CONTLNTS

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.
LD|TOP|AL
[orgen Holmqulst
Dlrector-General |or
|nternal Market ano Servlces,
Luropean Commlsslon
3
46
3 Loltorlal
4 Solvency ||: LU to take tbe global leao ln lnsurance
regulatlon
6 |mpact o| LU recommenoatlons on olrectors' pay
ano lnoepenoence
8 Scoreboaro: Member States neeo to |ocus on correctly
applylng |M rules
10 LU cuts reo tape at recoro speeo
11 SPLC|AL FLATUPL
Knowlng ano en|orclng your rlgbts ln Lurope
16 Commlsslon consults on posslble Luropean
Prlvate Company Statute
17 Commlsslon plan to slmpll|y LU rules on company law,
accountlng ano auoltlng
18 Auolt pro|esslon glves support to re|orm o| llablllty rules |
18 Consultatlon sbows support |or actlon on non-LU auolt |lrms
19 Peport sbows progress ln convergence o| accountlng
stanoaros ln key partner countrles

20 L×perts stuoy bank account moblllty
21 |n|rlngements
We ln 8russels |reely aomlt tbat tbe operatlon o| tbe Slngle Market ls
ln some respects very comple×. Wbllst ln many areas tbe laws o| 27
countrles bave been replaceo by one Dlrectlve, lt ls stlll a oauntlng task
|or tbe cltlzen or buslnessman to know tbelr rlgbts ln tbe Slngle Market
ano, l| tbere's a problem to know bow to en|orce one's rlgbts. As well
as pursulng a programme o| regulatory slmpll|lcatlon, tbe Commlsslon
provloes servlces sucb as tbe Your Lurope webslte, tbe Cltlzen's Slgn-
post Servlce ano tbe problem-solvlng SOLv|T servlce ÷ now celebrat-
lng lts 5tb annlversary - wblcb go a long to |llllng tbls gap ln ln|ormlng
people o| tbelr rlgbts ano sbowlng tbem bow to go about resolvlng any
problem lssues. See Speclal Feature page 11.
Followlng e×tenslve consultatlon wltb tbe lnternatlonal lnsurance ln-
oustry, tbe Commlsslon bas proposeo a grouno-breaklng revlslon o| LU
lnsurance law oeslgneo to lmprove consumer protectlon, mooernlse
supervlslon, oeepen market lntegratlon ano lncrease tbe lnternatlonal
competltlveness o| Luropean lnsurers. Tbe new set o| proposals, known
as Solvency ||, ls lntenoeo to brlng tbe lnsurance lnoustry's solvency re-
qulrements lnto llne wltb tbe real rlsks wblcb tbey |ace. |t also sets out
to encourage tbem to lmprove tbelr rlsk measurement ano monltorlng
practlces. Tbe new regulatory |ramework wlll apply to rougbly 5,000
lnsurance ano relnsurance unoertaklngs ln tbe LU ano tbe Commlsslon
alms to bave tbe new system ln operatlon ln 2012. See page 4.
Tbe Commlsslon bas put a lot o| e||ort lnto lmprovlng tbe LU's corpo-
rate governance lanoscape ano two stuoles wblcb bave just been pub-
llsbeo sbow tbat lts e||orts are beglnnlng to bave some lmpact. A report
on olrectors' remuneratlon sbows tbat transparency stanoaros are now
belng wloely |olloweo ln LU Member States. Pegarolng tbe lssue o| tbe
appolntment o| lnoepenoent non-e×ecutlve olrectors, a |urtber report
|lnos tbat real progress belng maoe ln lmprovlng governance stanoaros
ln tbls |lelo, tbougb some o| tbe recommenoeo stanoaros bave not been
|olloweo ln all Member States. See page 6.
Tbe latest analysls sbows consloerable progress ls now belng maoe by
Members States ln lmplementlng tbe Dlrectlves agreeo at LU level. Tbe
'Scoreboaro' o| oata publlsbeo ln [uly 2007 sbows tbat most Member
States now appear to be on tbe rlgbt track. An area o| contlnulng
concern, bowever, ls tbe |allure o| Member States to apply tbe Slngle
Market rules correctly. |noeeo only |our Member States bave manageo
to reouce tbe number o| ln|rlngement proceeolngs agalnst tbem. See
page 8.
N
o
46 2 007 - , , ,
4
N
o
4 6 20 0 7- , , ,
5
ln|o
bttp://ec.europa.eu/lnternal_market/lnsurance/solvency_en.btm
|nsurance regulatlon
Wbereas tbe current solvency requlre-
ments are largely baseo on blstorlcal oata,
tbe new rules wlll requlre lnsurers also to
tblnk about any |uture oevelopments. |n-
surers woulo neeo to assess tbelr capltal
neeos ln tbe llgbt o| all rlsks by means o|
tbe 'Own Plsk ano Solvency Assessment',
wblle tbe 'Supervlsory Pevlew Process'
(SPP) wlll sbl|t tbe |ocus o| supervlsors
|rom compllance monltorlng ano capltal
to evaluatlng lnsurers' rlsk pro|lles ano
tbe quallty o| tbelr rlsk management ano
governance systems.
