1. European Labour Law
Jean Monnet Chair of EU Labour Law Academic Year Silvia Borelli: Please, check the web site for any materials distributed during the course! Lesson 7

2. Freedom of establishment
«[…] restrictions on the freedom of establishment of nationals of a Member State in the territory of another Member State shall be prohibited. Such prohibition shall also apply to restrictions on the setting-up of agencies, branches or subsidiaries by nationals of any Member State established in the territory of any Member State. Freedom of establishment shall include the right to take up and pursue activities as self-employed persons and to set up and manage undertakings, in particular companies or firms within the meaning of the second paragraph of Article 54, under the conditions laid down for its own nationals by the law of the country where such establishment is effected […]” (Art. 49 TFEU). Self-employed persons and professionals or legal persons who are legally operating in one Member State may carry on an economic activity in a stable and continuous way in another Member State. This implies eliminating discrimination on the grounds of nationality and the adoption of measures to make it easier to exercise them, including the harmonisation of national access rules or their mutual recognition. “ It is settled case-law that the concept of a ‘restriction’ within the meaning of Article 49 TFEU covers, in particular, measures which, even though they are applicable without discrimination on grounds of nationality, are liable to impede the exercise of freedom of establishment or render it less attractive” (C-201/15, § 48).

3. Freedom to provide services
«[…] restrictions on freedom to provide services within the Union shall be prohibited in respect of nationals of Member States who are established in a Member State other than that of the person for whom the services are intended” (Article 49 TFEU). Self-employed persons and professionals or legal persons who are legally operating in one Member State may offer and provide their services in other Member States on a temporary basis while remaining in their country of origin. This implies eliminating discrimination on the grounds of nationality and the adoption of measures to make it easier to exercise them, including the harmonisation of national access rules or their mutual recognition. “according to the case-law of the Court, the imposition, under national legislation, of a minimum wage on tenderers and their subcontractors, if any, established in a Member State other than that of the contracting authority and in which minimum rates of pay are lower constitutes an additional economic burden that may prohibit, impede or render less attractive the provision of their services in the host Member State. Consequently, a measure such as that at issue in the main proceedings is capable of constituting a restriction within the meaning of Article 56 TFEU (RegioPost, § 69).

4. Services Directive
The Services Directive (Directive 2006/123/EC of 12 December 2006 on services in the internal market) was adopted in 2006, with an implementation deadline of 28 December The directive contributes to administrative and regulatory simplification and modernisation. This is achieved not only through the screening of the existing legislation and the adoption and amendment of relevant legislation, but setting up the Points of Single Contact and ensuring administrative cooperation. In addition to the Directive, a number of sector specific laws provide the rules for financial services, transport, telecommunications, postal services, broadcasting and patient rights.

5. Services Directive
Full implementation of the Services Directive should:
remove red tape and simplify the establishment of service providers in their home country and abroad;
EU countries have to review all their authorisation schemes concerning access to services and replace the unnecessary ones by less restrictive means. The schemes have to be made clearer and more transparent, and authorisation has to be granted for an indefinite period and be valid throughout the entire country (Article 9).
EU countries also have to:
abolish discriminatory requirements such as nationality or residence requirements (Article 14);
abolish particularly restrictive requirements such as economic needs tests that require businesses to prove to the authorities that there is a demand for their services (Article 14);
review other burdensome requirements which may not always be justified, such as territorial restrictions or ensuring that a business has a minimum number of employees (Article 15).

6. Services Directive
simplify the cross-border provision of services into other EU countries
To improve the regulatory environment for service providers who want to engage in cross-border activities, the Services Directive lays down the principle of freedom to provide services. This principle requires that EU countries impose on service providers only requirements that are non-discriminatory, justified for reasons of public policy, public security, public health or the protection of the environment and do not go beyond what is necessary to achieve their objective (Article 16).
Derogations to the freedom to provide services principle are covered by Directive 96/71/EC on posting of workers (Article 17).

7. Services Directive - Administrative cooperation
EU countries have to cooperate with each other and give mutual assistance in the supervision of service providers (Article 28). Authorities from different EU countries have to exchange information with each other and carry out checks, inspections and investigations upon request (Articles 29, 30 and 31). They also have to send an alert to another EU country in cases where a service activity could cause serious damage to the health or safety of persons or the environment (Article 32). For this purpose, the European Commission in cooperation with EU countries established an electronic system for the exchange of information (IMI).

8. Points of Single Contact and electronic procedures
The Points of Single Contact are one-stop-shops for service providers to get information and complete administrative formalities online in all EU countries (Articles 6 and 7).

9. Services Package
The Services Package of January 2017 is a set of measures that will make it easier for companies and professionals to provide services.     The package includes initiatives on the European Services e-card (directive and regulation), an improved notification of draft national laws on services, a proportionality assessment of national rules on professional services and guidance for national reforms in regulation of professions. 

10. Services Package
A new European Services e-card: A simplified electronic procedure will make it easier for providers of business services and construction services to complete the administrative formalities required to provide services abroad. Services providers will simply have to liaise with a single interlocutor in their home country and in their own language. The home country interlocutor would then verify the necessary data and transmit it to the host Member State. The host Member State retains the current power to apply domestic regulatory requirements and to decide whether the applicant can offer services on its territory.
A proportionality assessment of national rules on professional services: The EU does not regulate or deregulate professions – this remains a national prerogative. But under EU law, a Member State needs to establish whether new national professional requirements are necessary and balanced. To ensure a coherent and consistent approach, the Commission is proposing to streamline and clarify how Member States should undertake a comprehensive and transparent proportionality test before adopting or amending national rules on professional services.
Guidance for national reforms in regulation of professions: the Commission offers guidance on national reform needs in the regulation of professional services with high growth and jobs potential: architects, engineers, lawyers, accountants, patent agents, real estate agents and tourist guides. Member States are invited to assess whether professional requirements fulfil the declared national public policy objectives.
Improved notification of draft national laws on services: EU law already requires Member States to notify draft national rules on services to the Commission, providing the EU executive and other Member States with the opportunity to raise potential concerns about possible inconsistencies with EU legislation early in the process. The Commission is proposing improvements to this mechanism to make the process more timely, effective and transparent.