CONTLNTS

[anuary 2007
Lolteur responsable
Antbony Dempsey
Luropean Commlsslon
DG |nternal Market ano Servlces
Unlt A-4
8 - 1049 8russels
Tel: (+32 2) 295 73 57
Fa×: (+32 2) 295 43 51
Loltor
Nlgel Grl||ltbs
Tel: (+32 2) 298 65 11
Subscrlptlons
Anlta Haase
DG |nternal Market ano Servlces
SPA2 1/002
8-1049 8russels
Fa×: +32 2 295 43 51
L-mall: Markt-smn@ec.europa.eu
www.ec.europa.eu/lnternal_market/smn.btm
Layout:
Unlt A4
Onllne
bttp://ec.europa.eu/lnternal_market/smn.btm
© Luropean Communltles, |2006]
Peproouctlon ls autborlseo provloeo tbe source
ls acknowleogeo.
For |urtber ln|ormatlon
bttp://ec.europa.eu/lnternal_market/lnoe×_en.btm
Your Lurope
bttp://ec.europa.eu/youreurope
Pbotograpbs |or tbls eoltlon
were supplleo by:
Grl|co Communlcatlons ano
tbe Luropean Commlsslon.
Tbls ls a partlcularly |asclnatlng ano cballenglng tlme to be taklng over as
Dlrector-General o| DG |nternal Market & Servlces. Tbe sbape o| |uture
Slngle Market pollcy ls unoer tbe spotllgbt as never be|ore.
|noeeo tbe oevelopment o| tbe Slngle Market ls wloely recognlseo as one
o| tbe Unlon's great acblevements. |n promotlng tbe |our |reeooms o|
movement ÷ |or gooos, servlces, people ano capltal ÷ an estlmateo 2.5
mllllon new jobs bave been createo slnce 1993 ano more tban 800 bllllon
euro generateo ln e×tra wealtb. Tbe removal o| natlonal restrlctlons bas
enableo more tban 15 mllllon Luropeans to go to anotber LU country to
work or speno tbelr retlrement.
Slnce 1993 tbe work o| e×tenolng ano oeepenlng tbe Slngle Market bas
contlnueo ano a great oeal bas been accompllsbeo. 8ut wltb tbe core ele-
ments now ln place, wbere sboulo we go ne×t!
Over tbe past year an e×tenslve consultatlon process bas been conoucteo
on tbls wblcb culmlnateo ln a publlc bearlng ln November. We bave re-
celveo blgb quallty lnput |rom many quarters botb |avourable ano crltlcal
wblcb ls belplng us |ocus |uture strategy.
|t bas belpeo galvanlse our tblnklng about tbe gulolng prlnclples |or tbe Sln-
gle Market ln tbe 21st Century: lt sboulo be to tbe bene|lt o| cltlzens ano
consumers, contrlbute to oeveloplng an lntegrateo ano knowleoge-baseo
economy, ano leao to a better-regulateo ano sustalnable Lurope.
|n oroer to reallse tbls vlslon o| a more mature Slngle Market new ap-
proacbes are neeoeo, wblcb we wlll translate lnto concrete proposals |or
actlon ln autumn tbls year:
· Slngle Market pollcy sboulo be more lmpact-orlven ano results-orlenteo:
tbe LU sboulo act wben markets oo not oellver ano wbere lt wlll bave
ma×lmum lmpact,
· To be most e||ectlve lt sboulo employ a more olverse ano |le×lble ml× o|
lnstruments, |lnolng tbe rlgbt balance between barmonlsatlon ano mutual
recognltlon o| rules, ano otber tools sucb as sel|- ano co-regulatlon,
· |t neeos to be more oecentrallseo ano network-baseo: 8russels cannot
ano sboulo not oellver alone. Tbls requlres greater cooperatlon between
natlonal ano LU levels,
· |t must be more responslve to tbe global conte×t ln oroer to e×plolt
globallsatlon to Lurope's aovantage, ano enable lts companles to compete
ln tbe global market place.
| look |orwaro to worklng wltb all concerneo ln |urtber oeveloplng tbe
Slngle Market to tbe bene|lt o| all.
LD|TOP|AL
[orgen Holmqulst
Dlrector-General
DG |nternal Market ano Servlces
Luropean Commlsslon
3
44
3 Loltorlal
4 Publlc bearlng prepares grouno |or tbe
Slngle Market o| tbe 21st Century
7 Cross-boroer euro payments now cbeaper
8 Green llgbt |or tbe Servlces Dlrectlve -
a cballenglng roao lles abeao.
10 Publlc procurement: new guloellnes |or oe|ence
contracts
11 SPLC|AL FLATUPL
|nternatlonal regulatory olalogues:
Tbe growlng neeo to talk
16 Commlsslon sets out vlslon |or mooernlslng
tbe LU lnvestment |unos market
18 Wloer scope proposeo |or Flnanclal Collateral
Dlrectlve
19 Consultatlon on regulatlon o| non-LU auolt |lrms
19 Auoltors' llablllty: Commlsslon consults on posslble
re|orm o| llablllty rules ln tbe LU
20 Traoe Mark |ees: C k ommlsslon proposes automatlc
revlew
21 |n|rlngements
CONTLNTS
[anuary 2007
Lolteur responsable
Antbony Dempsey
Luropean Commlsslon
DG |nternal Market ano Servlces
Unlt A-4
8 - 1049 8russels
Tel: (+32 2) 295 73 57
Fa×: (+32 2) 295 43 51
Loltor
Nlgel Grl||ltbs
Tel: (+32 2) 298 65 11
Subscrlptlons
Anlta Haase
DG |nternal Market ano Servlces
SPA2 1/002
8-1049 8russels
Fa×: +32 2 295 43 51
L-mall: Markt-smn@ec.europa.eu
www.ec.europa.eu/lnternal_market/smn.btm
Layout:
Unlt A4
Onllne
bttp://ec.europa.eu/lnternal_market/smn.btm
© Luropean Communltles, |2006]
Peproouctlon ls autborlseo provloeo tbe source
ls acknowleogeo.
For |urtber ln|ormatlon
bttp://ec.europa.eu/lnternal_market/lnoe×_en.btm
Your Lurope
bttp://ec.europa.eu/youreurope
Pbotograpbs |or tbls eoltlon
were supplleo by:
Grl|co Communlcatlons ano
tbe Luropean Commlsslon.
Tbls ls a partlcularly |asclnatlng ano cballenglng tlme to be taklng over as
Dlrector-General o| DG |nternal Market & Servlces. Tbe sbape o| |uture
Slngle Market pollcy ls unoer tbe spotllgbt as never be|ore.
|noeeo tbe oevelopment o| tbe Slngle Market ls wloely recognlseo as one
o| tbe Unlon's great acblevements. |n promotlng tbe |our |reeooms o|
movement ÷ |or gooos, servlces, people ano capltal ÷ an estlmateo 2.5
mllllon new jobs bave been createo slnce 1993 ano more tban 800 bllllon
euro generateo ln e×tra wealtb. Tbe removal o| natlonal restrlctlons bas
enableo more tban 15 mllllon Luropeans to go to anotber LU country to
work or speno tbelr retlrement.
Slnce 1993 tbe work o| e×tenolng ano oeepenlng tbe Slngle Market bas
contlnueo ano a great oeal bas been accompllsbeo. 8ut wltb tbe core ele-
ments now ln place, wbere sboulo we go ne×t!
Over tbe past year an e×tenslve consultatlon process bas been conoucteo
on tbls wblcb culmlnateo ln a publlc bearlng ln November. We bave re-
celveo blgb quallty lnput |rom many quarters botb |avourable ano crltlcal
wblcb ls belplng us |ocus |uture strategy.
|t bas belpeo galvanlse our tblnklng about tbe gulolng prlnclples |or tbe Sln-
gle Market ln tbe 21st Century: lt sboulo be to tbe bene|lt o| cltlzens ano
consumers, contrlbute to oeveloplng an lntegrateo ano knowleoge-baseo
economy, ano leao to a better-regulateo ano sustalnable Lurope.
|n oroer to reallse tbls vlslon o| a more mature Slngle Market new ap-
proacbes are neeoeo, wblcb we wlll translate lnto concrete proposals |or
actlon ln autumn tbls year:
· Slngle Market pollcy sboulo be more lmpact-orlven ano results-orlenteo:
tbe LU sboulo act wben markets oo not oellver ano wbere lt wlll bave
ma×lmum lmpact,
· To be most e||ectlve lt sboulo employ a more olverse ano |le×lble ml× o|
lnstruments, |lnolng tbe rlgbt balance between barmonlsatlon ano mutual
recognltlon o| rules, ano otber tools sucb as sel|- ano co-regulatlon,
· |t neeos to be more oecentrallseo ano network-baseo: 8russels cannot
ano sboulo not oellver alone. Tbls requlres greater cooperatlon between
natlonal ano LU levels,
· |t must be more responslve to tbe global conte×t ln oroer to e×plolt
globallsatlon to Lurope's aovantage, ano enable lts companles to compete
ln tbe global market place.
| look |orwaro to worklng wltb all concerneo ln |urtber oeveloplng tbe
Slngle Market to tbe bene|lt o| all.
LD|TOP|AL
[orgen Holmqulst
Dlrector-General
DG |nternal Market ano Servlces
Luropean Commlsslon
3
44
3 Loltorlal
4 Publlc bearlng prepares grouno |or tbe
Slngle Market o| tbe 21st Century
7 Cross-boroer euro payments now cbeaper
8 Green llgbt |or tbe Servlces Dlrectlve -
a cballenglng roao lles abeao.
10 Publlc procurement: new guloellnes |or oe|ence
contracts
11 SPLC|AL FLATUPL
|nternatlonal regulatory olalogues:
Tbe growlng neeo to talk
16 Commlsslon sets out vlslon |or mooernlslng
tbe LU lnvestment |unos market
18 Wloer scope proposeo |or Flnanclal Collateral
Dlrectlve
19 Consultatlon on regulatlon o| non-LU auolt |lrms
19 Auoltors' llablllty: Commlsslon consults on posslble
re|orm o| llablllty rules ln tbe LU
20 Traoe Mark |ees: C k ommlsslon proposes automatlc
revlew
21 |n|rlngements
N
o
44 [ a nua r y 2007
4
N
o
44 [ a nua r y 2007
5
Publlc Hearlng prepares grouno
|or tbe Slngle Market o| tbe
Tbe Publlc Hearlng ln 8russels, 29 November on |uture Slngle
Market pollcy brougbt togetber more tban 300 partlclpants rep-
resentlng strateglc players |rom all sectors o| tbe communlty wbo
engageo ln a constructlve ano ln|ormatlve oebate on tbe gooo
ano bao polnts o| Slngle Market pollcy. Wbllst recognlslng tbe
creatlon o| tbe Slngle Market as one o| tbe LU's greatest acbleve-
ments, partlclpants salo tbe Commlsslon coulo oo better ln many
areas ano o||ereo many suggestlons |or lmprovlng metboos o|
consultatlon, pollcy oevelopment ano lmplementatlon.
Spotllgbt
T
be publlc bearlng on |uture Slngle
Market pollcy was organlseo as part
o| tbe Commlsslon's revlew o| tbe Sln-
gle Market. Tbe bearlng was a |ollow-on
|rom tbe recent consultatlon on |uture
Slngle Market pollcy ano |ocuseo on
tbose lssues tbat bave attracteo partlc-
ular comments, oebate ano crltlclsm ln
stakeboloer replles.
Consultatlon
Tbe |lrst panel o| tbe Publlc Hearlng
wblcb was cbalreo by [acquellne Mlnor,
Dlrector |or Horlzontal Pollcy Develop-
ment ln DG |nternal Market ano Servlces,
|ocuseo on tbe Commlsslon's consulta-
tlon pollcy ano on bow tbe Commlsslon
coulo more e||ectlvely reacb out to all
Slngle Market stakeboloers.
Tbe panel olscusslon ano tbe lnterven-
tlons |rom tbe auolence revealeo tbat tbe
Slngle Market was sometlmes seen as lr- rr
relevant or approacbeo wltb susplclon.
Tbe Commlsslon was calleo upon to
put more tbougbt lnto ora|tlng ano pre-
parlng lts consultatlons ano make tbem
more user-|rlenoly. Consultatlons sboulo
contaln a one-page non-tecbnlcal lntro-
ouctlon e×plalnlng tbe alm o| tbe con-
sultatlon ano sectors a||ecteo to make
lt easler |or stakeboloers to juoge tbe
relevance o| tbe consultatlon. |t was also
suggesteo tbat tbe Commlsslon sboulo
make greater use o| 10-mlnute onllne
consultatlons.
Accorolng to traoe unlons, tbe Commls-
slon's ablllty to llsten was a more o| a cause
|or concern tban lts ablllty to
reacb out to stakeboloers.
|n partlcular, post-consulta-
tlon |eeoback was stresseo
as very lmportant. Tbe Com-
mlsslon sboulo publlsb all
replles, provloe aoequate
|eeoback on vlews recelveo
ano e×plaln to stakeboloers
wby tbelr concerns were not
taken lnto account.
8etter lnvolvement ln pollcy-maklng
Tbe Commlsslon was calleo upon to en-
sure balance between varlous lnterests
on lts aovlsory groups - ln partlcular, ln-
oustry ano consumers. |t was also encour- rr
ageo to lncrease tbe level o| |unolng to
consumer organlsatlons to enable tbem
to partlclpate more |ully ln pollcy-mak-
lng. DG |nternal Market's Worklng Party
o| Flnanclal Users maoe up o| 25 natlonal
consumer representatlves was clteo as a
gooo e×ample o| best practlce.
Lngaglng SMLs
Tbe engagement o| small buslness (SMLs)
ln pollcy-maklng was salo to be llmlteo
by ol||lcultles ln accesslng ln|ormatlon.
Tbe blame |or tbls was put on tbe e×-
lstence o| a pletbora o| entry polnts at
LU level sucb as |PM, L8TP, Your Lurope
etc. ano at natlonal level wltb |nnovatlon
Pelay Centres, Luropean |n|ormatlon O|- ||
|lces etc., wblcb at worst leo to con|uslon
ano at best olo not make tbose networks
su||lclently vlslble.
Tbe establlsbment o| a one-stop-sbop
system was recommenoeo so tbat tbere
woulo be one pro|esslonally organlseo,
well-|unoeo ano recognlsable polnt o|
entry consolloatlng all tbe currently avall-
able websltes.
Consultatlon questlonnalres were not
consloereo to be tbe best way to con-
tact small buslnesses. |nsteao, a more
21st century
Spotllgbt
actlve ano olrect approacb was neces-
sary. For lnstance, lt was suggesteo tbat
an SML envoy sboulo be establlsbeo ln
eacb Commlsslon oelegatlon ln Mem-
ber States to translate all Slngle Market
relateo rules lnto 'SMLs' terms' ano tbat
more use sboulo be maoe o| tbe llnks be-
tween small ano blg buslnesses wbereby
tbe latter coulo play tbe role between tbe
|ormer ano tbe LU lnstltutlons.
|nternal consultatlon
|t was suggesteo tbat a common consul-
tatlon proceoure be applleo regaroless
o| wblcb Dlrectorate-General launcbes a
consultatlon ano tbat tbe same oeaollnes
be glven to stakeboloers ln all consulta-
tlons. Tbe Commlsslon was also calleo on
to ensure better coorolnatlon between
lts Dlrectorates-General ano to encour- rr
age mutual lnvolvement ln tbelr respec-
tlve stakeboloer consultatlons.
|mpact Assessments
Tbe Commlsslon was calleo to lmprove
ano make better use o| lmpact assess-
ments. Tbese sboulo verl|y wbetber a
specl|lc pollcy was golng to lmprove com-
petltlon |or consumers ano make tbem
net bene|lclarles. Tbey sboulo also more
rlgorously assess tbe e||ect on SMLs ano
take better lnto account tbe lmpact on
jobs ano workers.
Alternatlve pollcy toolklt
Tbe secono panel |ocuseo on wbat tools,
apart |rom regulatlon, tbe Commlsslon
sboulo use ln sbaplng mooern Slngle
Market pollcy. Tbe retall |lnanclal
servlces sector was useo as a case
stuoy to olscuss wblcb alternatlve
tools bave alreaoy been oevelopeo
ano wbetber tbey coulo be applleo
ln otber areas. Tbe olscusslon also
|ocuseo on tbe perspectlve o|
consumers as maln users o| retall
|lnanclal servlces.
Tbe panel, wblcb was cbalreo by
|rm|rleo Scbwlmann, Heao o| Unlt
|or Flnanclal Servlces ln DG Com-
petltlon, presenteo ol||erent per- rr
spectlves on tbe tools avallable
|or lmplementlng Slngle Market
pollcy.
Leglslatlve measures
Pegulatory e||ort was stlll seen as nec-
essary to encourage servlces provloers
to take rlsks on a cross-boroer basls ano
persuaoe consumers to lnvest tbelr sav-
lngs abroao by provlolng tbem wltb ao-
equate protectlon ano ln|ormatlon. For
lnstance, leglslatlve measures were tbe
pre|erreo approacb |or provlolng better
access |or lntermeolarles ano ensurlng
tbelr lnoepenoence ano llablllty, ano |or
barmonlslng rules on lnvestment protec-
tlon |or lnvestors ano tbe aovertlslng o|
commerclal practlces |or |lnanclal serv-
lces.
At tbe same tlme, lt was stresseo tbat
leglslatlon sboulo be |le×lble, aobere to
8etter Pegulatlon prlnclples ano utlllse
e||lclent ano stralgbt|orwaro proceoures
|or tbe bene|lt o| consumers.
Tbe regulatory pbase ln tbe |lnanclal serv-
lces area was seen as a suc-
cess tbanks to tbe Lam|alussy
process wbereby lmplement-
lng measures were aoopteo
accorolng to a transparent
ano |le×lble proceoure wblcb
encourageo tbe ma×lmum ln-
put o| tecbnlcal e×pertlse.
Non-regulatory tools
Analysls ano a clearer evloence-base
about bow retall |lnanclal markets work
was seen as an lmportant means to be
able to cboose tbe rlgbt tools ano keep
pressure on tbe markets.
Ln|orcement was seen as cruclal to ln-
crease consumer con|loence, tbrougb,
out-o|-court a||oroable settlements, tbe
oevelopment o| networks (e.g. F|N-net
or unoer CPC Pegulatlon) ano sel|-regu-
latlon.
Monltorlng o| tbe markets was also salo
to bave an en|orcement e||ect as bas
been seen wltb tbe e×ample o| tbe work
o| tbe 'Flnanclal Sector Monltor' wltbln
tbe Netberlanos' Competltlon Autborlty.
Tbls market monltorlng servlce loentl|leo
barrlers to competltlon, researcbeo tbelr
causes ano provloeo guloance, ano ln tbls
way lncreaseo awareness about tbe neeo
to en|orce competltlon rules ano stlmu-
late compllance by tbe lnoustry.
To ensure a unl|leo appllcatlon o| rules
across tbe LU, supervlsory e||ort ls neces-
sary tbrougb actlve cooperatlon between
tbe natlonal autborltles concerneo. |n tbe
area o| |lnanclal servlces tbls ls accom-
pllsbeo tbrougb supervlsory booles |or
securltles (CLSP), lnsurance ano occu-
patlonal penslons (CL|OPS) ano banklng
(CL8S).
Tbe Publlc Hearlng brougbt togetber more
tban 300 partlclpants representlng strateglc
players |rom all sectors.
Tbougbt-provoklng lnput |or Commlssloner
Cbarlle McCreevy ano actlng Dlrector-General Tblerry Stoll.
N
o
44 [ a nua r y 2007
4
N
o
44 [ a nua r y 2007
5
Publlc Hearlng prepares grouno
|or tbe Slngle Market o| tbe
Tbe Publlc Hearlng ln 8russels, 29 November on |uture Slngle
Market pollcy brougbt togetber more tban 300 partlclpants rep-
resentlng strateglc players |rom all sectors o| tbe communlty wbo
engageo ln a constructlve ano ln|ormatlve oebate on tbe gooo
ano bao polnts o| Slngle Market pollcy. Wbllst recognlslng tbe
creatlon o| tbe Slngle Market as one o| tbe LU's greatest acbleve-
ments, partlclpants salo tbe Commlsslon coulo oo better ln many
areas ano o||ereo many suggestlons |or lmprovlng metboos o|
consultatlon, pollcy oevelopment ano lmplementatlon.
Spotllgbt
T
be publlc bearlng on |uture Slngle
Market pollcy was organlseo as part
o| tbe Commlsslon's revlew o| tbe Sln-
gle Market. Tbe bearlng was a |ollow-on
|rom tbe recent consultatlon on |uture
Slngle Market pollcy ano |ocuseo on
tbose lssues tbat bave attracteo partlc-
ular comments, oebate ano crltlclsm ln
stakeboloer replles.
Consultatlon
Tbe |lrst panel o| tbe Publlc Hearlng
wblcb was cbalreo by [acquellne Mlnor,
Dlrector |or Horlzontal Pollcy Develop-
ment ln DG |nternal Market ano Servlces,
|ocuseo on tbe Commlsslon's consulta-
tlon pollcy ano on bow tbe Commlsslon
coulo more e||ectlvely reacb out to all
Slngle Market stakeboloers.
Tbe panel olscusslon ano tbe lnterven-
tlons |rom tbe auolence revealeo tbat tbe
Slngle Market was sometlmes seen as lr- rr
relevant or approacbeo wltb susplclon.
Tbe Commlsslon was calleo upon to
put more tbougbt lnto ora|tlng ano pre-
parlng lts consultatlons ano make tbem
more user-|rlenoly. Consultatlons sboulo
contaln a one-page non-tecbnlcal lntro-
ouctlon e×plalnlng tbe alm o| tbe con-
sultatlon ano sectors a||ecteo to make
lt easler |or stakeboloers to juoge tbe
relevance o| tbe consultatlon. |t was also
suggesteo tbat tbe Commlsslon sboulo
make greater use o| 10-mlnute onllne
consultatlons.
Accorolng to traoe unlons, tbe Commls-
slon's ablllty to llsten was a more o| a cause
|or concern tban lts ablllty to
reacb out to stakeboloers.
|n partlcular, post-consulta-
tlon |eeoback was stresseo
as very lmportant. Tbe Com-
mlsslon sboulo publlsb all
replles, provloe aoequate
|eeoback on vlews recelveo
ano e×plaln to stakeboloers
wby tbelr concerns were not
taken lnto account.
8etter lnvolvement ln pollcy-maklng
Tbe Commlsslon was calleo upon to en-
sure balance between varlous lnterests
on lts aovlsory groups - ln partlcular, ln-
oustry ano consumers. |t was also encour- rr
ageo to lncrease tbe level o| |unolng to
consumer organlsatlons to enable tbem
to partlclpate more |ully ln pollcy-mak-
lng. DG |nternal Market's Worklng Party
o| Flnanclal Users maoe up o| 25 natlonal
consumer representatlves was clteo as a
gooo e×ample o| best practlce.
Lngaglng SMLs
Tbe engagement o| small buslness (SMLs)
ln pollcy-maklng was salo to be llmlteo
by ol||lcultles ln accesslng ln|ormatlon.
Tbe blame |or tbls was put on tbe e×-
lstence o| a pletbora o| entry polnts at
LU level sucb as |PM, L8TP, Your Lurope
etc. ano at natlonal level wltb |nnovatlon
Pelay Centres, Luropean |n|ormatlon O|- ||
|lces etc., wblcb at worst leo to con|uslon
ano at best olo not make tbose networks
su||lclently vlslble.
Tbe establlsbment o| a one-stop-sbop
system was recommenoeo so tbat tbere
woulo be one pro|esslonally organlseo,
well-|unoeo ano recognlsable polnt o|
entry consolloatlng all tbe currently avall-
able websltes.
Consultatlon questlonnalres were not
consloereo to be tbe best way to con-
tact small buslnesses. |nsteao, a more
21st century
Spotllgbt
actlve ano olrect approacb was neces-
sary. For lnstance, lt was suggesteo tbat
an SML envoy sboulo be establlsbeo ln
eacb Commlsslon oelegatlon ln Mem-
ber States to translate all Slngle Market
relateo rules lnto 'SMLs' terms' ano tbat
more use sboulo be maoe o| tbe llnks be-
tween small ano blg buslnesses wbereby
tbe latter coulo play tbe role between tbe
|ormer ano tbe LU lnstltutlons.
|nternal consultatlon
|t was suggesteo tbat a common consul-
tatlon proceoure be applleo regaroless
o| wblcb Dlrectorate-General launcbes a
consultatlon ano tbat tbe same oeaollnes
be glven to stakeboloers ln all consulta-
tlons. Tbe Commlsslon was also calleo on
to ensure better coorolnatlon between
lts Dlrectorates-General ano to encour- rr
age mutual lnvolvement ln tbelr respec-
tlve stakeboloer consultatlons.
|mpact Assessments
Tbe Commlsslon was calleo to lmprove
ano make better use o| lmpact assess-
ments. Tbese sboulo verl|y wbetber a
specl|lc pollcy was golng to lmprove com-
petltlon |or consumers ano make tbem
net bene|lclarles. Tbey sboulo also more
rlgorously assess tbe e||ect on SMLs ano
take better lnto account tbe lmpact on
jobs ano workers.
Alternatlve pollcy toolklt
Tbe secono panel |ocuseo on wbat tools,
apart |rom regulatlon, tbe Commlsslon
sboulo use ln sbaplng mooern Slngle
Market pollcy. Tbe retall |lnanclal
servlces sector was useo as a case
stuoy to olscuss wblcb alternatlve
tools bave alreaoy been oevelopeo
ano wbetber tbey coulo be applleo
ln otber areas. Tbe olscusslon also
|ocuseo on tbe perspectlve o|
consumers as maln users o| retall
|lnanclal servlces.
Tbe panel, wblcb was cbalreo by
|rm|rleo Scbwlmann, Heao o| Unlt
|or Flnanclal Servlces ln DG Com-
petltlon, presenteo ol||erent per- rr
spectlves on tbe tools avallable
|or lmplementlng Slngle Market
pollcy.
Leglslatlve measures
Pegulatory e||ort was stlll seen as nec-
essary to encourage servlces provloers
to take rlsks on a cross-boroer basls ano
persuaoe consumers to lnvest tbelr sav-
lngs abroao by provlolng tbem wltb ao-
equate protectlon ano ln|ormatlon. For
lnstance, leglslatlve measures were tbe
pre|erreo approacb |or provlolng better
access |or lntermeolarles ano ensurlng
tbelr lnoepenoence ano llablllty, ano |or
barmonlslng rules on lnvestment protec-
tlon |or lnvestors ano tbe aovertlslng o|
commerclal practlces |or |lnanclal serv-
lces.
At tbe same tlme, lt was stresseo tbat
leglslatlon sboulo be |le×lble, aobere to
8etter Pegulatlon prlnclples ano utlllse
e||lclent ano stralgbt|orwaro proceoures
|or tbe bene|lt o| consumers.
Tbe regulatory pbase ln tbe |lnanclal serv-
lces area was seen as a suc-
cess tbanks to tbe Lam|alussy
process wbereby lmplement-
lng measures were aoopteo
accorolng to a transparent
ano |le×lble proceoure wblcb
encourageo tbe ma×lmum ln-
put o| tecbnlcal e×pertlse.
Non-regulatory tools
Analysls ano a clearer evloence-base
about bow retall |lnanclal markets work
was seen as an lmportant means to be
able to cboose tbe rlgbt tools ano keep
pressure on tbe markets.
Ln|orcement was seen as cruclal to ln-
crease consumer con|loence, tbrougb,
out-o|-court a||oroable settlements, tbe
oevelopment o| networks (e.g. F|N-net
or unoer CPC Pegulatlon) ano sel|-regu-
latlon.
Monltorlng o| tbe markets was also salo
to bave an en|orcement e||ect as bas
been seen wltb tbe e×ample o| tbe work
o| tbe 'Flnanclal Sector Monltor' wltbln
tbe Netberlanos' Competltlon Autborlty.
Tbls market monltorlng servlce loentl|leo
barrlers to competltlon, researcbeo tbelr
causes ano provloeo guloance, ano ln tbls
way lncreaseo awareness about tbe neeo
to en|orce competltlon rules ano stlmu-
late compllance by tbe lnoustry.
To ensure a unl|leo appllcatlon o| rules
across tbe LU, supervlsory e||ort ls neces-
sary tbrougb actlve cooperatlon between
tbe natlonal autborltles concerneo. |n tbe
area o| |lnanclal servlces tbls ls accom-
pllsbeo tbrougb supervlsory booles |or
securltles (CLSP), lnsurance ano occu-
patlonal penslons (CL|OPS) ano banklng
(CL8S).
Tbe Publlc Hearlng brougbt togetber more
tban 300 partlclpants representlng strateglc
players |rom all sectors.
Tbougbt-provoklng lnput |or Commlssloner
Cbarlle McCreevy ano actlng Dlrector-General Tblerry Stoll.
N
o
44 [ a nua r y 2007
6
N
o
44 [ a nua r y 2007
7
ln|o
Spotllgbt
Moral persuaslon ano pressure o| possl-
ble |urtber leglslatlon were also quoteo
as use|ul parts o| tbe toolklt to encour- rr
age lnoustry to make progress tbrougb
sel|-regulatlon. As a gooo e×ample o|
tbls, tbe cooperatlon between banks |or
meetlng SLPA requlrements tbrougb sel|-
regulatlon ano tbe work o| tbe Luropean
Payment Councll were clteo.
Flnally many speakers stresseo tbe lm-
portance o| communlcatlon ano ensurlng
tbat ln|ormatlon about major lnltlatlves
(e.g. SLPA) reacbes consumers ano users.
Tbe partlclpatlon o| consumers ln sbap-
lng tbe measures unoer tbe Lam|alussy
process was seen as a weak polnt ano
tbe Commlsslon was askeo to lncrease
|unolng to strengtben consumers' ln-
volvement.
Ln|orcement o| tbe law
Tbe |ocus o| tbe tblro panel was tbe
proper appllcatlon o| Slngle Market rules
ano ways o| provlolng e||ectlve reoress
wbere appllcatlon problems arose. Tbe
olscusslon was cbalreo by Claus-Dleter
Lblermann, WllmerHale.
Tbe panelllsts agreeo tbat tbe Slngle Mar- rr
ket was lnoeeo a great acblevement but
stresseo tbat lt olo not yet |unctlon as
well on tbe grouno as lt coulo.
|t was stresseo tbat tbe Slngle Market leg-
lslatlve |ramework ls mostly ln place (ln
partlcular, glven tbe |lnal stages o| aoop-
tlon o| tbe Servlce Dlrectlve) but tbat tbe
Commlsslon neeos to ensure actlve |ol-
low-up o| leglslatlon, not only tbrougb lts
transposltlon lnto law, but ln partlcular lts
proper lmplementatlon.
As tbe Guarolan o| tbe
Treatles, tbe Commlsslon
was calleo upon to actlvely
take up lts responslbllltles
|or ensurlng tbe appllca-
tlon o| LU law. However, lt
was acknowleogeo tbat tbe
Commlsslon cannot alone
be responslble |or en|orce-
ment ano tbat lt was tlme
|or Member States to take
on a greater responslblllty
|or tbe correct appllca-
tlon o| tbe rules tbey bave
jolntly aoopteo.
Preventlng ano solvlng problems
|t was suggesteo tbat Pegulatlons are
pre|erable to Dlrectlves as a Slngle Mar- rr
ket legal tool, glven tbat tbey are not sub-
ject to lnterpretatlon ano leave less room
|or posslble con|llct. |t was recommenoeo
tbat an |nternal Market Task Force, lnltlal-
ly a Danlsb proposal, be createo ln eacb
Member State. |ts maln objectlve woulo
be to screen e×lstlng natlonal leglslatlon
to |lno out wbetber any rules createo
barrlers to traoe ano to loentl|y tbe na-
ture ano |orce o| tbose barrlers.
Speakers polnteo out tbat tbere were
stlll too many ln|rlngement proceeolngs
wblcb oemonstrateo tbat penaltles were
lnsu||lclent ano not aomlnlstereo qulckly
enougb. DG |nternal Market was calleo
on to better prlorltlse ln|rlngements ano
apply a |ast-track proceoure to tbe prl-
orlty ones. A suggestlon was also maoe
tbat tbe level o| |lnes sboulo contlnue to
lncrease untll tbe number o| ln|rlngement
cases oecreaseo slgnl|lcantly.
Tbere was agreement tbat tbe Commls-
slon neeoeo tbe cooperatlon o| Member
States to prevent 'golo platlng' ano neeo-
eo cooperatlon o| tbe natlonal courts to
lmprove tbe lmplementatlon recoro.
|t was stresseo tbat natlonal juoges
sboulo compare wbetber natlonal law
ls ln compllance wltb Luropean law ano
glve preceoence to tbe latter ano cltl-
zens sboulo be able to rely on natlonal
juoges to properly en|orce tbe LU law. |n
tbat conte×t, gooo tralnlng was seen as
very lmportant ano lt was recommeno-
eo tbat tbe tralnlng o| natlonal juoges
be strengtbeneo at Member State level.
SOLv|T was pralseo as a gooo non-legal
tool |or problem-solvlng but was salo to
be lnsu||lclently promoteo ano unoer-
|unoeo.
Communlcatlon as top prlorlty
Tbe |lnal panel unoer tbe cbalrmansblp
o| [obn Wyles, Senlor Partner ln GPlus
Lurope, took at look at bow tbe Com-
mlsslon's current ln|ormatlon ano com-
munlcatlon pollcy coulo be lmproveo.
Tbe olscusslon ln tbe panel ano lnterven-
tlons |rom tbe auolence sboweo tbat tbe
Commlsslon |aces real communlcatlon
cballenges wbllst reportlng on tbe Slngle
Market, because lt lnvolves selllng a blgb-
ly tecbnlcal toplc to tbe non-speclallseo
meola wbose baslc alm ls to entertaln
tbelr publlc. At tbe moment lt seems tbat
¨Lurope ls a baoly solo proouct¨.
Tbe panelllsts stresseo tbat communlca-
tlon sboulo be seen as a number one prl-
orlty. Tbe Commlsslon was warneo tbat
tbe opponents o| tbe Slngle Market wlll
not |lgbt |alr ano wlll use propaganoa ano
|alse mytbs ano tbere|ore, lt was lmpor- rr
tant to be reaoy wltb a gooo communlca-
tlon strategy backeo up wltb necessary
resources. Tbls sboulo lncluoe provlolng
ln|ormatlon pbraseo ln a clear ano posl-
tlve way ano senolng a coberent message
|rom tbe Commlsslon. Some speakers
also stresseo tbat tbe Commlsslon Pep-
resentatlons ln Member States sboulo
be more lnvolveo ln brlnglng Luropean
pollcy closer to tbe general publlc.
Tbe results o| tbe Publlc Hearlng ano tbe
consultatlon wlll |eeo lnto a report to
be publlsbeo by tbe Commlsslon on tbe
Slngle Market |or tbe 21st century ln tbe
course o| 2007.
.
ln|o bttp://ec.europa.eu/lnternal_market/strategy/lnoe×_en.btm=bearlng
ln|o
Tom Dloerlcb
TLL: +32 (0)2.296 17 59
FAX: +32 (0)2.295 76 13
Markt-81@ec.europa.eu
Tbe retall |lnanclal servlces sector was useo as a case stuoy
to olscuss wblcb tools apart |rom regulatlon coulo be
applleo ln otber areas.
Cross-boroer euro payments
now slgnl|lcantly cbeaper

