Local view for "http://purl.org/linkedpolitics/eu/plenary/2005-01-11-Speech-2-209"
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"en.20050111.12.2-209"2
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".
As the honourable Member has pointed out, the proposed Directive on services in the internal market is at the heart of our efforts to reform the European economy. Services account for approximately 70% of EU GDP and employment. The removal of internal market barriers in the area of services, as foreseen by the proposal, is essential for meeting the growth and employment targets which lie at the heart of the Lisbon Agenda. The potential economic opportunities arising from this proposal are indeed huge. This has been underlined by recent Dutch economic research which shows that implementation of the proposal in its current form could result in an increase in bilateral trade and direct foreign investment in commercial services by 15% to 35%.
The Commission has proposed a horizontal directive for several different reasons. First, a broad range of services is dealt with because many of the barriers identified are common to various service activities.
The most efficient way to address these barriers is in a horizontal way. Secondly, a large scale and detailed harmonisation process through sectoral directives would be unnecessary, unrealistic and inconsistent with better regulation and subsidiarity principles. Thirdly, the services proposal takes into account the specificity of certain activities, proposes specific harmonisation where this is deemed necessary and adopts a phased approach to implementation.
It is clear that the proposal has provoked a great deal of discussion. However, this is exactly what a proposal this ambitious and far-reaching can be expected to do. It shows that the proposal is addressing some very important questions. At the same time, this also means that there is a lot of work to be done to achieve a common goal.
The country of origin approach is a central element of the proposal, as far as the cross-border supply of services is concerned. It eliminates the problem of cross-border services being subject to a multitude of different rules. This will stimulate the offer of cross-border services and improve the competitiveness of the EU economy.
The country of origin approach is in particular essential for SMEs, who do not have the means to establish a subsidiary or an office in another Member State and therefore can export their know-how only by the temporary cross-border provision of services. I wish to note, however, that the country of origin approach does not apply for services provided through a fixed commercial presence in the host country.
At the same time, I wish to reiterate that the country of origin approach does not operate in isolation. Over and above the specific harmonisation foreseen for certain activities, the proposal also foresees the further development of administrative cooperation between Member State authorities and administrations. This harmonisation and cooperation will generate the degree of confidence between Member States required for the effective application of the country of origin approach.
Finally, a number of derogations are foreseen for services demonstrating a particular sensitivity because of the need to protect consumers, public health or public security, or where the current divergence of Member States' legislation does not allow the application of the country of origin approach.
As pointed out in my earlier reply, the Commission is confident that the proposal is the best way to allow the economic potential of the services sector to materialise, in the interest of our workers, our consumers and our companies."@en1
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