Ireland behind on services directive implementation

A MAJOR initiative aimed at creating jobs and expanding the whole services sector across the EU has not yet been implemented in Ireland.

The country is one of just three EU member states that has not completed the first step to implement the services directive which was introduced by Internal Market Commissioner Charlie McCreevy.

Each country had three years until December 27 to change any of its laws that prevent people and companies from other member states opening businesses and to set up on-line sites with all information and where all form filling could be completed.

The changes affect about one-third of services from hairdressers and cafes to tax advisors and engineers, but exclude health services. A Commission expert said that they will prosecute Ireland for failing to meet the deadline and issue infringement proceedings in the next few weeks. “We know they have difficulty with having enough people in the administration to carry out the work and we are hopeful that they will be able to deliver in the first half of the year”, she added.

Services account for 70% of the EU’s economic activity but just about 20% are cross-border. According to studies, the area offers big growth potential if the barriers to setting up in other member states are removed.

Hungary is one of nine countries to comply with the directive and has removed or simplified 200 pieces of legislation and set up its electronic point of single contact.

A survey carried out by Eurochambres, representing the business community EU wide, showed that nine other countries are well under way, while eight had achieved very little. Of these, just Ireland, Greece and Slovenia have not completed the first step.

Secretary General, Arnaldo Abruzzini, said that until all countries have made the changes and set up their contact points, the directive cannot operate.