T
be Commlsslon bas unoertaken a
stuoy to evaluate wbetber ano bow
tbe LU Pegulatlon on cross-boroer euro
payments, wblcb was aoopteo ln 2001,
bas a||ecteo bank cbarges |or natlonal
payments.
Tbe report sbows tbat a 100 euro cross-
boroer trans|er, wblcb woulo bave cost
on average 24 euro be|ore tbe rules
were lntroouceo, now costs on average
just 2.50 euro. Tbe stuoy |ouno tbat tbe
rules bave also provloeo banks wltb an ln-
centlve to oevelop ano lnvest more ln an
LU-wloe payments ln|rastructure, wblcb
ln tbe longer term sboulo belp to reouce
costs |or all consumers.
To make tbe payment consumers neeo
only to provloe tbe |nternatlonal 8ank
Account Number (|8AN) ano 8ank
|oentl|ler Cooe (8|C) o| tbe person tbey
woulo be trans|errlng tbe money to.
Tbe celllng |or payments bene|ltlng |rom
tbls reglme was set at 50,000 euro as o|
[anuary 2006.Tbe Pegulatlon covers pay-
ment caro transactlons ano wltborawals
|rom casb macblnes slnce 1 [uly 2002 ano
creolt trans|ers slnce 1 [uly 2003.
¨Tbls LU actlon bas brougbt real bene|lts
to consumers," stresseo Commlssloner
|or |nternal Market ano Servlces, Cbarlle
McCreevy. "Tbe prlce o| cross-boroer
payments bas reouceo oramatlcally ln
many countrles, but - contrary to wbat
bao been |eareo - tbe prlce o| oomestlc
payments bas not gone up. Tbe banks' re-
actlon bas been very posltlve," be aooeo.
"Tbey bave set up an ambltlous project
to create a Slngle Luro Payments Area
(SLPA) tbat wlll treat all euro payments
as tbougb tbey were oomestlc. 8y uslng
|ully automateo payment systems tbat are
o| lower cost, tbls project bas enormous
potentlal to brlng about buge savlngs ano
we |ully support lt.¨
Cross-boroer banklng
Consumers are now paylng slgnlñcantly less |or cross-boroer
trans|ers ln euro, |ollowlng tbe LU's 2001 Pegulatlon, accoro-
lng to a new report. Ano cbarges |or oomestlc trans|ers
were not negatlvely a||ecteo, as was lnltlally |eareo.
Lvaluatlon o| e||ectlveness
Tbe report ls tbe |lrst step towaros an
evaluatlon o| tbe overall e||ectlveness o|
tbe 2001 Pegulatlon.
|n llne wltb tbe Commlsslon's commlt-
ment to better regulatlon, any |uture
mool|lcatlon o| tbe Pegulatlon woulo be
oetermlneo by tbls |ull revlew, as well as
by tbe Payment Servlces Dlrectlve, wblcb
ls currently be|ore tbe Councll ano Lu-
ropean Parllament |or aooptlon, ano ln-
oustry-leo lnltlatlves to create tbe Slngle
Luropean Payments Area (SLPA).
Cross-boroer euro payments
Lven a|ter tbe |ull lntroouctlon o| tbe
euro, cross-boroer euro payments were
costlng consloerably more tban an equlv-
alent oomestlc payment. Payment sys-
tems were organlseo by banks natlonally
ano tbe ln|rastructures |or cross-boroer
payments were lne||lclent ano slow.
|n oroer to lmprove tbls sltuatlon, tbe LU
lntroouceo rules (ln tbe |orm o| Pegula-
tlon 2560/2001) glvlng consumers a guar- rr
antee tbat wben tbey make a payment ln
euro to an account ln anotber Member
State, lt woulo cost tbe same as lt woulo
to make a payment wltbln tbelr own
Member State.
bttp://ec.europa.eu/lnternal_market/payments/crossboroer/lnoe×_en.btm
4HEREPORTISAVAILABLEAT
To make a low-cost cross-boroer payment ln
euros, consumers neeo only to provloe tbe
|nternatlonal 8ank Account Number (|8AN) ano
8ank |oentl|ler Cooe (8|C) o| tbe reclplent.
N
o
44 [ a nua r y 2007
6
N
o
44 [ a nua r y 2007
7
ln|o
Spotllgbt
Moral persuaslon ano pressure o| possl-
ble |urtber leglslatlon were also quoteo
as use|ul parts o| tbe toolklt to encour- rr
age lnoustry to make progress tbrougb
sel|-regulatlon. As a gooo e×ample o|
tbls, tbe cooperatlon between banks |or
meetlng SLPA requlrements tbrougb sel|-
regulatlon ano tbe work o| tbe Luropean
Payment Councll were clteo.
Flnally many speakers stresseo tbe lm-
portance o| communlcatlon ano ensurlng
tbat ln|ormatlon about major lnltlatlves
(e.g. SLPA) reacbes consumers ano users.
Tbe partlclpatlon o| consumers ln sbap-
lng tbe measures unoer tbe Lam|alussy
process was seen as a weak polnt ano
tbe Commlsslon was askeo to lncrease
|unolng to strengtben consumers' ln-
volvement.
Ln|orcement o| tbe law
Tbe |ocus o| tbe tblro panel was tbe
proper appllcatlon o| Slngle Market rules
ano ways o| provlolng e||ectlve reoress
wbere appllcatlon problems arose. Tbe
olscusslon was cbalreo by Claus-Dleter
Lblermann, WllmerHale.
Tbe panelllsts agreeo tbat tbe Slngle Mar- rr
ket was lnoeeo a great acblevement but
stresseo tbat lt olo not yet |unctlon as
well on tbe grouno as lt coulo.
|t was stresseo tbat tbe Slngle Market leg-
lslatlve |ramework ls mostly ln place (ln
partlcular, glven tbe |lnal stages o| aoop-
tlon o| tbe Servlce Dlrectlve) but tbat tbe
Commlsslon neeos to ensure actlve |ol-
low-up o| leglslatlon, not only tbrougb lts
transposltlon lnto law, but ln partlcular lts
proper lmplementatlon.
As tbe Guarolan o| tbe
Treatles, tbe Commlsslon
was calleo upon to actlvely
take up lts responslbllltles
|or ensurlng tbe appllca-
tlon o| LU law. However, lt
was acknowleogeo tbat tbe
Commlsslon cannot alone
be responslble |or en|orce-
ment ano tbat lt was tlme
|or Member States to take
on a greater responslblllty
|or tbe correct appllca-
tlon o| tbe rules tbey bave
jolntly aoopteo.
Preventlng ano solvlng problems
|t was suggesteo tbat Pegulatlons are
pre|erable to Dlrectlves as a Slngle Mar- rr
ket legal tool, glven tbat tbey are not sub-
ject to lnterpretatlon ano leave less room
|or posslble con|llct. |t was recommenoeo
tbat an |nternal Market Task Force, lnltlal-
ly a Danlsb proposal, be createo ln eacb
Member State. |ts maln objectlve woulo
be to screen e×lstlng natlonal leglslatlon
to |lno out wbetber any rules createo
barrlers to traoe ano to loentl|y tbe na-
ture ano |orce o| tbose barrlers.
Speakers polnteo out tbat tbere were
stlll too many ln|rlngement proceeolngs
wblcb oemonstrateo tbat penaltles were
lnsu||lclent ano not aomlnlstereo qulckly
enougb. DG |nternal Market was calleo
on to better prlorltlse ln|rlngements ano
apply a |ast-track proceoure to tbe prl-
orlty ones. A suggestlon was also maoe
tbat tbe level o| |lnes sboulo contlnue to
lncrease untll tbe number o| ln|rlngement
cases oecreaseo slgnl|lcantly.
Tbere was agreement tbat tbe Commls-
slon neeoeo tbe cooperatlon o| Member
States to prevent 'golo platlng' ano neeo-
eo cooperatlon o| tbe natlonal courts to
lmprove tbe lmplementatlon recoro.
|t was stresseo tbat natlonal juoges
sboulo compare wbetber natlonal law
ls ln compllance wltb Luropean law ano
glve preceoence to tbe latter ano cltl-
zens sboulo be able to rely on natlonal
juoges to properly en|orce tbe LU law. |n
tbat conte×t, gooo tralnlng was seen as
very lmportant ano lt was recommeno-
eo tbat tbe tralnlng o| natlonal juoges
be strengtbeneo at Member State level.
SOLv|T was pralseo as a gooo non-legal
tool |or problem-solvlng but was salo to
be lnsu||lclently promoteo ano unoer-
|unoeo.
Communlcatlon as top prlorlty
Tbe |lnal panel unoer tbe cbalrmansblp
o| [obn Wyles, Senlor Partner ln GPlus
Lurope, took at look at bow tbe Com-
mlsslon's current ln|ormatlon ano com-
munlcatlon pollcy coulo be lmproveo.
Tbe olscusslon ln tbe panel ano lnterven-
tlons |rom tbe auolence sboweo tbat tbe
Commlsslon |aces real communlcatlon
cballenges wbllst reportlng on tbe Slngle
Market, because lt lnvolves selllng a blgb-
ly tecbnlcal toplc to tbe non-speclallseo
meola wbose baslc alm ls to entertaln
tbelr publlc. At tbe moment lt seems tbat
¨Lurope ls a baoly solo proouct¨.
Tbe panelllsts stresseo tbat communlca-
tlon sboulo be seen as a number one prl-
orlty. Tbe Commlsslon was warneo tbat
tbe opponents o| tbe Slngle Market wlll
not |lgbt |alr ano wlll use propaganoa ano
|alse mytbs ano tbere|ore, lt was lmpor- rr
tant to be reaoy wltb a gooo communlca-
tlon strategy backeo up wltb necessary
resources. Tbls sboulo lncluoe provlolng
ln|ormatlon pbraseo ln a clear ano posl-
tlve way ano senolng a coberent message
|rom tbe Commlsslon. Some speakers
also stresseo tbat tbe Commlsslon Pep-
resentatlons ln Member States sboulo
be more lnvolveo ln brlnglng Luropean
pollcy closer to tbe general publlc.
Tbe results o| tbe Publlc Hearlng ano tbe
consultatlon wlll |eeo lnto a report to
be publlsbeo by tbe Commlsslon on tbe
Slngle Market |or tbe 21st century ln tbe
course o| 2007.
.
ln|o bttp://ec.europa.eu/lnternal_market/strategy/lnoe×_en.btm=bearlng
ln|o
Tom Dloerlcb
TLL: +32 (0)2.296 17 59
FAX: +32 (0)2.295 76 13
Markt-81@ec.europa.eu
Tbe retall |lnanclal servlces sector was useo as a case stuoy
to olscuss wblcb tools apart |rom regulatlon coulo be
applleo ln otber areas.
Cross-boroer euro payments
now slgnl|lcantly cbeaper

T
be Commlsslon bas unoertaken a
stuoy to evaluate wbetber ano bow
tbe LU Pegulatlon on cross-boroer euro
payments, wblcb was aoopteo ln 2001,
bas a||ecteo bank cbarges |or natlonal
payments.
Tbe report sbows tbat a 100 euro cross-
boroer trans|er, wblcb woulo bave cost
on average 24 euro be|ore tbe rules
were lntroouceo, now costs on average
just 2.50 euro. Tbe stuoy |ouno tbat tbe
rules bave also provloeo banks wltb an ln-
centlve to oevelop ano lnvest more ln an
LU-wloe payments ln|rastructure, wblcb
ln tbe longer term sboulo belp to reouce
costs |or all consumers.
To make tbe payment consumers neeo
only to provloe tbe |nternatlonal 8ank
Account Number (|8AN) ano 8ank
|oentl|ler Cooe (8|C) o| tbe person tbey
woulo be trans|errlng tbe money to.
Tbe celllng |or payments bene|ltlng |rom
tbls reglme was set at 50,000 euro as o|
[anuary 2006.Tbe Pegulatlon covers pay-
ment caro transactlons ano wltborawals
|rom casb macblnes slnce 1 [uly 2002 ano
creolt trans|ers slnce 1 [uly 2003.
¨Tbls LU actlon bas brougbt real bene|lts
to consumers," stresseo Commlssloner
|or |nternal Market ano Servlces, Cbarlle
McCreevy. "Tbe prlce o| cross-boroer
payments bas reouceo oramatlcally ln
many countrles, but - contrary to wbat
bao been |eareo - tbe prlce o| oomestlc
payments bas not gone up. Tbe banks' re-
actlon bas been very posltlve," be aooeo.
"Tbey bave set up an ambltlous project
to create a Slngle Luro Payments Area
(SLPA) tbat wlll treat all euro payments
as tbougb tbey were oomestlc. 8y uslng
|ully automateo payment systems tbat are
o| lower cost, tbls project bas enormous
potentlal to brlng about buge savlngs ano
we |ully support lt.¨
Cross-boroer banklng
Consumers are now paylng slgnlñcantly less |or cross-boroer
trans|ers ln euro, |ollowlng tbe LU's 2001 Pegulatlon, accoro-
lng to a new report. Ano cbarges |or oomestlc trans|ers
were not negatlvely a||ecteo, as was lnltlally |eareo.
Lvaluatlon o| e||ectlveness
Tbe report ls tbe |lrst step towaros an
evaluatlon o| tbe overall e||ectlveness o|
tbe 2001 Pegulatlon.
|n llne wltb tbe Commlsslon's commlt-
ment to better regulatlon, any |uture
mool|lcatlon o| tbe Pegulatlon woulo be
oetermlneo by tbls |ull revlew, as well as
by tbe Payment Servlces Dlrectlve, wblcb
ls currently be|ore tbe Councll ano Lu-
ropean Parllament |or aooptlon, ano ln-
oustry-leo lnltlatlves to create tbe Slngle
Luropean Payments Area (SLPA).
Cross-boroer euro payments
Lven a|ter tbe |ull lntroouctlon o| tbe
euro, cross-boroer euro payments were
costlng consloerably more tban an equlv-
alent oomestlc payment. Payment sys-
tems were organlseo by banks natlonally
ano tbe ln|rastructures |or cross-boroer
payments were lne||lclent ano slow.
|n oroer to lmprove tbls sltuatlon, tbe LU
lntroouceo rules (ln tbe |orm o| Pegula-
tlon 2560/2001) glvlng consumers a guar- rr
antee tbat wben tbey make a payment ln
euro to an account ln anotber Member
State, lt woulo cost tbe same as lt woulo
to make a payment wltbln tbelr own
Member State.
bttp://ec.europa.eu/lnternal_market/payments/crossboroer/lnoe×_en.btm
4HEREPORTISAVAILABLEAT
To make a low-cost cross-boroer payment ln
euros, consumers neeo only to provloe tbe
|nternatlonal 8ank Account Number (|8AN) ano
8ank |oentl|ler Cooe (8|C) o| tbe reclplent.
N
o
44 [ a nua r y 2007
8
N
o
44 [ a nua r y 2007
9
operate ano asslst eacb otber to ensure
tbat buslnesses are properly ano e||lclent-
ly supervlseo across tbe Luropean Unlon,
wblle avololng oupllcatlon o| controls.
To put tbls mecbanlsm ln place, Member
States ano tbe Commlsslon wlll rely upon
a specl|lc electronlc system |or tbe e×-
cbange o| ln|ormatlon, tbe |nternal Mar- rr
ket |n|ormatlon System (|M|).
Over tbe comlng years, tbe Commlsslon's
maln objectlve ln tbls area wlll be to en-
sure early, coberent ano e||ectlve lmple-
mentatlon o| tbe Dlrectlve. Tbe Servlces
Dlrectlve ls not just a llst o| legal provl-
slons wblcb slmply neeo to be re|lecteo
by Member States ln natlonal leglslatlon,
lt also represents a oynamlc process o|
slmpll|lcatlon, screenlng ano mooernlsa-
tlon o| natlonal requlrements ano proce-
oures appllcable to servlce provloers. Tbe
lmplementatlon pbase wlll be a comple×
ano cballenglng task botb |or Member
States ano tbe Commlsslon. A common
approacb ls requlreo, ano tbe Com-
mlsslon consequently lntenos to work
closely wltb Member States ano provloe
guloance tbrougbout tbe lmplementatlon
perloo.
Wltb success|ul lmplemen-
tatlon o| tbe Servlces Dl-
rectlve a real ol||erence ln
tbe LU's economy wlll be
|elt over tbe comlng years.

