Committee on Employment and Social Affairs

11.9.2017

DRAFT OPINION

of the Committee on Employment and Social Affairs

for the Committee on the Internal Market and Consumer Protection

on the proposal for a regulation of the European Parliament and of the Council introducing a European services e-card and related administrative facilities

( COM(2016)0824 – C8‑0014/2017 – 2013/0403(COD) )

Rapporteur: Marian Harkin

PA_Legam

SHORT JUSTIFICATION

Regulatory barriers are the main impediment to the provision of cross-border services in the EU. Despite the fact that the Services Directive has added an estimated 0.9% to the GDP of the EU over ten years there is still further potential for growth and jobs by facilitating more efficient access to those who wish to supply cross border services.

The proposal to introduce a European services e-card has the potential to help streamline this process of service provision throughout the Single Market by simplifying administrative procedures, language requirements and in some cases insurance provision. The provision of an e-card does not grant a service provider any additional rights. These rights are already granted by the Treaty on the Functioning of the European Union and the Services Directive provides the framework within which these rights can be exercised.

It is therefore extremely important that we ensure high quality implementation and correct application of the existing legislation in order to underpin the proposed e-card. The European Commission must enforce its ‘zero tolerance policy’ by resolutely launching infringement procedures in cases of non-compliance with the Services directive and all relevant EU legislation ensuring the freedom to provide services and freedom of establishment.

There are I believe a number of weaknesses in the e-card proposal. There must be an onus on a home Member State to ensure that all information supplied to a Host Member State is valid and authentic. There must also be clear guidelines in regard to the updating of the e-card with responsibility attributed to the relevant actors to ensure its continued authenticity and validity. In order to ensure compliance there should be dissuasive and proportionate sanctions for any deliberate attempt to provide false or misleading information. This I believe would increase trust between Member States and help to ensure an e-card that would be acceptable to all concerned and thus deliver on its objectives.

While I support the need to ensure a situation that service providers can access insurance I do not believe that a harmonised certificate will be possible without greatly increasing cost and administrative burden and I have therefore deleted these specific requirements. Furthermore, I propose excluding the construction sector from the scope of this proposal. Both employers and trade unions have expressed serious concerns in regard to the risk of the e-card promoting bogus self-employment and the indefinite validity of the e-card which increases the risk of abuse because the proposal does not contain any firm requirements on updating the e-card.

While there has been much opposition in different sectors to the introduction of the e-card, I believe that by strengthening some of the requirements as outlined above, we should introduce the e-card and monitor its implementation for a period of time. Based on lessons learned, we should then look at broadening its scope.

AMENDMENTS

The Committee on Employment and Social Affairs calls on the Committee on Internal Market and Consumer Protection, as the committee responsible, to take into account the following amendments:

Amendment 1

Proposal for a regulation

Recital 3


Text proposed by the Commission	Amendment
(3) Directive 2006/123/EC requires Member States to put in place and keep constantly updated Points of Single Contacts where a service provider wishing to establish or to provide services can find all relevant information about requirements to be complied with and e-procedures in respect of all formalities, authorisations and notifications to go through. However, costly information challenges and difficulties complying with national procedures at a distance remain to date for service providers, namely for sector-related requirements. Cooperation between the administrations of different Member States should in principle take place via the Internal Market Information System (IMI), an IT-platform offered for cross-border exchange of information and mutual assistance between authorities in different Member States under that Directive. Despite the fact that authorities sometimes have doubts with regard to the legal establishment of a provider in another Member State, the possibilities for cooperation currently provided in IMI are not exploited to their full potential.	(3) Directive 2006/123/EC requires Member States to put in place and keep constantly updated Points of Single Contacts where a service provider wishing to establish or to provide services can find all relevant information about requirements to be complied with and e-procedures in respect of all formalities, authorisations and notifications to go through. The Points of Single Contacts need to be upgraded in line with the proposal for a Regulation of the European Parliament and of the Council on establishing a single digital gateway to provide information, procedures, assistance and problem solving services and amending Regulation (EU) No 1024/20121a. However, costly information challenges and difficulties complying with national procedures at a distance remain to date for service providers, namely for sector-related requirements. Cooperation between the administrations of different Member States should in principle take place via the Internal Market Information System (IMI), an IT-platform offered for cross-border exchange of information and mutual assistance between authorities in different Member States under that Directive. Despite the fact that authorities sometimes have doubts with regard to the legal establishment of a provider in another Member State, the possibilities for cooperation currently provided in IMI are not exploited to their full potential.
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	1a COM(2017)0256 .

