EU-Business Directive

EU-Business Directive is in force. Read now in a nutshell of the effects of this new law.

The main objective of this directive is to dispose of bureaucratic obstacles for the freedom of services and create a common market for services all across Europe. However, national labor law and national social law will remain in effect. This “doctrine of country of origin” has been heavily discussed. This doctrine sets the rules the service provider must obey. To provide his services legally he must obey the law of the country of his origin and not the law where he provides his services.

Changes of European Parliament considering doctrine of origin relate to following for items:

  1. Free supply of services:
    Service providers must be allowed to render their services freely all over Europe and not only domestically.
  2. Reservation of Member States:
    Member states have the right to impose certain requirements to meet public order, public security, environmental protection, and public health. Service providers will be subject to national labor regulations, including employment conditions and tariffs.
  3. Non-Discrimination Principle
    No service provider may be discriminated solely upon his citizenship – neither directly nor indirectly. Any special requirements must be justified by necessity, i.e. for reasons of public order and security, protection of health and environment. All such restrictions may not be excessive.
  4. Prohibition of Certain Restriction to Protect Against Discrimination
    Member states will be prohibited to demand certain perquisites: e.g. the duty to have and/or maintain a branch or subsidy on their territory, to apply for permission, and the compulsory requirement to join a professional organization.

Most Important exceptions for the EU-Business Directive:

  • Bank services: loans, insurances, professional or private provisions for old-age, investments, etc.
  • Services or net of electronic Communication
  • Transportation services: including municipal traffic, taxis, ambulances and ferries,
  • Services of Attorneys,
  • Health services: no matter if in care homes or not, disregarding kind of organization and financing on national level and public or private nature
  • Audiovisual services: disregarding manner of production, distribution, and transmission, including radio and cinemas,
  • Services of Tax Consultants,
  • Social Services: like social housing, child care and family services,
  • Social political services.