* Dlrectlve 2006/123/LC on servlces ln tbe lnternal market
publlsbeo ln tbe O[ L 376 o| 27.12.2006
ln|o bttp://ec.europa.eu/lnternal_market/servlces/servlces-olr/lnoe×_en.btm
Servlces
gambllng, auolovlsual servlces, bealtb
servlces, temporary work agencles, prl-
vate securlty servlces, tbe servlces o| no-
tarles ano balll||s ano certaln soclal serv-
lces. Neeoless to say tbat |or tbe sectors
wblcb are e×cluoeo, tbe LC Treaty ano
tbe |unoamental |reeooms ln partlcular
stlll apply.
Mooernlsatlon o| autborlsatlon
ano llcenslng reglmes
Tbe Servlces Dlrectlve requlres Mem-
ber States to unoertake a process o|
aomlnlstratlve slmpll|lcatlon wblcb wlll
|acllltate tbe |reeoom o| establlsbment
ano tbe creatlon o| new buslness. Tbls
ls seen as cruclal |or |osterlng entrepre-
neursblp ano |or promotlng growtb ano
jobs. As a result o| tbe Dlrectlve, servlce
provloers can be con|loent tbat tbey are
oeallng wltb justl|leo, |alr ano transpar- rr
ent autborlsatlon reglmes ano swl|t ano
slmple proceoures. Tbey wlll be able to
obtaln ln|ormatlon ano to complete ao-
mlnlstratlve |ormalltles tbrougb polnts o|
slngle contact ln any Member State ano,
ln aooltlon, ln electronlc |orm. Moreover,
Member States wlll bave to carry out a
screenlng process o| natlonal autborlsa-
tlon proceoures ano otber requlrements.
Tbls process wlll slmpll|y, accelerate ano
reouce tbe cost o| settlng up a new busl-
ness ano wlll oo away wltb unjustl|leo ano
obsolete requlrements.
Facllltatlng tbe provlslon o|
servlces across boroers.
Member States are obllgeo to en-
sure |ree access to, ano |ree e×-
erclse o|, a servlce actlvlty wltbln
tbelr terrltory. Tbey wlll be able
to apply tbelr own requlrements
to lncomlng servlces only to tbe
e×tent tbat tbese requlrements
are non-olscrlmlnatory ano pro-
portlonate ano only l| tbey are
necessary |or reasons relatlng to publlc
pollcy ('orore publlque'), publlc securlty,
publlc bealtb ano tbe protectlon o| tbe
envlronment.
Tbls provlslon alms to strlke a |alr bal-
ance between guaranteelng tbat servlce
provloers can e||ectlvely provloe servlces
across boroers ano tbus truly bene|lt
|rom tbe |reeoom to provloe servlces,
wbllst not blnoerlng Member States' abll-
lty to lnvoke ÷ ln certaln clearly-oe|lneo
clrcumstances ÷ tbelr most essentlal re-
qulrements. To lmplement tbls provlslon,
a screenlng process o| natlonal requlre-
ments bas been establlsbeo.
Plgbts o| reclplents wlll
be better protecteo.
Tbe Dlrectlve lntroouces an obllgatlon o|
non-olscrlmlnatlon on grounos o| natlon-
allty or place o| resloence o| tbe custom-
er, to be respecteo by natlonal autborltles
ano by prlvate operators. Llkewlse, cus-
tomers wlll be better ln|ormeo by pro-
vloers ano better asslsteo by autborltles.
Tbe Dlrectlve provloes a |ramework |or
tbe oevelopment by stakeboloers o| vol-
untary measures, sucb as Luropean cooes
o| conouct, stanoaros, quallty labels or
certl|lcatlon.
Lstabllsblng e||ectlve
aomlnlstratlve cooperatlon
|mportantly, tbe Dlrectlve ls unoerplnneo
by obllgatlons on Member States to co-
ln|o
Marla Martln-Prat
TLL: +32 (0)2.296 51 57
FAX: +32 (0)2.296 77 12
Markt-L1@ec.europa.eu
Tbe lmplementatlon pbase wlll be a
comple× ano cballenglng task botb |or
Member States ano |or tbe Commlsslon.
Green llgbt |or tbe Servlces
Dlrectlve - a cballenglng roao
lles abeao
A
|ter almost tbree years o| negotla-
tlon, tbe Servlces Dlrectlve* was
|lnally aoopteo on 12 December
2006 by tbe Luropean Parllament ano tbe
Councll. Tbe negotlatlons bave been long
ano ol||lcult ano, altbougb some o| tbe el-
ements o| tbe lnltlal proposal (notably ln
terms o| lts scope o| appllcatlon) bave
been abanooneo, tbe outcome ls gener- rr
ally regaroeo as well-balanceo wltb tbe
potentlal to generate real aooeo value |or
tbe |nternal Market |or servlces.
8oost |or LU economy
Tbe Servlces Dlrectlve ls one o| tbe most
lmportant Luropean-level contrlbutlons
to tbe Llsbon Strategy ano tbus an essen-
tlal element ln tbe Commlsslon's e||orts
to boost tbe Luropean economy ano un-
leasb tbe potentlal o| tbe |nternal Market
|or servlces. Moreover, lt ls to be seen
unoer tbe |ramework o| tbe ¨8etter Peg-
ulatlon¨ strategy, ln partlcular regarolng
tbe reouctlon o| aomlnlstratlve buroens.
Servlces
Tbe maln alm o| tbe Dlrectlve
ls to acbleve a genulne |nternal
Market ln servlces by remov-
lng legal ano aomlnlstratlve
barrlers to tbe oevelopment
o| servlce actlvltles ano tbus
|acllltatlng tbe |reeoom o| establlsbment
ano tbe |reeoom to provloe cross-boroer
servlces. |t wlll be supporteo by legally-
blnolng obllgatlons |or e||ectlve aomln-
lstratlve co-operatlon between Member
States.
Lqually, tbe Dlrectlve alms at strengtben-
lng tbe rlgbts o| consumers as users o|
servlces, lntroouclng a general non-ols-
crlmlnatlon clause ano ln|ormatlon rlgbts.
Tbe te×t aoopteo wlll provloe real aooeo
value to tbe |nternal Market ln terms o|
cuttlng reo tape, removlng barrlers ano
lmprovlng legal certalnty |or buslness ano
consumers. 8uslness wlll be able to set
up ano to o||er servlces |ree |rom unnec-
essary aomlnlstratlve buroens. Custom-
ers wlll enjoy more cbolce ano greater
competltlon.
Scope o| appllcatlon
Tbe Dlrectlve |ollows a 'borlzontal' ap-
proacb ano covers servlces provloeo as an
economlc actlvlty, as oe|lneo by tbe Luro-
pean Court o| [ustlce, botb to consumers
ano/or buslnesses. |t covers a wloe varle-
ty o| actlvltles lncluolng buslness servlces,
sucb as management consultancy, certl|l-
catlon ano testlng, |acllltles management,
lncluolng o||lce malntenance, aovertlslng,
recrultment servlces ano tbe servlces o|
commerclal agents.
Also covereo are servlces provloeo botb
to buslnesses ano to consumers sucb as
legal or |lscal aovlce, real estate servlces
sucb as estate agencles, constructlon,
lncluolng tbe servlces o| arcbltects, ols-
trlbutlve traoes, tbe organlsatlon o| traoe
|alrs, car rental ano travel agencles.
Tbe Dlrectlve also caters |or servlces
provloeo to consumers, sucb as tbose
ln tbe |lelo o| tourlsm, lncluolng tour
guloes, lelsure servlces, sports centres
ano amusement parks ano, to tbe e×tent
tbat tbey are not e×pressly e×cluoeo
|rom tbe scope o| appllcatlon o| tbe
Dlrectlve, bousebolo support servlces
sucb as belp |or tbe eloerly. Tbose actlvl-
tles may lnvolve servlces requlrlng close
pro×lmlty o| provloers ano reclplent,
servlces requlrlng travel by tbe reclplent
or tbe provloer, ano servlces wblcb may
be provloeo at a olstance, lncluolng vla
tbe |nternet.
Tbe Dlrectlve ooes not cover |lnanclal
servlces, transport, matters covereo by
tbe 2002 telecommunlcatlons package,
Tbe Servlces Dlrectlve wblcb alms to remove obstacles to
provlolng cross-boroer servlces was aoopteo ln December
by tbe Luropean Parllament ano tbe Councll. Tbe |lnal te×t
aoopteo by Parllament sets out to acbleve a balance between
a |unctlonlng |nternal Market |or servlces ano tbe protectlon o|
general lnterest objectlves. Member States bave a ma×lmum o|
tbree years to lmplement tbe provlslons o| tbe Dlrectlve wblcb
sboulo bave a blgbly bene|lclal lmpact on tbe LU economy.

LU Member States wlll no longer
be able to lntroouce e×tra requlre-
ments |or |orelgn buslnesses or sel|-
employeo servlce provloers, sucb as
computer e×perts, electrlclans or
consultants.
N
o
44 [ a nua r y 2007
8
N
o
44 [ a nua r y 2007
9
operate ano asslst eacb otber to ensure
tbat buslnesses are properly ano e||lclent-
ly supervlseo across tbe Luropean Unlon,
wblle avololng oupllcatlon o| controls.
To put tbls mecbanlsm ln place, Member
States ano tbe Commlsslon wlll rely upon
a specl|lc electronlc system |or tbe e×-
cbange o| ln|ormatlon, tbe |nternal Mar- rr
ket |n|ormatlon System (|M|).
Over tbe comlng years, tbe Commlsslon's
maln objectlve ln tbls area wlll be to en-
sure early, coberent ano e||ectlve lmple-
mentatlon o| tbe Dlrectlve. Tbe Servlces
Dlrectlve ls not just a llst o| legal provl-
slons wblcb slmply neeo to be re|lecteo
by Member States ln natlonal leglslatlon,
lt also represents a oynamlc process o|
slmpll|lcatlon, screenlng ano mooernlsa-
tlon o| natlonal requlrements ano proce-
oures appllcable to servlce provloers. Tbe
lmplementatlon pbase wlll be a comple×
ano cballenglng task botb |or Member
States ano tbe Commlsslon. A common
approacb ls requlreo, ano tbe Com-
mlsslon consequently lntenos to work
closely wltb Member States ano provloe
guloance tbrougbout tbe lmplementatlon
perloo.
Wltb success|ul lmplemen-
tatlon o| tbe Servlces Dl-
rectlve a real ol||erence ln
tbe LU's economy wlll be
|elt over tbe comlng years.

* Dlrectlve 2006/123/LC on servlces ln tbe lnternal market
publlsbeo ln tbe O[ L 376 o| 27.12.2006
ln|o bttp://ec.europa.eu/lnternal_market/servlces/servlces-olr/lnoe×_en.btm
Servlces
gambllng, auolovlsual servlces, bealtb
servlces, temporary work agencles, prl-
vate securlty servlces, tbe servlces o| no-
tarles ano balll||s ano certaln soclal serv-
lces. Neeoless to say tbat |or tbe sectors
wblcb are e×cluoeo, tbe LC Treaty ano
tbe |unoamental |reeooms ln partlcular
stlll apply.
Mooernlsatlon o| autborlsatlon
ano llcenslng reglmes
Tbe Servlces Dlrectlve requlres Mem-
ber States to unoertake a process o|
aomlnlstratlve slmpll|lcatlon wblcb wlll
|acllltate tbe |reeoom o| establlsbment
ano tbe creatlon o| new buslness. Tbls
ls seen as cruclal |or |osterlng entrepre-
neursblp ano |or promotlng growtb ano
jobs. As a result o| tbe Dlrectlve, servlce
provloers can be con|loent tbat tbey are
oeallng wltb justl|leo, |alr ano transpar- rr
ent autborlsatlon reglmes ano swl|t ano
slmple proceoures. Tbey wlll be able to
obtaln ln|ormatlon ano to complete ao-
mlnlstratlve |ormalltles tbrougb polnts o|
slngle contact ln any Member State ano,
ln aooltlon, ln electronlc |orm. Moreover,
Member States wlll bave to carry out a
screenlng process o| natlonal autborlsa-
tlon proceoures ano otber requlrements.
Tbls process wlll slmpll|y, accelerate ano
reouce tbe cost o| settlng up a new busl-
ness ano wlll oo away wltb unjustl|leo ano
obsolete requlrements.
Facllltatlng tbe provlslon o|
servlces across boroers.
Member States are obllgeo to en-
sure |ree access to, ano |ree e×-
erclse o|, a servlce actlvlty wltbln
tbelr terrltory. Tbey wlll be able
to apply tbelr own requlrements
to lncomlng servlces only to tbe
e×tent tbat tbese requlrements
are non-olscrlmlnatory ano pro-
portlonate ano only l| tbey are
necessary |or reasons relatlng to publlc
pollcy ('orore publlque'), publlc securlty,
publlc bealtb ano tbe protectlon o| tbe
envlronment.
Tbls provlslon alms to strlke a |alr bal-
ance between guaranteelng tbat servlce
provloers can e||ectlvely provloe servlces
across boroers ano tbus truly bene|lt
|rom tbe |reeoom to provloe servlces,
wbllst not blnoerlng Member States' abll-
lty to lnvoke ÷ ln certaln clearly-oe|lneo
clrcumstances ÷ tbelr most essentlal re-
qulrements. To lmplement tbls provlslon,
a screenlng process o| natlonal requlre-
ments bas been establlsbeo.
Plgbts o| reclplents wlll
be better protecteo.
Tbe Dlrectlve lntroouces an obllgatlon o|
non-olscrlmlnatlon on grounos o| natlon-
allty or place o| resloence o| tbe custom-
er, to be respecteo by natlonal autborltles
ano by prlvate operators. Llkewlse, cus-
tomers wlll be better ln|ormeo by pro-
vloers ano better asslsteo by autborltles.
Tbe Dlrectlve provloes a |ramework |or
tbe oevelopment by stakeboloers o| vol-
untary measures, sucb as Luropean cooes
o| conouct, stanoaros, quallty labels or
certl|lcatlon.
Lstabllsblng e||ectlve
aomlnlstratlve cooperatlon
|mportantly, tbe Dlrectlve ls unoerplnneo
by obllgatlons on Member States to co-
ln|o
Marla Martln-Prat
TLL: +32 (0)2.296 51 57
FAX: +32 (0)2.296 77 12
Markt-L1@ec.europa.eu
Tbe lmplementatlon pbase wlll be a
comple× ano cballenglng task botb |or
Member States ano |or tbe Commlsslon.
Green llgbt |or tbe Servlces
Dlrectlve - a cballenglng roao
lles abeao
A
|ter almost tbree years o| negotla-
tlon, tbe Servlces Dlrectlve* was
|lnally aoopteo on 12 December
2006 by tbe Luropean Parllament ano tbe
Councll. Tbe negotlatlons bave been long
ano ol||lcult ano, altbougb some o| tbe el-
ements o| tbe lnltlal proposal (notably ln
terms o| lts scope o| appllcatlon) bave
been abanooneo, tbe outcome ls gener- rr
ally regaroeo as well-balanceo wltb tbe
potentlal to generate real aooeo value |or
tbe |nternal Market |or servlces.
8oost |or LU economy
Tbe Servlces Dlrectlve ls one o| tbe most
lmportant Luropean-level contrlbutlons
to tbe Llsbon Strategy ano tbus an essen-
tlal element ln tbe Commlsslon's e||orts
to boost tbe Luropean economy ano un-
leasb tbe potentlal o| tbe |nternal Market
|or servlces. Moreover, lt ls to be seen
unoer tbe |ramework o| tbe ¨8etter Peg-
ulatlon¨ strategy, ln partlcular regarolng
tbe reouctlon o| aomlnlstratlve buroens.
Servlces
Tbe maln alm o| tbe Dlrectlve
ls to acbleve a genulne |nternal
Market ln servlces by remov-
lng legal ano aomlnlstratlve
barrlers to tbe oevelopment
o| servlce actlvltles ano tbus
|acllltatlng tbe |reeoom o| establlsbment
ano tbe |reeoom to provloe cross-boroer
servlces. |t wlll be supporteo by legally-
blnolng obllgatlons |or e||ectlve aomln-
lstratlve co-operatlon between Member
States.
Lqually, tbe Dlrectlve alms at strengtben-
lng tbe rlgbts o| consumers as users o|
servlces, lntroouclng a general non-ols-
crlmlnatlon clause ano ln|ormatlon rlgbts.
Tbe te×t aoopteo wlll provloe real aooeo
value to tbe |nternal Market ln terms o|
cuttlng reo tape, removlng barrlers ano
lmprovlng legal certalnty |or buslness ano
consumers. 8uslness wlll be able to set
up ano to o||er servlces |ree |rom unnec-
essary aomlnlstratlve buroens. Custom-
ers wlll enjoy more cbolce ano greater
competltlon.
Scope o| appllcatlon
Tbe Dlrectlve |ollows a 'borlzontal' ap-
proacb ano covers servlces provloeo as an
economlc actlvlty, as oe|lneo by tbe Luro-
pean Court o| [ustlce, botb to consumers
ano/or buslnesses. |t covers a wloe varle-
ty o| actlvltles lncluolng buslness servlces,
sucb as management consultancy, certl|l-
catlon ano testlng, |acllltles management,
lncluolng o||lce malntenance, aovertlslng,
recrultment servlces ano tbe servlces o|
commerclal agents.
Also covereo are servlces provloeo botb
to buslnesses ano to consumers sucb as
legal or |lscal aovlce, real estate servlces
sucb as estate agencles, constructlon,
lncluolng tbe servlces o| arcbltects, ols-
trlbutlve traoes, tbe organlsatlon o| traoe
|alrs, car rental ano travel agencles.
Tbe Dlrectlve also caters |or servlces
provloeo to consumers, sucb as tbose
ln tbe |lelo o| tourlsm, lncluolng tour
guloes, lelsure servlces, sports centres
ano amusement parks ano, to tbe e×tent
tbat tbey are not e×pressly e×cluoeo
|rom tbe scope o| appllcatlon o| tbe
Dlrectlve, bousebolo support servlces
sucb as belp |or tbe eloerly. Tbose actlvl-
tles may lnvolve servlces requlrlng close
pro×lmlty o| provloers ano reclplent,
servlces requlrlng travel by tbe reclplent
or tbe provloer, ano servlces wblcb may
be provloeo at a olstance, lncluolng vla
tbe |nternet.
Tbe Dlrectlve ooes not cover |lnanclal
servlces, transport, matters covereo by
tbe 2002 telecommunlcatlons package,
Tbe Servlces Dlrectlve wblcb alms to remove obstacles to
provlolng cross-boroer servlces was aoopteo ln December
by tbe Luropean Parllament ano tbe Councll. Tbe |lnal te×t
aoopteo by Parllament sets out to acbleve a balance between
a |unctlonlng |nternal Market |or servlces ano tbe protectlon o|
general lnterest objectlves. Member States bave a ma×lmum o|
tbree years to lmplement tbe provlslons o| tbe Dlrectlve wblcb
sboulo bave a blgbly bene|lclal lmpact on tbe LU economy.

LU Member States wlll no longer
be able to lntroouce e×tra requlre-
ments |or |orelgn buslnesses or sel|-
employeo servlce provloers, sucb as
computer e×perts, electrlclans or
consultants.
N
o
44 [ a nua r y 2007
10
Publlc procurement
ln|o bttp://ec.europa.eu/lnternal_market/publlcprocurement/opp_en.btm
Publlc procurement: new
Commlsslon guloellnes on
D
e|ence procurement accounts
|or a large sbare o| publlc pro-
curement ln tbe LU. Tbe oe-
|ence buogets o| tbe Member States are
togetber wortb about 170 bllllon euro,
wblcb lncluoes more tban 80 bllllon euro
|or procurement ln general ano 30 bllllon
euro |or tbe acqulsltlon o| new equlp-
ment ln partlcular.
Member States e×empt DEFACTO tbe ma-
jorlty o| oe|ence contracts |rom LU rules
wblcb are lnsteao awaroeo on tbe basls
o| natlonal procurement rules, wblcb ol|- ||
|er wloely tbrougbout tbe LU. Tbls can
potentlally llmlt market access |or non-
natlonal suppllers tbereby creatlng e×tra
costs ano lne||lclencles tbat coulo bave a
negatlve lmpact on tbe competltlveness
o| Lurope's oe|ence lnoustry.
Tbe Commlsslon bas orawn up |or Mem-
ber States guloellnes on wben oe|ence
contracts can legltlmately be e×empt
|rom LU rules requlrlng competltlve blo-
olng. Tbe Commlsslon sees tbese guloe-
llnes, wblcb are set out ln an '|nterpreta-
tlve Communlcatlon', as a necessary |lrst
step towaros greater competltlveness,
openness ano e||lclency ln LU oe|ence
markets.
Tbe Commlsslon sees tbese guloellnes,
wblcb are set out ln an '|nterpretatlve
Communlcatlon', as a necessary |lrst
step towaros greater competltlveness,
openness ano e||lclency ln LU oe|ence
markets.
|n aooltlon, tbe Commlsslon ls currently
assesslng tbe lmpact o| a posslble new
Dlrectlve tbat woulo o||er new, more
|le×lble rules aooresslng tbe specl|lc |ea-
tures o| oe|ence procurement. Tbese lnl-
tlatlves were |lrst outllneo ln December
2005 ano are baseo on responses to a
Green Paper on bow to open oe|ence
procurement to greater transparency
ano e||lclency.
Green paper
Artlcle 296 o| tbe LC Treaty glves Mem-
ber States tbe posslblllty to oerogate
|rom |nternal Market rules on publlc
procurement wben tbls ls necessary |or
tbe protectlon o| tbelr 'essentlal securlty
lnterests'. Accorolng to tbe Green Paper
consultatlon o| 2004/05, Member States
use tbe e×emptlon e×tenslvely malnly
because tbe |lelo o| appllcatlon ano tbe
conoltlons |or tbe use o| Artlcle 296 are
not clearly oe|lneo.
|n aooltlon, current LU publlc procure-
ment rules are consloereo lll-sulteo to
many oe|ence contracts, slnce tbey oo
not take lnto account some speclal |ea-
tures o| tbose contracts.
As a result, many Member States are re-
luctant to use tbe LU rules |or oe|ence
procurement even l| tbe conoltlons |or
tbe appllcatlon o| Artlcle 296 are not
met. A new Dlrectlve aoapteo to tbe
specl|lcltles o| tbe oe|ence sector coulo
solve tbls problem ano make lt easler |or
Member States to use tbe e×emptlon un-
oer Artlcle 296 ln a restrlctlve way.
Tbe |nterpretatlve Communlcatlon sets
out to oeal wltb tbls problem ano to
prevent posslble mlslnterpretatlon ano
mlsuse o| tbe Artlcle 296 e×emptlon ln
tbe |lelo o| oe|ence procurement. |n par- rr
tlcular, lt e×plalns tbe prlnclples o| tbe e×-
emptlon, ano clarl|les tbe conoltlons |or
lts use ln tbe llgbt o| Luropean Court o|
[ustlce case law.
|nternal Market ano Servlces Commls-
sloner Cbarlle McCreevy commenteo:
¨Tbese guloellnes sboulo lmprove tbe way
current LU law on oe|ence procurement
ls applleo. Tbe ne×t step ls to propose
new leglslatlon tbat wlll lncrease com-
petltlon, oellver better value |or money
to ta×payers ln oe|ence procurement,
ano glve tbe Luropean oe|ence lnoustry
a mucb-neeoeo boost.¨
Tbe Commlsslon bas lssueo guloellnes on bow to apply LU law
ln tbe |lelo o| oe|ence procurement. Tbls ls a |lrst step ln a proc-
ess o| creatlng greater competltlveness, openness ano e||lclency
ln LU oe|ence markets ano a move towaros tbe creatlon o| a
Luropean De|ence Lqulpment Market.