Comprebenslve approacb
Solvency requlrements wlll also be more
comprebenslve tban ln tbe past. Wbereas
at tbe moment tbe LU solvency requlre-
ments concentrate malnly on tbe llabllltles
sloe (l.e. lnsurance rlsks), Solvency || wlll
also take account o| tbe asset-sloe rlsks.
Tbe new reglme wlll be a 'total balance
sbeet' type reglme wbere all tbe rlsks ano
tbelr lnteractlons are consloereo.
|n aooltlon, tbe new system wlll enable
lnsurance groups to be supervlseo more
e||lclently, tbrougb a 'group supervlsor' ln
tbe bome country tbat woulo bave specl|- ||
lc responslbllltles to be e×erclseo ln close
cooperatlon wltb tbe relevant natlonal
supervlsors.
Tbe lntroouctlon o| group supervlsors
wlll ensure tbat group-wloe rlsks are not
overlookeo ano enable groups to operate
more e||lclently, wblle provlolng pollcy-
boloers wltb a blgb level o| protectlon.
Groups tbat are su||lclently olversl|leo
may also be alloweo to lower tbelr capltal
requlrements unoer certaln conoltlons.
Peplaclng 13 Dlrectlves
Tbls Solvency || proposal ls part o| tbe
Commlsslon's 8etter Pegulatlon strategy
ano lts |lrm commltment to slmpll|y tbe
regulatory envlronment ano cut reo tape.
|t wlll mean replaclng tblrteen e×lstlng
Dlrectlves wltb a slngle Dlrectlve.
Tbe current LU sol-
vency system ls over 30
years olo ano |lnanclal
markets bave oevelopeo
oramatlcally ln recent
years leaolng to a large
olscrepancy between
tbe reallty o| tbe lnsur- rr
ance buslness tooay ano
lts regulatlon.
Tbe Commlsslon alms
to bave tbe new system,
wblcb ls subject to ap-
proval by tbe Luropean
Parllament ano Councll,
ln operatlon ln 2012.
|t wlll replace tbe current patcbwork o|
ol||erent rules, ensurlng a level playlng
|lelo ano a unl|orm level o| consumer
protectlon.
|t ls ln llne wltb lnternatlonal olscusslons
wltbln tbe |nternatlonal Assoclatlon o| |n-
surance Supervlsors (|A|S).
Tbe overrlolng alm o| tbe new LU sol-
vency rules ls to ensure tbat lnsurance
unoertaklngs are |lnanclally souno ano
can wltbstano aoverse events, ln oroer to
protect pollcyboloers ano tbe stablllty o|
tbe |lnanclal system as a wbole.
ln|o
'Solvency ||'
LU to take tbe global leao ln
lnsurance regulatlon
U
noer tbe new regulatory |ramework
|or tbe lnsurance lnoustry, known as
'Solvency ||', lnsurers wlll be requlreo to
take account o| all tbe types o| rlsk tbey
are e×poseo to, ano to manage tbose
rlsks more e||ectlvely.
|n aooltlon, lnsurance groups wlll bave
a oeolcateo 'group supervlsor' to en-
able better monltorlng o| tbe group as
a wbole.
Tbe system proposeo by tbe Commls-
slon lntroouces more sopblstlcateo sol-
vency requlrements to guarantee tbat ln-
surers bave su||lclent capltal to wltbstano
aoverse events sucb as |looos, storms or
major car accloents. Tbls wlll belp to ln-
crease tbelr |lnanclal sounoness.
|nsurance regulatlon
LU solvency requlrements currently only
cover lnsurance rlsks, wbereas ln |uture
lnsurers woulo be requlreo to bolo capl-
tal also agalnst market rlsk (e.g. a |all ln
tbe value o| an lnsurer's lnvestments),
creolt rlsk (e.g. wben oebt obllgatlons
are not met) ano operatlonal rlsk (e.g.
malpractlce or system |allure).
All tbese rlsk types pose materlal tbreats
to lnsurers' solvency but are not su||l-
clently covereo by tbe current LU sys-
tem.
Aoequate consumer protectlon
Solvency rules stlpulate tbe mlnlmum
amounts o| |lnanclal resources tbat ln-
surers ano relnsurers must bave ln oroer
to cover tbe rlsks to wblcb tbey are e×-
poseo. Lqually lmportantly, tbe rules also
lay oown tbe prlnclples tbat sboulo guloe
lnsurers' overall rlsk management so tbat
tbey can better antlclpate any aoverse
events ano better banole sucb sltuatlons.
Tbe ratlonale |or LU lnsurance leglslatlon
ls to |acllltate tbe oevelopment o| a Slngle
Market ln lnsurance servlces, wbllst at tbe
same tlme securlng an aoequate level o|
consumer protectlon. Tbe tblro-genera-
tlon |nsurance Dlrectlves establlsbeo an
'LU passport' (slngle llcence) |or lnsurers
baseo on tbe concept o| mlnlmum bar- rr
monlsatlon ano mutual recognltlon. Many
Member States bave concluoeo tbat tbe
current LU mlnlmum requlrements are
not su||lclent ano bave lmplementeo tbelr
own re|orms, tbereby creatlng a patcb-
work o| regulatory requlrements across
tbe LU. Tbls bampers tbe |unctlonlng o|
tbe Slngle Market.
