Free trade in services between EU members

By Alex Singleton | 12 February 2005

The Globalisation Institute, along with a range of other free-market organizations, is writing to the European Commission in support of the free movement of services between EU countries. Here is our letter:

The European Commission has presented the proposal for a Directive (COM(2004) 2 final/3). The objective of the proposed Directive is to provide a legal framework that will eliminate the obstacles to the free movement of services between the Member States: the freedom of establishment for service providers in other Member States and the freedom of cross-border service provision, or the provision of services by operators from their Member State of origin into another Member State without getting established there.

It foresees a real positive impact improving the business climate as well as encouraging structural reforms in the EU countries if the proposal is implemented in its original scope. The implementation of the proposed Directive, within the scope envisaged in the proposal, would advance the economic development and people's welfare across the European Union in all respects.

We, the undersigned, state that for the objectives of the Directive to be accomplished, it is essential to ensure that the list of the services embraced by the provisions of this Directive is not narrowed by foregoing the free movement of services that are subject to more rigid regulation (social services, health care services, etc.). It is also vital that derogations are kept to the minimum. Furthermore, if the implementation of the Directive is to markedly reduce administrative barriers, it is crucial that the Directive does not contain any mandatory requirements for service providers that are either undefined or open to interpretation.

We urge the European Parliament and the Council and each MEP personally to take necessary steps for the benefit to the future economic freedom and prosperity in the European Union and accept the Directive as proposed, without limiting the scope of its provisions.

Further information from Lithuanian Free Market Institute.