Freedom to Provide Services Clause

Freedom to Provide Services Clause in Europe

Scope and effect of the Freedom to Provide Services clause in relation to the E.U. Services Directive

The following is an examination of scope and effect of the freedom to provide services clause regarding the European Union Servicies Directive [1]:

Scope and effect of the Freedom to Provide Services clause: the Freedom to Provide Services clause and related derogations

Article 16 provides for the freedom to provide cross-border services without unjustified restrictions. It is one of the cornerstones of the Services Directive. It applies to all services falling within the scope of application of the Directive, with the exception of those services or matters listed in Article 17.

Article 16 requires Member States to abstain from imposing their own requirements on incoming service providers except where justified by the four reasons enumerated in Article 16(1) and (3)106. This means that the requirements Member States can impose on in-coming service providers are limited. This applies to any form of requirement, regardless of the type or level of the legislation in question or the territorial limits within which a national rule applies. As a result, service providers will know that they will not be subject to the legislation of the receiving Member State except where its application is justified for the four reasons set out in Article 16(1) and 16(3) (or the legislation in question is covered by a derogation provided for in Article 17).

Contrary to other articles of the Directive, such as Article 14, Article 16 does not, in principle, require Member States to remove existing requirements but only obliges them to refrain from applying their own requirements to service providers established in other Member States. Article 16 does not prevent Member States from maintaining their requirements for their national operators. Changes to national rules may, however, be required to remove requirements which are specifically designed for service providers established in other Member States. In

order to avoid gaps in the implementing legislation it may be advisable to implement Article 16 in a horizontal instrument rather than through sector-or subject-specific measures. This would ensure legal certainty both for providers and recipients of services and for the relevant competent authorities.

The Freedom to Provide Services clause and related derogations in relation to the E.U. Services Directive

The following reviews some of the entries in this European legal encyclopedia about the freedom to provide services clause and related derogations regarding the European Union Servicies Directive:

  • the distinction between establishment and cross-border service provision
  • Scope and effect of the Freedom to Provide Services clause
  • Requirements which can be imposed by Member States on cross-border services
  • Requirements which can be imposed by Member States on cross-border services
  • Requirements which can be imposed by Member States on cross-border services
  • Requirements which can be imposed by Member States on cross-border services
  • Requirements which can be imposed by Member States on cross-border services
  • The derogations in Article 17
  • Case by case derogations pursuant to Article 18

Resources

Notes

  1. Information on scope and effect of the freedom to provide services clause based on the EU Services Directive Handbook, UK Government

See Also

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