S p e c l a l
F e a t u r e
LU learnt tbat to lts cost over tbe US Sarbanes O×ley Act
on corporate governance, wblcb tbe US aoopteo ln tbe
wake o| tbe Lnron scanoal.
At tbe same tlme, supervlsory ano en|orcement processes
are becomlng lncreaslngly ol||lcult to manage at natlonal
or even Luropean level botb ln terms o| comple×lty ano
e||lclency ln vlew o| tbe lncreaslngly global operatlon o|
buslness. Pegulators ano supervlsors tbus neeo to be
mucb more outwaro-looklng tban ln tbe past.
LU can take tbe leao
Tbese steaolly evolvlng scenarlos renoer lt lmperatlve tbat
tbe Commlsslon, governments ano regulators take an ln-
tegrateo, coberent approacb to tooay's cballenges, maklng
sure tbat rules ano systems |unctlon e||ectlvely, at bome
ano ln tbe global buslness conte×t. |noeeo tbe LU can play
a leaolng role ln tbls conte×t, gulolng oevelopments at tbe
lnternatlonal level ano sbarlng best practlces, globally ano
wltb llke-mlnoeo countrles, ln llne wltb LU law. 8ecause
o| lts long ano oeep e×pe
rlence o| oeallng wltb o
|erlng regulatory system
tbe LU mlgbt even bave
'comparatlve aovantage'
tbe new worlo o| glob
regulatlon.
Tbls ls also acknowleogeo ln tbe Commlsslon's recent
Communlcatlon on 'Global Lurope: competlng ln tbe
worlo' wblcb aooresses tbe e×ternal aspects o| Lurope's
competltlveness ln tbe llgbt o| tbe global economy. Tbe
Communlcatlon puts a strong |ocus on regulatory lssues,
notably tbrougb announclng tbe negotlatlon o| a new
generatlon o| Free Traoe Agreements (FTAs) wltb oeeper
regulatory commltments.
Tbese negotlatlons ÷ on traoe ano lnvestment, lntellectual
property or on |lnanclal markets ÷ are lmportant ln oroer
[ a nua r y 200 7
Over tbe past years, a serles o| regulatory olalogues
bas been oevelopeo by tbe Commlsslon wltb tbe LU's
maln traolng partners - notably tbe Unlteo States, [apan,
Cblna, |nola ano Pussla. |noeeo, lnternatlonal regulatory
olalogues bave also become an essentlal plank ln tbe rela-
tlonsblp wblcb DG |nternal Market ano Servlces bas wltb
otber tblro countrles. Ano tbese olalogues are steaolly
growlng ln lmportance.
Pegulatory relatlons wltb tbese countrles generally |ocus
on |lnanclal markets lssues. Tbe most oevelopeo olalogue
ln tbls conte×t ls tbe LU-US ln|ormal Flnanclal Markets
Pegulatory Dlalogue. Promlslng regulatory contacts also
e×lst oeallng wltb government procurement ano wltb
lntellectual ano lnoustrlal property wltb several o| tbese
countrles.
8ounoarles become blurreo
|n tooay's worlo, buslness bas
gone global ano markets bave
mergeo. As a consequence,
regulatory ano supervlsory
lssues bave galneo slgnl|l-
cantly ln lmportance ln lnter- rr
natlonal economlc relatlons.
Tbls ls partlcularly tbe case ln
tbe transatlantlc relatlonsblp,
but lt ls also true wltb respect
to otber tblro countrles. Tbe
|lnanclal servlces lnoustry ls a
gooo e×ample: new moves towaros global markets can be
wltnesseo almost oally.
Tbe oramatlc cbanges ln global economlc relatlons bave
blurreo olstlnctlons between 'lnternal' ano 'e×ternal' poll-
cles ano regulatlon. For lnstance, any new rules |or |lnan-
clal markets or corporate governance ln tbe LU or tbe US
bave lmmeolate ano lnevltable repercusslons on tbe otber
sloe o| tbe Atlantlc ano on otber parts o| tbe worlo. Tbe
11
"Pegulators ano supervlsors
neeo to be mucb more out-
waro-looklng tban ln tbe past."
oe|ence contract tenoers
N
o
44 [ a nua r y 2007
10
Publlc procurement
ln|o bttp://ec.europa.eu/lnternal_market/publlcprocurement/opp_en.btm
Publlc procurement: new
Commlsslon guloellnes on
D
e|ence procurement accounts
|or a large sbare o| publlc pro-
curement ln tbe LU. Tbe oe-
|ence buogets o| tbe Member States are
togetber wortb about 170 bllllon euro,
wblcb lncluoes more tban 80 bllllon euro
|or procurement ln general ano 30 bllllon
euro |or tbe acqulsltlon o| new equlp-
ment ln partlcular.
Member States e×empt DEFACTO tbe ma-
jorlty o| oe|ence contracts |rom LU rules
wblcb are lnsteao awaroeo on tbe basls
o| natlonal procurement rules, wblcb ol|- ||
|er wloely tbrougbout tbe LU. Tbls can
potentlally llmlt market access |or non-
natlonal suppllers tbereby creatlng e×tra
costs ano lne||lclencles tbat coulo bave a
negatlve lmpact on tbe competltlveness
o| Lurope's oe|ence lnoustry.
Tbe Commlsslon bas orawn up |or Mem-
ber States guloellnes on wben oe|ence
contracts can legltlmately be e×empt
|rom LU rules requlrlng competltlve blo-
olng. Tbe Commlsslon sees tbese guloe-
llnes, wblcb are set out ln an '|nterpreta-
tlve Communlcatlon', as a necessary |lrst
step towaros greater competltlveness,
openness ano e||lclency ln LU oe|ence
markets.
Tbe Commlsslon sees tbese guloellnes,
wblcb are set out ln an '|nterpretatlve
Communlcatlon', as a necessary |lrst
step towaros greater competltlveness,
openness ano e||lclency ln LU oe|ence
markets.
|n aooltlon, tbe Commlsslon ls currently
assesslng tbe lmpact o| a posslble new
Dlrectlve tbat woulo o||er new, more
|le×lble rules aooresslng tbe specl|lc |ea-
tures o| oe|ence procurement. Tbese lnl-
tlatlves were |lrst outllneo ln December
2005 ano are baseo on responses to a
Green Paper on bow to open oe|ence
procurement to greater transparency
ano e||lclency.
Green paper
Artlcle 296 o| tbe LC Treaty glves Mem-
ber States tbe posslblllty to oerogate
|rom |nternal Market rules on publlc
procurement wben tbls ls necessary |or
tbe protectlon o| tbelr 'essentlal securlty
lnterests'. Accorolng to tbe Green Paper
consultatlon o| 2004/05, Member States
use tbe e×emptlon e×tenslvely malnly
because tbe |lelo o| appllcatlon ano tbe
conoltlons |or tbe use o| Artlcle 296 are
not clearly oe|lneo.
|n aooltlon, current LU publlc procure-
ment rules are consloereo lll-sulteo to
many oe|ence contracts, slnce tbey oo
not take lnto account some speclal |ea-
tures o| tbose contracts.
As a result, many Member States are re-
luctant to use tbe LU rules |or oe|ence
procurement even l| tbe conoltlons |or
tbe appllcatlon o| Artlcle 296 are not
met. A new Dlrectlve aoapteo to tbe
specl|lcltles o| tbe oe|ence sector coulo
solve tbls problem ano make lt easler |or
Member States to use tbe e×emptlon un-
oer Artlcle 296 ln a restrlctlve way.
Tbe |nterpretatlve Communlcatlon sets
out to oeal wltb tbls problem ano to
prevent posslble mlslnterpretatlon ano
mlsuse o| tbe Artlcle 296 e×emptlon ln
tbe |lelo o| oe|ence procurement. |n par- rr
tlcular, lt e×plalns tbe prlnclples o| tbe e×-
emptlon, ano clarl|les tbe conoltlons |or
lts use ln tbe llgbt o| Luropean Court o|
[ustlce case law.
|nternal Market ano Servlces Commls-
sloner Cbarlle McCreevy commenteo:
¨Tbese guloellnes sboulo lmprove tbe way
current LU law on oe|ence procurement
ls applleo. Tbe ne×t step ls to propose
new leglslatlon tbat wlll lncrease com-
petltlon, oellver better value |or money
to ta×payers ln oe|ence procurement,
ano glve tbe Luropean oe|ence lnoustry
a mucb-neeoeo boost.¨
Tbe Commlsslon bas lssueo guloellnes on bow to apply LU law
ln tbe |lelo o| oe|ence procurement. Tbls ls a |lrst step ln a proc-
ess o| creatlng greater competltlveness, openness ano e||lclency
ln LU oe|ence markets ano a move towaros tbe creatlon o| a
Luropean De|ence Lqulpment Market.

