniform implementation of the handling and 
processing  of  exchanges  of  information  and  mutual  assistance  implementing  powers 
should  be  conferred  on  the  Commission.  Those  powers  should  be  exercised  in 
accordance with Regulation (EU) No 182/2011 of the European Parliament and of the 
Council. 

(30)  Service providers obliged to acquire professional liability insurance in Member States 
where  they  have  not  been  active  often  have  difficulty  demonstrating  their  claims 
history regarding cover obtained elsewhere. Claims histories are an essential element 
to  insurance  distributers  in  ascertaining  and  assessing  the  risk  profile  of  a  potential 
client.  Demonstration  is  difficult  due  to  poor  communication  between  insurance 
distributers  across  internal  market  borders  but  also  to  disparities  in  describing  the 
track-record  of  an  insured  party,  even  within  the  same  Member  State.  Insurance 
distributers and bodies appointed by a Member State to provide compulsory insurance 

26 

27 

Directive  2009/101/EC  of  the  European  Parliament  and  the  Council    of  16  September  2009    on 
coordination of safeguards which, for the protection of the interests of members and third parties, are 
required by Member States of companies within the meaning of the second paragraph of Article 48 of 
the Treaty, with a view to making such safeguards equivalent (OJ L 258, 1.10.2009, p. 11) 
Regulation  (EU)  2015/848  of  the  European  Parliament  and  of  the  Council  of  20  May  2015  on 
insolvency proceedings (OJ L 141, 5.6.2015, p.19) 

EN 

19 

   EN 

                                                 
cover  should  therefore  be  obliged  to  issue  a  statement  relating  to  the  third  party 
liability claims which can then be used across borders and even domestically, should a 
service provider change insurance distributer. 

(31) 

In  order  to  ensure  uniform  implementation  of  this  Regulation  in  relation  to  the 
presentation of the description of liabilities, implementing powers to adopt rules on the 
standardised  presentation  format  of  that  statement  should  be  conferred  on  the 
Commission. Those powers should be exercised in accordance with Regulation (EU) 
No 182/2011 of the European Parliament and of the Council. 

(32)  A  statement  relating  to  claims  history  should  be  instrumental  in  allowing  insurance 
distributers and bodies appointed by a Member State to provide compulsory indemnity 
insurance  to  ban  discriminatory  practices  towards  cross-border  providers  of  which 
information  is  more  scarce  and  difficult  to  obtain.  The  same  non-discrimination 
principle  should  apply  to  professional  organisations  who  offer  group  cover  to  their 
members or other service providers. 

(33)  A single coordinating authority should be designated by each Member State to carry 
out the tasks provided for in this Regulation, without prejudice to the competences set 
out  in  applicable  national  legislation.  Such  authorities  should  be  registered  as  a 
competent  authority  in  the  Internal  Market  Information  system  for  the  purposes  of 
Regulation (EU) 1024/2012 and communicated to the Commission. 

(34)  The  application  of  this  Regulation  should  be  monitored  and  assessed  in  order  to 
determine  its  impact  on  the  costs  of  expanding  operations  cross-border,  increased 
transparency  about  cross-border  providers,  competition,  prices  and  quality  of  the 
services provided. The effects of this Regulation and the practical functioning of the 
cooperation  between  coordinating  authorities  should  be  evaluated  regularly.  This 
monitoring will happen in cooperation with Member States, social partners and other 
relevant stakeholders. 

(35) 

In  order  to  adapt  the  functioning  of  IMI  to  the  tasks  conferred  by  this  Regulation, 
Regulation (EU) No 1024/2012 should be amended accordingly. 

(36)  Since the objectives of this Regulation cannot be sufficiently achieved by the Member 
States in view of the risk of complexity and inconsistency of regulatory approaches of 
certain  services  across  Member  States  but  can  rather,  by  reason  of  enhanced 
administrative coordination and harmonisation across the Union, be better achieved at 
Union  level,  the  Union  may  adopt  measures,  in  accordance  with  the  principle  of 
subsidiarity  as  set  out  in  Article  5  of  the  Treaty  on  European  Union.  In  accordance 
with the principle of proportionality, as set out in that Article, this Regulation does not 
go beyond what is necessary in order to achieve those objectives. 

(37)  This Regulation respects the fundamental rights and observes the principles recognised 
in  particular  by  the  Charter  of  Fundamental  Rights  of  the  European  Union.  In 
particular,  this  Regulation,  through  the  introduction  of  the  European  services  e-card 
and  related  administrative  facilities  and  procedures,  seeks  to  promote  the  rights  of 
establishment and the right to provide services in any Member State, preventing any 
discrimination  on  grounds  of  nationality  and  ensuring  impartial,  fair  and  reasonably 
speed  procedure,  in  accordance  with  Articles  15,  21  and  41  of  the  Charter  of 
Fundamental  Rights  of  the  European  Union,  while  ensuring  full  respect  of  the 
protection of personal data, including in accordance with Regulation (EC) No 45/2001 

EN 

20 

   EN 

of the European Parliament and of the Council28, and giving due consideration to the 
risk of abuse of rights provided for respectively in Articles 8 and 54 of that Charter. 

HAVE ADOPTED THIS REGULATION: 

CHAPTER I 
GENERAL PROVISIONS 

Article 1 
Subject matter 

This  Regulation  introduces  a  European  services  e-card  and  related  administrative  facilities, 
which shall be made available throughout the European Union to providers of services willing 
to avail themselves of that e-card. 

In order to make available such a European services e-card to take up and pursue activities as 
a service provider, the necessary coordination of provisions laid down by law, regulation or 
administrative action in a Member State is laid down in Directive …….[ESC Directive].... 

Article 2 
Scope 

1. 

2. 

3. 

This  Regulation  applies  to  the  services  listed  in  the  Annex  of  Directive  [ESC 
Directive].  

This  Regulation  does  not  affect  the  matters  mentioned  in  Article  1(2)  to  (7)  of 
Directive 2006/123/EC.  

It  shall  not  apply  to  the  activities  and  fields  mentioned  in  Article  2(2)  and  (3)  of 
Directive 2006/123/EC. 

If the provisions of this Regulation conflict with the provision of another Union 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 Union act shall prevail 
and shall apply to those specific sectors or professions. 

This Regulation, in particular its Chapter III, shall be without prejudice to the rights 
of  workers,  the  obligations  of  service  providers  and  related  controls  in  Member 
States laid down in Directives 96/71/EC and 2014/67/EU. 