Or. en

Amendment 2

Proposal for a regulation

Recital 4


Text proposed by the Commission	Amendment
(4) Requirements remain in place which make expansion of service providers' operations across the internal market burdensome and unappealing, such as multiple and disparate authorisation schemes before different authorities and, which, regarding establishment, fail to achieve mutual recognition of conditions previously complied with in other Member States or, regarding temporary cross-border provision of services apply disproportionate or unjustified restrictions. As a consequence, service providers face multiple and disproportionate compliance costs when going cross-border.	(4) Requirements remain in place which can make expansion of service providers' operations across the internal market burdensome and unappealing, such as multiple and disparate authorisation schemes before different authorities and, which, regarding establishment, fail to achieve mutual recognition of conditions previously complied with in other Member States or, regarding temporary cross-border provision of services sometimes apply disproportionate or unjustified restrictions. As a consequence, service providers can face multiple and disproportionate compliance costs when going cross-border.

Or. en

Amendment 3

Proposal for a regulation

Recital 6


Text proposed by the Commission	Amendment
(6) Cross-border trade and cross-border investment in certain business and construction services are particularly low showing a potential for better integration of services markets with significant negative repercussions for the remaining part of the economy. This underperformance leads to situations where the potential for more growth and jobs in the Single Market has not been fully exploited.	(6) Cross-border trade and cross-border investment in certain business are particularly low showing a potential for better integration of services markets with significant negative repercussions for the remaining part of the economy. This underperformance leads to situations where the potential for more growth and jobs in the Single Market has not been fully exploited.

Or. en

Amendment 4

Proposal for a regulation

Recital 7 a (new)


Text proposed by the Commission	Amendment
	(7a) In order for the European services e-card to contribute positively towards the elimination of barriers in the provision of cross-border services, there is a need for better framework conditions to ensure high quality implementation and correct application of existing legislation.

Or. en

Amendment 5

Proposal for a regulation

Recital 8


Text proposed by the Commission	Amendment
(8) This Regulation aims to facilitate the freedom of establishment and the free movement of services within the single market in areas already covered by Directive 2006/123/EC through the adoption of further measures on approximation of provisions which have as their object the establishment and functioning of the internal market. It should be based on Article 114 of the TFUE.	(8) This Regulation aims to facilitate the freedom of establishment and the free movement of services within the single market in certain areas already covered by Directive 2006/123/EC through the adoption of further measures on approximation of provisions which have as their object the establishment and functioning of the internal market. It should be based on Article 114 of the TFUE.

Or. en

Amendment 6

Proposal for a regulation

Recital 10


Text proposed by the Commission	Amendment
(10) In so doing, this Regulation specifically targets business and construction service sectors included in scope of Directive …[ESC Directive]… which face some of the most stringent regulatory and administrative barriers to cross-border expansion and consequently have an unexploited potential for internal market integration.	(10) In so doing, this Regulation specifically targets business included in scope of Directive …[ESC Directive]… which face some of the most stringent regulatory and administrative barriers to cross-border expansion and consequently have an unexploited potential for internal market integration.

Or. en

Amendment 7

Proposal for a regulation

Recital 14


Text proposed by the Commission	Amendment
(14) The European services e-card should be fully electronic, rely almost exclusively on data provided by reliable sources, limit the use of documents to the minimum necessary and allow for multilingual processing to avoid translation costs. In order to make the procedure fully electronic and allow for administrative cooperation between home and host Member States. The Internal Market Information system set up by Regulation (EU) No 1024/2012 of the European Parliament and of the Council22 should be used under this Regulation. A specific electronic platform should be developed for the purpose of issuing, updating, suspending, revoking or cancelling European services e-cards, as well as to make valid European services e-cards electronically available to their holders and to competent authorities.	(14) The European services e-card should be fully electronic, rely almost exclusively on valid and authentic data verified by the home Member State and provided by reliable sources, limit the use of documents to the minimum necessary and allow for multilingual processing to avoid translation costs. In order to make the procedure fully electronic and allow for administrative cooperation between home and host Member States. The Internal Market Information system set up by Regulation (EU) No 1024/2012 of the European Parliament and of the Council22 should be used under this Regulation. A specific electronic platform should be developed for the purpose of issuing, updating, suspending, revoking or cancelling European services e-cards, as well as to make valid European services e-cards electronically available to their holders and to competent authorities.
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22 Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC ( ‘the IMI Regulation’ ) (OJ L 316, 14.11.2012, p. 1)	22 Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC ( ‘the IMI Regulation’ ) (OJ L 316, 14.11.2012, p. 1)

