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2009-12-18

Soon – New Directive on Services in the EU internal market

On December 27, 2009 the Law on Services on the EU internal market will be in force. The law and regulation is part of the implementation in Sweden by the EU Services Directive and will provide impact to the directive´s principles of freedom of establishment and freedom to provide and receive services as well as non-discrimination.

The goal is to make it easier for small and medium-sized
service companies to operate in EU member countries, while the service quality is maintained.

A new web feature, the so-called joint point of contact, will be established in all EU member countries. It will make it easier for a service business to find comprehensive information on requirements of service operations applicable in different countries.

By the point of contact, the employee should also cope with all contacts with the authorities and apply for such permits as well as completing other formalities at a distance. In Sweden, the National Board and the Swedish Agency for Economic and Regional Growth are responsible for the point of contact.

The authorities' handling of authorization for services will
become more transparent because deadlines for the handling are specified in the context when a complete application has been received. In certain cases, a so-called silent grant is introduced, which means that an application may be automatically rejected if the administration not has given another notice within the specified deadline.

The authorities are also required to cooperate with other
authorities within the EU to control a service entrepreneur’s data, exchange information related to supervision or to warn if a service can be dangerous.

In order to exploit the service buyer's interest, the law has the
requirement that the entrepreneur provide clear and precise information, such as contact information, rates, terms and details of how a dispute can be resolved legally. The company will handle complaints promptly.


Examples of service areas covered by the directive are:
  • Business services (e.g. consultancy leadership, management, certification and testing)
  • Maintenance and Security
  • Building and architectural activities
  • Real estate services (e.g. real estate)
  • Tourism (Travel Agencies)
  • Recreational facilities, sports facilities and amusement parks
  • Hotel, Restaurant and Catering
  • Information services (e.g. web portals, news agencies and publishing activities)
  • Education and training services
  • Rental and leasing services (e.g. car rental)
  • Household Services
What areas are not covered by the directive?
Labor, tax and criminal law are not affected by the service directive. A number of areas are also excluded from its application area.

Notable exceptions include:
  • Services which are funded mainly by taxpayers, such as social and health services
  • Staffing Services
  • Financial services
  • Security Services
  • Transport
  • Some game services
  • Audio-visual services and broadcasting

The directive on services shall be implemented in all EU
countries by December 28, 2009.

In addition to law and regulation on services on the internal
market, changes in a large number of regulations as a result of the services are made in Sweden.

The point of contact for the directive on services in Sweden - www.verksamt.se


                                                                                    Cecilia Helland

For more information

The Confederation of Economic and Regional growth -
www.tillvaxtverket.se

Board of Trade - www.kommers.se
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