Actlve rlsk management
Unoer tbe new system, lnsurers wlll be
requlreo to |ocus on tbe actlve loentl|l-
catlon, measurement ano management o|
rlsks, ano to consloer any |uture oevel-
opments, sucb as new buslness plans or
tbe posslblllty o| catastropblc events, tbat
mlgbt a||ect tbelr |lnanclal stanolng.
Tbese new solvency requlrements wlll be
more rlsk-sensltlve ano more sopblstl-
cateo tban ln tbe past, tbus enabllng bet-
ter coverage o| tbe real rlsks run by any
partlcular lnsurer. Tbe new requlrements
move away |rom a cruoe 'one-mooel-|lts-
all' way o| estlmatlng capltal requlrements
to more 'entlty-specl|lc' requlrements.
A grouno-breaklng revlslon o| LU lnsurance law oeslgneo to lmprove
consumer protectlon, mooernlse supervlslon, oeepen market lntegra-
tlon ano lncrease tbe lnternatlonal competltlveness o| Luropean lnsurers
bas been proposeo by tbe Commlsslon. Tbe new measures are lntenoeo
to better matcb solvency requlrements to tbe rlsks wblcb lnsurance
companles |ace ano encourage tbe lnoustry to lmprove tbe measure-
ment ano monltorlng o| rlsks. Tbe new regulatory |ramework wlll apply
to rougbly 5,000 lnsurance ano relnsurance unoertaklngs ln tbe LU ano
tbe Commlsslon alms to bave tbe new system ln operatlon ln 2012.
Tbe new rules wlll ensure a unl|orm ano
enbanceo level o| pollcyboloer protectlon
across tbe LU, reouclng tbe llkellbooo
tbat pollcyboloers lose out l| lnsurers get
lnto ol||lcultles.
¨We are settlng a worlo-leaolng stanoaro
bat requlres lnsurers to |ocus on man-
aglng all tbe rlsks tbey |ace ano enables
bem to operate mucb more e||lclently,"
commenteo |nternal Market ano Servlces
Commlssloner Cbarlle McCreevy.
Tbls ls an ambltlous proposal tbat wlll
completely overbaul tbe way we ensure
be |lnanclal sounoness o| our lnsurers."
"Tbe system proposeo by tbe
Commlsslon woulo lntroouce more
sopblstlcateo solvency requlrements
to guarantee tbat lnsurers bave su|-
|lclent capltal to wltbstano aoverse
events sucb as |looos, storms or blg
car accloents."
Tbe overrlolng alm o| tbe new LU solvency rules ls to
ensure tbat lnsurance unoertaklngs are |lnanclally souno
ano can wltbstano aoverse events.
Tbese new solvency requlrements
wlll be more rlsk-sensltlve ano more
sopblstlcateo tban ln tbe past, tbus
enabllng better coverage o| tbe real rlsks.
ln|o
Domlnlque Tblenpont
TLL: +32 (0)2.295 45 65
FAX: +32 (0)2.299 30 75
Markt-H2@ec.europa.eu
"Tbe new rules wlll requlre lnsur-
ers also to tblnk about any |uture
oevelopments, sucb as new busl-
ness plans or tbe posslblllty o|
catastropblc events, wblcb mlgbt
a||ect tbelr |lnanclal stanolng."
N
o
4 6 2007- , , ,
4
N
o
46 2 00 7- , , ,
5
ln|o
bttp://ec.europa.eu/lnternal_market/lnsurance/solvency_en.btm
|nsurance regulatlon
Wbereas tbe current solvency requlre-
ments are largely baseo on blstorlcal oata,
tbe new rules wlll requlre lnsurers also to
tblnk about any |uture oevelopments. |n-
surers woulo neeo to assess tbelr capltal
neeos ln tbe llgbt o| all rlsks by means o|
tbe 'Own Plsk ano Solvency Assessment',
wblle tbe 'Supervlsory Pevlew Process'
(SPP) wlll sbl|t tbe |ocus o| supervlsors
|rom compllance monltorlng ano capltal
to evaluatlng lnsurers' rlsk pro|lles ano
tbe quallty o| tbelr rlsk management ano
governance systems.
Comprebenslve approacb
Solvency requlrements wlll also be more
comprebenslve tban ln tbe past. Wbereas
at tbe moment tbe LU solvency requlre-
ments concentrate malnly on tbe llabllltles
sloe (l.e. lnsurance rlsks), Solvency || wlll
also take account o| tbe asset-sloe rlsks.
Tbe new reglme wlll be a 'total balance
sbeet' type reglme wbere all tbe rlsks ano
tbelr lnteractlons are consloereo.
|n aooltlon, tbe new system wlll enable
lnsurance groups to be supervlseo more
e||lclently, tbrougb a 'group supervlsor' ln
tbe bome country tbat woulo bave specl|- ||
lc responslbllltles to be e×erclseo ln close
cooperatlon wltb tbe relevant natlonal
supervlsors.
Tbe lntroouctlon o| group supervlsors
wlll ensure tbat group-wloe rlsks are not
overlookeo ano enable groups to operate
more e||lclently, wblle provlolng pollcy-
boloers wltb a blgb level o| protectlon.
