EC To Take Legal Action Over Freedom To Provide Services And Freedom Of Establishment

by Ulrika Lomas, for LawAndTax-News.com, Brussels

15 July 2005

It emerged on Wednesday that the European Commission has taken action to put an end to obstacles to the freedom of establishment and to the free movement of services in six Member States.

Firstly, the Commission revealed that it has decided to refer Italy to the European Court of Justice over its legislation on provision of private security services. In related developments, the Commission has decided, under Article 228 of the EC Treaty, to send a letter of formal notice asking Portugal and the Netherlands for full information on their execution of European Court judgements, also on provision of private security services.

Secondly, the Commission announced that it has made formal requests asking four Member States to amend their legislation: Luxembourg, for its system of awarding work permits to non-EU nationals; Finland, for its rules on patient mobility; Italy, for its rules on company vehicle registration; and Spain, for its rules on tourist rental of properties in the Canary Islands.

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 EC stated that it has closed a case against Germany on radio licences as a new law has been introduced in the federal state concerned that respects the principle of freedom of establishment enshrined in Article 43 of the EC Treaty.

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