Article 3 
Definitions 

For the purposes of this Regulation the following definitions shall apply: 

1. 

"information on the good repute of a provider" means information as referred to in 
Article 33 (1) of Directive 2006/123/EC; 

28 
Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on 
the protection of individuals with regard to the processing of personal data by the Community institutions and 
bodies and on the free movement of such data (OJ L 8, 12.1.2001, p. 1) 

EN 

21 

   EN 

 
 
                                                 
2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

"electronic document" means an electronic document as defined in Article 3(35) of 
Regulation (EU) 910/2014 of the European Parliament and of the Council29; 

"IMI" means the Internal Market Information System established by Regulation (EC) 
1024/2012; 

"public document" means any document  issued by the authorities of a Member State 
in  accordance  with  its  national  law  relating  to  issues  relevant  for  procedures 
governed by this Regulation as follows: 

(a) documents emanating from an authority or an official connected with the courts 
or tribunals of a Member State, including those emanating from a public prosecutor, 
a clerk of a court or a judicial officer (‘huissier de justice’); 

(b) administrative documents; 

(c) notarial acts; 

(d)  official  certificates  which  are  placed  on  documents  signed  by  persons  in  their 
private capacity, such as official certificates recording the registration of a document 
or  the  fact  that  it  was  in  existence  on  a  certain  date  and  official  and  notarial 
authentications of signatures; 

(e)  documents  drawn  up  by  the  diplomatic  or  consular  agents  of  a  Member  State 
acting  in the  territory  of any State in  their official  capacity, where  such  documents 
have to be presented in the territory of another Member State or to the diplomatic or 
consular agents of another Member State acting in the territory of a third State. 

"legalisation"  means  the  formality  for  certifying  the  authenticity  of  a  public  office 
holder's signature, the capacity in which the person signing the document has acted 
and, where appropriate, the identity of the seal or stamp which it bears; 

"apostille formality" means the formality that may be required in order to certify the 
authenticity of the signature, the capacity in which the person signing the document 
has  acted  and,  where  appropriate,  the  identity  of  the  seal  or  stamp  which  it  bears 
issued  by  the  competent  authority  of  the  State  from  which  the  document  emanates 
provided  for  by  the  Hague  Convention  of  5  October  1961  Abolishing  the 
Requirement of Legalisation for Foreign Public Documents (Apostille Convention); 

"certified copy" means a copy of an original document which is signed and attested 
to  be  an  accurate  and  complete  reproduction  of  that  original  document  by  an 
authority, empowered to do so under national law; 

"certified translation" means a translation carried out by a person qualified to do so 
under the law of a Member State; 

"professional liability insurance" means professional liability insurance as defined in 
the last indent of Article 23(5) of Directive 2006/123/EC. 

"service" shall mean a service as defined in Article 4(1) of Directive 2006/123/EC; 

"provider"  shall  mean  a  provider  as  defined  in  Article  4(2)  of  Directive 
2006/123/EC; 

29 
Regulation  (EU)  No  910/2014  of  the  European  Parliament  and  of  the  Council  of  23  July  2014  on 
electronic  identification  and  trust  services  for  electronic  transactions  in  the  internal  market  and  repealing 
Directive 1999/93/EC (OJ L 257, 28.8.2014, p. 73) 

EN 

22 

   EN 

                                                 
12. 

13. 

14. 

15. 

16. 

17. 

"Member State of establishment" means a Member State of establishment as defined 
in Article 4(4) of Directive 2006/123/EC; 

"establishment"  means  establishment  as  defined  in  Article  4(5)  of  Directive 
2006/123/EC; 

"home  Member  State"  means  the  Member  State  to  which  a  provider  addressed  the 
application for a European services e-card; 

"host  Member  State"  means  the  Member  State  in  which  a  provider  declared  the 
intention to provide services making use of a European services e-card; 

"requirement"  means  a  requirement  as  defined  in  Article  4(7)  of  Directive 
2006/123/EC ; 

"coordinating  authority"  means  an  authority  designated  in  accordance  with  Article 
17; 

18. 

"competent authority" means any of the following:  

(i) a competent authority as defined in Article 4 point 9  of Directive 2006/123/EC;  

(ii) a competent authority as defined in Article 3(1)(d) of Directive 2005/36/EC; 

(iii) any authority or body in charge of central, commercial or company register in a 
Member State; 

(iv) any tax authority in a Member State; 

19. 

"insurance distributor" means insurance distributor as defined in point (8) of Article 
2(1) of Directive (EU) 2016/97 of the European Parliament and of the Council30,  

CHAPTER II 
PROCEDURE TO ISSUE A EUROPEAN SERVICES E-CARD 

Article 4 
Application for a European services e-card 

1. 

Providers may choose to apply for a European services e-card. 

Any applications for a European services e-card shall be submitted in an electronic 
platform connected to IMI using a multilingual standard form.  

The standard form shall consist of the following elements: 

(a) identification of the provider, including, where applicable, registration numbers in 
central, commercial or company registers and for tax and social security purposes; 

(b) identification of the service activity, the host Member State, the type of European 
services e-card envisaged; 

(c) indication whether provision of information society services are envisaged; 

30 
distribution (recast) (OJ L 26, 2.2.2016, p. 19) 

Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance 

EN 

23 

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(d)  information  pertaining  to  establishment  of  the  provider  in  the  home  Member 
State in relation to the service activity identified in accordance with (b), including the 
date  of  initial  establishment  and  identification  of  other  Member  States  of 
establishment; 

(e) requirements to which the applicant is subject for the provision of the service in 
its home Member State, such as qualifications or certifications; 

(f) information on the good repute of the provider; 

(g) information on any existing professional indemnity insurance of the provider in 
relation to professional liability in the territory of the home Member State, including 
information  on  the  cover  for  activities  carried  out  in  the  territory  of  other  Member 
States, as appropriate; 

(h) a reference to previously issued European services e-cards for the same provider 
and service activity as identified in accordance with (a) and (b). 

2. 

The  Commission  shall  specify  how  the  information  referred  to  in  points  (a)  to  (h) 
above is to be presented in the standard form and lay down the technical details of 
the  standard  form  throughout  the  European  Union,  by  way  of  implementing  acts.  
Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 16(2). 

The  application  shall  include  all  the  necessary  supporting  documents,  uploaded  by 
the applicant into the electronic platform where the standard form for application is 
made available. 

3. 