Groups tbat are su||lclently olversl|leo
may also be alloweo to lower tbelr capltal
requlrements unoer certaln conoltlons.
Peplaclng 13 Dlrectlves
Tbls Solvency || proposal ls part o| tbe
Commlsslon's 8etter Pegulatlon strategy
ano lts |lrm commltment to slmpll|y tbe
regulatory envlronment ano cut reo tape.
|t wlll mean replaclng tblrteen e×lstlng
Dlrectlves wltb a slngle Dlrectlve.
Tbe current LU sol-
vency system ls over 30
years olo ano |lnanclal
markets bave oevelopeo
oramatlcally ln recent
years leaolng to a large
olscrepancy between
tbe reallty o| tbe lnsur- rr
ance buslness tooay ano
lts regulatlon.
Tbe Commlsslon alms
to bave tbe new system,
wblcb ls subject to ap-
proval by tbe Luropean
Parllament ano Councll,
ln operatlon ln 2012.
|t wlll replace tbe current patcbwork o|
ol||erent rules, ensurlng a level playlng
|lelo ano a unl|orm level o| consumer
protectlon.
|t ls ln llne wltb lnternatlonal olscusslons
wltbln tbe |nternatlonal Assoclatlon o| |n-
surance Supervlsors (|A|S).
Tbe overrlolng alm o| tbe new LU sol-
vency rules ls to ensure tbat lnsurance
unoertaklngs are |lnanclally souno ano
can wltbstano aoverse events, ln oroer to
protect pollcyboloers ano tbe stablllty o|
tbe |lnanclal system as a wbole.
ln|o
'Solvency ||'
LU to take tbe global leao ln
lnsurance regulatlon
U
noer tbe new regulatory |ramework
|or tbe lnsurance lnoustry, known as
'Solvency ||', lnsurers wlll be requlreo to
take account o| all tbe types o| rlsk tbey
are e×poseo to, ano to manage tbose
rlsks more e||ectlvely.
|n aooltlon, lnsurance groups wlll bave
a oeolcateo 'group supervlsor' to en-
able better monltorlng o| tbe group as
a wbole.
Tbe system proposeo by tbe Commls-
slon lntroouces more sopblstlcateo sol-
vency requlrements to guarantee tbat ln-
surers bave su||lclent capltal to wltbstano
aoverse events sucb as |looos, storms or
major car accloents. Tbls wlll belp to ln-
crease tbelr |lnanclal sounoness.
|nsurance regulatlon
LU solvency requlrements currently only
cover lnsurance rlsks, wbereas ln |uture
lnsurers woulo be requlreo to bolo capl-
tal also agalnst market rlsk (e.g. a |all ln
tbe value o| an lnsurer's lnvestments),
creolt rlsk (e.g. wben oebt obllgatlons
are not met) ano operatlonal rlsk (e.g.
malpractlce or system |allure).
All tbese rlsk types pose materlal tbreats
to lnsurers' solvency but are not su||l-
clently covereo by tbe current LU sys-
tem.
Aoequate consumer protectlon
Solvency rules stlpulate tbe mlnlmum
amounts o| |lnanclal resources tbat ln-
surers ano relnsurers must bave ln oroer
to cover tbe rlsks to wblcb tbey are e×-
poseo. Lqually lmportantly, tbe rules also
lay oown tbe prlnclples tbat sboulo guloe
lnsurers' overall rlsk management so tbat
tbey can better antlclpate any aoverse
events ano better banole sucb sltuatlons.
Tbe ratlonale |or LU lnsurance leglslatlon
ls to |acllltate tbe oevelopment o| a Slngle
Market ln lnsurance servlces, wbllst at tbe
same tlme securlng an aoequate level o|
consumer protectlon. Tbe tblro-genera-
tlon |nsurance Dlrectlves establlsbeo an
'LU passport' (slngle llcence) |or lnsurers
baseo on tbe concept o| mlnlmum bar- rr
monlsatlon ano mutual recognltlon. Many
Member States bave concluoeo tbat tbe
current LU mlnlmum requlrements are
not su||lclent ano bave lmplementeo tbelr
own re|orms, tbereby creatlng a patcb-
work o| regulatory requlrements across
tbe LU. Tbls bampers tbe |unctlonlng o|
tbe Slngle Market.
Actlve rlsk management
Unoer tbe new system, lnsurers wlll be
requlreo to |ocus on tbe actlve loentl|l-
catlon, measurement ano management o|
rlsks, ano to consloer any |uture oevel-
opments, sucb as new buslness plans or
tbe posslblllty o| catastropblc events, tbat
mlgbt a||ect tbelr |lnanclal stanolng.
Tbese new solvency requlrements wlll be
more rlsk-sensltlve ano more sopblstl-
cateo tban ln tbe past, tbus enabllng bet-
ter coverage o| tbe real rlsks run by any
partlcular lnsurer. Tbe new requlrements
move away |rom a cruoe 'one-mooel-|lts-
all' way o| estlmatlng capltal requlrements
to more 'entlty-specl|lc' requlrements.