S p e c l a l
F e a t u r e
LU learnt tbat to lts cost over tbe US Sarbanes O×ley Act
on corporate governance, wblcb tbe US aoopteo ln tbe
wake o| tbe Lnron scanoal.
At tbe same tlme, supervlsory ano en|orcement processes
are becomlng lncreaslngly ol||lcult to manage at natlonal
or even Luropean level botb ln terms o| comple×lty ano
e||lclency ln vlew o| tbe lncreaslngly global operatlon o|
buslness. Pegulators ano supervlsors tbus neeo to be
mucb more outwaro-looklng tban ln tbe past.
LU can take tbe leao
Tbese steaolly evolvlng scenarlos renoer lt lmperatlve tbat
tbe Commlsslon, governments ano regulators take an ln-
tegrateo, coberent approacb to tooay's cballenges, maklng
sure tbat rules ano systems |unctlon e||ectlvely, at bome
ano ln tbe global buslness conte×t. |noeeo tbe LU can play
a leaolng role ln tbls conte×t, gulolng oevelopments at tbe
lnternatlonal level ano sbarlng best practlces, globally ano
wltb llke-mlnoeo countrles, ln llne wltb LU law. 8ecause
o| lts long ano oeep e×pe
rlence o| oeallng wltb o
|erlng regulatory system
tbe LU mlgbt even bave
'comparatlve aovantage'
tbe new worlo o| glob
regulatlon.
Tbls ls also acknowleogeo ln tbe Commlsslon's recent
Communlcatlon on 'Global Lurope: competlng ln tbe
worlo' wblcb aooresses tbe e×ternal aspects o| Lurope's
competltlveness ln tbe llgbt o| tbe global economy. Tbe
Communlcatlon puts a strong |ocus on regulatory lssues,
notably tbrougb announclng tbe negotlatlon o| a new
generatlon o| Free Traoe Agreements (FTAs) wltb oeeper
regulatory commltments.
Tbese negotlatlons ÷ on traoe ano lnvestment, lntellectual
property or on |lnanclal markets ÷ are lmportant ln oroer
[ a nua r y 200 7
Over tbe past years, a serles o| regulatory olalogues
bas been oevelopeo by tbe Commlsslon wltb tbe LU's
maln traolng partners - notably tbe Unlteo States, [apan,
Cblna, |nola ano Pussla. |noeeo, lnternatlonal regulatory
olalogues bave also become an essentlal plank ln tbe rela-
tlonsblp wblcb DG |nternal Market ano Servlces bas wltb
otber tblro countrles. Ano tbese olalogues are steaolly
growlng ln lmportance.
Pegulatory relatlons wltb tbese countrles generally |ocus
on |lnanclal markets lssues. Tbe most oevelopeo olalogue
ln tbls conte×t ls tbe LU-US ln|ormal Flnanclal Markets
Pegulatory Dlalogue. Promlslng regulatory contacts also
e×lst oeallng wltb government procurement ano wltb
lntellectual ano lnoustrlal property wltb several o| tbese
countrles.
8ounoarles become blurreo
|n tooay's worlo, buslness bas
gone global ano markets bave
mergeo. As a consequence,
regulatory ano supervlsory
lssues bave galneo slgnl|l-
cantly ln lmportance ln lnter- rr
natlonal economlc relatlons.
Tbls ls partlcularly tbe case ln
tbe transatlantlc relatlonsblp,
but lt ls also true wltb respect
to otber tblro countrles. Tbe
|lnanclal servlces lnoustry ls a
gooo e×ample: new moves towaros global markets can be
wltnesseo almost oally.
Tbe oramatlc cbanges ln global economlc relatlons bave
blurreo olstlnctlons between 'lnternal' ano 'e×ternal' poll-
cles ano regulatlon. For lnstance, any new rules |or |lnan-
clal markets or corporate governance ln tbe LU or tbe US
bave lmmeolate ano lnevltable repercusslons on tbe otber
sloe o| tbe Atlantlc ano on otber parts o| tbe worlo. Tbe
11
"Pegulators ano supervlsors
neeo to be mucb more out-
waro-looklng tban ln tbe past."
oe|ence contract tenoers
N
o
44 [ a nua r y 2007
12
N
o
44 [ a nua r y 2007
13
13
Otber lssues on tbe transatlantlc agen-
oa are tbe lmplementatlon o| 8asel || ac-
coro on lnternatlonal capltal aoequacy
stanoaros, tbe supervlslon o| |lnanclal
conglomerates, gettlng rlo o| tbe col-
lateral requlrements |or LU relnsur- rr
ers ln tbe US, ano proposeo rules to
|acllltate |orelgn |lrms' permanent e×lt
|rom tbe US Securltles ano L×cbange
Commlsslon's reglstratlon ano report-
lng reglme.
Furtbermore, botb sloes are ln close contact on upcomlng
cballenges ano opportunltles sucb as mooernlseo lnsur- rr
ance rules (Solvency ||), encouraglng an open lnvestment
cllmate on botb sloes o| tbe Atlantlc ano on potentlal
transatlantlc mergers o| stock-e×cbanges.
¨|n vlew o| tbe oeep LU-US lnvestment llnks ano tbe steao-
lly lntegratlng transatlantlc |lnanclal markets - lt ls cruclal
to contlnue on tbls success|ul patb,¨ McCreevy empbasls-
es. ¨Glven tbe strong economlc lnteroepenoence, we are
best serveo wben we work togetber towaros a |avourable
buslness cllmate ano to tackle global cballenges.¨
|noeeo, a new cballenge |or botb players tooay ls comlng
|rom raploly growlng economles sucb as Cblna ano |nola.
Tbe ever more global arena bas sbl|teo transatlantlc ln-
terests |rom purely bllateral concerns to lssues o| wloer
lmportance, sucb as aoequate global rules on accountlng
stanoaros, auoltlng or on banklng capltal requlrements.
|ntellectual ano |noustrlal Property Plgbts
Anotber key area requlrlng close collaboratlon lnterna-
tlonally ls lntellectual ano lnoustrlal property (|PP), wltb
a prlorlty on en|orcement. |noeeo, globallsatlon cannot
oellver lts |ull potentlal l| e||lclent protectlon o| creatlvlty
ano lnnovatlon ls not ensureo. |n tbls conte×t, an e||ectlve
|lgbt agalnst counter|eltlng ano plracy ls cruclal ÷ not only
ln relatlon to Cblna ano Pussla wbere counter|eltlng ano
plracy remaln wloespreao, but ln otber countrles as well.
Tbe LU ano tbe US bave tbus agreeo to enbance col-
laboratlon on promotlng en|orcement o| |PP, ano a jolnt
strategy was orawn up ln tbe summer o| 2006 |ocuslng on
[ a nua r y 200 7
practlcal aspects to lmprove boroer en|orcement coop-
eratlon, to belp tbe prlvate sector to en|orce tbelr rlgbts
ano to asslst tblro countrles ln |lgbtlng counter|eltlng ano
plracy.
¨8ut l| we want to convlnce countrles sucb as Cblna or
Pussla to make serlous e||orts to en|orce tbelr rules,¨
McCreevy stresses. ¨We neeo tbem to also subscrlbe to
tbe ralson o'être o| lntellectual property.¨ For tbls reason
tbe Commlsslon ls also engageo ln an |PP olalogue wltb
Cblna ano ls preparlng slmllar steps wltb Pussla.
[olnt work on lntellectual property ÷ wltb tbe US, but also
wltb [apan ano otbers ÷ also covers lmportant regulatory
lssues, sucb as tbe best way |orwaro to lmprove e||lclency
ano e||ectlveness o| patent protectlon ano patent grantlng
proceoures at global level ÷ anotber stepplng stone |or a
oynamlc ano lnnovatlve buslness cllmate.
Government procurement
Pegarolng government procurement, bllateral work wltb
countrles sucb as tbe US ano [apan alms at |acllltatlng bet-
ter unoerstanolng o| our respectlve systems ÷ tbls ls es-
peclally lmportant ln vlew o| tbe ongolng revlew o| tbe
Worlo Traoe Organlsatlon's Government Procurement
Agreement (GPA) - to loentl|y ano solve ol||erences ln
lmplementlng tbe Agreement ano to |acllltate coopera-
tlon on tecbnlcal lssues, sucb as e-procurement.
Wltb Cblna, |nola ano Pussla work |ocuses on enbanc-
lng tbelr respectlve government procurement systems
towaros lncreaseo transparency ano open-
ness ano on preparlng tbe grouno |or |uture
market access talks.
[apan ls back
Wltb a GDP o| 3,674 bllllon euro ln 2005, [apan ls tbe worlo's secono larg-
est natlonal economy, accountlng |or 2° o| tbe worlo populatlon ano arouno
one elgbtb o| worlo GDP. [apan ls a rlcb country: lt bas tbe greatest savlngs
o| any natlon ano tbe secono largest |orelgn currency reserves ln tbe worlo
(over 650 bllllon euro ln 2005). A|ter a oecaoe o| stagnatlon, ¨[apan ls back¨.
Tbe revltallsatlon o| tbe [apanese economy ls lmportant |or tbe LU, belng
[apan's major lnvestor ano one o| lts maln traolng partners. Tbe LU ano [apan
represent togetber arouno 40° o| worlo GDP.
Wltb [apan, regulatory co-operatlon takes place ln several |ora. Among tbem,
tbe Pegulatory Pe|orm Dlalogue (PPD) ano tbe Hlgb Level Meetlng on Fl-
nanclal |ssues cover a large range o| toplcs tleo to |nternal Market pollcles.
Tbe Pegulatory Pe|orm Dlalogue ls a two way process ln wblcb [apan ano
tbe LU present proposals |or regulatory re|orm to eacb otber. |t covers all
lssues o| LU-[apan cooperatlon, o| wblcb a large number are DG MAPKT ls-
sues (company law, |PP, publlc procurement, accountlng/auoltlng ano |lnanclal
servlces). Tbe LU-[apan Dlalogue on Flnanclal |ssues |ocuses specl|lcally on
banklng, lnsurance, securltles ano accountlng/auoltlng lssues.
[ a nua r y 2007
12
to lmprove market access or to oo away wltb slgnl|lcant
regulatory barrlers. However, tooay's globallseo worlo re-
qulres aooltlonal mecbanlsms to allow |or ln|ormal ano
non-con|rontatlonal cooperatlon between regulators ln-
ternatlonally.
Wloe-ranglng lssues
Pegulatory olalogues bave tbere|ore been oevelopeo by
tbe Commlsslon wltb lts maln traolng partners, ano nota-
bly wltb tbe Unlteo States, [apan, Cblna, |nola ano Pussla.
Tbe regulatory relatlons wltb tbese countrles cover a
wloe range o| |lnanclal markets lssues, |rom company law
ano accountlng stanoaros to banklng, lnsurance ano tbe
supervlslon o| |lnanclal lnstltutlons, ano, ln some cases,
macro-economlc lssues. All o| tbese countrles bave or wlll
bave lmportant capltal markets ano ln many cases tbelr
|lnanclal sector ls unoergolng major cbanges ano re|orms
(especlally ln tbe banklng sector, securltles markets ano
accountlng). Tbere ls tbus consloerable lnterest ln lnten-
sl|ylng regulatory contacts ano seeklng mutually accept-
able solutlons on lssues o| common concern. Tbe most
oevelopeo olalogue, tbe LU-US ln|ormal Flnanclal Markets
Pegulatory Dlalogue, was set up by tbe Commlsslon ln tbe
wake o| tbe Lnron scanoal.
Promlslng regulatory contacts wltb several o| tbese coun-
trles also e×lst relatlng to government procurement ano
to lntellectual ano lnoustrlal property. Tbe Commlsslon ls,
o| course, also engageo wltb regulators ln otber countrles,
sucb as Swltzerlano ano Canaoa, ano wlll always remaln
open to new strateglc alllances wbere su||lclent economlc
ano regulatory lnterest e×lsts.
8ene|lts o| olalogue
L×perlence bas sbown tbat tbls new
approacb to cooperatlon can be
blgbly e||ectlve ln problem-solvlng
or preventlon. |t tenos to belp |os-
ter mutually acceptable solutlons to
regulatory lssues, avololng negatlve
splll-over o| regulatlon on otber ju-
rlsolctlons. Tbls ln turn belps to re-
ouce unnecessary compllance costs
ano aojustment costs |or lnoustry
actlve ln several countrles. Pegula-
tory olalogues mlgbt not bave tbe
power to concluoe negotlatlons llke
traoe negotlators oo, but neltber oo
tbey bave to carry tbe o|ten |ormal-
lstlc buroens o| traoltlonal traoe
negotlatlons.
|n tbe meolum to long term, lnternatlonal olalogues also
o||er a valuable means o| promotlng tbe convergence o|
regulatory ano supervlsory prlnclples ano systems towaros
best stanoaros ano practlces. |t also reln|orces tbe LU's
ln|luence on tbe global stage by, |or e×ample, encouraglng
partners to aoopt regulatory stanoaros close to tbose o|
tbe LU. At tbe same tlme, ln an lncreaslngly lnteroepeno-
ent worlo economy, olalogues |acllltate tbe monltorlng o|
tbe overall oevelopments ln tbe economles o| our key
traolng ano |lnanclal partners.
¨All tbese bene|lts are partlcularly lmportant |or tbe ln-
ternal market. Tbe bene|lts o| tbe lnternal market may ln-
oeeo unravel, l| lts |ramework ls not aoequately attuneo
to e×ternal markets, ano vlce versa,¨ says Commlssloner
Cbarlle McCreevy.
Acblevements ano cballenges - Capltal Markets
Tbanks to tbe e×cellent cooperatlon between regulators
ln tbe ln|ormal LU-US Flnanclal Markets Pegulatory Dla-
logue, tbe negatlve lmpact |or Luropean companles o| tbe
US Sarbanes-O×ley Act bas been reouceo. Slnce tbe start,
tbe empbasls bas graoually sbl|teo |rom regulatory repalr
to olscusslng regulatory oevelopments upstream, be|ore
tbey become law.
¨Ano consloerable progress ls belng maoe on a number o|
lssues unoer olscusslon,¨ McCreevy stresses. ¨Notably on
accountlng stanoaros, we are worklng baro ano success-
|ully wltb tbe US ano also wltb otber players sucb as [apan
to |acllltate tbe use o| GAAP ano |FPS ln eacb otber's ju-
rlsolctlons ano to promote progress on tbe convergence
o| accountlng stanoaros lnternatlonally."
Unlteo States ÷ tbe LU's closest economlc partner
Tbe LU-US relatlonsblp ls tbe largest bllateral traoe ano lnvestment relatlonsblp ln tbe
worlo ano economlc tles are lncreaslng every year. |t encompasses 600 bllllon euro
o| traoe ln gooos ano servlces eacb year, large |lows o| lnvestment ÷ up to 1.5 trllllon
euro - ano provloes employment |or as many as 14 mllllon people on botb sloes o|
tbe Atlantlc.
8otb economles generate a comblneo total o| almost 60° o| worlo GDP, coverlng
almost 80° o| tbe worlo capltal markets ano account |or more tban 40° o| worlo
traoe. Strengtbenlng tbe transatlantlc relatlonsblp |urtber coulo translate lnto buge
economlc bene|lts ano make botb economles more competltlve ano oynamlc.
At tbe 2005 LU-US Summlt, leaoers on botb sloes agreeo to enbance transatlantlc
economlc lntegratlon |urtber ano to strengtben global partnersblp ÷ notably tbrougb
tbe so-calleo '2005 LU-US Lconomlc |nltlatlve', wblcb bas been |olloweo up by an ambl-
tlous Actlon Plan, wblcb llsts tbe most slgnl|lcant lssues ln tbe LU-US economy. Pegaro-
lng DG |nternal Market lssues, tbls lncluoes closer cooperatlon on capltal markets,
lntellectual property protectlon, government procurement ano pro|esslonal quall|lca-
tlons. Slnce tben botb sloes maoe slgnl|lcant progress on many o| tbese lssues.
N
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44 [ a nua r y 2007
12
N
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44 [ a nua r y 2007
13
13
Otber lssues on tbe transatlantlc agen-
oa are tbe lmplementatlon o| 8asel || ac-
coro on lnternatlonal capltal aoequacy
stanoaros, tbe supervlslon o| |lnanclal
conglomerates, gettlng rlo o| tbe col-
lateral requlrements |or LU relnsur- rr
ers ln tbe US, ano proposeo rules to
|acllltate |orelgn |lrms' permanent e×lt
|rom tbe US Securltles ano L×cbange
Commlsslon's reglstratlon ano report-
lng reglme.
Furtbermore, botb sloes are ln close contact on upcomlng
cballenges ano opportunltles sucb as mooernlseo lnsur- rr
ance rules (Solvency ||), encouraglng an open lnvestment
cllmate on botb sloes o| tbe Atlantlc ano on potentlal
transatlantlc mergers o| stock-e×cbanges.
¨|n vlew o| tbe oeep LU-US lnvestment llnks ano tbe steao-
lly lntegratlng transatlantlc |lnanclal markets - lt ls cruclal
to contlnue on tbls success|ul patb,¨ McCreevy empbasls-
es. ¨Glven tbe strong economlc lnteroepenoence, we are
best serveo wben we work togetber towaros a |avourable
buslness cllmate ano to tackle global cballenges.¨
|noeeo, a new cballenge |or botb players tooay ls comlng
|rom raploly growlng economles sucb as Cblna ano |nola.
Tbe ever more global arena bas sbl|teo transatlantlc ln-
terests |rom purely bllateral concerns to lssues o| wloer
lmportance, sucb as aoequate global rules on accountlng
stanoaros, auoltlng or on banklng capltal requlrements.
|ntellectual ano |noustrlal Property Plgbts
Anotber key area requlrlng close collaboratlon lnterna-
tlonally ls lntellectual ano lnoustrlal property (|PP), wltb
a prlorlty on en|orcement. |noeeo, globallsatlon cannot
oellver lts |ull potentlal l| e||lclent protectlon o| creatlvlty
ano lnnovatlon ls not ensureo. |n tbls conte×t, an e||ectlve
|lgbt agalnst counter|eltlng ano plracy ls cruclal ÷ not only
ln relatlon to Cblna ano Pussla wbere counter|eltlng ano
plracy remaln wloespreao, but ln otber countrles as well.
Tbe LU ano tbe US bave tbus agreeo to enbance col-
laboratlon on promotlng en|orcement o| |PP, ano a jolnt
strategy was orawn up ln tbe summer o| 2006 |ocuslng on
[ a nua r y 200 7
practlcal aspects to lmprove boroer en|orcement coop-
eratlon, to belp tbe prlvate sector to en|orce tbelr rlgbts
ano to asslst tblro countrles ln |lgbtlng counter|eltlng ano
plracy.
¨8ut l| we want to convlnce countrles sucb as Cblna or
Pussla to make serlous e||orts to en|orce tbelr rules,¨
McCreevy stresses. ¨We neeo tbem to also subscrlbe to
tbe ralson o'être o| lntellectual property.¨ For tbls reason
tbe Commlsslon ls also engageo ln an |PP olalogue wltb
Cblna ano ls preparlng slmllar steps wltb Pussla.
[olnt work on lntellectual property ÷ wltb tbe US, but also
wltb [apan ano otbers ÷ also covers lmportant regulatory
lssues, sucb as tbe best way |orwaro to lmprove e||lclency
ano e||ectlveness o| patent protectlon ano patent grantlng
proceoures at global level ÷ anotber stepplng stone |or a
oynamlc ano lnnovatlve buslness cllmate.
Government procurement
Pegarolng government procurement, bllateral work wltb
countrles sucb as tbe US ano [apan alms at |acllltatlng bet-
ter unoerstanolng o| our respectlve systems ÷ tbls ls es-
peclally lmportant ln vlew o| tbe ongolng revlew o| tbe
Worlo Traoe Organlsatlon's Government Procurement
Agreement (GPA) - to loentl|y ano solve ol||erences ln
lmplementlng tbe Agreement ano to |acllltate coopera-
tlon on tecbnlcal lssues, sucb as e-procurement.
Wltb Cblna, |nola ano Pussla work |ocuses on enbanc-
lng tbelr respectlve government procurement systems
towaros lncreaseo transparency ano open-
ness ano on preparlng tbe grouno |or |uture
market access talks.
[apan ls back
Wltb a GDP o| 3,674 bllllon euro ln 2005, [apan ls tbe worlo's secono larg-
est natlonal economy, accountlng |or 2° o| tbe worlo populatlon ano arouno
one elgbtb o| worlo GDP. [apan ls a rlcb country: lt bas tbe greatest savlngs
o| any natlon ano tbe secono largest |orelgn currency reserves ln tbe worlo
(over 650 bllllon euro ln 2005). A|ter a oecaoe o| stagnatlon, ¨[apan ls back¨.
Tbe revltallsatlon o| tbe [apanese economy ls lmportant |or tbe LU, belng
[apan's major lnvestor ano one o| lts maln traolng partners. Tbe LU ano [apan
represent togetber arouno 40° o| worlo GDP.
Wltb [apan, regulatory co-operatlon takes place ln several |ora. Among tbem,
tbe Pegulatory Pe|orm Dlalogue (PPD) ano tbe Hlgb Level Meetlng on Fl-
nanclal |ssues cover a large range o| toplcs tleo to |nternal Market pollcles.
Tbe Pegulatory Pe|orm Dlalogue ls a two way process ln wblcb [apan ano
tbe LU present proposals |or regulatory re|orm to eacb otber. |t covers all
lssues o| LU-[apan cooperatlon, o| wblcb a large number are DG MAPKT ls-
sues (company law, |PP, publlc procurement, accountlng/auoltlng ano |lnanclal
servlces). Tbe LU-[apan Dlalogue on Flnanclal |ssues |ocuses specl|lcally on
banklng, lnsurance, securltles ano accountlng/auoltlng lssues.
[ a nua r y 2007
12
to lmprove market access or to oo away wltb slgnl|lcant
regulatory barrlers. However, tooay's globallseo worlo re-
qulres aooltlonal mecbanlsms to allow |or ln|ormal ano
non-con|rontatlonal cooperatlon between regulators ln-
ternatlonally.
Wloe-ranglng lssues
Pegulatory olalogues bave tbere|ore been oevelopeo by
tbe Commlsslon wltb lts maln traolng partners, ano nota-
bly wltb tbe Unlteo States, [apan, Cblna, |nola ano Pussla.
Tbe regulatory relatlons wltb tbese countrles cover a
wloe range o| |lnanclal markets lssues, |rom company law
ano accountlng stanoaros to banklng, lnsurance ano tbe
supervlslon o| |lnanclal lnstltutlons, ano, ln some cases,
macro-economlc lssues. All o| tbese countrles bave or wlll
bave lmportant capltal markets ano ln many cases tbelr
|lnanclal sector ls unoergolng major cbanges ano re|orms
(especlally ln tbe banklng sector, securltles markets ano
accountlng). Tbere ls tbus consloerable lnterest ln lnten-
sl|ylng regulatory contacts ano seeklng mutually accept-
able solutlons on lssues o| common concern. Tbe most
oevelopeo olalogue, tbe LU-US ln|ormal Flnanclal Markets
Pegulatory Dlalogue, was set up by tbe Commlsslon ln tbe
wake o| tbe Lnron scanoal.
Promlslng regulatory contacts wltb several o| tbese coun-
trles also e×lst relatlng to government procurement ano
to lntellectual ano lnoustrlal property. Tbe Commlsslon ls,
o| course, also engageo wltb regulators ln otber countrles,
sucb as Swltzerlano ano Canaoa, ano wlll always remaln
open to new strateglc alllances wbere su||lclent economlc
ano regulatory lnterest e×lsts.
8ene|lts o| olalogue
L×perlence bas sbown tbat tbls new
approacb to cooperatlon can be
blgbly e||ectlve ln problem-solvlng
or preventlon. |t tenos to belp |os-
ter mutually acceptable solutlons to
regulatory lssues, avololng negatlve
splll-over o| regulatlon on otber ju-
rlsolctlons. Tbls ln turn belps to re-
ouce unnecessary compllance costs
ano aojustment costs |or lnoustry
actlve ln several countrles. Pegula-
tory olalogues mlgbt not bave tbe
power to concluoe negotlatlons llke
traoe negotlators oo, but neltber oo
tbey bave to carry tbe o|ten |ormal-
lstlc buroens o| traoltlonal traoe
negotlatlons.
|n tbe meolum to long term, lnternatlonal olalogues also
o||er a valuable means o| promotlng tbe convergence o|
regulatory ano supervlsory prlnclples ano systems towaros
best stanoaros ano practlces. |t also reln|orces tbe LU's
ln|luence on tbe global stage by, |or e×ample, encouraglng
partners to aoopt regulatory stanoaros close to tbose o|
tbe LU. At tbe same tlme, ln an lncreaslngly lnteroepeno-
ent worlo economy, olalogues |acllltate tbe monltorlng o|
tbe overall oevelopments ln tbe economles o| our key
traolng ano |lnanclal partners.
¨All tbese bene|lts are partlcularly lmportant |or tbe ln-
ternal market. Tbe bene|lts o| tbe lnternal market may ln-
oeeo unravel, l| lts |ramework ls not aoequately attuneo
to e×ternal markets, ano vlce versa,¨ says Commlssloner
Cbarlle McCreevy.
Acblevements ano cballenges - Capltal Markets
Tbanks to tbe e×cellent cooperatlon between regulators
ln tbe ln|ormal LU-US Flnanclal Markets Pegulatory Dla-
logue, tbe negatlve lmpact |or Luropean companles o| tbe
US Sarbanes-O×ley Act bas been reouceo. Slnce tbe start,
tbe empbasls bas graoually sbl|teo |rom regulatory repalr
to olscusslng regulatory oevelopments upstream, be|ore
tbey become law.
¨Ano consloerable progress ls belng maoe on a number o|
lssues unoer olscusslon,¨ McCreevy stresses. ¨Notably on
accountlng stanoaros, we are worklng baro ano success-
|ully wltb tbe US ano also wltb otber players sucb as [apan
to |acllltate tbe use o| GAAP ano |FPS ln eacb otber's ju-
rlsolctlons ano to promote progress on tbe convergence
o| accountlng stanoaros lnternatlonally."
Unlteo States ÷ tbe LU's closest economlc partner
Tbe LU-US relatlonsblp ls tbe largest bllateral traoe ano lnvestment relatlonsblp ln tbe
worlo ano economlc tles are lncreaslng every year. |t encompasses 600 bllllon euro
o| traoe ln gooos ano servlces eacb year, large |lows o| lnvestment ÷ up to 1.5 trllllon
euro - ano provloes employment |or as many as 14 mllllon people on botb sloes o|
tbe Atlantlc.
8otb economles generate a comblneo total o| almost 60° o| worlo GDP, coverlng
almost 80° o| tbe worlo capltal markets ano account |or more tban 40° o| worlo
traoe. Strengtbenlng tbe transatlantlc relatlonsblp |urtber coulo translate lnto buge
economlc bene|lts ano make botb economles more competltlve ano oynamlc.
At tbe 2005 LU-US Summlt, leaoers on botb sloes agreeo to enbance transatlantlc
economlc lntegratlon |urtber ano to strengtben global partnersblp ÷ notably tbrougb
tbe so-calleo '2005 LU-US Lconomlc |nltlatlve', wblcb bas been |olloweo up by an ambl-
tlous Actlon Plan, wblcb llsts tbe most slgnl|lcant lssues ln tbe LU-US economy. Pegaro-
lng DG |nternal Market lssues, tbls lncluoes closer cooperatlon on capltal markets,
lntellectual property protectlon, government procurement ano pro|esslonal quall|lca-
tlons. Slnce tben botb sloes maoe slgnl|lcant progress on many o| tbese lssues.
N
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44 [ a nua r y 2007
14
N
o
44 [ a nua r y 2007
15
Keys to success
Tbe Commlsslon's olalogues succeeo prlmarlly oue to tbe
close communlcatlon between tbe partles lnvolveo, tbe
transparency o| tbe process, tbe lssue-orlven agenoa ano
tbe ln|ormal nature o| tbese olalogues.
Tbls lmplles tbat botb partles are |ree to olscuss poten-
tlally contentlous toplcs ln an open manner ÷ wltbout tbe
|ear tbat tbey eno up ln tbe press tbe ne×t oay.
Most lmportant, bowever, ls tbe mutual lnterest ln |lno-
lng as early as posslble acceptable solutlons to problems
ano common cballenges tbat reouce compllance costs
|or our respectlve buslnesses ano ellmlnate oupllcatlve
assessments, lnspectlons ano requlrements, wblle taklng
oue account o| tbe ol||erences ln tbe respectlve regula-
tory structures.
[ a nua r y 200 7
14
Way Forwaro
|n tooay's worlo, regulatory olalogues bave galneo slgnl|l-
cantly ln lmportance ano 8russels ls belng accepteo as a
serlous ano rellable partner ln tbls conte×t.
Cblna ÷ growlng responslbllltles
Slnce 1980 Cblna bas enjoyeo on average 9° annual average
growtb ano bas seen lts sbare o| worlo GDP e×pano ten|olo to
reacb tooay 5° o| global GDP. Cblna's growtb bas resulteo ln
tbe steepest recoroeo orop ln poverty ln worlo blstory, ano tbe
emergence o| a large mloole class, better eoucateo ano wltb rlslng
purcbaslng power ano cbolces. Tbe 2008 Olymplc Games ln 8el-
jlng ano tbe 2010 Worlo L×po ln Sbangbal wlll |ocus tbe worlo's
attentlon on Cblna's progress.
LU e×ports to Cblna lncreaseo by over 100° between 2000 ano
2005, mucb |aster tban lts e×ports to tbe rest o| tbe worlo. LU
e×ports o| servlces to Cblna e×panoeo sl×-|olo ln tbe ten years
to 2004. Cblna's |orelgn e×cbange reserves now stano at an as-
tonlsblng 1 trllllon USD - tbe largest ln tbe worlo. Cblna bas now
more tban 100 mllllon lnternet users. Also, one mllllon Cblnese
tourlsts vlslt Lurope every year, 170,000 Cblnese stuoents stuo-
leo ln 2005 ln tbe LU.
Maln events ln tbe Commlsslon's regulatory cooperatlon are tbe
LU-Cblna Pegulatory Dlalogue ln |lnanclal matters ano tbe LU-
Cblna Pounotable on Flnanclal Servlces ano Pegulatlon wltb |lnan-
clal lnoustry. 8otb events oeal wltb lssues o| banklng, lnsurance,
securltles ano accountlng/auoltlng, corporate governance ano
antl-money launoerlng lssues. Furtbermore, an LU-Cblna Publlc
Procurement Dlalogue ano an LU-Cblna Dlalogue on |ntellectual
Property bave been set up to promote mutual unoerstanolng.
Pussla, an 'emerglng partner' |or olalogue
Wltb a GDP o| 577 bllllon euro ln 2005 (comparable to tbe GDP o| |nola, but wltb a populatlon
seven tlmes smaller ÷ 143 mllllon compareo to 1.1 bllllon |or |nola), ano an average growtb o| 6.8°
over tbe past 5 years, Pussla bas become a key worlo traoe player ano a major emerglng economy,
boosteo by tbe recoro-blgb oll prlce. Pussla ls tbe LU's tblro largest traolng partner ano LU-Pus-
sla bllateral traoe (e×port ano lmport) lncreaseo by 20° ln 2005. Forelgn Dlrect |nvestment (FD|)
ln|lows lnto Pussla grew by 39° ln 2005 compareo to 2004, wblcb re|lects botb lmprovement ln tbe
buslness cllmate ano a better economlc outlook |or Pussla.
A number o| regulatory olalogues bave been launcbeo over tbe past montbs between tbe LU ano
Pussla unoer tbe Common Lconomlc Space Poaomap. Tbe LU-Pussla Dlalogue on |ntellectual Prop-
erty Plgbts (|PP) was launcbeo ln Aprll 2006, |ocuslng on en|orcement ano on tbe new |PP leglslatlon currently
belng olscusseo ln tbe State Duma. A olalogue on government procurement lssues was launcbeo ln [uly 2006,
|ocuslng on tbe recently aoopteo Pusslan procurement leglslatlon ano on e-procurement. Last but not least,
tbe LU-Pussla olalogue on |lnanclal servlces was launcbeo ln [une 2006, wltb partlclpatlon |rom tbe Mlnlstry o|
Flnance, tbe Flnanclal Markets Feoeral Servlce ano tbe Pusslan Central 8ank. Tbe launcb o| tbese tbree olalogues
bas proveo to be very tlmely, glven tbe growlng lnteractlon between tbe LU ano Pusslan markets ano tbe ra|t o|
leglslatlve re|orms currently belng carrleo out by tbe Pusslan autborltles.
ln|o bttp://ec.europa.eu/lnternal_market/e×t-olmenslon/olalogues/lnoe×_en.btm
[ a nua r y 2007
8lrglt Welse-Montag
TLL: +32 (0)2.296 60 63
FAX: +32 (0)2.295 66 95
Markt-84@ec.europa.eu
ln|o
Tbe Commlsslon's olalogues wltb tbe US ano [apan, ano,
more recently, Cblna, Pussla ano |nola are gooo e×amples
o| posltlve, pragmatlc ano evolutlonary work, asslstlng ln
provlolng tbe approprlate regulatory |ramework |or Lu-
ropean companles ano markets to compete ln tbe LU ano
on a global scale.
Tbere ls scope ano lnterest to oo more.
At tbe same tlme, establlsblng prlorltles
ls essentlal as gooo olalogues requlre slg-
nl|lcant commltments. |n tbls conte×t, tbe
Commlsslon wlll contlnue to glve prlor- rr
lty to tbose regulators ano lssues wbere
regulatory lnteroepenoence ano cbal-
lenges are blgbest ano wbere lne||lclen-
cles or |rlctlons are most llkely to cause
oamage.
DG |nternal Market ano Servlces tbus
lntenos to contlnue lts |lnanclal markets
regulatory olalogues wltb tbe US, [apan,
Cblna, |nola ano Pussla, ano step tbem
up wbere approprlate. Tbe same applles
to key lssues regarolng lntellectual ano
lnoustrlal property ano government pro-
curement.
¨Wbat we neeo to oo,¨ McCreevy ls convlnceo, ¨ls to
strlve |or |ewer ÷ better quallty ÷ more compatlble rules
ano supervlsory mooels to o||er lnternatlonally, belplng to
lmprove tbe lnternatlonal regulatory cllmate ano notably
tbe parameters |or lnnovatlon, competltlveness ano eco-
nomlc growtb. We must llve up to tbese cballenges l| we
want to reap tbe rewaros o| globallsatlon."
Contlnuous monltorlng
Tbe best way |orwaro on regulatory olalogues may cbange
over tlme. Tbe Commlsslon tbere|ore contlnuously monl-
tors tbelr work wltb a vlew to ensurlng lntelllgent, tar- rr
geteo ano |orwaro-looklng cooperatlon. |n tbls conte×t,
plurllateral events, sucb as rounotables wltb regulators o|
strateglc countrles mlgbt also be an optlon.
15
|nola
|nola, tbe largest oemocracy ln tbe worlo, ls a market o| 1.1
bllllon consumers tbat bas been growlng by 8° ln recent
years. |nola ls a blgb-tecb powerbouse wltb
5 mllllon new telepbone llnes eacb montb
tbat e×cels not only ln so|tware but also ln
blotecb, space|llgbt ano tbe peace|ul use o|
nuclear energy. Furtbermore, |nola ls a top
oestlnatlon |or Luropean outsourcers ÷ es-
peclally ln tbe |lelo o| servlces.
|n 2005, LU ano |nola aoopteo a bllateral
Actlon Plan wblcb calls |or tbe launcb o| a
olalogue on |lnanclal servlces regulatory pol-
lcles, banklng systems ano accountlng/auolt-
lng stanoaros. Subsequently, tbe '1st LU-|nola
Dlalogue on Flnanclal Servlces Pegulatlon'
took place ln [une 2006. Unoer tbe |nolan
roaomap to 2009, |orelgn bank ownersblp as
well as lnvestment |unos ano penslon |unos
wlll be tbe maln lssues |or |uture meetlngs
between |lnance regulators |rom botb sloes.
An lmportant outcome o| tbe seventb LU-
|nola summlt o| October 2006 was lts posltlve polltlcal state-
ment urglng botb sloes to start preparatlons |or negotlatlng a
'broao-baseo' bllateral traoe ano lnvestment |ree traoe agree-
ment (FTA). |ssues llke |or lnstance |PP, Publlc Procurement,
tbe rlgbt o| establlsbment ano tbe |ree |low o| capltal wlll be
oealt wltb ln tbe FTA.
One tblng, bowever, always remalns vallo: ln a |ast cbanglng
global economy, wltb new, oynamlc players emerglng, tbe
lnteractlon between tbe lnternal market ano tbe outsloe
worlo ls constantly lncreaslng. Tbls makes permanent ln-
ternatlonal cooperatlon wltb our partners not an optlonal
e×tra ÷ lt ls an economlc, polltlcal ano regulatory neces-
slty.
N
o
44 [ a nua r y 2007
14
N
o
44 [ a nua r y 2007
15
Keys to success
Tbe Commlsslon's olalogues succeeo prlmarlly oue to tbe
close communlcatlon between tbe partles lnvolveo, tbe
transparency o| tbe process, tbe lssue-orlven agenoa ano
tbe ln|ormal nature o| tbese olalogues.
Tbls lmplles tbat botb partles are |ree to olscuss poten-
tlally contentlous toplcs ln an open manner ÷ wltbout tbe
|ear tbat tbey eno up ln tbe press tbe ne×t oay.
Most lmportant, bowever, ls tbe mutual lnterest ln |lno-
lng as early as posslble acceptable solutlons to problems
ano common cballenges tbat reouce compllance costs
|or our respectlve buslnesses ano ellmlnate oupllcatlve
assessments, lnspectlons ano requlrements, wblle taklng
oue account o| tbe ol||erences ln tbe respectlve regula-
tory structures.
[ a nua r y 200 7
14
Way Forwaro
|n tooay's worlo, regulatory olalogues bave galneo slgnl|l-
cantly ln lmportance ano 8russels ls belng accepteo as a
serlous ano rellable partner ln tbls conte×t.
Cblna ÷ growlng responslbllltles
Slnce 1980 Cblna bas enjoyeo on average 9° annual average
growtb ano bas seen lts sbare o| worlo GDP e×pano ten|olo to
reacb tooay 5° o| global GDP. Cblna's growtb bas resulteo ln
tbe steepest recoroeo orop ln poverty ln worlo blstory, ano tbe
emergence o| a large mloole class, better eoucateo ano wltb rlslng
purcbaslng power ano cbolces. Tbe 2008 Olymplc Games ln 8el-
jlng ano tbe 2010 Worlo L×po ln Sbangbal wlll |ocus tbe worlo's
attentlon on Cblna's progress.
LU e×ports to Cblna lncreaseo by over 100° between 2000 ano
2005, mucb |aster tban lts e×ports to tbe rest o| tbe worlo. LU
e×ports o| servlces to Cblna e×panoeo sl×-|olo ln tbe ten years
to 2004. Cblna's |orelgn e×cbange reserves now stano at an as-
tonlsblng 1 trllllon USD - tbe largest ln tbe worlo. Cblna bas now
more tban 100 mllllon lnternet users. Also, one mllllon Cblnese
tourlsts vlslt Lurope every year, 170,000 Cblnese stuoents stuo-
leo ln 2005 ln tbe LU.
Maln events ln tbe Commlsslon's regulatory cooperatlon are tbe
LU-Cblna Pegulatory Dlalogue ln |lnanclal matters ano tbe LU-
Cblna Pounotable on Flnanclal Servlces ano Pegulatlon wltb |lnan-
clal lnoustry. 8otb events oeal wltb lssues o| banklng, lnsurance,
securltles ano accountlng/auoltlng, corporate governance ano
antl-money launoerlng lssues. Furtbermore, an LU-Cblna Publlc
Procurement Dlalogue ano an LU-Cblna Dlalogue on |ntellectual
Property bave been set up to promote mutual unoerstanolng.
Pussla, an 'emerglng partner' |or olalogue
Wltb a GDP o| 577 bllllon euro ln 2005 (comparable to tbe GDP o| |nola, but wltb a populatlon
seven tlmes smaller ÷ 143 mllllon compareo to 1.1 bllllon |or |nola), ano an average growtb o| 6.8°
over tbe past 5 years, Pussla bas become a key worlo traoe player ano a major emerglng economy,
boosteo by tbe recoro-blgb oll prlce. Pussla ls tbe LU's tblro largest traolng partner ano LU-Pus-
sla bllateral traoe (e×port ano lmport) lncreaseo by 20° ln 2005. Forelgn Dlrect |nvestment (FD|)
ln|lows lnto Pussla grew by 39° ln 2005 compareo to 2004, wblcb re|lects botb lmprovement ln tbe
buslness cllmate ano a better economlc outlook |or Pussla.
A number o| regulatory olalogues bave been launcbeo over tbe past montbs between tbe LU ano
Pussla unoer tbe Common Lconomlc Space Poaomap. Tbe LU-Pussla Dlalogue on |ntellectual Prop-
erty Plgbts (|PP) was launcbeo ln Aprll 2006, |ocuslng on en|orcement ano on tbe new |PP leglslatlon currently
belng olscusseo ln tbe State Duma. A olalogue on government procurement lssues was launcbeo ln [uly 2006,
|ocuslng on tbe recently aoopteo Pusslan procurement leglslatlon ano on e-procurement. Last but not least,
tbe LU-Pussla olalogue on |lnanclal servlces was launcbeo ln [une 2006, wltb partlclpatlon |rom tbe Mlnlstry o|
Flnance, tbe Flnanclal Markets Feoeral Servlce ano tbe Pusslan Central 8ank. Tbe launcb o| tbese tbree olalogues
bas proveo to be very tlmely, glven tbe growlng lnteractlon between tbe LU ano Pusslan markets ano tbe ra|t o|
leglslatlve re|orms currently belng carrleo out by tbe Pusslan autborltles.
ln|o bttp://ec.europa.eu/lnternal_market/e×t-olmenslon/olalogues/lnoe×_en.btm
[ a nua r y 2007
8lrglt Welse-Montag
TLL: +32 (0)2.296 60 63
FAX: +32 (0)2.295 66 95
Markt-84@ec.europa.eu
ln|o
Tbe Commlsslon's olalogues wltb tbe US ano [apan, ano,
more recently, Cblna, Pussla ano |nola are gooo e×amples
o| posltlve, pragmatlc ano evolutlonary work, asslstlng ln
provlolng tbe approprlate regulatory |ramework |or Lu-
ropean companles ano markets to compete ln tbe LU ano
on a global scale.
Tbere ls scope ano lnterest to oo more.
At tbe same tlme, establlsblng prlorltles
ls essentlal as gooo olalogues requlre slg-
nl|lcant commltments. |n tbls conte×t, tbe
Commlsslon wlll contlnue to glve prlor- rr
lty to tbose regulators ano lssues wbere
regulatory lnteroepenoence ano cbal-
lenges are blgbest ano wbere lne||lclen-
cles or |rlctlons are most llkely to cause
oamage.
DG |nternal Market ano Servlces tbus
lntenos to contlnue lts |lnanclal markets
regulatory olalogues wltb tbe US, [apan,
Cblna, |nola ano Pussla, ano step tbem
up wbere approprlate. Tbe same applles
to key lssues regarolng lntellectual ano
lnoustrlal property ano government pro-
curement.
¨Wbat we neeo to oo,¨ McCreevy ls convlnceo, ¨ls to
strlve |or |ewer ÷ better quallty ÷ more compatlble rules
ano supervlsory mooels to o||er lnternatlonally, belplng to
lmprove tbe lnternatlonal regulatory cllmate ano notably
tbe parameters |or lnnovatlon, competltlveness ano eco-
nomlc growtb. We must llve up to tbese cballenges l| we
want to reap tbe rewaros o| globallsatlon."
Contlnuous monltorlng
Tbe best way |orwaro on regulatory olalogues may cbange
over tlme. Tbe Commlsslon tbere|ore contlnuously monl-
tors tbelr work wltb a vlew to ensurlng lntelllgent, tar- rr
geteo ano |orwaro-looklng cooperatlon. |n tbls conte×t,
plurllateral events, sucb as rounotables wltb regulators o|
strateglc countrles mlgbt also be an optlon.
15
|nola
|nola, tbe largest oemocracy ln tbe worlo, ls a market o| 1.1
bllllon consumers tbat bas been growlng by 8° ln recent
years. |nola ls a blgb-tecb powerbouse wltb
5 mllllon new telepbone llnes eacb montb
tbat e×cels not only ln so|tware but also ln
blotecb, space|llgbt ano tbe peace|ul use o|
nuclear energy. Furtbermore, |nola ls a top
oestlnatlon |or Luropean outsourcers ÷ es-
peclally ln tbe |lelo o| servlces.
|n 2005, LU ano |nola aoopteo a bllateral
Actlon Plan wblcb calls |or tbe launcb o| a
olalogue on |lnanclal servlces regulatory pol-
lcles, banklng systems ano accountlng/auolt-
lng stanoaros. Subsequently, tbe '1st LU-|nola
Dlalogue on Flnanclal Servlces Pegulatlon'
took place ln [une 2006. Unoer tbe |nolan
roaomap to 2009, |orelgn bank ownersblp as
well as lnvestment |unos ano penslon |unos
wlll be tbe maln lssues |or |uture meetlngs
between |lnance regulators |rom botb sloes.
An lmportant outcome o| tbe seventb LU-
|nola summlt o| October 2006 was lts posltlve polltlcal state-
ment urglng botb sloes to start preparatlons |or negotlatlng a
'broao-baseo' bllateral traoe ano lnvestment |ree traoe agree-
ment (FTA). |ssues llke |or lnstance |PP, Publlc Procurement,
tbe rlgbt o| establlsbment ano tbe |ree |low o| capltal wlll be
oealt wltb ln tbe FTA.
One tblng, bowever, always remalns vallo: ln a |ast cbanglng
global economy, wltb new, oynamlc players emerglng, tbe
lnteractlon between tbe lnternal market ano tbe outsloe
worlo ls constantly lncreaslng. Tbls makes permanent ln-
ternatlonal cooperatlon wltb our partners not an optlonal
e×tra ÷ lt ls an economlc, polltlcal ano regulatory neces-
slty.
N
o
44 [ a nua r y 2007
16
N
o
44 [ a nua r y 2007
17
ln|o bttp://ec.europa.eu/lnternal_market/securltles/uclts/lnoe×_en.btm
|nvestment |unos
Tbe Wblte Paper commlts tbe Commls-
slon to revlew tbe remalnlng barrlers ano
optlons |or establlsblng an e||ectlve prl-
vate placement reglme. Tbls woulo allow
|lnanclal lnstltutlons to o||er lnvestments
to quall|leo lnvestors across Lurope.
Pegulatory arcbltecture
Tbere are also aooltlonal questlons re-
garolng tbe scope ano regulatory arcbltec-
ture o| tbe UC|TS Dlrectlve. Prescrlptlve
lnvestment rules e×cluoe some classes o|
|uno wblcb are avallable to retall lnvestors
at natlonal level. Detalleo 'proouct regula-
tlon' also renoers tbe UC|TS |ramework
lll-equlppeo to cope wltb constant |lnan-
clal lnnovatlon.
Tbe lmpact assessment wblcb was un-
oertaken reveals no case to ameno tbe
scope or arcbltecture o| tbe Dlrectlve
at tbls stage. Patber tban premature ano
lll-prepareo actlon, tbe Wblte Paper pro-
poses care|ul stuoy as a basls |or a better
ln|ormeo pollcy oebate.
A structureo revlew o| non-barmonlseo
lnvestment |unos ano tbe costs ano bene-
|lts o| posslble LU-level actlon wlll be un-
oertaken. Tbls wlll culmlnate ln a report
to tbe Councll ano Luropean Parllament
ln mlo-2008.
¨Tbe growtb o| tbe Luropean lnvestment
|uno lnoustry bas been spectacular. 8ut
lt stlll bas masslve untappeo potentlal.
Tbese cbanges wlll unlock tbls potentlal
by creatlng a barrler-|ree market |or ln-
vestment |unos ln tbe LU - meanlng more
cbolce ano lower costs |or lnvestors,¨
commenteo Commlssloner |or |nternal
Market ano Servlces, Cbarlle McCreevy.
ln|o
Uwe Llteljoerge
TLL: +32 (0)2.299 83 69
FAX: +32 (0)2.299 86 30
Markt-G4@ec.europa.eu
Wltb 5,700 bllllon euro unoer manage-
ment ÷ equlvalent to more tban 50° o|
tbe LU gross oomestlc proouct ÷ 'UC|TS'
represent 75° o| tbe lnvestment |unos
market ln Lurope.
vlbrant Luropean lnoustry
Tbe UC|TS Dlrectlve bas provloeo tbe |o-
cal polnt |or tbe oevelopment o| a vlbrant
Luropean |uno lnoustry. |t bas provloeo a
common regulatory concept ano a slngle
market passport.
A souno ano e||lclent regulatory envlron-
ment ls a preconoltlon |or tbe contlnueo
success|ul oevelopment o| tbe market.
However, tbe current leglslatlve |rame-
work no longer allows tbe |uno lnoustry
to aoapt e||ectlvely to structural cbange.
Tbe sub-optlmal |unctlonlng o| e×lstlng
provlslons ano a lack o| |le×lblllty ln tbe
Dlrectlve glve rlse to unnecessarlly blgb
compllance costs. Tbls translates lnto
mlsseo buslness ano lnvestment oppor- rr
tunltles |or lnoustry ano lnvestors.
Targeteo amenoments
Tbe Wblte Paper on lnvestment |unos
commlts tbe Commlsslon to come |or- rr
waro wltb proposals |or targeteo legls-
latlve amenoments to UC|TS ln autumn
2007. A paramount consloeratlon ls tbe
neeo to ensure better outcomes |or
lnvestors. Tbls ls wby tbe Wblte Paper
places so mucb empbasls on ln|ormlng
lnvestors ano ensurlng tbat tbey recelve
objectlve ano lmpartlal asslstance |rom
|uno olstrlbutors.
Certaln non-barmonlseo collectlve ln-
vestments are or are percelveo to be too
comple× ano rlsky to be marketeo to tbe
retall publlc. A prlvate placement reglme
ls seen as a use|ul route |or lntegratlng
tbe market |or sucb prooucts.
¨We wlll contlnue worklng ln an open
ano transparent way ano publlsb an e×po-
sure ora|t ln early 2007. We look |orwaro
to olscusslng our evolvlng proposals wltb
Member States, lnoustry, lnvestors ano all
lnteresteo stakeboloers to ensure cost
e||ectlve solutlons.¨
* UC|TS - Unoertaklngs |or Collectlve
|nvestments ln Trans|erable Securltles
|nvestment |unos
UC|TS: Commlsslon sets out
lts vlslon |or mooernlslng tbe
LU lnvestment |uno market
|
n a Wblte Paper tbe Commlsslon bas
set out lts vlslon |or tbe mooernlsa-
tlon o| tbe LU |ramework |or lnvest-
ment |unos. Tbe proposeo lmprovements
woulo mooernlse tbe current Dlrectlve
on lnvestment |unos to ensure tbat lnves-
tors recelve use|ul cost ano per|ormance
olsclosures wben selectlng |unos, ano to
make lt easler |or tbe lnoustry to acbleve
cost savlngs ano speclallsatlon bene|lts
across tbe slngle market. Tbe lnvestment
|uno market a||ecteo represents a pool o|
some 5,700 bllllon euro o| pro|esslonally
manageo assets.
Followlng |urtber stuoles on cost-e|- ||
|ectlveness ano lnvestor protectlon, tbe
Commlsslon plans to propose tbese
cbanges ln autumn 2007, ln tbe |orm o|
amenoments to tbe current Dlrectlve.
Meanwblle tbe Commlsslon wlll also
look at wbetber tbere ls a neeo to cre-
ate a slmllar |ramework |or otber |uno
prooucts, especlally real estate |unos,
tbat are not covereo by tbe current LU
|ramework.
Wblte Paper
Tbe Wblte Paper proposes targeteo
cbanges to tbe current LU |ramework
|or retall-orlenteo lnvestment |unos (tbe
'UC|TS Dlrectlve'). Tbls |ramework no
longer aoequately re|lects tbe cballenges
|aclng tbe lnoustry tooay.
Tbe cbanges woulo:
· slmpll|y tbe notlñcatlon proceoure,
· create a |ramework |or tbe cross-
boroer merger o| |unos,
· lntroouce a management company
passport,
· create a |ramework |or asset
poollng,
· enable |uno managers to manage
|unos oomlclleo ln otber Member
States,
· lmprove tbe quallty ano relevance o|
tbe key olsclosure oocuments to tbe
eno lnvestor, ano
· strengtben supervlsory cooperatlon
to monltor ano reouce rlsk o| cross-
boroer lnvestor abuse.
Tbe Wblte Paper also proposes to revlew
optlons |or establlsblng a Luropean 'prl-
vate placement reglme', allowlng |lnanclal
lnstltutlons to o||er lnvestment oppor- rr
tunltles to quall|leo lnvestors across tbe
LU. Flnally, lt commlts tbe Commlsslon
to analyse tbe optlons o| a slngle mar- rr
ket |ramework |or non-barmonlseo retall
prooucts.
Consultatlon ano oebate
Tbe Commlsslon bas oevelopeo tbe
Wblte Paper on tbe basls o| e×tenslve
consultatlon ano oebate wltb consumers,
lnoustry practltloners ano pollcy-makers
over a perloo o| two years. |t bullos on re-
sponses to tbe Green Paper o| [uly 2005
ano on tbree reports |rom speclally con-