The Commission is empowered to adopt delegated acts in accordance with Article 15 
in order to further specify: 

4. 

a)  details  of  the  information  elements  of  the  standard  form  listed  to  in  letters 
paragraph 1, points (a) to (h), which shall be contained in the standard form; 

b) further documents or categories of documents that are exceptionally required to be 
included as supporting evidence.; 

Member  States  shall  provide  to  the  Commission  with  all  information  on  the 
procedural  steps  related  to  requirements  imposed  on  providers  for  the  provision  of 
services through a branch, agency or office and for temporary cross-border provision 
of service activities falling under Directive …[ESC Directive]……….., necessary for 
the  development  of  the  standard  application  forms,  describing  the  information  and 
documents the presentation of which is required under national law of the provider in 
relation  to  all  applicable  requirements,  through  IMI  by  [9  months  after  entry  into 
force of this Regulation] to the extent that the information was not contained in the 
notification  of  the  requirement  itself  already  submitted  under  Articles  15(7)  and 
39(5) of Directive 2006/123/EC. 

5. 

Member  States  shall  communicate  via  IMI  to  the  Commission  changes  to  the 
information  previously  communicated  to  the  Commission  in  accordance  with 
paragraph 4 prior to entry into force of the legislation in question.  

EN 

24 

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Article 5 
Insurance certificate 

1. 

Where  information  on  insurance  cover  is  entered  into  the  standard  form,  in 
accordance with point (g) of the third subparagraph of Article 4(1), a corresponding 
insurance certificate shall be attached to the application form.  

The  insurance  distributor  or  the  body  appointed  by  a  Member  State  to  provide 
compulsory insurance shall provide the certificate to the applicant upon request. 

insurance  certificate  shall  contain 

the  existence  of 
The 
professional  liability  insurance  for  the  services  concerned,  including  the  territorial 
scope  of  such  cover  in  other  Member  States,  the  insured  risks,  the  duration,  the 
insured sums per claim and for all claims in a year, and possible exclusions. 

information  about 

2. 

The  Commission  may  adopt  a  harmonised  format  for  the  insurance  certificate  as 
referred to in the second subparagraph of paragraph 1 by means of an implementing 
act.  

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 16(2).  

CHAPTER III 
FORMALITIES FOR SECONDMENT OF STAFF 
AND MOVEMENT OF SELF-EMPLOYED 

1. 

Article 6 
Formalities for seconded staff 

Providers who hold a European services e-card may submit a declaration in advance 
as  referred  to  in  Article  7  of  Directive  2005/36/EC  in  relation  to  the  professional 
qualifications  of  the  staff  they  intend  to  second  to  the  host  Member  State,  in 
connection  with  the  service  activity  for  which  the  e-card  applies,  to  the  competent 
authority  in  the  host  Member  State  as  defined  in  point  (ii)  of  Article  3(18)  of  this 
Regulation, through an electronic platform connected to IMI. 

The preceding subparagraph shall not apply to declarations in advance in relation to 
professional qualifications of regulated professions: 

(i)  with  public  health  and  safety  implications  which  do  not  benefit  from  automatic 
recognition under Chapters II, III or IIIA of Title III of Directive 2005/36/EC; 

(ii) for which a European Professional card has been introduced, in accordance with 
Directive 2005/36/EC.  

The declaration in  relation to  the professional qualifications of  seconded staff shall 
be  submitted  as  a  multilingual  form  and  supporting  documents  as  required  by 
paragraphs (1) and (2) of Article 7 of Directive 2005/36/EC  

A  declaration  communicated  in  accordance  with  this  paragraph  shall  constitute  a 
declaration as referred to in Article 7 of Directive 2005/36/EC. 

2. 

Providers  who  hold  a  European  services  e-card  and  intend  to  post  workers  in 
connection with the service activity in question to a host Member State shall submit 
any  declaration  pursuant  to  Article  9  of  Directive  2014/67/EU  following  the 
procedures established by Member States to that effect. 

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25 

   EN 

3. 

4. 

1. 

Where Member States have set up procedures that allow for the declaration relating 
to  the  posting  of  workers  pursuant  to  Article  9  of  Directive  2014/67/EU  to  be 
completed by electronic means, the electronic platform connected to IMI referred to 
in paragraph 1 shall direct the card holder to the relevant national procedures.  

Providers  who  hold  a  European  services  e-card  may  also  submit  a  declaration 
pursuant  to  Article  9  of  Directive  2014/67/EU,  relating  to  the  workers  that  they 
intend  to  post  to  the  host  Member  State  in  connection  with  the  service  activity  for 
which  the  card  applies,  to  the  competent  authority  in  the  host  Member  State  as 
defined  in  Article  2(a)  of  Directive  2014/67/EU  through  the  electronic  platform 
connected  to  IMI  referred  to  in  paragraph  1  where  a  host  Member  State  has 
communicated to the Commission that this possibility should apply for the posting of 
workers in its territory. 

To make use of the possibility provided for in the first subparagraph, a host Member 
State shall provide all the elements required in accordance with point a) of paragraph 
1  and  paragraph  2  of  Article  9  of  Directive  2014/67/EU  as  the  basis  for  a  multi-
lingual  form  to  be  submitted  for  the  declaration  of  posted  workers  on  its  territory. 
The Commission shall publish this form in the Official Journal and make it available 
in the electronic platform connected to the IMI. The relevant information with regard 
to  the  elements  required  shall  be  available  for the  host Member  State concerned  in 
full compliance with the language requirements set out in Article 9(1)(a) of Directive 
2014/67/EU. 

A  declaration  communicated  in  accordance  with  the  first  and  second  subparagraph 
shall constitute a valid declaration for the purpose of point a) of paragraph 1 and of 
paragraph  2  of  Article  9  of  Directive  2014/67/EU,  without  prejudice  to  other 
administrative requirements or control measures imposed by the host Member State 
in accordance with Article 9 of that Directive. 

A host Member State may notify the Commission that it does no longer wish to apply 
the possibility provided for in the first subparagraph.  

The Commission is empowered to adopt technical rules by means of implementing 
acts concerning the design of the multilingual form referred to in paragraph 1. Those 
implementing acts shall be adopted in accordance with the procedure referred to in 
Article 16(2). 

Article 7 
Formalities for movement of self-employed 

Providers  who  are  natural  persons  and  apply  for  a  European  services  e-card  may 
submit a declaration in advance in relation to their own professional qualifications in 
an electronic platform connected to IMI under the same conditions as prescribed by 
paragraph 1 of Article 6 in relation to their workers. 