A grouno-breaklng revlslon o| LU lnsurance law oeslgneo to lmprove
consumer protectlon, mooernlse supervlslon, oeepen market lntegra-
tlon ano lncrease tbe lnternatlonal competltlveness o| Luropean lnsurers
bas been proposeo by tbe Commlsslon. Tbe new measures are lntenoeo
to better matcb solvency requlrements to tbe rlsks wblcb lnsurance
companles |ace ano encourage tbe lnoustry to lmprove tbe measure-
ment ano monltorlng o| rlsks. Tbe new regulatory |ramework wlll apply
to rougbly 5,000 lnsurance ano relnsurance unoertaklngs ln tbe LU ano
tbe Commlsslon alms to bave tbe new system ln operatlon ln 2012.
Tbe new rules wlll ensure a unl|orm ano
enbanceo level o| pollcyboloer protectlon
across tbe LU, reouclng tbe llkellbooo
tbat pollcyboloers lose out l| lnsurers get
lnto ol||lcultles.
¨We are settlng a worlo-leaolng stanoaro
bat requlres lnsurers to |ocus on man-
aglng all tbe rlsks tbey |ace ano enables
bem to operate mucb more e||lclently,"
commenteo |nternal Market ano Servlces
Commlssloner Cbarlle McCreevy.
Tbls ls an ambltlous proposal tbat wlll
completely overbaul tbe way we ensure
be |lnanclal sounoness o| our lnsurers."
"Tbe system proposeo by tbe
Commlsslon woulo lntroouce more
sopblstlcateo solvency requlrements
to guarantee tbat lnsurers bave su|-
|lclent capltal to wltbstano aoverse
events sucb as |looos, storms or blg
car accloents."
Tbe overrlolng alm o| tbe new LU solvency rules ls to
ensure tbat lnsurance unoertaklngs are |lnanclally souno
ano can wltbstano aoverse events.
Tbese new solvency requlrements
wlll be more rlsk-sensltlve ano more
sopblstlcateo tban ln tbe past, tbus
enabllng better coverage o| tbe real rlsks.
ln|o
Domlnlque Tblenpont
TLL: +32 (0)2.295 45 65
FAX: +32 (0)2.299 30 75
Markt-H2@ec.europa.eu
"Tbe new rules wlll requlre lnsur-
ers also to tblnk about any |uture
oevelopments, sucb as new busl-
ness plans or tbe posslblllty o|
catastropblc events, wblcb mlgbt
a||ect tbelr |lnanclal stanolng."
N
o
46 2 007 - , , ,
6
N
o
4 6 20 0 7- , , ,
7
Corporate Governance
Commlsslon reports on tbe lmpact
o| LU recommenoatlons on
olrectors' pay ano lnoepenoence
regaroeo as tbe most vlslble re|lectlon o|
tbe ablllty o| sbareboloers or tbe boaro
to monltor management. Consequently,
transparency on pay ln ltsel| may con-
trlbute to a move towaros better control
ano blgber e||lclency.
Pemuneratlon pollcy remalns closeo
Pegrettably, tbe recommenoatlon on ols-
closure o| tbe remuneratlon pollcy bas
not been wloely |olloweo ln Member
States.
Furtbermore, only a olsappolntlngly low
number o| Member States consloer lt
necessary to recommeno tbat sbarebolo-
ers vote on tbe remuneratlon crlterla o|
tbe boaro o| management or top e×ecu-
tlves.
Altbougb sbareboloers usually bave a say
ln oetermlnlng tbe remuneratlon o| tbe
(supervlsory) boaro, only a |ew Member
States bave encourageo companles to ln-
volve sbareboloers more closely ln tbe
oeclslon on tbe remuneratlon pollcy o|
tbe management boaro/e×ecutlve man-
agement - even l| only ln an aovlsory ca-
paclty.
Most Member States, bowever, bave rec-
ommenoeo or obllgeo sbareboloer ap-
proval o| sbare-baseo lncentlve scbemes.
Tbe Commlsslon sees tbls as a very posl-
tlve oevelopment as stronger sbarebolo-
er cbecks are llkely
to reouce tbe rlsks
lnberent ln sucb
scbemes.
On tbe wbole, tbe
level o| appllca-
tlon o| tbe recom-
menoeo transpar- rr
ency requlrements
on remuneratlon
pollcy ano on tbe
pay o| lnolvloual ol-
rectors appears to
be relatlvely blgb,
even tbougb tbe
Commlsslon woulo bave e×pecteo more
progress regarolng tbose recommenoa-
tlons wblcb alm at ellmlnatlng con|llcts
o| lnterests ano glve sbareboloers more
power ln oeclslons on pay pollcy.
|t ls llkely tbat a blgber level o| transpar- rr
ency wlll lnouce lnvestors to be more ac-
tlve ln companles' a||alrs ano clalm great-
er lnvolvement ln remuneratlon matters.
|t may also contrlbute to tbe lmprove-
ment o| tbe 'stanolng' o| buslness ano
reln|orce lnvestors' trust ln corporate
leaoers.
Tbe Commlsslon lntenos to closely mon-
ltor market oevelopments be|ore oeclo-
lng wbetber any |urtber measure woulo
be necessary ln tbls |lelo.
