One of the key demands of the EU's Services Directive was that all countries must create Points of Single Contact (PSCs), one-stop shops where businesses could go to get all the information and forms needed to understand labour and tax laws as well as social security registration and other business rules in other member states.
The directive, passed in 2006, was supposed to be implemented by the end of 2009.
Poland, which takes over the EU presidency in July, ranked last in a satisfaction survey released on 31 January by EuroChambres, an association of chambers of commerce.
The Polish Chamber of Commerce is currently working with the country's Economy Ministry to set up a Point of Single Contact, which should be ready sometime this year. Other poor performers included Greece, Luxembourg, Romania and Slovenia.
Countries with the best-rated PSCs include the Netherlands, the United Kingdom and Germany.
"The Services Directive has been a blessing for Dutch entrepreneurs," said Ubbo Dijk, spokesman for the Dutch PSC, though he acknowledged that few foreign firms have used the site.
From architects to computer repairs, services account for about two thirds of Europe's economic output and jobs, but only one fifth of trade within the EU, according to the European Commission. The Services Directive is seen as a critical tool to lower barriers within the EU's single market.
Last week, the European Parliament's committee for the internal market and consumer protection adopted a report on the Services Directive which underlined that "lack of information and unnecessary administrative burdens are still seriously hindering cross-border trade". The lack of foreign languages offered by PSCs was one area of weakness cited.
Over half of the PSCs in EU member countries provide information in a second language, usually English, but only seven allow companies to complete forms and procedures in a foreign tongue, according to the EuroChambres survey.
Last week, the Commission adopted a communication outlining actions it will take this year and next to strengthen the EU's services markets, including performance checks and bilateral discussions.
The Commission is hiring an external consulting firm to conduct its own survey of the PSCs and the economic impact of the Services Directive and will present the findings to a high-level conference in November.
"I always say the member states did not realize what they were signing up to when they signed up to the obligation […] to make e-government a reality," said Maria Martin-Prat, head of unit at the European Commission's internal market department.
The financial crisis has also siphoned money countries needed to invest in the technology and development of PCSs. Still, she noted that 22 countries have some form of PSC - while some are not yet "fully functioning" - and nine PSCs allow companies to complete a significant number of procedures online.
"We need to keep working on the Points of Single Contact for years to come," Martin-Prat said.
Clearly there are still many kinks in the PSC system. Just ask Yves Chantereau, an architect living in Sweden who wanted to design buildings in France.
The French site tells applicants that if they don't get a response after one month, they should assume everything is OK, but the site also says if the applicant doesn't receive a reply after three months, they should assume their application was denied.
"So you basically have two months to complete your project between the 'yes' and the 'no'," he joked.
Positions:
- November 2011: High-level conference on implementation of Services Directive
Background
The Services Directive was adopted in 2006 and is seen as a key tool to removing barriers to operating in Europe's internal market. Currently, only 5-10% of EU GDP is generated by providing cross-border services.
The original deadline for member states to fully implement the directive into national law was 31 December 2009.
A November 2009 debate in the European Parliament's internal market and consumer protection committee (IMCO) saw a number of MEPs express misgivings over the directive's implementation in EU member states, not merely in terms of timing but also concerning the methods used by individual countries.
Links:
European Union
- European Commission: Implementation of the Services Directive
- European Parliament EU firms have yet to reap the full benefits of the Services Directive
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