Regarding declarations in advance in relation to the professional qualifications of the 
provider, the attestations referred to in points b) and d) of Article 7(2) of Directive 
2005/36/EC  shall  be  replaced  by  the  completed  application  form  for  a  European 
services e-card, communicated to the host Member State in accordance with Article 
11 of Directive .[ESC Directive]…….., proving establishment of the provider. 

2. 

A  declaration  communicated  in  accordance  with  paragraph  1  shall  constitute  the 
declaration in advance under Article 7 of Directive 2005/36/EC. 

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3. 

The  Commission  may  adopt  technical  rules  by  means  of  implementing  acts 
concerning  the  design  of  the  multilingual  form  referred  to  in  paragraph  1.  Those 
implementing acts shall be adopted in accordance with the procedure referred to in 
Article 16(2). 

CHAPTER IV 
GENERAL PROVISIONS ON THE PROCEDURES  
OF THE EUROPEAN SERVICES E-CARD  

Article 8 
Electronic procedures 

1. 

Providers  shall  have  the  right  to  fully  electronic  handling  and  processing  of  the 
procedures for the application, issue and update of a European services e-card as well 
as to fully electronic formalities in accordance with Articles 6(1), 6(3) and 7.  

Those  electronic  procedures  and  formalities  shall  be  made  available  by  the 
Commission in an electronic platform connected to IMI. 

Member  States  shall  determine  whether  the  procedural  workflows  between  their 
coordinating  authorities  and  their  competent  authorities  involved  in  the  European 
services e-card procedures and formalities for secondment of staff and movement of 
self-employed in accordance with Articles 6 and 7 shall be electronic or not. 

The Commission shall adopt technical specifications for the electronic handling and 
processing  of  the  procedures  referred  to  in  paragraph  1  by  means  of  implementing 
acts, including measures to ensure the integrity, confidentiality and accuracy of the 
information,  as  well  as  the  conditions  and  the  procedures  for  the  holder  of  a 
European  services  e-card  to  download  such  information,  to  allow  third  parties  to 
access such information and for those third parties to verify that same information.  

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 16(2).  

The  coordinating  authorities  of  Member  States  shall  inform  the  public  about  the 
functioning and the value added of the European services e-card and the formalities 
for secondment of staff and movement of self-employed in accordance with Articles 
6(1) and 7.  

Article 9 
Form of documents and translation 

In the context of procedures to issue, update, suspend or revoke a European services 
e-card  competent  authorities  of  Member  States  shall  accept  documents  in  a  simple 
copy  form  and  shall  not  request  that  documents  submitted  to  them  are  subject  to 
legalisation, apostille formalities, certification or authentication. 

In  so  far  as  a  special  form  of  documents  used  for  the  purposes  of  formalities  for 
secondment  of  staff  and  movement  of  self-employed  in  accordance  with  Articles  6 
(1) and 7, is required, in accordance with EU Law, competent authorities of Member 
States as defined in point (ii) of Article 3(19) shall accept: 

(a)  public documents, certified documents and their certified copies exempt from the 
apostille formality and from all forms of legalisation; 

2. 

3. 

1. 

2. 

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3. 

4. 

(b)  documents  certified  or  authenticated  in  the  Member  State  of  original  issue,  in 
accordance  with  its  laws,  regulations  or  administrative  provisions  or  practice,  as 
certified or authenticated;  

(c)  certified copies made in any Member State, in accordance with the laws of the 
Member State where certification was performed. 

A  certified  translation  shall  not  be  requested  for  documents  used  in  the  context  of 
procedures to issue, update, suspend or revoke a European services e-card or in the 
context  of  formalities  for  secondment  of  staff  and  movement  of  self-employed  in 
accordance with Articles 6 (1) and 7. This shall not affect the right of Member States 
to require non-certified translations of documents in one of their official languages, 
in accordance with EU law. 

The Commission shall adopt technical rules for automatic translation of information 
and  documents  in  the  context  of  procedures  to  issue,  update,  suspend  or  revoke  a 
European services e-card or in the context of formalities for secondment of staff and 
movement  of  self-employed  in  accordance  with  Articles  6(1)  and  7  by  means  of 
implementing acts. Those implementing acts shall be adopted in accordance with the 
examination referred to in Article 16(2). 

Article 10 
Fees for issuing a European services e-card 
and regarding formalities for secondment of staff and movement of self-employed 

1. 

Any fees charged in the context of a procedure to issue a European services e-card 
shall be reasonable and proportionate and shall not exceed the cost directly ensuing 
from the specific work related to the procedure. 

Providers shall have the right to be reimbursed of fees paid in advance to either home 
or  host  Member  State  in  relation  to  applications  that  have  not  been  examined, 
verified  and  completed  by  Member  States  in  accordance  with  Article  11(1)  of 
Directive ………[ESC Directive]………. 

No fees shall be charged regarding: 

(a) the procedures to update, suspend, revoke or cancel a European services e-card; 

(b) the provision  of additional information  by the e-card holder in  accordance  with 
Article 17(4) of…[Directive]; 

(c) formalities introduced in accordance with Articles 6 (1) and 7 for secondment of 
staff and movement of self-employed. 

Member States shall communicate  the fees and payment modalities introduced under 
this Article to the Commission through IMI by [2 years after entry into force of this 
Regulation] at  the latest and shall publish this information appropriately. 

The  Commission  shall  adopt  technical  rules  regarding  payment  modalities  and 
processing by means of implementing acts.  

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 16(2).  

2. 

3. 

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CHAPTER V 
PROFESSIONAL LIABILITY INSURANCE 

Article 11 
Statement relating to third party liability claims 

1. 

2. 

An  insurance  distributor  shall  issue,  within  15  days  of  receiving  a  request  to  this 
effect  from  the  policyholder,  a statement  concerning  the third  party  liability claims 
related  to  his  activities  covered  by  the  contract  of  professional  liability  insurance, 
during  the  preceding  years  of  the  contractual  relationship  up  to  a  maximum  of  5 
years,  or  to  the  absence  of  such  claims,  describing  the  liabilities  arising  from 
provision of the services in question which were the object of a claim.  

The  Commission  may  adopt  rules  on  the  standardised  presentation  format  of  the 
statement referred to in paragraph 1 by means of implementing acts. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 16(2).  