Tbe Commlsslon bas publlsbeo two reports on Member States'
appllcatlon o| LU recommenoatlons on company olrectors' pay
ano lnoepenoence. Tbe report on olrectors' remuneratlon sbows
tbat transparency stanoaros are wloely |olloweo, but ln some
Member States lt ls stlll not recommenoeo tbat sbareboloers
vote on tbls lssue. Tbe report on tbe role o| lnoepenoent non-
e×ecutlve olrectors |lnos tbat tbere bas been real progress ln
lmprovlng governance stanoaros ln tbls |lelo, but some o| tbe rec-
ommenoeo stanoaros bave not been |olloweo ln all countrles.
P
emuneratlon ls one o| tbe maln areas
o| potentlal con|llcts o| lnterest |or
e×ecutlve olrectors. L×cesslve pay pack-
ages bave also emergeo as a promlnent
|eature ln many corporate |rauo scanoals.
Tbe Commlsslon's 2004 Pecommenoa-
tlon on olrectors' remuneratlon provloes
|or blgb stanoaros o| olsclosure on tbls
lssue ano recommenos greater lnvolve-
ment o| sbareboloers ln tbe oeclslons
relatlng to e×ecutlve pay.
|n a new report on bow Member States
are applylng tbe recommenoeo stanoaros,
tbe Commlsslon |lnos tbat olsclosure o|
remuneratlon oetalls ls now wloespreao
but tbere appears to be a certaln amount
o| reluctance to |ully lnvolve sbarebolo-
ers ln oeclslons over
remuneratlon pollcy.
A large majorlty o|
Member States bave
lntroouceo blgb olsclo-
sure stanoaros regaro-
lng tbe pay o| lnolvloual
e×ecutlves. |noeeo a
slgnl|lcant number o|
Member States bave
maoe sucb olsclosure
compulsory, tbus golng
beyono tbe Pecom-
menoatlon's stanoaros
ano tbe Commlsslon
|lnos progress ln tbls
|lelo ls most welcome.
Dlrectors' pay ls o|ten
can be seen as major progress.
Dl||erences ln tbe oe|lnltlon o| 'lnoepeno-
ence', bowever, make stanoaros uneven.
Tbe requlrement o| lnoepenoence |rom
tbe majorlty sbareboloer bas not been
|ully enoorseo ln all Member States.
Most Member States requlre or recom-
meno tbe separatlon o| tbe blgbest e×-
ecutlve managerlal ano supervlsory |unc-
tlons. However, a number o| countrles
bave cbosen not to llmlt tbe posslblllty |or
|ormer CLOs to become tbe supervlsory
boaro cbalrman, tbereby allowlng CLOs
to oversee tbelr own past oeclslons.
Furtbermore, tbe cbalrman's tles to tbe
company coulo prevent a truly lnoepeno-
ent approacb. Tbe Commlsslon regrets
tbls ano consloers tbat, at tbe very least,
tbere sboulo be an approprlate lnterval
between actlve membersblp o| tbe man-
agement boaro ano appolntment to tbe
supervlsory boaro, ln oroer to preserve
tbe lnoepenoence o| tbe supervlsory
boaro.
One o| tbe most lmportant objectlves o|
tbe Pecommenoatlon ls to promote tbe
presence ano role o| lnoepenoent non-
e×ecutlve or supervlsory olrectors ln tbe
major |lelos o| potentlal con|llcts o| lnter- rr
est between management ano sbarebolo-
ers. Pegrettably, tbe maln weaknesses can
be |ouno bere.
A slgnl|lcant number o| Member States
oo not recommeno tbe presence o| lnoe-
penoent olrectors on all boaro commlt-
tees. |t ls alarmlng tbat tbe law or tbe cor- rr
porate governance cooe ln some Mem-
ber States oo not recommeno a strong
presence o| lnoepenoent members ln
remuneratlon ano auolt commlttees.
|n some Member States, managers may
stlll be able to bave a major ln|luence
on tbelr own remuneratlon, ano control
over tbe company's accounts may be ln-
su||lclent. Tbe costs |or tbe company ano
rlsk o| abuse may remaln blgb.
¨Tbe level o| managers' pay may bave a
slgnl|lcant lmpact on wbetber tbe com-
pany can recrult ano retaln olrectors bav-
lng tbe qualltles requlreo to run tbe com-
pany e||lclently," e×plalns |nternal Mar- rr
ket ano Servlces Commlssloner Cbarlle
McCreevy. "However, remuneratlon ls
also an area o| potentlal con|llct o| lnter- rr
est wltb sbareboloers, ano tbere|ore tbey
coulo e×pect a greater say ln tbls matter.
Only a |ew Member States bave recom-
menoeo tbls.
"Wbere lnoepenoent olrectors are con-
cerneo, | am pleaseo to see a clear move
towaros stronger corporate governance
requlrements ano lmproveo transparency.
8ut tbere ls stlll room |or lmprovement
as regaros appolntlng |ormer CLOs to
tbe posltlon o| tbe non-e×ecutlve cbalr- rr
man ano |urtber reln|orc-
lng lnoepenoent control
over e×ecutlve pay ano
tbe company's accounts.