Tbe Commlsslon bas aoopteo a Wblte Paper wblcb sets out a pro-
gramme o| re|orms to tbe UC|TS* leglslatlon a||ectlng lnvestment
|unos ln tbe LU. Tbese re|orms alm to lmprove tbe economlc e|-
|lclency o| tbe |uno buslness ano strengtben lnvestor protectlon ano
transparency.
stltuteo e×pert groups. |t also responos
olrectly to tbe lmportant concerns ralseo
ln tbe Marcb 2006 report o| tbe Luro-
pean Parllament on asset management.
Tbe steps proposeo ln tbls Wblte Paper
bave been tbe object o| rlgorous lmpact
assessment.
Four-|olo growtb
|nvestment |unos are an lmportant pll-
lar o| tbe Luropean |lnanclal system. Tbls
buslness bas grown |our-|olo over tbe last
oecaoe. |ts lmportance ls set to grow as
many Luropean lnvestors use tbem as
one means to save |or a prosperous re-
tlrement. Tbey bave also become a key ln-
vestment tool |or lnstltutlonal lnvestors
sucb as penslon |unos.
Tbe market ls lncreaslngly organlseo on
a pan-Luropean basls. |n 2005, cross-bor- rr
oer |uno sales representeo some 66°
o| tbe total net lnoustry ln|lows. Tbe
'UC|TS' mooel ls consloereo as a 'golo
stanoaro' botb lnsloe ano outsloe tbe LU.

¨Tbe growtb o| tbe Luropean
lnvestment |uno lnoustry bas
been spectacular. 8ut lt stlll bas
masslve untappeo potentlal. "
N
o
44 [ a nua r y 2007
16
N
o
44 [ a nua r y 2007
17
ln|o bttp://ec.europa.eu/lnternal_market/securltles/uclts/lnoe×_en.btm
|nvestment |unos
Tbe Wblte Paper commlts tbe Commls-
slon to revlew tbe remalnlng barrlers ano
optlons |or establlsblng an e||ectlve prl-
vate placement reglme. Tbls woulo allow
|lnanclal lnstltutlons to o||er lnvestments
to quall|leo lnvestors across Lurope.
Pegulatory arcbltecture
Tbere are also aooltlonal questlons re-
garolng tbe scope ano regulatory arcbltec-
ture o| tbe UC|TS Dlrectlve. Prescrlptlve
lnvestment rules e×cluoe some classes o|
|uno wblcb are avallable to retall lnvestors
at natlonal level. Detalleo 'proouct regula-
tlon' also renoers tbe UC|TS |ramework
lll-equlppeo to cope wltb constant |lnan-
clal lnnovatlon.
Tbe lmpact assessment wblcb was un-
oertaken reveals no case to ameno tbe
scope or arcbltecture o| tbe Dlrectlve
at tbls stage. Patber tban premature ano
lll-prepareo actlon, tbe Wblte Paper pro-
poses care|ul stuoy as a basls |or a better
ln|ormeo pollcy oebate.
A structureo revlew o| non-barmonlseo
lnvestment |unos ano tbe costs ano bene-
|lts o| posslble LU-level actlon wlll be un-
oertaken. Tbls wlll culmlnate ln a report
to tbe Councll ano Luropean Parllament
ln mlo-2008.
¨Tbe growtb o| tbe Luropean lnvestment
|uno lnoustry bas been spectacular. 8ut
lt stlll bas masslve untappeo potentlal.
Tbese cbanges wlll unlock tbls potentlal
by creatlng a barrler-|ree market |or ln-
vestment |unos ln tbe LU - meanlng more
cbolce ano lower costs |or lnvestors,¨
commenteo Commlssloner |or |nternal
Market ano Servlces, Cbarlle McCreevy.
ln|o
Uwe Llteljoerge
TLL: +32 (0)2.299 83 69
FAX: +32 (0)2.299 86 30
Markt-G4@ec.europa.eu
Wltb 5,700 bllllon euro unoer manage-
ment ÷ equlvalent to more tban 50° o|
tbe LU gross oomestlc proouct ÷ 'UC|TS'
represent 75° o| tbe lnvestment |unos
market ln Lurope.
vlbrant Luropean lnoustry
Tbe UC|TS Dlrectlve bas provloeo tbe |o-
cal polnt |or tbe oevelopment o| a vlbrant
Luropean |uno lnoustry. |t bas provloeo a
common regulatory concept ano a slngle
market passport.
A souno ano e||lclent regulatory envlron-
ment ls a preconoltlon |or tbe contlnueo
success|ul oevelopment o| tbe market.
However, tbe current leglslatlve |rame-
work no longer allows tbe |uno lnoustry
to aoapt e||ectlvely to structural cbange.
Tbe sub-optlmal |unctlonlng o| e×lstlng
provlslons ano a lack o| |le×lblllty ln tbe
Dlrectlve glve rlse to unnecessarlly blgb
compllance costs. Tbls translates lnto
mlsseo buslness ano lnvestment oppor- rr
tunltles |or lnoustry ano lnvestors.
Targeteo amenoments
Tbe Wblte Paper on lnvestment |unos
commlts tbe Commlsslon to come |or- rr
waro wltb proposals |or targeteo legls-
latlve amenoments to UC|TS ln autumn
2007. A paramount consloeratlon ls tbe
neeo to ensure better outcomes |or
lnvestors. Tbls ls wby tbe Wblte Paper
places so mucb empbasls on ln|ormlng
lnvestors ano ensurlng tbat tbey recelve
objectlve ano lmpartlal asslstance |rom
|uno olstrlbutors.
Certaln non-barmonlseo collectlve ln-
vestments are or are percelveo to be too
comple× ano rlsky to be marketeo to tbe
retall publlc. A prlvate placement reglme
ls seen as a use|ul route |or lntegratlng
tbe market |or sucb prooucts.
¨We wlll contlnue worklng ln an open
ano transparent way ano publlsb an e×po-
sure ora|t ln early 2007. We look |orwaro
to olscusslng our evolvlng proposals wltb
Member States, lnoustry, lnvestors ano all
lnteresteo stakeboloers to ensure cost
e||ectlve solutlons.¨
* UC|TS - Unoertaklngs |or Collectlve
|nvestments ln Trans|erable Securltles
|nvestment |unos
UC|TS: Commlsslon sets out
lts vlslon |or mooernlslng tbe
LU lnvestment |uno market
|
n a Wblte Paper tbe Commlsslon bas
set out lts vlslon |or tbe mooernlsa-
tlon o| tbe LU |ramework |or lnvest-
ment |unos. Tbe proposeo lmprovements
woulo mooernlse tbe current Dlrectlve
on lnvestment |unos to ensure tbat lnves-
tors recelve use|ul cost ano per|ormance
olsclosures wben selectlng |unos, ano to
make lt easler |or tbe lnoustry to acbleve
cost savlngs ano speclallsatlon bene|lts
across tbe slngle market. Tbe lnvestment
|uno market a||ecteo represents a pool o|
some 5,700 bllllon euro o| pro|esslonally
manageo assets.
Followlng |urtber stuoles on cost-e|- ||
|ectlveness ano lnvestor protectlon, tbe
Commlsslon plans to propose tbese
cbanges ln autumn 2007, ln tbe |orm o|
amenoments to tbe current Dlrectlve.
Meanwblle tbe Commlsslon wlll also
look at wbetber tbere ls a neeo to cre-
ate a slmllar |ramework |or otber |uno
prooucts, especlally real estate |unos,
tbat are not covereo by tbe current LU
|ramework.
Wblte Paper
Tbe Wblte Paper proposes targeteo
cbanges to tbe current LU |ramework
|or retall-orlenteo lnvestment |unos (tbe
'UC|TS Dlrectlve'). Tbls |ramework no
longer aoequately re|lects tbe cballenges
|aclng tbe lnoustry tooay.
Tbe cbanges woulo:
· slmpll|y tbe notlñcatlon proceoure,
· create a |ramework |or tbe cross-
boroer merger o| |unos,
· lntroouce a management company
passport,
· create a |ramework |or asset
poollng,
· enable |uno managers to manage
|unos oomlclleo ln otber Member
States,
· lmprove tbe quallty ano relevance o|
tbe key olsclosure oocuments to tbe
eno lnvestor, ano
· strengtben supervlsory cooperatlon
to monltor ano reouce rlsk o| cross-
boroer lnvestor abuse.
Tbe Wblte Paper also proposes to revlew
optlons |or establlsblng a Luropean 'prl-
vate placement reglme', allowlng |lnanclal
lnstltutlons to o||er lnvestment oppor- rr
tunltles to quall|leo lnvestors across tbe
LU. Flnally, lt commlts tbe Commlsslon
to analyse tbe optlons o| a slngle mar- rr
ket |ramework |or non-barmonlseo retall
prooucts.
Consultatlon ano oebate
Tbe Commlsslon bas oevelopeo tbe
Wblte Paper on tbe basls o| e×tenslve
consultatlon ano oebate wltb consumers,
lnoustry practltloners ano pollcy-makers
over a perloo o| two years. |t bullos on re-
sponses to tbe Green Paper o| [uly 2005
ano on tbree reports |rom speclally con-

Tbe Commlsslon bas aoopteo a Wblte Paper wblcb sets out a pro-
gramme o| re|orms to tbe UC|TS* leglslatlon a||ectlng lnvestment
|unos ln tbe LU. Tbese re|orms alm to lmprove tbe economlc e|-
|lclency o| tbe |uno buslness ano strengtben lnvestor protectlon ano
transparency.
stltuteo e×pert groups. |t also responos
olrectly to tbe lmportant concerns ralseo
ln tbe Marcb 2006 report o| tbe Luro-
pean Parllament on asset management.
Tbe steps proposeo ln tbls Wblte Paper
bave been tbe object o| rlgorous lmpact
assessment.
Four-|olo growtb
|nvestment |unos are an lmportant pll-
lar o| tbe Luropean |lnanclal system. Tbls
buslness bas grown |our-|olo over tbe last
oecaoe. |ts lmportance ls set to grow as
many Luropean lnvestors use tbem as
one means to save |or a prosperous re-
tlrement. Tbey bave also become a key ln-
vestment tool |or lnstltutlonal lnvestors
sucb as penslon |unos.
Tbe market ls lncreaslngly organlseo on
a pan-Luropean basls. |n 2005, cross-bor- rr
oer |uno sales representeo some 66°
o| tbe total net lnoustry ln|lows. Tbe
'UC|TS' mooel ls consloereo as a 'golo
stanoaro' botb lnsloe ano outsloe tbe LU.