Article 12 
Obligations for insurance distributors 

Insurance  distributors  and  bodies  appointed  by  a  Member  State  to  provide  compulsory 
insurance  shall  duly  take  into  account  in  the  acceptance  policy  and  in  the  calculation  of 
premiums, in a non-discriminatory manner, the experience of the provider as reflected in the 
claims statement issued in accordance with Article 11, as presented by the provider.  

Article 13 
Obligations for professional organisations 

Professional organisations, including competent authorities as defined in points (i) and (ii) of 
Article  3(18),  which  offer  group  cover  related  to  professional  liability  insurance  to  their 
members  or  to  providers  of  services  under  specific  conditions,  shall  ensure  access  to  such 
cover,  under  the  same  conditions  in  a  non-discriminatory  manner,  to  providers  of  services 
from other Member States which express an interest in benefiting from such group cover. 

CHAPTER VI 
FINAL PROVISIONS 

Article 14 
Exchange of information and mutual assistance 

1. 

2. 

Coordinating authorities and competent authorities in different Member States shall 
exchange  information  and  give  each  other  mutual  assistance  in  the  context  of  a 
procedure to issue suspend, revoke or cancel a European services e-card as well as in 
the  update  of  the  information  contained  therein.  This  obligation  shall  also  apply  in 
the context of formalities in accordance with Articles 6 (1) and 7 for secondment of 
staff and movement of self-employed, in relation to competent authorities as defined 
in point (ii) of Article 3(19). 

Coordinating  authorities  and  competent  authorities  shall  make  use  of  all  available 
interconnections of national registers with a view to obtaining or verifying previously 
obtained  information  in  the  context  of  the  procedures  referred  to  in  the  preceding 

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paragraph  1,  including  the  interconnection  of  central,  commercial  and  company 
registers under Directive 2009/101/EC and of insolvency registers under Regulation 
(EU) 2015/848. 

The  Commission  shall  adopt  technical  rules  for  the  handling  and  processing  of 
exchanges of information and mutual assistance referred to in paragraphs 1 and 3 by 
means of implementing acts. This shall be without prejudice to the functioning of the 
interconnection systems referred to in paragraph 2 of this Article and their respective 
technical specifications. 

Those  implementing  acts  shall  be  adopted  in  accordance  with  the  examination 
procedure referred to in Article 16(2).  

Article 15 
Exercise of the delegation 

The  power  to  adopt  delegated  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article.  

The power to adopt delegated acts referred to in Article 4(3), shall be conferred on 
the Commission for a period of five years from […]. The Commission shall draw up 
a report in respect of the delegation of power not later than nine months before the 
end  of  the  five-year  period.  The  delegation  of  power  shall  be  tacitly  extended  for 
periods  of  an  identical  duration,  unless  the  European  Parliament  or  the  Council 
opposes such extension not later than three months before the end of each period.  

The delegation of power referred to in Article 4(3)  may be revoked at any time by 
the European Parliament or by the Council. A decision to revoke shall put an end to 
the  delegation  of  the  power  specified  in  that  decision.  It  shall  take  effect  the  day 
following  the  publication  of  the  decision  in  the  Official  Journal  of  the  European 
Union  or  at  a  later  date  specified  therein.  It  shall  not  affect  the  validity  of  any 
delegated acts already in force.  

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and to the Council.  

A  delegated  act  adopted  pursuant  to  Article  4(3)  shall  enter  into  force  only  if  no 
objection  has  been  expressed  either  by  the  European  Parliament  or  by  the  Council 
within a period of two months of notification of that act to the European Parliament 
and the Council or if, before the expiry of that period, the European Parliament and 
the  Council  have  both  informed  the  Commission  that  they  will  not  object.  That 
period shall be extended by two months at the initiative of the European Parliament 
or of the Council. 

Article 16 
Committee procedure 

The Commission shall be assisted by the Committee referred to  in Article 40(1) of 
Directive 2006/123/EC. That Committee shall be a committee within the meaning of 
Regulation (EU) 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  182/2011 
shall apply.  

3. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

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Article 17 
Designation and role of coordinating authorities 

1. 

2. 

3. 

For  the  purposes  of  this  Regulation,  each  Member  State  shall  designate  one 
coordinating  authority,  empowered  to  perform  the  tasks  assigned  to  them  in 
accordance with this Regulation. 

Member  States  shall  communicate  the  identity  of  the  coordinating  authorities 
designated  in  accordance  with  paragraph  1  to  the  Commission  by  [9  months  after 
entry into force of this Regulation] at the latest and register it in IMI in accordance 
with Article 5(f) of Regulation (EU) 1024/2012.  

This Article shall not call into question the allocation of the competences, at local or 
regional level, of the Member States.  

Article 18 
Monitoring of implementation 

The  Commission,  with  Member  States,  social  partners  and  other  relevant  stakeholders,  will 
establish  monitoring  arrangements  to  monitor  the  implementation  and  the  impacts  of  this 
Regulation, in particular  its impacts on the freedom of establishment and freedom to provide 
services across Member States for the services covered, with regard to costs for providers of 
expanding  operations  cross-border,  enhancing  transparency  about  cross-border  providers, 
increasing  competition  and  how  it  impacts  prices  and  quality  of  those  services  concerned, 
considering relevant indicators.  

Article 19 
Review clause 

By  60  months  after  entry  into  force  of  this  Regulation  and  at  the  latest  every  five  years 
thereafter, the Commission shall carry out an evaluation of this Regulation and submit to the 
European Parliament and the Council a report on its performance, including an analysis of the 
impact  on  administrative  burden  incurred  upon  by  service  providers  active  across  borders. 
This  report  shall  also  include  an  assessment  of  any  practical  experience  relevant  to 
cooperation between coordinating authorities. This report shall contain an assessment of the 
appropriateness of introducing a European services e-card for other service activities. It shall 
contain an evaluation of Directive …….[ESC Directive]…in line with its Article 21.  

The  Commission  shall,  as  part  of  the  report  provided  for  in  paragraph  1  of  Article  24  of 
Directive 2014/67/EU, assess whether and to what extent the electronic platform connected to 
IMI  referred  to  in  Article  6  of  this  Regulation  could  facilitate  compliance  with  formalities 
necessary  for  the  posting  of  workers  pursuant  to  Article  9  of  Directive  2014/67/EU.  That 
assessment  shall  take  account  of  the  experience  of  Member  States  that  may  have  opted  for 
making use of the electronic platform connected to IMI pursuant to paragraph 3 of Article 6 
of this Regulation. 

