EU Services Directive (2006/123/EC): A Complete Guide
The Services Directive (2006/123/EC)
Overview
The Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market, also known as the Bolkestein Directive or the Services Liberalization Directive, is an instrument adopted under the Lisbon Strategy. It aims to establish a set of principles governing access to and exercise of service activities within the European Union. The ultimate goal is to create a true internal market for services by 2010, facilitating the freedom of establishment for service providers in other Member States and the freedom to provide services between them.
Objectives
The Directive has four main objectives:
- Facilitate the freedom of establishment and freedom to provide services in the EU.
- Strengthen the rights of service recipients.
- Promote the quality of services.
- Establish effective administrative cooperation between Member States.
Scope
The Directive applies to any service provided for financial reward, except for the following excluded sectors:
- Non-economic services of general interest
- Financial services (banking, credit, insurance, pensions, securities, investment funds, payments)
- Electronic communications services covered by specific directives
- Transport services, including port services
- Employment agency services
- Health services
- Audiovisual services
- Gambling activities
- Activities related to the exercise of public authority
- Certain social services (social housing, childcare, support for people in need)
- Private security services
- Services provided by notaries and bailiffs appointed by government
Key Provisions
Free Provision of Cross-Border Services
The Directive’s main purpose is to facilitate the free provision of temporary cross-border services. Member States must ensure free access to and exercise of service activities within their territory. Restrictions imposed by the host Member State must be non-discriminatory, proportionate, and justified by reasons of public order, public safety, public health, or environmental protection.
Administrative Simplification
The Directive aims to simplify administrative procedures for service providers. Key provisions include:
- Creation of single points of contact for administrative procedures
- Electronic completion of procedures
- Removal of unjustified legal and administrative obstacles
Freedom of Establishment
To facilitate freedom of establishment, the Directive mandates:
- Assessment of licensing arrangements based on non-discrimination and proportionality
- Prohibition of certain restrictive legal requirements (e.g., nationality requirements)
- Assessment of other legal requirements based on non-discrimination and proportionality
Consumer Protection
The Directive strengthens consumer rights by:
- Formalizing the right to use services from other Member States
- Granting access to information on applicable rules and services offered
Administrative Cooperation
The Directive promotes administrative cooperation between Member States to ensure effective control of service activities and avoid multiple inspections. It establishes an alert mechanism and electronic information exchange.
Transposition in Spain
The Spanish government approved a draft law in April 2009 for partial transposition of the Directive. Full implementation was deemed to potentially compromise existing laws and regulations. The draft law provides for the repeal of conflicting provisions of equal or lower rank, with some exceptions related to freedom of establishment, freedom to provide services, administrative simplification, and advertising of professions. These exceptions remain in force until specific laws and provisions are reformed, or until December 27, 2009.
The Spanish draft law aims to:
- Establish general provisions to facilitate freedom of establishment and provision of services
- Simplify procedures
- Encourage high-quality services
- Avoid unjustified or disproportionate restrictions on the functioning of service markets
The law applies to services provided for payment in Spain by providers established in Spain or another Member State, with specific exclusions.
Regarding establishment, the draft law establishes the principle of freedom of establishment, subject to authorization only in cases of overriding public interest, based on non-discriminatory and proportionate grounds such as consumer protection, public order, public safety, public health, or environmental protection. In other cases, a communication or declaration system applies.