Or. en

Amendment 8

Proposal for a regulation

Recital 18


Text proposed by the Commission	Amendment
(18) Description of the terms of coverage of a mandatory or voluntary insurance included in written contracts might be difficult to find. Insurance distributers, as well as bodies appointed by a Member State to provide compulsory insurance, should therefore provide a description of the core elements of coverage to their client in the format of an insurance certificate. This certificate should be annexed to the application form. In order to ensure uniform implementation of this part of the Regulation, implementing powers should be conferred on the Commission to adopt a harmonised format for the certificates. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.	(18) Description of the terms of coverage of a mandatory or voluntary insurance included in written contracts might be difficult to find. Insurance distributers, as well as bodies appointed by a Member State to provide compulsory insurance, should therefore provide a description of the core elements of coverage to their client in the format of an insurance certificate. This certificate should be annexed to the application form.

Or. en

Amendment 9

Proposal for a regulation

Recital 25


Text proposed by the Commission	Amendment
(25) Procedures for issuing, updating, suspending or revoking a European services e-card should make use of documents only in exceptional circumstances, when more detailed information is absolutely essential. In any case, all of such documents should be used and accepted in simple form.	(25) Procedures for issuing, updating, suspending or revoking a European services e-card should make use of documents when more detailed information is absolutely essential. In any case, all such documents should be used and accepted in simple form.

Or. en

Amendment 10

Proposal for a regulation

Recital 30


Text proposed by the Commission	Amendment
(30) Service providers obliged to acquire professional liability insurance in Member States where they have not been active often have difficulty demonstrating their claims history regarding cover obtained elsewhere. Claims histories are an essential element to insurance distributers in ascertaining and assessing the risk profile of a potential client. Demonstration is difficult due to poor communication between insurance distributers across internal market borders but also to disparities in describing the track-record of an insured party, even within the same Member State. Insurance distributers and bodies appointed by a Member State to provide compulsory insurance cover should therefore be obliged to issue a statement relating to the third party liability claims which can then be used across borders and even domestically, should a service provider change insurance distributer.	(30) Service providers obliged to acquire professional liability insurance in Member States where they have not been active often have difficulty demonstrating their claims history regarding cover obtained elsewhere. Claims histories are an essential element to insurance distributers in ascertaining and assessing the risk profile of a potential client. Insurance distributers and bodies appointed by a Member State to provide compulsory insurance cover should therefore be obliged to issue a statement relating to the third party liability claims which can then be used across borders and even domestically, should a service provider change insurance distributer.

Or. en

Amendment 11

Proposal for a regulation

Recital 31


Text proposed by the Commission	Amendment
(31) In order to ensure uniform implementation of this Regulation in relation to the presentation of the description of liabilities, implementing powers to adopt rules on the standardised presentation format of that statement should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.	deleted

Or. en

Amendment 12

Proposal for a regulation

Article 5 – paragraph 2


Text proposed by the Commission	Amendment
2. The Commission may adopt a harmonised format for the insurance certificate as referred to in the second subparagraph of paragraph 1 by means of an implementing act.	deleted
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 16(2).

Or. en

Amendment 13

Proposal for a regulation

Article 11 – paragraph 2


Text proposed by the Commission	Amendment
2. The Commission may adopt rules on the standardised presentation format of the statement referred to in paragraph 1 by means of implementing acts.	deleted
Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 16(2).

Or. en

Amendment 14

Proposal for a regulation

Article 12


Text proposed by the Commission	Amendment
Article 12	deleted
Obligations for insurance distributors
Insurance distributors and bodies appointed by a Member State to provide compulsory insurance shall duly take into account in the acceptance policy and in the calculation of premiums, in a non-discriminatory manner, the experience of the provider as reflected in the claims statement issued in accordance with Article 11, as presented by the provider.

Or. en

Amendment 15

Proposal for a regulation

Article 14 – paragraph 1


Text proposed by the Commission	Amendment
1. Coordinating authorities and competent authorities in different Member States shall exchange information and give each other mutual assistance in the context of a procedure to issue suspend, revoke or cancel a European services e-card as well as in the update of the information contained therein. This obligation shall also apply in the context of formalities in accordance with Articles 6 (1) and 7 for secondment of staff and movement of self-employed, in relation to competent authorities as defined in point (ii) of Article 3(19).	1. Coordinating authorities and competent authorities in different Member States shall exchange information and give each other mutual assistance in the context of a procedure to issue suspend, revoke or cancel a European services e-card as well as in the update of the information contained therein. Clear lines of responsibility shall be established in respect of updating the information contained in the European services e-card in a timely manner. These obligations shall also apply in the context of formalities in accordance with Articles 6(1) and 7 for secondment of staff and movement of self-employed, in relation to competent authorities as defined in point (ii) of Article 3(19).

Or. en