Article 20 
Amendment to Regulation (EU) No 1024/2012 

In the Annex to Regulation (EU) No 1024/2012 the following point is added:  

"9.  Regulation  (EU)  …….  of  the  European  Parliament  and  of  the  Council  of  …………. 
introducing a European services e-card and related administrative facilities.' 

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31 

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Article 21 
Entry into force 

This Regulation shall enter into force on the [twentieth] day following that of its publication 
in the Official Journal of the European Union. 

Article  4(1)  to  (3),  Article  5(1),  Article  6(1),  (2),  (3)  and  (4)  ,  Article  7(1)  and  (2),  Article 
8(1),  Article  9(1),  (2)  and  (3),  Article  10(1)  and  Article  14(1),  (2)  and  (3)  shall  apply  from 
[two years after entry into force] of this Regulation. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Regulation  of  the  European  Parliament  and  of  the  Council  introducing  a  European 
services e-card and related administrative facilities 
Policy area(s) concerned in the ABM/ABB structure31  

1.2. 

Title 02: Internal market, industry, entrepreneurship and SMEs 

Activity 02 03: Internal market for goods and services 

1.3. 

Nature of the proposal/initiative  

  The  proposal/initiative  relates  to  a  new  action  announced  under  the  Single 
Market Strategy  

  The  proposal/initiative 
project/preparatory action32  

relates 

to  a  new  action 

following  a  pilot 

 The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

DG  GROW  Strategic  Plan  for  2016-2020  identifies  a  deeper  and  fairer  internal 
market  with  a  strengthened  industrial  base  as  a  Commission  priority.  In  its 
Communication  on  Single  Market  Strategy  "Upgrading  the  Single  Market:  more 
opportunities  for  people  and  business"  (COM(2015)  550  final),  the  Commission 
announced legislative initiatives aimed at removing barriers in the services market.  

In  that  context,  the  Single  Market  Strategy  proposed  the  launch  of  a  European 
services  e-card  ("services  passport")  to  increase  certainty  and  reduce  barriers  for 
service  providers  who  want  to  access  other  EU  markets  in  order  to  expand  their 
activities.  This  announcement  has  been  welcomed  by  the  European  Council  in  its 
June 2016 conclusions.  

The general objectives of this initiative are to enhance market integration in business 
services and construction and improve productivity growth in both sectors.  

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objectives 

Specific objectives of this proposal are to:  

 - make it easier and less costly for companies to provide services in other Member 
States,  

31 
32 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

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 -  enable  more  confidence  in  the  market  towards  foreign  service  providers  by 
increasing transparency and available information;  

 -  enable  increased  market  dynamics  and  competition  leading  to  more  choice  and 
value added for consumers. 

In order to achieve these objectives, we envisage the following activities: 

1.  reduce  the  administrative  burden  through  an  EU-level  procedure  with  a  public 
interface allowing service providers to complete formalities online; 

2. connect  the home Member State and the host Member State via an IT-platform at 
the  European  level.  To  this  end,    the  IMI  system  will  serve  as  a  back-office 
functionality  for  national  authorities.  It  should  be  further  developed  to  support  the 
functioning of the European Services e-card. 

ABM/ABB activity(ies) concerned 

Chapter 02 03: Internal market for goods and services 

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35 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The  proposal  building  on  the  directive  having  introduced  the  European  Services  e-
card will provide for: 

1.  A  reduction  in  administrative  burden  for  service  providers  that  want  to  provide 
services  in  other  Member  States  given  that  they  would  be  able  to  use  a  simplified 
electronic procedure to complete formalities and enjoy transparency with respect to 
the processing of requests. This will allow them to save time and costs when going 
providing services cross-border or setting up a secondary establishment; 

2.  Reduction  of  the  administrative  burden  for  national  authorities,  including 
facilitating increased cooperation between different Member States; 

3. Cost savings by building on an existing IT tool (the Internal Market Information 
system – called IMI thereafter) in new areas so as to benefit from economies of scale 
and  of  scope  (instead  of  developing  a  new  single-purpose  tool).  Competent 
authorities are already registered with IMI.  

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

The  proposal  will  contribute  to  a  more  effective  implementation  of  the  Services 
Directive, notably for business and construction services.  

Its direct impact could be measured using the following indicators: 

- The number of service providers that would use the European services e-card (and 
accompanying formalities for secondment of staff or movement of self-employed);  

-  Experience  of  service  providers  on  ease  of  completing  the  electronic  procedures 
offered; 

- The average speed of the procedures offered; 

- Number of information exchanges between Member States;  

- Experience of those Member States that shall make use of the possibility granted by 
Article 6(3) of the Regulation with regard to the above criteria 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

The  proposal  will  reduce  administrative  burden  and  increase  legal  certainty  for 
service  providers  that  want  to  start  provision  of  services  in  another  Member  State 
both on a temporary basis and in the case of secondary establishment. In addition, it 
will inspire more confidence  in  the market towards  service  providers by increasing 
transparency and available information.  

The European services e-card would also present certain benefits to Member States' 
authorities.  Firstly,  it  would  facilitate  the  workload  of  the  competent  authorities  in 
both the host and the home Member State by replacing conventional paperwork with 
an electronic workflow. This workflow would be highly standardised and automatic 
translation facilities will be offered. Secondly, formalities will be streamlined under 
one electronic application instead of several parallel workflows that exist today.  

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This will be achieved by setting up a single EU-level procedure based on a common 
pan-European IT platform (the IMI system). This system is developed, managed and 
funded  by  the  Commission  already  for  years.  Member  States  already  have  the 
experience  with  the  system,  as  more  than  5,000  competent  authorities  are  already 
registered with IMI since 2011.  

1.5.2.  Added value of EU involvement 

Potential national or regional solutions for administrative simplification would differ 
across  Member  States  in  terms  of  costs  savings  and  in  terms  of  effectiveness.  EU 
action would ensure that service providers can benefit from a less divergent approach 
across Member States when expanding across borders. 

Given the nature of IMI as a centralised communication tool developed and hosted 
by the Commission, it will facilitate the introduction and the smooth running of the 
issuance  of  European  services  e-card  as  well  as  an  efficient  system  of  cooperation 
between  Member  States.  The  European  services  e-card  (on  the  basis  of  the  IMI 
system) would also allow to overcome certain obstacles such as translation costs for 
companies. The Commission will offer IMI as a free IT platform to Member States 
that  wish  to  make  use  of  it  for  the  electronic  submission  of  prior  declarations  of 
workers that are posted in their territory. It will also make IMI available for domestic 
exchanges related to the European services e-card where Member States so wish.  

