The Council
took note of an oral progress report by the presidency following the informal
debate of the competitiveness ministers on 12 March on the outcome of the
vote in the European Parliament on the draft directive on services in the
internal market.
To recall, on 16
February, the European Parliament voted at first reading on the draft
directive on services and agreed on significant amendments to the original
proposal. The outcome of the vote can be summarised as follows:
- the
country-of-origin principle is replaced by the
freedom-to-provide-services rule. It requires the member states to
respect the right of the service provider to supply services and to
guarantee the provider "free access to and free exercise of a
service activity within its territory";
- Member States
will continue to apply their own rules on conditions of employment,
including those laid down through collective bargaining agreements;
- services of
general economic interest, as defined by each country, such as postal
services, water supply, electricity and waste treatment are included in
the draft directive. Nevertheless, these services are not subject to the
freedom-to-provide-services rule;
- services of
general interest are excluded from the scope of the future directive.
Other sectors excluded are: healthcare, social services, financial
services, electronic communication services and networks, transport;
audiovisual services; gambling, taxation activities linked to the
exercise of public authority (as notaries), legal services, temporary
employment agencies and security services.
The Commission
is expected to submit a revised proposal in April. Following this, the Council
will resume its deliberations with a view to reaching an agreement on a
Council common position. The common position will then be forwarded to the
European Parliament for a second reading, in accordance with the codecision
procedure.