Legal Eye: Opting out of the EU Services Directive
"Restrictions on the freedom to provide services within the Community shall be prohibited..." Art. 49 of the EU Treaty.
Recent headlines in the European press indicate that the draft Services Directive is in trouble. In contrast to industrial and consumer goods, which are generally no longer subject to internal barriers among EU member states, the provision of services throughout the EU remain subject to restrictions imposed by individual member states, despite the wording of Art. 49 of the EU Treaty. The directive, intended to further enhance the free flow of services throughout the EU, one of the basic tenets of the EU Treaty, is facing growing opposition from trade unions located in Western Europe, in addition to the French and German governments, among others. At issue is the right of Polish (as well as other EU nationals) to offer their services in other member states.
Question of origin
The Services Directive goes beyond merely providing the legal framework to ensure the free flow of services by introducing the concept of 'country of origin', by which a service provider will be subject to the laws of his or her home country as opposed to the country in which the service is provided. In other words, by using the country of origin principle, a professional would be free to practice his or her profession in another member state without the need to satisfy any licensing or education requirements beyond those required in his or her home country. As such, service providers, including doctors, lawyers, employment agencies, travel agents, management consultants and architects, would not have to satisfy local requirements that are more burdensome than those required in his or her home country.
McCreevy's law
Country of origin has quickly become a lightening rod for opponents. Internal Market Commissioner Charlie McCreevy announced recently his intention to exclude health-care services from the Services Directive in response to growing opposition from national medical associations and other special-interest groups. If excluded, Polish medical professionals wishing to work in other member states will first need to satisfy all local legal requirements.
Notably, several sectors of the economy are exempt from the current draft of the Services Directive, as the Treaty of Accession specifically preserves Poland's (as well as all member states') right to apply different regulations in the areas of financial services, telecommunications and transportation.
And finally, even if and when the Services Directive is adopted, each member state may temporarily opt out of it, in addition to opting out of certain commitments made under its respective Treaty of Accession regarding the free flow of people and services "in order to address a serious disturbance in these sensitive sectors," such as the construction and manufacturing sectors - Annex XII to the Treaty.
Recent headlines in the European press indicate that the draft Services Directive is in trouble. In contrast to industrial and consumer goods, which are generally no longer subject to internal barriers among EU member states, the provision of services throughout the EU remain subject to restrictions imposed by individual member states, despite the wording of Art. 49 of the EU Treaty. The directive, intended to further enhance the free flow of services throughout the EU, one of the basic tenets of the EU Treaty, is facing growing opposition from trade unions located in Western Europe, in addition to the French and German governments, among others. At issue is the right of Polish (as well as other EU nationals) to offer their services in other member states.
Question of origin
The Services Directive goes beyond merely providing the legal framework to ensure the free flow of services by introducing the concept of 'country of origin', by which a service provider will be subject to the laws of his or her home country as opposed to the country in which the service is provided. In other words, by using the country of origin principle, a professional would be free to practice his or her profession in another member state without the need to satisfy any licensing or education requirements beyond those required in his or her home country. As such, service providers, including doctors, lawyers, employment agencies, travel agents, management consultants and architects, would not have to satisfy local requirements that are more burdensome than those required in his or her home country.
McCreevy's law
Country of origin has quickly become a lightening rod for opponents. Internal Market Commissioner Charlie McCreevy announced recently his intention to exclude health-care services from the Services Directive in response to growing opposition from national medical associations and other special-interest groups. If excluded, Polish medical professionals wishing to work in other member states will first need to satisfy all local legal requirements.
Notably, several sectors of the economy are exempt from the current draft of the Services Directive, as the Treaty of Accession specifically preserves Poland's (as well as all member states') right to apply different regulations in the areas of financial services, telecommunications and transportation.
And finally, even if and when the Services Directive is adopted, each member state may temporarily opt out of it, in addition to opting out of certain commitments made under its respective Treaty of Accession regarding the free flow of people and services "in order to address a serious disturbance in these sensitive sectors," such as the construction and manufacturing sectors - Annex XII to the Treaty.