1.5.3.  Lessons learned from similar experiences in the past 

The  IMI  system  itself  has  proved  an  effective  and  reliable  tool  in  other  areas.  The 
European  Professional  Card  (EPC)  procedure  for  the  recognition  of  professional 
qualifications – introduced in 2013 by amending Directive 2005/36/EC –  is a good 
example. 

The  EPC  facilitates  the  recognition  of  professional  qualifications  for  selected 
professionals.  It  is  a  centrally  provided  EU-level  procedure  with  a  clearly  defined 
procedure  run  within  the  IMI  system.  The  obligations  of  Member  States  in  the 
procedural  workflow  are  set  out  in  detail,  thus  overcoming  the  ambiguity  of  more 
general  rules.  It  provides  a  targeted  solution  underpinned  by  specific  rules  on 
practical  issues  such  as  documents,  deadlines  for  treating  applications  and  tacit 
approval in case host country authorities do not take a final decision within deadline. 
In this way, the EPC provides an easier, quicker and more transparent way to have 
qualifications recognised. 

Since  the  EPC  was  made  available  in  January  2016,  more  than  560  EPCs  have 
already  been  issued  (as  of  20  October  2016).  The  take-up  of  the  EPC  has  been 
significant, reflecting a high demand among professionals who can currently benefit 
thereof  (nurses,  physiotherapists,  mountain  guides,  real  estate  agents  and 
pharmacists).  

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

There are a number of forthcoming initiatives of the Commission which also aim at 
introducing electronic procedures or facilities, for which synergies are foreseen to the 
extent possible. These include initiatives on the interconnection of company registers 
(BRIS),  interconnection of  insolvency  registers, and  the  extension  of  the  Mini  One 
Stop Shop for VAT. BRIS will be operational as of mid-2017 and offer wider access 
to  company  data.  It  will  be  complemented  by  an  interconnection  of  the  Insolvency 

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Registers as from 2019. VAT MOSS will reduce costs for foreign service providers 
in the area of VAT formalities as of 2021 onwards.    

These initiatives are all complementary to the European services e-card. In addition, 
synergies will be sought. For example, information available via BRIS (and also the 
interconnection  of  insolvency  registers)  should  be  used  if  technically  feasible  by 
coordinating  authorities  to  complete  the  application  for  a  ESC  or  cross-check 
information. 

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38 

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1.6. 

Duration and financial impact  

 Proposal/initiative of limited duration  

–   Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–   Financial impact from YYYY to YYYY  

 Proposal/initiative of unlimited duration 

Implementation with a start-up period from 2018 to 2021, 

followed by full-scale operation. The hosting, operational and maintenance costs are 

included in the relevant costs for the operation of the IMI system. 

1.7.  Management mode(s) planned33  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  the EIB and the European Investment Fund; 

–   bodies referred to in Articles 208 and 209 of the Financial Regulation; 

–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 
pursuant  to  Title  V  of  the  TEU,  and  identified  in  the  relevant  basic  act.

33 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the 
BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The Commission is reporting on the development and performance of IMI via the on-
line  Single  Market  Scoreboard.    The  use  of  IMI  for  European  services  e-card 
requests will be adequately reported in that context. In addition, a report on IMI data 
protection  issues,  including  security,  will  be  submitted  to  the  European  Data 
Protection Supervisor periodically. 

After the European services e-card has been introduced, the future legal instruments 
will also foresee a review after 5 years.  

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The general risk that can be identified is the non-adoption by service providers of the 
European  Services  e-card  facility.  I.e.  the  risk  that  the  European  Services  e-card  is 
fully developed and operational but meets with little or no demand. Another risk is 
that  competent  authorities  might  find  adaptation  difficult  and  might  not  provide 
adequate resources to process requests properly and in a timely fashion.  

One of the main characteristics of the proposal is that the European Services e-card 
will be based on IMI functionalities. The general risk framework of IMI, including 
operational  risks,  have  been  identified  in  the  context  of  the  Regulation  (EU)  No 
1024/2012 ("IMI Regulation"). The Commission is the ‘system owner’ of IMI, and is 
responsible  for  its  daily  operation,  maintenance  and  development.  The  system  is 
developed and hosted by an internal supplier which ensures a high level of business 
continuity. In the context of the introduction of the European Services e-card, there 
are also risks related to data protection issues. 

2.2.2. 

Information concerning the internal control system set up 

Addressing the general risks as identified under section 2.2.1 above, the Commission 
will  provide  assistance  (e.g.,  workshops,  etc.)  to  all  stakeholders  (e.g.,  Member 
States authorities, professional bodies etc.) and actively promote the introduction and 
use of the new system. Member States will also be required to promote the benefits 
of the proposed tool.  

Regarding the operational aspects of the European services e-card, in particular the 
public interface, the back office as well as the notification facility, these are linked to 
the operation of IMI and have to be considered in the context of overall IMI internal 
control  setup,  as  foreseen  under  IMI  Regulation.  The  IMI  Steering  committee  is 
responsible  for  high-level  monitoring  and  control.  Regular  meetings  and  reporting 
instruments facilitate close monitoring of the IT development and maintenance work. 

In  addition,  pursuant  to  Article  21  of  the  IMI  Regulation  from  2012,  the  European 
Data Protection Supervisor ensures that personal data processing by the Commission 
in  IMI  is  carried  out  in  accordance  with  the  applicable  rules.  The  national  data 
protection authorities will monitor the processing of personal data by the competent 
authorities at Member State level. 

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2.2.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

The  general  risks  will  be  addressed  by  the  relevant  measures,  including  providing 
assistance and information to the stakeholders concerned. 

The operation of the European Services e-card will be based on IMI functionalities 
and will be covered by the existing system of management and control for IMI. It is 
considered that the proposal will not lead to an increased risk of error. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

For  the  purposes  of  combating  fraud,  corruption  and  any  other  illegal  activity,  the 
provisions  normally  applicable  to  the  activities  of  the  Commission,  including 
Regulation  (EU,  EURATOM)  No  883/2013  of  the  European  Parliament  and  of  the 
Council of 11 September 2013 concerning investigations conducted by the European 
Anti-Fraud Office (OLAF), will apply in the context of IMI without any restriction

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

1A 

Number  
[Heading………………………...…………] 

Diff./Non-
diff.34 

from 
EFTA 
countries
35 

from 
candidate 
countries36 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

02.03.04 

Internal market governance tools 

Diff 

YES 

NO 

NO 

NO 

34 
35 
36 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

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3.2. 

