1. Freedom to Provide Services Clause Why does the Country of Origin Principle not exist anymore? Martin Frohn

2. Free movement of services Country of Origin Principle v. Freedom to Provide Services Clause Country of Origin Principle –Clear determination of the applicable law: rules of country of establishment –Clear prohibition to apply host country ’ s law except where derogations in Art. 17 – 19 (old) Freedom to provide services clause –Clear prohibition for Member States to apply their requirements on services provided from other Member States unless non- discriminatory, proportionate and justified for one of the following reasons: public policy (ordre public), public security, public health, protection of the environment Additional derogations (Art 17): SGEI, professional qualifications, social security, intellectual property rights, private international law, etc.

3. Art 16.1 prohibits MS to make access to or exercise of a service activity subject to requirements, which are not in compliance with the principles of non-discrimination, necessity (public policy, public security, public health or the protection of the environment) and proportionality. Para 2 of article 16 gives an indicative list of prohibited requirements that cannot be imposed on a service provider or a service recipient Freedom to Provide Services Clause The details (I)

4. Article 16 does not prevent MS from imposing their national requirements to service provision where the requirements are justified for four reasons of public interest: public policy, public security, public health and environment. This also applies to para 2 list of requirements No other overriding reason of public interest can be evoked than these four Freedom to Provide Services Clause The details (II)

5. Screening linked to the freedom to provide services Article 39.5: MS are obliged to present a report to the Commission on national requirements whose application could fall under the 3rd subpara of Art. 16.1, and the first sentence of Art. 16.3 by the end of 2009  systematic screening of national legislation  limit application of national requirements  explain why remaining requirements apply  Cleaning up and Transparency!

6. Notification process MS will have to notify changes in existing and new requirements relating to freedom to provide services together with reasons for their application (Art. 39.5) Does not prevent MS from adopting the requirements Communicated to other MS COM will annually analyse and give orientations on the implementation of Art.16

7. Administrative cooperation Logic behind: –complementary to freedom to provide services clause –allocation of tasks between MS –main principle that the MS of establishment ensures compliance with its requirements in case of a temporary movement of its service provider to another MS (except in cases of derogations in Art 16 and 17) –does not mean that the MS of establishment needs to carry out factual checks and controls in another MS, done at their request by other MS ’ competent authorities

8. What does it mean in practice? No obligation to establish No prior authorisations, registrations, declarations Freedom to rent, buy, use premises in the host MS No obligation to possess a specific ID card No restrictions on use of equipment (tools, machinery)  ”You can exercise your activity abroad as if it were at home“

9. Thank you for your attention Martin Frohn European Commission DG Internal Market and Services Martin.Frohn@ec.europa.eu