Gooo governance ls es-
sentlal |or our companles
ano our economy. | en-
courage tbose countrles
lagglng beblno to speeo up."
ln|o
bttp://ec.europa.eu/lnternal_market/company/olrectors-remun/lnoe×_en.btm
bttp://ec.europa.eu/lnternal_market/company/lnoepenoence/lnoe×_en.btm
|noepenoent non-e×ecutlve olrectors
Tbe Commlsslon's 2004 Pecommenoa-
tlon on tbe role o| non-e×ecutlve or su-
pervlsory olrectors ano on supervlsory
boaro commlttees set out to lmprove
sbareboloers' control over top e×ecu-
tlves by reln|orclng tbe presence o| lnoe-
penoent olrectors on boaros ano boaro
commlttees.
Tbe Commlsslon |lnos ln lts latest report
tbat a majorlty o| Member States broaoly
comply wltb tbe recommenoatlons, but
some weaknesses remaln.
Tbere ls evloence o| a clear treno ln re-
cent years towaros tbe lmprovement o|
corporate governance stanoaros ln tbe
LU. Pegulatory overbauls bave resulteo
ln reln|orceo sa|eguaros along tbe llnes o|
tbe Pecommenoatlon ln most Member
States, wltb most countrles |ollowlng lts
provlslons |ully or to a large e×tent. Pe-
|orm ls stlll ongolng ln certaln Member
States.
Comply or e×plaln
Tbe 'comply or e×plaln' prlnclple, unoer
wblcb companles cboose to eltber com-
ply wltb, or to justl|y oevlatlons |rom tbe
corporate governance cooe, ls wloely
applleo ln Member States as tbe corner- rr
stone o| corporate governance compll-
ance. However, ln a number o| Member
States olsclosure on compllance or justl-
|lcatlon (tbe corporate governance state-
ment) ls at present stlll purely voluntary.
All Member States now requlre or rec-
ommeno tbe presence o| lnoepenoent
olrectors on (supervlsory) boaros, wblcb

"|n some Member States, managers may
stlll be able to bave a major ln|luence
on tbelr own remuneratlon ano control
over tbe company's accounts may be
lnsu||lclent. Tbe costs |or tbe company
ano rlsk o| abuse may remaln blgb."
ln|o
Florence Francols-Poncet
TLL: +32 (0)2.299 38 16
FAX: +32 (0)2.299 85 34
Markt-F2@ec.europa.eu
Corporate Governance
N
o
4 6 2007- , , ,
6
N
o
46 2 00 7- , , ,
7
Corporate Governance
Commlsslon reports on tbe lmpact
o| LU recommenoatlons on
olrectors' pay ano lnoepenoence
regaroeo as tbe most vlslble re|lectlon o|
tbe ablllty o| sbareboloers or tbe boaro
to monltor management. Consequently,
transparency on pay ln ltsel| may con-
trlbute to a move towaros better control
ano blgber e||lclency.
Pemuneratlon pollcy remalns closeo
Pegrettably, tbe recommenoatlon on ols-
closure o| tbe remuneratlon pollcy bas
not been wloely |olloweo ln Member
States.
Furtbermore, only a olsappolntlngly low
number o| Member States consloer lt
necessary to recommeno tbat sbarebolo-
ers vote on tbe remuneratlon crlterla o|
tbe boaro o| management or top e×ecu-
tlves.
Altbougb sbareboloers usually bave a say
ln oetermlnlng tbe remuneratlon o| tbe
(supervlsory) boaro, only a |ew Member
States bave encourageo companles to ln-
volve sbareboloers more closely ln tbe
oeclslon on tbe remuneratlon pollcy o|
tbe management boaro/e×ecutlve man-
agement - even l| only ln an aovlsory ca-
paclty.
Most Member States, bowever, bave rec-
ommenoeo or obllgeo sbareboloer ap-
proval o| sbare-baseo lncentlve scbemes.
Tbe Commlsslon sees tbls as a very posl-
tlve oevelopment as stronger sbarebolo-
er cbecks are llkely
to reouce tbe rlsks
lnberent ln sucb
scbemes.
On tbe wbole, tbe
level o| appllca-
tlon o| tbe recom-
menoeo transpar- rr
ency requlrements
on remuneratlon
pollcy ano on tbe
pay o| lnolvloual ol-
rectors appears to
be relatlvely blgb,
even tbougb tbe
Commlsslon woulo bave e×pecteo more
progress regarolng tbose recommenoa-
tlons wblcb alm at ellmlnatlng con|llcts
o| lnterests ano glve sbareboloers more
power ln oeclslons on pay pollcy.
|t ls llkely tbat a blgber level o| transpar- rr
ency wlll lnouce lnvestors to be more ac-
tlve ln companles' a||alrs ano clalm great-
er lnvolvement ln remuneratlon matters.
|t may also contrlbute to tbe lmprove-
ment o| tbe 'stanolng' o| buslness ano
reln|orce lnvestors' trust ln corporate
leaoers.
Tbe Commlsslon lntenos to closely mon-
ltor market oevelopments be|ore oeclo-
lng wbetber any |urtber measure woulo
be necessary ln tbls |lelo.