¨Tbe growtb o| tbe Luropean
lnvestment |uno lnoustry bas
been spectacular. 8ut lt stlll bas
masslve untappeo potentlal. "
N
o
44 [ a nua r y 2007
18
N
o
44 [ a nua r y 2007
19

eacb LU Member State wbere tbelr cll-
ents' securltles are aomltteo to traolng
(Artlcle 45).
Prellmlnary estlmates lnolcate tbat ap-
pro×lmately 220 auolt |lrms auoltlng lssu-
ers |rom about 63 tblro countrles wlll be
a||ecteo by tbese rules.
Wbllst tbe lmplementatlon o| tbe Dlrec-
tlve ls prlmarlly a matter |or LU Member
States, tbe Commlsslon wlsbes to obtaln
vlews on actlon lt mlgbt take to |acllltate
tbe lmplementatlon o| tbe Dlrectlve ano
to avolo market |ragmentatlon.
Statutory auolt
ln|o
bttp://ec.europa.eu/lnternal_market/auoltlng/lnoe×_en.btm
T
be Commlsslon bas launcbeo a
publlc consultatlon on lts |uture
strategy ano prlorltles on statu-
tory auolt coverlng non-LU countrles
('tblro countrles'). Tbe Commlsslon
wants to know tbe buslness communlty's
vlews on bow tblro-country auolt |lrms
coulo be supervlseo ano on bow tbe LU
coulo cooperate wltb tblro countrles.
Tbe consultatlon sboulo asslst tbe Com-
mlsslon ln |lnolng pragmatlc ano conslst-
ent solutlons wltbln tbe |ramework o|
tbe Dlrectlve on Statutory Auolt. |nter- rr
esteo partles are lnvlteo to submlt tbelr
contrlbutlons by 5 Marcb 2007.
220 |lrms a||ecteo
Tbe 2006 Dlrectlve on Statutory Auolt
(2006/43/LC) applles not only to LU au-
oltors ano auolt |lrms but also to auolt
|lrms |rom tblro countrles. |t requlres
tblro-country auolt |lrms to reglster ln
Commlsslon consults on tbe
regulatlon o| non-LU
A slgnl|lcant number o| non-LU auolt |lrms operate wltbln tbe
Luropean Unlon ano tbe Commlsslon bas launcbeo an lnoustry-
wloe consultatlon to e×plore ways o| ensurlng tbey are e||ec-
tlvely regulateo ln ways tbat oo not aoversely a||ect LU capltal
markets.

Securltles
ln|o bttp://ec.europa.eu/lnternal_market/ñnanclal-markets/collateral/lnoe×_en.btm
Commlsslon proposes wloenlng
tbe scope o| tbe
A
n evaluatlon report publlsbeo by
tbe Commlsslon on tbe lmpact o|
tbe Flnanclal Collateral Arrange-
ments Dlrectlve concluoes tbat tbe Dl-
rectlve bas maoe tbe use o| |lnanclal col-
lateral ano tbe en|orcement o| collateral
obllgatlons slmpler ano more e||lclent.
Overall, Member States bave aoequately
lmplementeo tbe Dlrectlve.
Tbe Commlsslon bas proposeo an e×ten-
slon o| tbe Dlrectlve's scope to lncluoe
certaln creolt clalms tbat, as o| 1 [anuary
2007, wlll be ellglble as collateral |or Lu-
rosystem creolt operatlons.
About tbe evaluatlon report
Tbls Flnanclal Collateral Dlrectlve (FCD)
creates a unl|orm LU legal |ramework |or
tbe cross-boroer use o| |lnanclal collater- rr
al ano tbus abollsbes most o| tbe |ormal
requlrements traoltlonally lmposeo on
collateral arrangements.
Unoer Artlcle 10 o| tbe Dlrectlve, tbe
Commlsslon was requlreo to present a
report on tbe appllcatlon o| tbe Dlrectlve
be|ore 27 December 2006.
Tbe report sbows tbat most Member
States lmplementeo tbe FCD provlslons
ln tbelr natlonal laws a|ter tbe oeaollne
|or lmplementatlon set by tbe Dlrectlve,
wblle nlne Member States olo so only ln
tbe course o| 2005. As a result, market
e×perlence wltb tbe use o| tbe Dlrectlve
ls relatlvely recent ano lt ls premature to
make a |lnal assessment o| tbe lmpact o|
tbe Dlrectlve. However, tbe overall lm-
presslon ls tbat tbe FCD ls |unctlonlng
well ano bas maoe tbe use o| |lnanclal col-
lateral ano tbe en|orcement o| collateral
obllgatlons slmpler ano more e||lclent.
As o| 1 [anuary 2007, tbe Luropean Cen-
tral 8ank accepts certaln creolt clalms as
an ellglble type o| collateral |or Lurosys-
tem creolt operatlons. Tbe Commlsslon
consloers tbat tbls wlll belp provloe |ur- rr
tber llqulolty ln LU |lnanclal markets ano
lt ls tbere|ore open to e×tenolng tbe ma-
terlal scope o| tbe Dlrectlve.
Tbe report also aooresses tbe tbree opt-
out provlslons contalneo ln tbe Dlrectlve
ano tbe neeo to lmprove tbe provlslons
on close-out nettlng* ano con|llcts o|
law.
Loss mlnlmlsatlon
Flnanclal collateral are tbe assets provlo-
eo by a borrower to a lenoer to mlnlmlse
tbe rlsk o| |lnanclal loss to tbe lenoer ln
tbe event o| tbe borrower oe|aultlng on
lts |lnanclal obllgatlons to tbe lenoer.
Collateral ls lncreaslngly useo ln all types
o| transactlons, lncluolng capltal markets,
bank treasury ano |unolng, payment ano
clearlng systems ano general bank leno-
lng. Tbe collateral provloeo ls most o|ten
ln tbe |orm o| casb or securltles.
|nternal Market ano Servlces Commls-
sloner McCreevy commenteo: ¨Tbe past
|ew years bave seen a spectacular lncrease
ln tbe cross-boroer use o| |lnanclal col-
lateral, maklng LU |lnanclal markets even
more llqulo ano lntegrateo.
"|nvestors can now access |unos more
e||lclently, ano creolt lnstltutlons can
provloe lenolng more e||lclently. Tbe ln-
troouctlon o| tbe Flnanclal Collateral Dl-
rectlve tbree years ago bas contrlbuteo
to tbls success, wblcb ls wby | am now
open to e×tenolng lts scope to lncluoe
otber types o| collateral.¨
* wben, |ollowlng oe|ault or termlnatlon event, all
tbe termlnatlon values, togetber wltb any unpalo
amounts, are reouceo to a slngle net amount oweo
by one party to tbe otber.
Slnce lts lntroouctlon tbree years ago, tbe Flnancal
Collateral Dlrectlve bas maoe tbe use o| |lnanclal
collateral ano tbe en|orcement o| collateral obllga-
tlons slmpler ano more e||lclent., accorolng to a new
report. Tbe Commlsslon ls proposlng to |urtber wlo-
en tbe scope o| tbe Dlrectlve.
"Tbe past |ew years bave seen a
spectacular lncrease ln tbe cross-
boroer use o| |lnanclal collateral,
maklng LU |lnanclal markets even
more llqulo ano lntegrateo. "
ln|o bttp://ec.europa.eu/lnternal_market/auoltlng/llablllty/lnoe×_en.btm
Flnanclal Collateral Dlrectlve
auolt |lrms
Auoltors' llablllty:

Tbe Commlsslon bas launcbeo a publlc
consultatlon on wbetber tbere ls a neeo
to re|orm rules on auoltors' llablllty ln tbe
LU ano on tbe posslble ways |orwaro.
Tbls |ollows an lnoepenoent stuoy by
Lonoon Lconomlcs on tbe economlc lm-
pact o| current auoltors' llablllty reglmes
ano on lnsurance conoltlons ln Member
States (see SMN43).
Tbe Commlsslon bas orawn up |our
posslble optlons |or re|ormlng auoltors'
llablllty reglmes ln tbe LU ano lnvltes
stakeboloers to glve tbelr vlews on tbe
lssues lnvolveo by 15 Marcb 2007. Tbe
2006 Dlrectlve on Statutory Auolt (2006/
43/LC) e×pressly allows tbe Commlsslon
to lssue a recommenoatlon to Member
States. On tbe basls o| tbe replles to tbe
consultatlon, tbe Commlsslon wlll con-
sloer l| ano wbat klno o| recommenoa-
tlon to glve to Member States.
Tbe |our posslble optlons |or re|ormlng
auoltors' llablllty are:
· Tbe lntroouctlon o| a ñ×eo monetary
cap at Luropean level, but tbls mlgbt
be ol|ñcult to acbleve.
· Tbe lntroouctlon o| a cap baseo on
tbe slze o| tbe auolteo company, as
measureo by lts market capltallsatlon.
· Tbe lntroouctlon o| a cap baseo on a
multlple o| tbe auolt |ees cbargeo by
tbe auoltor to lts cllent.
· Tbe lntroouctlon by Member States
o| tbe prlnclple o| proportlonate
llablllty, wblcb means tbat eacb party
(auoltor ano auolteo company) ls
llable only |or tbe portlon o| loss
tbat corresponos to tbe party's
oegree o| responslblllty.
|n aooltlon, tbe Commlsslon bas pub-
llsbeo an overvlew o| tbe legal sltuatlon
ln Member States.
-OREINFORMATIONISAVAILABLEAT
Commlsslon consults on posslble re|orm o| llablllty rules ln tbe LU
N
o
44 [ a nua r y 2007
18
N
o
44 [ a nua r y 2007
19

eacb LU Member State wbere tbelr cll-
ents' securltles are aomltteo to traolng
(Artlcle 45).
Prellmlnary estlmates lnolcate tbat ap-
pro×lmately 220 auolt |lrms auoltlng lssu-
ers |rom about 63 tblro countrles wlll be
a||ecteo by tbese rules.
Wbllst tbe lmplementatlon o| tbe Dlrec-
tlve ls prlmarlly a matter |or LU Member
States, tbe Commlsslon wlsbes to obtaln
vlews on actlon lt mlgbt take to |acllltate
tbe lmplementatlon o| tbe Dlrectlve ano
to avolo market |ragmentatlon.
Statutory auolt
ln|o
bttp://ec.europa.eu/lnternal_market/auoltlng/lnoe×_en.btm
T
be Commlsslon bas launcbeo a
publlc consultatlon on lts |uture
strategy ano prlorltles on statu-
tory auolt coverlng non-LU countrles
('tblro countrles'). Tbe Commlsslon
wants to know tbe buslness communlty's
vlews on bow tblro-country auolt |lrms
coulo be supervlseo ano on bow tbe LU
coulo cooperate wltb tblro countrles.
Tbe consultatlon sboulo asslst tbe Com-
mlsslon ln |lnolng pragmatlc ano conslst-
ent solutlons wltbln tbe |ramework o|
tbe Dlrectlve on Statutory Auolt. |nter- rr
esteo partles are lnvlteo to submlt tbelr
contrlbutlons by 5 Marcb 2007.
220 |lrms a||ecteo
Tbe 2006 Dlrectlve on Statutory Auolt
(2006/43/LC) applles not only to LU au-
oltors ano auolt |lrms but also to auolt
|lrms |rom tblro countrles. |t requlres
tblro-country auolt |lrms to reglster ln
Commlsslon consults on tbe
regulatlon o| non-LU
A slgnl|lcant number o| non-LU auolt |lrms operate wltbln tbe
Luropean Unlon ano tbe Commlsslon bas launcbeo an lnoustry-
wloe consultatlon to e×plore ways o| ensurlng tbey are e||ec-
tlvely regulateo ln ways tbat oo not aoversely a||ect LU capltal
markets.

Securltles
ln|o bttp://ec.europa.eu/lnternal_market/ñnanclal-markets/collateral/lnoe×_en.btm
Commlsslon proposes wloenlng
tbe scope o| tbe
A
n evaluatlon report publlsbeo by
tbe Commlsslon on tbe lmpact o|
tbe Flnanclal Collateral Arrange-
ments Dlrectlve concluoes tbat tbe Dl-
rectlve bas maoe tbe use o| |lnanclal col-
lateral ano tbe en|orcement o| collateral
obllgatlons slmpler ano more e||lclent.
Overall, Member States bave aoequately
lmplementeo tbe Dlrectlve.
Tbe Commlsslon bas proposeo an e×ten-
slon o| tbe Dlrectlve's scope to lncluoe
certaln creolt clalms tbat, as o| 1 [anuary
2007, wlll be ellglble as collateral |or Lu-
rosystem creolt operatlons.
About tbe evaluatlon report
Tbls Flnanclal Collateral Dlrectlve (FCD)
creates a unl|orm LU legal |ramework |or
tbe cross-boroer use o| |lnanclal collater- rr
al ano tbus abollsbes most o| tbe |ormal
requlrements traoltlonally lmposeo on
collateral arrangements.
Unoer Artlcle 10 o| tbe Dlrectlve, tbe
Commlsslon was requlreo to present a
report on tbe appllcatlon o| tbe Dlrectlve
be|ore 27 December 2006.
Tbe report sbows tbat most Member
States lmplementeo tbe FCD provlslons
ln tbelr natlonal laws a|ter tbe oeaollne
|or lmplementatlon set by tbe Dlrectlve,
wblle nlne Member States olo so only ln
tbe course o| 2005. As a result, market
e×perlence wltb tbe use o| tbe Dlrectlve
ls relatlvely recent ano lt ls premature to
make a |lnal assessment o| tbe lmpact o|
tbe Dlrectlve. However, tbe overall lm-
presslon ls tbat tbe FCD ls |unctlonlng
well ano bas maoe tbe use o| |lnanclal col-
lateral ano tbe en|orcement o| collateral
obllgatlons slmpler ano more e||lclent.
As o| 1 [anuary 2007, tbe Luropean Cen-
tral 8ank accepts certaln creolt clalms as
an ellglble type o| collateral |or Lurosys-
tem creolt operatlons. Tbe Commlsslon
consloers tbat tbls wlll belp provloe |ur- rr
tber llqulolty ln LU |lnanclal markets ano
lt ls tbere|ore open to e×tenolng tbe ma-
terlal scope o| tbe Dlrectlve.
Tbe report also aooresses tbe tbree opt-
out provlslons contalneo ln tbe Dlrectlve
ano tbe neeo to lmprove tbe provlslons
on close-out nettlng* ano con|llcts o|
law.
Loss mlnlmlsatlon
Flnanclal collateral are tbe assets provlo-
eo by a borrower to a lenoer to mlnlmlse
tbe rlsk o| |lnanclal loss to tbe lenoer ln
tbe event o| tbe borrower oe|aultlng on
lts |lnanclal obllgatlons to tbe lenoer.
Collateral ls lncreaslngly useo ln all types
o| transactlons, lncluolng capltal markets,
bank treasury ano |unolng, payment ano
clearlng systems ano general bank leno-
lng. Tbe collateral provloeo ls most o|ten
ln tbe |orm o| casb or securltles.
|nternal Market ano Servlces Commls-
sloner McCreevy commenteo: ¨Tbe past
|ew years bave seen a spectacular lncrease
ln tbe cross-boroer use o| |lnanclal col-
lateral, maklng LU |lnanclal markets even
more llqulo ano lntegrateo.
"|nvestors can now access |unos more
e||lclently, ano creolt lnstltutlons can
provloe lenolng more e||lclently. Tbe ln-
troouctlon o| tbe Flnanclal Collateral Dl-
rectlve tbree years ago bas contrlbuteo
to tbls success, wblcb ls wby | am now
open to e×tenolng lts scope to lncluoe
otber types o| collateral.¨
* wben, |ollowlng oe|ault or termlnatlon event, all
tbe termlnatlon values, togetber wltb any unpalo
amounts, are reouceo to a slngle net amount oweo
by one party to tbe otber.
Slnce lts lntroouctlon tbree years ago, tbe Flnancal
Collateral Dlrectlve bas maoe tbe use o| |lnanclal
collateral ano tbe en|orcement o| collateral obllga-
tlons slmpler ano more e||lclent., accorolng to a new
report. Tbe Commlsslon ls proposlng to |urtber wlo-
en tbe scope o| tbe Dlrectlve.
"Tbe past |ew years bave seen a
spectacular lncrease ln tbe cross-
boroer use o| |lnanclal collateral,
maklng LU |lnanclal markets even
more llqulo ano lntegrateo. "
ln|o bttp://ec.europa.eu/lnternal_market/auoltlng/llablllty/lnoe×_en.btm
Flnanclal Collateral Dlrectlve
auolt |lrms
Auoltors' llablllty:

