European services e-card Brussels, 22 nd May 2017 1 1.2 Why a - PowerPoint PPT Presentation

EFTA workshop on the COM proposal for a European services e-card Brussels, 22 nd May 2017 1

1.2 Why a proposal on a European Services e-Card? a. Rationale behind the proposal b. Main features of the proposal c. Key benefits of an e-card Robert Strauss, HoU DG GROW E1 2

a) Rationale behind the proposal (1/2) % EU economy Services Internal market in Goods services remains % intra-EU trade Other underdeveloped 0% 20% 40% 60% 80% 100% Source: Eurostat In some important sectors, service providers still face  Services Directive significant obstacles when going cross-border has unexploited This is particularly the case for business services and  potential construction Productivity growth of EU services sector lags behind other  Opportunities for regions in the world growth and jobs Benefits of a better functioning internal market in services are  are not captured widely recognised (IMF, OECD, World Bank, etc.) Important link between services and industry  1 Eurobarometer, "Internationalisation of SMEs", 2015

a) Rationale behind the proposal (2/2) What type of administrative barriers do cross- border service providers face? • Uncertainty about requirements and procedures • Lack of cooperation between national authorities • Lack of electronic procedures • Complex and lengthy formalities • Stringent document requirements, including costs of certification and translation • Etc.

b) Main features of the e-card (1/4) Objectives: (1) offer administrative simplification and • reduce uncertainty to service providers going cross-border and (2) build up trust and offer more information to national authorities A single common EU-level electronic procedure, available in • electronic platform connected to the Internal Market Information system (IMI) Offered to providers in business services and construction • covered by the Services Directive Available to service providers previously established in a • Member State on a voluntary basis

b) Main features of the proposal (2/4) Service providers interact with one single coordinating • authority in the home Member State in the local language Exchange of information between home and host Member • States, with clear roles, steps and timelines Clarity regarding list of requirements/data to submit, varying • per host Member State requirements and sectors concerned in accordance with legislation of home and host Member State Reliance on data instead of documents •

b) Main features of the proposal (3/4) Two distinct procedural workflows: • 1. Temporary cross-border provision of services – ensuring issue of e-card after 3 to 5 weeks 2. Secondary establishment (setting-up of a branch/agency/office) – ensuring issue of e-card after 7 to 10 weeks Checks and balances: • o Home and host Member States can ask the service provider questions/clarifications which suspends deadlines o Suspension and revocation of the e-card is possible at any time (justified by issues such as bans on provision of services, fake self-employment situations, etc)

b) Main features of the proposal (4/4) Secondment of staff formalities • Declarations in advance regarding professional qualifications through the o same electronic platform connected to IMI; Link to national websites for declarations relating to posting of workers; o Opt-in solution for Member States: declaration through the same o electronic platform relating to the posting of workers. Easing cross-border access to insurance coverage: • Information about insurance coverage in the e-card through a o harmonised form; Requirement for insurance distributors to provide a harmonised o statement of claims, which must be taken into account by insurers in host Member States; Requirement for professional organisations to grant access to group o cover to cross-border providers in a non-discriminatory manner. 8

c) Key benefits of the e-card For service providers For Member States For users of services  More clarity and legal certainty  Simpler controls/less  Fostering service on applicable rules administrative burden recipient/consumer confidence o Proof of legal establishment  Simpler controls/less  More streamlined cooperation of e-card holder in home MS administrative burden o Proof of ability to provide o Roles and procedural steps  Proof of legal establishment of services in host MS clearly set out e-card holder in home MS - o Fully electronic procedures prevention of forum shopping  More service providers active o Data-based and multilingual and shell companies cross-border procedures o Centralisation of controls  Far-reaching and centralised and competent authorities supervisory mechanism - fraud fighting  Support of home MS  Proof of legal establishment in home MS  Information already contained in the e-card shall be reused

1.3 What will be the relation between the e-card and a. other EU (EEA) legislation and national law? b. EU (EEA) instruments (EPC, SDG)? António de Sousa Maia, DG GROW E1 10

a. Procedures and formalities imposed on a provider wishing to expand operations cross-border (before service provision starts) Service-specific Article 5 prior authorisations and/or prior notification 1 e-card schemes (in sectors covered) Other procedures and formalities Directive 2 not covered by the e-card (when applicable) 1. Selection procedures (inc Pub Procur) replaced by 2. Site-specific controls the uniform harmonised e-card 3. Company law formalities procedures and related 4. Tax formalities administrative facilities 5. Social security and non-posting labour formalities 6. Movement of persons 7. Formalities applicable to all individuals E-card procedure Articles Service 4 and 6 provider e-card Directive Administrative Administrative Proof of legal establishment in facility 1 – facility 2 – home MS and information in the e- professional posting of card can be used in the context of qualifications workers (opt-in) these other (subsequent) procedures and formalities 11 Recognition of professional qualifications (PQD) – potentially European Professional Card

a. Current substantive EU law on entry barriers remains fully applicable under the issuance procedure Relevant EU legislation Services most Requirements most concerned concerned Services Directive All services Potentially all covered For cross-border service provision only those requirements that comply with Article 16 of the Services Directive may be applied by the host Member State. For secondary establishment, Chapters III and V of the Services Directive are fully applicable. Public Procurement All services Good repute, economic/financial capacity, Directives covered technical/professional capacity/ security clearence (military) (mutual recognition – recital 1, Articles 62, 64 Classic, recital 4 Concessions, Articles 18,22, 42, 43, 44, 46 Military) Energy Directives Construction, All market access controls put in place, with the exception (RES, Energy Efficiency, Energy efficiency- of PQD controls EPBD) related consulting (mutual recognition – Article 14(3) RES, Article 16(3) EED) services Package Travel Directive Travel agencies Insolvency protection (mutual recognition – Article 18) Accreditation Regulation Construction services Certifications based on mandatory technical standards, in particular ISO EN standards (mutual recognition – Article 11(2)) 12 … … …

a. Use of e-card in the context of other procedures and formalities (in host MS and in all other MS) 1. Selection procedures (inc Pub Procur) E-card as proof of legal 3. Company law formalities establishment in home MS 4. Tax formalities E-card replaces procedural steps related to legal 5. Social security and labour formalities establishment (as defined in e- Article 4 Recognition/Declaration of professional qualifications card legislation) e-card (PQD) – potentially European Professional Card in other MS in home MS Directive 1. Selection procedures (inc Pub Procur) 2. Site-specific controls Information contained in the Acceptance of e- 3. Company law formalities e-card card as source of reliable 4. Tax formalities information 5. Social security and labour formalities Information in e-card 6. Movement of persons can be used in (possibly) the context Automatic fill- 7. Formalities applicable to all individuals of these other in of procedures and Article 6 information in formalities Recognition/Declaration of e-card these e- professional qualifications (PQD) – Directive procedures potentially European Professional Card

a. Validity of an e-card Article 7 e-card Directive Indefinite in time Nationwide ! ! Case-by-case Supervisory derogation Temporary cross- Secondary mechanism (temporary cross- border provision establishment at all times border services) ! Authorisations can be justified for each additional branch/agency/ office 14