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EC Launches Legal Action Against Belgium, Italy And Luxembourg
by Ulrika Lomas, for LawAndTax-News.com, Brussels

26 December 2005

The European Commission announced last week that it has taken action on obstacles to the freedom of establishment and to the free movement of services in Italy, Belgium and Luxembourg.

The Commission revealed on Wednesday that it has decided to refer Italy to the European Court of Justice over its legislation that requires providers of payroll services in Italy to enrol in a specific register. In addition, the Commission has formally requested Italy to modify its legislation on the secondment of non-EU employees and on the imposition of minimum fees by architects and engineers.

The EC also formally requested Belgium to modify its legislation on the installation of alarm systems.

These requests take the form of “reasoned opinions”, the second stage of the infringement procedure laid down in Article 226 of the EC Treaty. If there is no satisfactory reply within two months, the Commission may refer the matter to the Court.

Finally, the Commission announced that it has decided, under Article 228 of the EC Treaty, to send Luxembourg a further reasoned opinion requesting it to comply immediately with the 2004 judgment of the Court on the secondment of non-EU employees. If Luxembourg does not comply, the Commission can ask the Court to impose daily fines.

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