Tbe Commlsslon bas launcbeo a publlc
consultatlon on wbetber tbere ls a neeo
to re|orm rules on auoltors' llablllty ln tbe
LU ano on tbe posslble ways |orwaro.
Tbls |ollows an lnoepenoent stuoy by
Lonoon Lconomlcs on tbe economlc lm-
pact o| current auoltors' llablllty reglmes
ano on lnsurance conoltlons ln Member
States (see SMN43).
Tbe Commlsslon bas orawn up |our
posslble optlons |or re|ormlng auoltors'
llablllty reglmes ln tbe LU ano lnvltes
stakeboloers to glve tbelr vlews on tbe
lssues lnvolveo by 15 Marcb 2007. Tbe
2006 Dlrectlve on Statutory Auolt (2006/
43/LC) e×pressly allows tbe Commlsslon
to lssue a recommenoatlon to Member
States. On tbe basls o| tbe replles to tbe
consultatlon, tbe Commlsslon wlll con-
sloer l| ano wbat klno o| recommenoa-
tlon to glve to Member States.
Tbe |our posslble optlons |or re|ormlng
auoltors' llablllty are:
· Tbe lntroouctlon o| a ñ×eo monetary
cap at Luropean level, but tbls mlgbt
be ol|ñcult to acbleve.
· Tbe lntroouctlon o| a cap baseo on
tbe slze o| tbe auolteo company, as
measureo by lts market capltallsatlon.
· Tbe lntroouctlon o| a cap baseo on a
multlple o| tbe auolt |ees cbargeo by
tbe auoltor to lts cllent.
· Tbe lntroouctlon by Member States
o| tbe prlnclple o| proportlonate
llablllty, wblcb means tbat eacb party
(auoltor ano auolteo company) ls
llable only |or tbe portlon o| loss
tbat corresponos to tbe party's
oegree o| responslblllty.
|n aooltlon, tbe Commlsslon bas pub-
llsbeo an overvlew o| tbe legal sltuatlon
ln Member States.
-OREINFORMATIONISAVAILABLEAT
Commlsslon consults on posslble re|orm o| llablllty rules ln tbe LU
N
o
44 [ a nua r y 2007
20
N
o
44 [ a nua r y 2007
21
|n|rlngements
ln|o
bttp://ec.europa.eu/lnternal_market/lnoprop/tm/lnoe×_en.btm
bttp://oaml.europa.eu/en/oe|ault.btm
tural year-on-year lncreases ln tbe accu-
mulateo casb reserves ls not acceptable
ln tbe long run.
Commlsslon role
Tbe Commlsslon bas a specl|lc responsl-
blllty because lt ls ln cbarge o| settlng tbe
|ee levels. |t proposes tbere|ore to lntro-
ouce a metboo o| regular ano automatlc
revlew o| tbe traoe mark |ees baseo on
tbe OH|M's |lnanclal perspectlves.
A regular |ees revlew sboulo be applleo
botb ln clrcumstances o| buoget sur- rr
pluses as well as ln sltuatlons o| buoget
sbortages, maklng use o| a stanoaro ap-
proacb ln wblcb tbe most lmportant |ees
woulo move upwaros or oownwaros as
necessary. Followlng polltlcal agreement
on tbls approacb, sucb a |ormula coulo
be automatlcally applleo, |or e×ample,
on an annual basls. |n tbe sbort term tbls
woulo leao to |urtber |ee reouctlons |or
buslness.
Tbe pre-oetermlneo |ormula sboulo not
put at rlsk tbe OH|M's blgb level o| per- rr
|ormance. A recent lnoepenoent users'
survey sboweo an overall satls|actlon
wltb tbe per|ormance o| tbe agency, but
OH|M ls worklng on lnltlatlves to |urtber
T
be OH|M, locateo ln Allcante, Spaln,
was set up by tbe 1994 Communlty
Traoe Mark Pegulatlon. Slnce lt became
operatlonal ln 1996, more tban 330,000
traoe marks bave been reglstereo ano
slnce lt began processlng Communlty oe-
slgns ln 2003, over 180,000 oeslgns bave
been success|ully processeo.
As a sel|-|lnanclng LU agency wbose
buoget ls lnoepenoent |rom tbe Com-
munlty buoget, OH|M ls subject to tbe
requlrement tbat tbe revenue ano e×-
penolture ln lts buoget sball be balanceo.
Tbe buoget o| OH|M ls malnly |unoeo by
tbe |ees tbat buslnesses bave to pay |or
lts servlces.
Growlng volume o| traoe mark appllcatlons
OH|M ls generatlng substantlal casb re-
serves arlslng |rom several causes lncluo-
lng steaolly rlslng numbers o| traoe mark
ano oeslgn appllcatlons, lncreaseo pro-
ouctlvlty ano lmproveo e||lclency o| tbe
O||lce, as well as growtb ln e8uslness.
Desplte recent |ee reouctlons tbese casb
reserves are e×pecteo to grow |urtber
ln tbe comlng years. 8y tbe eno o| 2005
cumulatlve casb reserves reacbeo more
tben 130 mllllon euro ano cumulatlve
reserves coulo easlly reacb 375 mllllon
euro by tbe eno o| 2010 ano nearly 700
mllllon euro by tbe eno o| 2016. A slgnl|l-
cant annual surplus wblcb causes struc-
OH|M
Commlsslon proposes
automatlc revlew o|
Traoe Mark |ees
Tbe Commlsslon bas publlsbeo a Communlcatlon about tbe long-term
management o| tbe |lnanclng o| tbe O||lce |or tbe Harmonlsatlon ln tbe
|nternal Market (OH|M). Tbe Commlsslon proposes a regular ano auto-
matlc |ees revlew to guarantee tbat ln tbe |uture a reasonable equlllbrlum
ln tbe OH|M buoget wlll be acbleveo unoer all |lnanclal clrcumstances.
lmprove lts per|ormance ln to acblevlng
better oeclslons, slmpler proceoures ano
lncreaseo processlng speeo ln key parts
o| lts operatlons.
Tbe |ee re|orm sboulo also not prevent
optlmum cooperatlon between OH|M
ano tbe traoe mark o||lces o| tbe Mem-
ber States. Tecbnlcal cooperatlon part-
nersblps coulo be |urtber oevelopeo ln
areas sucb as tralnlng, ln|ormatlon tecb-
nologles, promotlon ano ln|ormatlon
servlces.
Tbe Commlsslon lntenos to present pro-
posals |or an amenoment o| tbe Com-
mlsslon's Traoe Mark Fees Pegulatlon ln
tbe Sprlng o| 2007.
ln|o
Harrle Temmlnk
TLL: +32 (0)2.298 56 12
FAX: +32 (0)2.299 31 04
Markt-D2@ec.europa.eu
Lid you cvcr havc
a problcn with an
adninistration in
anothcr L0 country
and wondcrcd
whcthcr Luropc
rcally cxists?
Liscovcr what
S0Lv¦J can do for
you and .
. cnjoy your rights
in Luropc!
Supplementary bealtb lnsurance provloeo
by prlvate slckness |unos: 8elglum
Tbe Commlsslon ba
8elglum to subml
ness |unos tba
(l.e. on top o|
tlon wltb co
vate slckne
ano are no
supervlslo
mlsslon ls
levels o| p
e Commlsslon ls not questlonlng ln any way tbe structure
e 8elglan soclal securlty system or tbe rlgbt o| prlvate
s |unos to provloe supplementary bealtb lnsurance.
mmlsslon's request takes tbe |orm o| a 'letter o|
tlce'. 8elglum ls askeo to seno lts reply wltbln
s. Depenolng on tbe analysls o| tbls reply, tbe
n wlll oecloe wbetber or not to lssue a ¨rea-
on¨ |ormally calllng on tbe 8elglan Govern-
eno tbe relevant leglslatlon.
Postlng o| workers |rom tbe
new Member States: Netberlanos
Tbe Commlsslon bas oecloeo to lssue a |ormal request
- ln tbe |orm o| a reasoneo oplnlon - to tbe Dutcb autborl-
tles to revlse tbe rules ln |orce concernlng tbe postlng
to Dutcb terrltory o| workers |rom certaln new Mem-
ber States ln tbe |ramework o| tbe provlslon o| servlces.
Tbe Dutcb autborltles bave not responoeo to tbe Com-
mlsslon's supplementary letter o| |ormal notlce o| [uly
2006, calllng |or Dutcb leglslatlon to take tbe reasoneo
oplnlon o| [uly 2005 lnto account ln tbe course o| tbe
proceoure.
N
o
44 [ a nua r y 2007
20
N
o
44 [ a nua r y 2007
21
|n|rlngements
ln|o
bttp://ec.europa.eu/lnternal_market/lnoprop/tm/lnoe×_en.btm
bttp://oaml.europa.eu/en/oe|ault.btm
tural year-on-year lncreases ln tbe accu-
mulateo casb reserves ls not acceptable
ln tbe long run.
Commlsslon role
Tbe Commlsslon bas a specl|lc responsl-
blllty because lt ls ln cbarge o| settlng tbe
|ee levels. |t proposes tbere|ore to lntro-
ouce a metboo o| regular ano automatlc
revlew o| tbe traoe mark |ees baseo on
tbe OH|M's |lnanclal perspectlves.
A regular |ees revlew sboulo be applleo
botb ln clrcumstances o| buoget sur- rr
pluses as well as ln sltuatlons o| buoget
sbortages, maklng use o| a stanoaro ap-
proacb ln wblcb tbe most lmportant |ees
woulo move upwaros or oownwaros as
necessary. Followlng polltlcal agreement
on tbls approacb, sucb a |ormula coulo
be automatlcally applleo, |or e×ample,
on an annual basls. |n tbe sbort term tbls
woulo leao to |urtber |ee reouctlons |or
buslness.
Tbe pre-oetermlneo |ormula sboulo not
put at rlsk tbe OH|M's blgb level o| per- rr
|ormance. A recent lnoepenoent users'
survey sboweo an overall satls|actlon
wltb tbe per|ormance o| tbe agency, but
OH|M ls worklng on lnltlatlves to |urtber
T
be OH|M, locateo ln Allcante, Spaln,
was set up by tbe 1994 Communlty
Traoe Mark Pegulatlon. Slnce lt became
operatlonal ln 1996, more tban 330,000
traoe marks bave been reglstereo ano
slnce lt began processlng Communlty oe-
slgns ln 2003, over 180,000 oeslgns bave
been success|ully processeo.
As a sel|-|lnanclng LU agency wbose
buoget ls lnoepenoent |rom tbe Com-
munlty buoget, OH|M ls subject to tbe
requlrement tbat tbe revenue ano e×-
penolture ln lts buoget sball be balanceo.
Tbe buoget o| OH|M ls malnly |unoeo by
tbe |ees tbat buslnesses bave to pay |or
lts servlces.
Growlng volume o| traoe mark appllcatlons
OH|M ls generatlng substantlal casb re-
serves arlslng |rom several causes lncluo-
lng steaolly rlslng numbers o| traoe mark
ano oeslgn appllcatlons, lncreaseo pro-
ouctlvlty ano lmproveo e||lclency o| tbe
O||lce, as well as growtb ln e8uslness.
Desplte recent |ee reouctlons tbese casb
reserves are e×pecteo to grow |urtber
ln tbe comlng years. 8y tbe eno o| 2005
cumulatlve casb reserves reacbeo more
tben 130 mllllon euro ano cumulatlve
reserves coulo easlly reacb 375 mllllon
euro by tbe eno o| 2010 ano nearly 700
mllllon euro by tbe eno o| 2016. A slgnl|l-
cant annual surplus wblcb causes struc-
OH|M
Commlsslon proposes
automatlc revlew o|
Traoe Mark |ees
Tbe Commlsslon bas publlsbeo a Communlcatlon about tbe long-term
management o| tbe |lnanclng o| tbe O||lce |or tbe Harmonlsatlon ln tbe
|nternal Market (OH|M). Tbe Commlsslon proposes a regular ano auto-
matlc |ees revlew to guarantee tbat ln tbe |uture a reasonable equlllbrlum
ln tbe OH|M buoget wlll be acbleveo unoer all |lnanclal clrcumstances.
lmprove lts per|ormance ln to acblevlng
better oeclslons, slmpler proceoures ano
lncreaseo processlng speeo ln key parts
o| lts operatlons.
Tbe |ee re|orm sboulo also not prevent
optlmum cooperatlon between OH|M
ano tbe traoe mark o||lces o| tbe Mem-
ber States. Tecbnlcal cooperatlon part-
nersblps coulo be |urtber oevelopeo ln
areas sucb as tralnlng, ln|ormatlon tecb-
nologles, promotlon ano ln|ormatlon
servlces.
Tbe Commlsslon lntenos to present pro-
posals |or an amenoment o| tbe Com-
mlsslon's Traoe Mark Fees Pegulatlon ln
tbe Sprlng o| 2007.
ln|o
Harrle Temmlnk
TLL: +32 (0)2.298 56 12
FAX: +32 (0)2.299 31 04
Markt-D2@ec.europa.eu
Lid you cvcr havc
a problcn with an
adninistration in
anothcr L0 country
and wondcrcd
whcthcr Luropc
rcally cxists?
Liscovcr what
S0Lv¦J can do for
you and .
. cnjoy your rights
in Luropc!
Supplementary bealtb lnsurance provloeo
by prlvate slckness |unos: 8elglum
Tbe Commlsslon ba
8elglum to subml
ness |unos tba
(l.e. on top o|
tlon wltb co
vate slckne
ano are no
supervlslo
mlsslon ls
levels o| p
e Commlsslon ls not questlonlng ln any way tbe structure
e 8elglan soclal securlty system or tbe rlgbt o| prlvate
s |unos to provloe supplementary bealtb lnsurance.
mmlsslon's request takes tbe |orm o| a 'letter o|
tlce'. 8elglum ls askeo to seno lts reply wltbln
s. Depenolng on tbe analysls o| tbls reply, tbe
n wlll oecloe wbetber or not to lssue a ¨rea-
on¨ |ormally calllng on tbe 8elglan Govern-
eno tbe relevant leglslatlon.
Postlng o| workers |rom tbe
new Member States: Netberlanos
Tbe Commlsslon bas oecloeo to lssue a |ormal request
- ln tbe |orm o| a reasoneo oplnlon - to tbe Dutcb autborl-
tles to revlse tbe rules ln |orce concernlng tbe postlng
to Dutcb terrltory o| workers |rom certaln new Mem-
ber States ln tbe |ramework o| tbe provlslon o| servlces.
Tbe Dutcb autborltles bave not responoeo to tbe Com-
mlsslon's supplementary letter o| |ormal notlce o| [uly
2006, calllng |or Dutcb leglslatlon to take tbe reasoneo
oplnlon o| [uly 2005 lnto account ln tbe course o| tbe
proceoure.
N
o
44 [ a nua r y 2007
22
N
o
44 [ a nua r y 2007
23
Free movement o| servlces:
Austrla, Germany, France ano |taly
|n|rlngements
|NFP|NGLMLNT PPOCLDUPLS
|| tbe Commlsslon obtalns or recelves convlnclng evloence |rom a complalnant tbat an ln|rlngement o| LU law
ls taklng place, lt |lrst senos tbe Member States concerneo a letter o| |ormal notlce.
|| tbe Member State ooes not reply wltb ln|ormatlon allowlng tbe case to be closeo, tbe Commlsslon senos a
reasoneo oplnlon, tbe secono step o| tbe ln|rlngement proceeolngs unoer Artlcle 226 o| tbe LC Treaty. || tbere
ls no satls|actory response wltbln two montbs, tbe Commlsslon may tben oecloe to re|er tbe case to tbe Luro-
pean Court o| [ustlce ln Lu×embourg.
Tbe Commlsslon bas oecloeo to re|er Austrla to tbe LC[ over
lts rules olscrlmlnatlng agalnst natlonals |rom elgbt Member
States tbat jolneo tbe LU ln 2004 wlsblng to establlsb a com-
pany ln Austrla. Tbe Commlsslon bas also oecloeo to re|er
France to tbe LC[ over lts leglslatlon requlrlng cble| arcbl-
tects o| blstorlcal monuments to be o| Frencb natlonallty.
Tbe Commlsslon bas oecloeo to seno Austrla |ormal re-
quests to mool|y lts leglslatlon restrlctlng tbe |ree move-
ment o| servlces |or patent agents ano obllglng ooctors to
open an account at a specl|lc bank. Tbe Commlsslon bas
sent an aooltlonal |ormal request to Germany regarolng lts
appllcatlon o| a bllateral agreement wltb Polano ln relatlon
to tbe constructlon sector. |n aooltlon, tbe Commlsslon
bas oecloeo to seno |ormal requests to France to mool|y lts
leglslatlon restrlctlng tbe ablllty o| certl|leo translators to
work ln France, ano to mool|y lts leglslatlon on ownersblp
o| blologlcal analysls laboratorles. |taly ls belng |ormally re-
questeo to mool|y lts leglslatlon restrlctlng tbe actlvltles o|
companles lnvolveo ln gas ano electrlclty olstrlbutlon. Tbese
|ormal requests take tbe |orm o| ¨reasoneo oplnlons¨.
Unoer Artlcle 228 o| tbe LC Treaty, tbe Commlsslon bas
sent a letter o| |ormal notlce asklng France |or |ull ln-
|ormatlon on lts e×ecutlon o| a 2006 Court juogement
concernlng restrlctlons on per|ormers' agencles ano
sel|-employeo per|ormers wlsblng to work ln France.
Flnally, tbe Commlsslon bas oecloeo, unoer Artlcle 228
o| tbe LC Treaty, to seno Germany a |urtber reasoneo
oplnlon requestlng lt to comply lmmeolately wltb a 2006
Court juogement concernlng tbe postlng o| tblro-country
natlonals by LU companles.
Freeoom o| establlsbment ln|rlngements:
Germany, Portugal ano France
as oecloeo to re|er Germany to tbe LC[
on rules |or veblcle lnspectlon organlsa-
tbe requlrement |or compulsory a||llla-
number o| (sel|-employeo) lnoepenoent
ame subject, tbe Commlsslon wlll |or- rr
ugal to ameno lts rules on tbe grantlng
o booles o| otber Member States wlsb-
eblcle lnspectlon actlvltles ln Portugal.
as |ormally requesteo France to ameno
cereals traoers to obtaln an autborlsa-
tutlon ln wblcb potentlal competltors
eo tbat tbey bave stock capaclty ln
eno lts rules requlrlng tbat cereals trao-
ers o| bave an aooress ano a mlnlmum actlvlty ln France
plus tbe obllgatlon to make montbly statlstlcal oeclara-
tlons ano to sbow all tbelr commerclal oocuments.
Tbe Commlsslon bas also |ormally requesteo France to
ameno lts rules concernlng tbe establlsbment o| retall
stores. Tbe Commlsslon consloers tbat tbe autborlsatlon
proceoure ls baseo on crlterla not su||lclently objectlve
ano preclse, most o| tbem almlng at assesslng tbe potentlal
economlc lmpact o| tbe openlng o| tbe new sbop, ano ls
buroensome ano un|alr ln tbat lt glves a oeclslon-maklng
role to representatlves o| tbe e×lstlng economlc operators.
Tbese |ormal requests take tbe |orm o| ¨reasoneo oplnlons¨.
|n|rlngements
Publlc procurement:
Austrla, Germany, Greece, Polano ano Spaln
Tbe Com
tbe Luro
oerlng
slo ano
o| a t
Tbe Co
quests t
malntena
ort servlces, ano to Polano concernlng tbe procure-
automateo raoar coastal survelllance equlpment.
mmlsslon bas also sent Spaln two |ormal requests,
no lts practlces regarolng tbe use o| olscrlml-
cbnlcal specl|lcatlons |or tbe purcbase or lease
ter equlpment, ano tbe otber regarolng a publlc
ntract |or tbe constructlon o| a vegetable waste
ng plant ln Motrll, Granaoa. Tbese requests take
m o| ¨reasoneo oplnlons¨.
Pro|esslonal quall|lcatlons:
France, Germany, Portugal ano Spaln
Tbe Commlsslon bas oecloeo to re|er tbe |ollowlng Mem-
ber States to tbe LC[ unoer Artlcle 226 o| tbe LC Treaty:
France over lts rules on tbe recognltlon o| quall|lcatlons
|or canyonlng guloes, Portugal over lts non-lmplementa-
tlon o| LU rules on tbe recognltlon o| quall|lcatlons |or
pbarmaclst-blologlsts, ano Spaln over lts rules on tbe
recognltlon o| quall|lcatlons |or bospltal pbarmaclsts.
|n aooltlon, tbe Commlsslon bas oecloeo, unoer Artlcle
228 o| tbe LC Treaty, to seno France a |urtber reasoneo
oplnlon requestlng lt to comply lmmeolately wltb a 2004
Court juogement requlrlng lt to lmplement LU rules on
recognltlon o| quall|lcatlons |or speclal neeos teacbers.
Flnally, tbe Commlsslon bas |ormally requesteo Germany
to mool|y lts leglslatlon on tbe recognltlon o| quall|lca-
tlons |or oentlsts. Tbls request takes tbe |orm o| a ¨rea
soneo oplnlon¨.
Publlc procurement ÷ closeo cases:
Austrla, Czecb Pepubllc, Germany ano |taly
Tbe Commlsslon bas oecloeo to close a range o| ln|rlnge-
ment cases on publlc procurement. Tbe cases were agalnst
|taly concernlng tbe revlew proceoures relatlng to tbe
awaro o| publlc contracts, ano a reglonal law appllcable
to Frlull venezla Glulla on publlc works, agalnst tbe Czecb
Pepubllc concernlng tbe tenoer proceoure |or armoureo
personnel carrlers |or tbe Czecb army
concernlng non-lmplementatlon lnto n
publlc procurement Dlrectlves, ano tb
plannlng servlces ln tbe clty o| Waren, a
concernlng publlc-prlvate partnersblps
posal sector.
Non-lmplementatlon o| Slngle Market laws:
actlon agalnst nlne Member States
Tbe Commlsslon bas oecloeo to pursue ln|rlnge-
ment proceoures agalnst nlne Member States ÷ 8el-
glum, Cyprus, Lstonla, France, Greece, |taly, tbe Slo-
vak Pepubllc, Spaln ano Sweoen ÷ |or |allure to lmple-
ment certaln |nternal Market Dlrectlves ln natlonal law.
Tbe Commlsslon bas re|erreo 8elglum, France, Greece,
Spaln ano Sweoen to tbe m e LC[ over tbelr |allure to lm-
plement tbe resale rlgbt as Dlrectlve. Tbe Commlsslon ba
also |ormally requesteo 8 be 8elglum, Cyprus, Lstonla, |taly, tb
Slovak Pepubllc ano Spaln on n to lmplement tbe Dlrectlve o
takeover blos ln natlonal la m aw. Tbese requests take tbe |orm
o| ¨reasoneo oplnlons¨.
Tbe latest ln|ormatlon on ln|rlngement proceeolngs concernlng all Member States ls avallable at:
bttp://ec.europa.eu/communlty_law/eulaw/lnoe×_en.btm
bttp://ec.europa.eu/lnternal_market/ln|rlngements/lnoe×_en.btm
More ln|ormatlon on ln|rlngement proceeolngs relatlng to tbe Slngle Market ls avallable at:
N
o
44 [ a nua r y 2007
22
N
o
44 [ a nua r y 2007
23
Free movement o| servlces:
Austrla, Germany, France ano |taly
|n|rlngements
|NFP|NGLMLNT PPOCLDUPLS
|| tbe Commlsslon obtalns or recelves convlnclng evloence |rom a complalnant tbat an ln|rlngement o| LU law
ls taklng place, lt |lrst senos tbe Member States concerneo a letter o| |ormal notlce.
|| tbe Member State ooes not reply wltb ln|ormatlon allowlng tbe case to be closeo, tbe Commlsslon senos a
reasoneo oplnlon, tbe secono step o| tbe ln|rlngement proceeolngs unoer Artlcle 226 o| tbe LC Treaty. || tbere
ls no satls|actory response wltbln two montbs, tbe Commlsslon may tben oecloe to re|er tbe case to tbe Luro-
pean Court o| [ustlce ln Lu×embourg.
Tbe Commlsslon bas oecloeo to re|er Austrla to tbe LC[ over
lts rules olscrlmlnatlng agalnst natlonals |rom elgbt Member
States tbat jolneo tbe LU ln 2004 wlsblng to establlsb a com-
pany ln Austrla. Tbe Commlsslon bas also oecloeo to re|er
France to tbe LC[ over lts leglslatlon requlrlng cble| arcbl-
tects o| blstorlcal monuments to be o| Frencb natlonallty.
Tbe Commlsslon bas oecloeo to seno Austrla |ormal re-
quests to mool|y lts leglslatlon restrlctlng tbe |ree move-
ment o| servlces |or patent agents ano obllglng ooctors to
open an account at a specl|lc bank. Tbe Commlsslon bas
sent an aooltlonal |ormal request to Germany regarolng lts
appllcatlon o| a bllateral agreement wltb Polano ln relatlon
to tbe constructlon sector. |n aooltlon, tbe Commlsslon
bas oecloeo to seno |ormal requests to France to mool|y lts
leglslatlon restrlctlng tbe ablllty o| certl|leo translators to
work ln France, ano to mool|y lts leglslatlon on ownersblp
o| blologlcal analysls laboratorles. |taly ls belng |ormally re-
questeo to mool|y lts leglslatlon restrlctlng tbe actlvltles o|
companles lnvolveo ln gas ano electrlclty olstrlbutlon. Tbese
|ormal requests take tbe |orm o| ¨reasoneo oplnlons¨.
Unoer Artlcle 228 o| tbe LC Treaty, tbe Commlsslon bas
sent a letter o| |ormal notlce asklng France |or |ull ln-
|ormatlon on lts e×ecutlon o| a 2006 Court juogement
concernlng restrlctlons on per|ormers' agencles ano
sel|-employeo per|ormers wlsblng to work ln France.
Flnally, tbe Commlsslon bas oecloeo, unoer Artlcle 228
o| tbe LC Treaty, to seno Germany a |urtber reasoneo
oplnlon requestlng lt to comply lmmeolately wltb a 2006
Court juogement concernlng tbe postlng o| tblro-country
natlonals by LU companles.
Freeoom o| establlsbment ln|rlngements:
Germany, Portugal ano France
as oecloeo to re|er Germany to tbe LC[
on rules |or veblcle lnspectlon organlsa-
tbe requlrement |or compulsory a||llla-
number o| (sel|-employeo) lnoepenoent
ame subject, tbe Commlsslon wlll |or- rr
ugal to ameno lts rules on tbe grantlng
o booles o| otber Member States wlsb-
eblcle lnspectlon actlvltles ln Portugal.
as |ormally requesteo France to ameno
cereals traoers to obtaln an autborlsa-
tutlon ln wblcb potentlal competltors
eo tbat tbey bave stock capaclty ln
eno lts rules requlrlng tbat cereals trao-
ers o| bave an aooress ano a mlnlmum actlvlty ln France
plus tbe obllgatlon to make montbly statlstlcal oeclara-
tlons ano to sbow all tbelr commerclal oocuments.
Tbe Commlsslon bas also |ormally requesteo France to
ameno lts rules concernlng tbe establlsbment o| retall
stores. Tbe Commlsslon consloers tbat tbe autborlsatlon
proceoure ls baseo on crlterla not su||lclently objectlve
ano preclse, most o| tbem almlng at assesslng tbe potentlal
economlc lmpact o| tbe openlng o| tbe new sbop, ano ls
buroensome ano un|alr ln tbat lt glves a oeclslon-maklng
role to representatlves o| tbe e×lstlng economlc operators.
Tbese |ormal requests take tbe |orm o| ¨reasoneo oplnlons¨.
|n|rlngements
Publlc procurement:
Austrla, Germany, Greece, Polano ano Spaln
Tbe Com
tbe Luro
oerlng
slo ano
o| a t
Tbe Co
quests t
malntena
ort servlces, ano to Polano concernlng tbe procure-
automateo raoar coastal survelllance equlpment.
mmlsslon bas also sent Spaln two |ormal requests,
no lts practlces regarolng tbe use o| olscrlml-
cbnlcal specl|lcatlons |or tbe purcbase or lease
ter equlpment, ano tbe otber regarolng a publlc
ntract |or tbe constructlon o| a vegetable waste
ng plant ln Motrll, Granaoa. Tbese requests take
m o| ¨reasoneo oplnlons¨.
Pro|esslonal quall|lcatlons:
France, Germany, Portugal ano Spaln
Tbe Commlsslon bas oecloeo to re|er tbe |ollowlng Mem-
ber States to tbe LC[ unoer Artlcle 226 o| tbe LC Treaty:
France over lts rules on tbe recognltlon o| quall|lcatlons
|or canyonlng guloes, Portugal over lts non-lmplementa-
tlon o| LU rules on tbe recognltlon o| quall|lcatlons |or
pbarmaclst-blologlsts, ano Spaln over lts rules on tbe
recognltlon o| quall|lcatlons |or bospltal pbarmaclsts.
|n aooltlon, tbe Commlsslon bas oecloeo, unoer Artlcle
228 o| tbe LC Treaty, to seno France a |urtber reasoneo
oplnlon requestlng lt to comply lmmeolately wltb a 2004
Court juogement requlrlng lt to lmplement LU rules on
recognltlon o| quall|lcatlons |or speclal neeos teacbers.
Flnally, tbe Commlsslon bas |ormally requesteo Germany
to mool|y lts leglslatlon on tbe recognltlon o| quall|lca-
tlons |or oentlsts. Tbls request takes tbe |orm o| a ¨rea
soneo oplnlon¨.
Publlc procurement ÷ closeo cases:
Austrla, Czecb Pepubllc, Germany ano |taly
Tbe Commlsslon bas oecloeo to close a range o| ln|rlnge-
ment cases on publlc procurement. Tbe cases were agalnst
|taly concernlng tbe revlew proceoures relatlng to tbe
awaro o| publlc contracts, ano a reglonal law appllcable
to Frlull venezla Glulla on publlc works, agalnst tbe Czecb
Pepubllc concernlng tbe tenoer proceoure |or armoureo
personnel carrlers |or tbe Czecb army
concernlng non-lmplementatlon lnto n
publlc procurement Dlrectlves, ano tb
plannlng servlces ln tbe clty o| Waren, a
concernlng publlc-prlvate partnersblps
posal sector.
Non-lmplementatlon o| Slngle Market laws:
actlon agalnst nlne Member States
Tbe Commlsslon bas oecloeo to pursue ln|rlnge-
ment proceoures agalnst nlne Member States ÷ 8el-
glum, Cyprus, Lstonla, France, Greece, |taly, tbe Slo-
vak Pepubllc, Spaln ano Sweoen ÷ |or |allure to lmple-
ment certaln |nternal Market Dlrectlves ln natlonal law.
Tbe Commlsslon bas re|erreo 8elglum, France, Greece,
Spaln ano Sweoen to tbe m e LC[ over tbelr |allure to lm-
plement tbe resale rlgbt as Dlrectlve. Tbe Commlsslon ba
also |ormally requesteo 8 be 8elglum, Cyprus, Lstonla, |taly, tb
Slovak Pepubllc ano Spaln on n to lmplement tbe Dlrectlve o
takeover blos ln natlonal la m aw. Tbese requests take tbe |orm
o| ¨reasoneo oplnlons¨.
Tbe latest ln|ormatlon on ln|rlngement proceeolngs concernlng all Member States ls avallable at:
bttp://ec.europa.eu/communlty_law/eulaw/lnoe×_en.btm
bttp://ec.europa.eu/lnternal_market/ln|rlngements/lnoe×_en.btm
More ln|ormatlon on ln|rlngement proceeolngs relatlng to tbe Slngle Market ls avallable at: