The aim of the strategy is to eliminate by the end of 2002 all barriers that can currently prevent a business model successful pioneered in one Member State from being introduced elsewhere in the Union. Currently, the Commission says, red tape all too often stops cross-border competition in services, restricts choice and increases costs for business and private customers and so limits economic growth and job creation.
Under the Strategy, the Commission will this year accelerate a number of initiatives in specific problem areas (such as recognition of qualifications and sales promotions) whilst in parallel rigorously analysing persistent barriers to cross-frontier movement of services and where necessary pursuing infringement procedures. For e-commerce businesses, sales promotions in Germany, for example, are strictly limited, meaning that a UK web site cannot legally sell to German consumers if it offers a promotion such as “buy two, get one free.”
In 2002, the Commission will set a precise timetable for Member States to dismantle specific barriers identified, present non-legislative supporting measures (e.g. codes of conduct) and propose harmonised rules for service provision where strictly necessary. It will also propose a mechanism to ensure that in other areas, EU Member States will be required to recognise each others' rules and practices, rather than impose their own, whilst ensuring a high level of protection of public interest objectives.
Internal Market Commissioner Frits Bolkestein said:
"The services sector in Europe offers huge potential for growth, competition and employment. If the EU employed the same percentage of people in the services sector as the US, we could create 36 million new jobs. This strategy marks a step change for Internal Market policy towards the free movement of services.
"To date we have tended to approach services on a sector by sector basis which has led to an over-emphasis on sector-specific detail when so many of the necessary changes are common to a wide range of services. This new approach to the problem reflects the fundamental shift in Europe from a manufacturing to a service-driven economy."
The Commission is inviting comment from consumers and businesses with experience in trying to provide or use services across national frontiers in developing this strategy. Any comments on the issues raised in the Communication should be sent to [email protected]
The full text of the Communication is available on the Europa website