APPENDIX 2: CALL FOR EVIDENCE |
1. Sub-Committee B (Internal Market) of the House
of Lords Select Committee on the European Union is undertaking
an inquiry into issues raised by the European Commission's Proposal
for a Directive on Services in the Internal Market (6174/04).
2. The Directive aims to make it easier for service
providers to establish in other Member States and to increase
the free movement in services across the European Union. In particular,
the Commission proposes to:
- Eliminate obstacles to freedom
- Abolish barriers to the free movement of services;
- Establish mutual trust in services provided between
3. The Directive's definition of Services is broad
and its ramifications are considerable. While considering some
wider issues, the inquiry will have a particular focus on the
Country of Origin Principle. We welcome evidence from all service
industries but we particularly welcome evidence from firms in
business services and in construction and related services.
4. The Sub-Committee seeks evidence in particular
in the following areas:
A. The current state of the Single Market in services.
- Are there significant barriers
to firms seeking to offer their services in other Member States
of the European Union? If so, what are the most important of those
barriers? What measures are needed to overcome those barriers?
Does the Commission's proposed Directive adequately address those
B. The Country of Origin Principle
- Is the principle that a company
registered to provide services in one country is automatically
qualified to provide those services in any community country on
the basis of home country regulation a reasonable and/or realistic
starting point? What significant benefits to businesses and consumers
are likely to occur as a result of the adoption of the Country
of Origin Principle? Is the Principle workable in practice?
- Will the application of the Country of Origin
Principle move business in favour of firms based in Member States
with the least stringent regulatory regimes? What issues does
this raise for businesses and consumers? How might those issues
- The application of the Principle relies on the
development of an extensive mutual assistance framework, whereby
Member States cooperate in supervising enterprises based in their
country in respect of their operations in other countries. Is
this a workable framework?
- What other significant concerns are there regarding
the practical implementation of the Country of Origin Principle
and how might these be addressed?
- Assuming efficient operation of the Country of
Origin Principle, what significant barriers to trading in other
Member States are likely to remain, so far as firms in the relevant
business sectors are concerned?
C. The future
- Do you expect the implementation
of the Commission's proposed Directive to have a significant impact
upon trade in the services sector within the European Union? In
which services industries do you expect the least and the largest
movement towards a European Union single market in the next five
to ten years?