Estimated impact on expenditure  

The  allocations  indicated  in  this  section  will  be  met  through  redeployment;  no  budgetary  impact  is  expected  on  EU  budget  over  and 
beyond the appropriations already foreseen in the official financial programming of the Commission. 

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

1A 

Competitiveness for growth and jobs 

2018 

2019 

2020 

2021 

TOTAL 

DG: GROW 

 Operational appropriations  

02.03.04 

Number of budget line 

Commitments 

Payments 
Commitments 
Payments 

(1) 

(2) 

(1a) 

(2a) 

310,000 

310,000 

945,000 

945,000 

945,000 

945,000 

Appropriations  of  an  administrative  nature  financed  from  the  envelope  of  specific 
programmes37  
Number of budget line 

(3) 

TOTAL appropriations 
for DG GROW 

 TOTAL operational appropriations  

Commitments 

Payments 

Commitments 

Payments 

=1+1a +3 

=2+2a +3 

(4) 

(5) 

0 

0 

0 

310,000 

945,000 

945,000 

310,000 

945,000 

945,000 

310,000 

945,000 

310,000 

945,000 

945,000 

945,000 

0 

0 

0 

0 

0 

0 

0 

EUR  

2,200,000 

2,200,000 

0 

2,200,000 

2,200,000 

2,200,000 

2,200,000 

37 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, 
direct research. 

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 TOTAL appropriations of an administrative nature financed from 
the envelope for specific programmes  

TOTAL appropriations  
under HEADING 1A 
of the multiannual financial framework 

Commitments 

Payments 

(6) 

=4+ 6 

=5+ 6 

0 

0 

0 

310,000 

945,000 

945,000 

310,000 

945,000 

945,000 

0 

0 

0 

Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

DG: GROW 

 Human resources  
 Other administrative expenditure  

2018 

2019 

2020 

2021  

TOTAL 

303,600 

427,800 

427,800 

358,800 

0 

0 

0 

0 

TOTAL DG GROW 

Appropriations  

303,600 

427,800 

427,800 

358,800 

0 

2,200,000 

2,200,000 

EUR 

1,518,000 

0 

1,518,000 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total commitments = Total payments) 

303,600 

427,800 

427,800 

358,800 

1,518,000 

2018 

2019 

2020 

2021  

TOTAL 

EUR 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

613,600 

1,372,800 

1,372,800 

358,800 

613,600 

1,372,800 

1,372,800 

358,800 

3,718,000 

3,718,000 

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EN 

45 

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Estimated impact on operational appropriations  

 The proposal/initiative requires the use of operational appropriations, as explained below: 

2018 

2019 

2020 

2021 

TOTAL 

Commitment appropriations in EUR 

Indicate 
objectives 
and 
outputs  

 

38

Type

Aver
age 
cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

o
N

Cost 

Total 
No 

Total cost 

SPECIFIC OBJECTIVE No 1

39

Reduce the administrative burden 

- Output 

Public 
interface 

200,000 

600,000 

600,000 

Subtotal for specific objective No 1 

200,000 

600,000 

600,000 

SPECIFIC OBJECTIVE No 2 

Back-office functionality 

- Output 

Back-office 
functionality 

110,000 

345,000 

345,000 

Subtotal for specific objective No 2 

110,000 

345,000 

345,000 

TOTAL COST 

310,000 

945,000 

945,000 

0 

0 

0 

0 

0 

1,400,000 

1,400,000 

800,000 

800,000 

2,200,000 

38 
39 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
As described in point 1.4.2. ‘Specific objective(s)…’  

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3.2.2.  Estimated impact on appropriations of an administrative nature 

3.2.2.1.  Summary  

–   The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR  

2018 

2019 

2020 

2021 

TOTAL 

HEADING 5 
of the multiannual financial framework 

Human resources  

303,600 

427,800 

427,800 

358,800 

1,518,000 

Other administrative expenditure  

Subtotal HEADING 5 
of the multiannual financial framework  

303,600 

427,800 

427,800 

358,800 

1,518,000 

Outside HEADING 5

40 

of the multiannual financial framework  

Human resources  

Other expenditure  
of an administrative nature 

Subtotal  
outside HEADING 5 
of the multiannual financial framework  

TOTAL 

303,600 

427,800 

427,800 

358,800 

1,518,000 

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or 
have  been  redeployed  within  the  DG.  Any  impact  stemming  from  the  implementation  of  the  proposed  decisions  on  the 
number of staff or the level of appropriations will be covered by redeployment of the existing resources. 

3.2.2.2.  Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources.  

–   The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

–  Estimate to be expressed in full time equivalent units 

 Establishment plan posts (officials and temporary staff) 

XX 01 01 01 (Headquarters and Commission’s 

2.2 

3.1 

3.1 

2.6 

2018 

2019 

2020 

2021 

40 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 
EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

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47 

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Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)41 

XX 01 02 01 (AC, END, INT from the ‘global envelope’) 

XX 01 02 02 (AC, AL, END, INT and JED in the 
delegations) 

XX 01 04 yy 42 

- at Headquarters 

- in Delegations  

XX 01 05 02 (AC, END, INT - Indirect research) 

10 01 05 02 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

2.2 

3.1 

3.1 

2.6 

–  XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG. Any impact stemming 
from  the  implementation  of  the  proposed  decisions  on  the  number  of  staff  or  the  level  of 
appropriations will be covered by redeployment of the existing resources. 

Description of tasks to be carried out: 

Officials and temporary staff 

Supporting the adoption of related implementing acts, Project management, Business analysis  
and implementation support activities.   

External staff 

41 

42 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JED= Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

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3.2.3.  Compatibility with the current multiannual financial framework  

–   The  proposal/initiative  is  compatible  with  the  current  multiannual  financial 

framework. 

–    The proposal/initiative will entail reprogramming of the relevant heading in the 

multiannual financial framework. 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework. 

3.2.4.  Third-party contributions  

–   The proposal/initiative does not provide for co-financing by third parties.  

–   The proposal/initiative provides for the co-financing estimated below. 

3.3. 

Estimated impact on revenue  

–   The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

 

 

on own resources  

on miscellaneous revenue  

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