Katri Kummoinen, Ministry of Justice, Finland SERVICES DIRECTIVE 2006/123/EC - towards more competitive market in the European Union

Katri Kummoinen, Ministry of Justice, Finland General approach and structure n Goal is to achieve a genuine Internal Market in services n A framework directive applying to wide-range of services n The Directive includes following parts: – administrative simplification – freedom of establishment – freedom to provide services – quality of services – administrative co-operation

Katri Kummoinen, Ministry of Justice, Finland Scope of the Directive (1) n Services – Any self-employed economic activity which is normally provided for remuneration n Following activities are excluded from the scope: – non-economic services of general interest – financial services – electronic communication services and networks – transport services and port services – services of temporary work agencies

Katri Kummoinen, Ministry of Justice, Finland Scope of the Directive (2) – health care services – audiovisual and radio broadcasting services – gambling activities – activities which are connected with the exercise of official authority – certain social services – private security services – services provided by notaries and bailiffs

Katri Kummoinen, Ministry of Justice, Finland Scope of the Directive (3) n Providers established in a MS – a natural person who is a national of a MS - a legal person established in a MS n Certain provisions in the Directive relate to recipients – a natural person who is a national of a MS or who benefits from rights conferred upon him by Community acts - a legal person established in a MS

Katri Kummoinen, Ministry of Justice, Finland Administrative simplification n MSs are obliged to examine all procedures and formalities applicable to access to a service activity and to the exercise thereof and, if needed, simplify them n Points of single contact n Procedures by electronic means

Katri Kummoinen, Ministry of Justice, Finland Freedom of establishment = Actual pursuit of an economic activity for an indefinite period and through a stable infrastructure n Provisions relating to – authorisation schemes – forbidden requirements which must be abolished – requirements which must evaluated and in certain cases abolished or replaced by less restrictive means

Katri Kummoinen, Ministry of Justice, Finland Freedom to provide services n Characterised by the absence of a stable and continuous participation in the economic life of the host MS n MSs are obliged to abstain from imposing their own requirements on incoming service providers, except – where justified by reasons of public policy, public security, public health or the protection of environment – legislation in question is covered by derogations provided for in Article 17 – case-by-case measures relating to the safety of services

Katri Kummoinen, Ministry of Justice, Finland Quality of services n Information on providers, their services and the settlement of disputes n Professional liability insurance and guarantees n Commercial communications by the regulated professions n Multidisciplinary activities

Katri Kummoinen, Ministry of Justice, Finland A closer glance on freedom of establishment Authorisation schemes are allowed only on certain conditions – non-discriminative – the need for authorisation is justified by an overriding reason relating to the public interest – proportionality n Requirements are set for – conditions of the authorisations – the duration of the authorisations – authorisation procedures

Katri Kummoinen, Ministry of Justice, Finland Freedom of establishment (2) n Forbidden requirements – nationality requirements for the provider, his staff, shareholders or members of the management or supervisory bodies – a requirement to be resident in the territory of that MS – a prohibition on having several establishments – restrictions on choosing between a principal or a secondary establishment or between different forms of secondary establishments

Katri Kummoinen, Ministry of Justice, Finland Freedom of establishment (3) – conditions of reciprocity – economic tests – the involvement of competing operators in the decisions of competent authorities – obligation to have financial guarantees or insurances from the MS in question – an obligation to have been previously registered or to have previously exercised the activity in the MSs in question

Katri Kummoinen, Ministry of Justice, Finland Freedom of establishment (4) n Requirements subject to evaluation – quantitative or territorial restrictions – obligation for the service provider to take a specific legal form – requirements relating to the shareholding of companies – requirements reserving the provision of certain services to specific providers

Katri Kummoinen, Ministry of Justice, Finland Freedom of establishment (5) – bans on having more than one establishment in the territory of the same MS – obligations to have a minimum number of employees – obligations to apply fixed minimum or maximum tariffs – obligation on the provider to supply other specific services jointly with his service