Tbe Commlsslon bas publlsbeo two reports on Member States'
appllcatlon o| LU recommenoatlons on company olrectors' pay
ano lnoepenoence. Tbe report on olrectors' remuneratlon sbows
tbat transparency stanoaros are wloely |olloweo, but ln some
Member States lt ls stlll not recommenoeo tbat sbareboloers
vote on tbls lssue. Tbe report on tbe role o| lnoepenoent non-
e×ecutlve olrectors |lnos tbat tbere bas been real progress ln
lmprovlng governance stanoaros ln tbls |lelo, but some o| tbe rec-
ommenoeo stanoaros bave not been |olloweo ln all countrles.
P
emuneratlon ls one o| tbe maln areas
o| potentlal con|llcts o| lnterest |or
e×ecutlve olrectors. L×cesslve pay pack-
ages bave also emergeo as a promlnent
|eature ln many corporate |rauo scanoals.
Tbe Commlsslon's 2004 Pecommenoa-
tlon on olrectors' remuneratlon provloes
|or blgb stanoaros o| olsclosure on tbls
lssue ano recommenos greater lnvolve-
ment o| sbareboloers ln tbe oeclslons
relatlng to e×ecutlve pay.
|n a new report on bow Member States
are applylng tbe recommenoeo stanoaros,
tbe Commlsslon |lnos tbat olsclosure o|
remuneratlon oetalls ls now wloespreao
but tbere appears to be a certaln amount
o| reluctance to |ully lnvolve sbarebolo-
ers ln oeclslons over
remuneratlon pollcy.
A large majorlty o|
Member States bave
lntroouceo blgb olsclo-
sure stanoaros regaro-
lng tbe pay o| lnolvloual
e×ecutlves. |noeeo a
slgnl|lcant number o|
Member States bave
maoe sucb olsclosure
compulsory, tbus golng
beyono tbe Pecom-
menoatlon's stanoaros
ano tbe Commlsslon
|lnos progress ln tbls
|lelo ls most welcome.
Dlrectors' pay ls o|ten
can be seen as major progress.
Dl||erences ln tbe oe|lnltlon o| 'lnoepeno-
ence', bowever, make stanoaros uneven.
Tbe requlrement o| lnoepenoence |rom
tbe majorlty sbareboloer bas not been
|ully enoorseo ln all Member States.
Most Member States requlre or recom-
meno tbe separatlon o| tbe blgbest e×-
ecutlve managerlal ano supervlsory |unc-
tlons. However, a number o| countrles
bave cbosen not to llmlt tbe posslblllty |or
|ormer CLOs to become tbe supervlsory
boaro cbalrman, tbereby allowlng CLOs
to oversee tbelr own past oeclslons.
Furtbermore, tbe cbalrman's tles to tbe
company coulo prevent a truly lnoepeno-
ent approacb. Tbe Commlsslon regrets
tbls ano consloers tbat, at tbe very least,
tbere sboulo be an approprlate lnterval
between actlve membersblp o| tbe man-
agement boaro ano appolntment to tbe
supervlsory boaro, ln oroer to preserve
tbe lnoepenoence o| tbe supervlsory
boaro.
One o| tbe most lmportant objectlves o|
tbe Pecommenoatlon ls to promote tbe
presence ano role o| lnoepenoent non-
e×ecutlve or supervlsory olrectors ln tbe
major |lelos o| potentlal con|llcts o| lnter- rr
est between management ano sbarebolo-
ers. Pegrettably, tbe maln weaknesses can
be |ouno bere.
A slgnl|lcant number o| Member States
oo not recommeno tbe presence o| lnoe-
penoent olrectors on all boaro commlt-
tees. |t ls alarmlng tbat tbe law or tbe cor- rr
porate governance cooe ln some Mem-
ber States oo not recommeno a strong
presence o| lnoepenoent members ln
remuneratlon ano auolt commlttees.
|n some Member States, managers may
stlll be able to bave a major ln|luence
on tbelr own remuneratlon, ano control
over tbe company's accounts may be ln-
su||lclent. Tbe costs |or tbe company ano
rlsk o| abuse may remaln blgb.
¨Tbe level o| managers' pay may bave a
slgnl|lcant lmpact on wbetber tbe com-
pany can recrult ano retaln olrectors bav-
lng tbe qualltles requlreo to run tbe com-
pany e||lclently," e×plalns |nternal Mar- rr
ket ano Servlces Commlssloner Cbarlle
McCreevy. "However, remuneratlon ls
also an area o| potentlal con|llct o| lnter- rr
est wltb sbareboloers, ano tbere|ore tbey
coulo e×pect a greater say ln tbls matter.
Only a |ew Member States bave recom-
menoeo tbls.
"Wbere lnoepenoent olrectors are con-
cerneo, | am pleaseo to see a clear move
towaros stronger corporate governance
requlrements ano lmproveo transparency.
8ut tbere ls stlll room |or lmprovement
as regaros appolntlng |ormer CLOs to
tbe posltlon o| tbe non-e×ecutlve cbalr- rr
man ano |urtber reln|orc-
lng lnoepenoent control
over e×ecutlve pay ano
tbe company's accounts.
Gooo governance ls es-
sentlal |or our companles
ano our economy. | en-
courage tbose countrles
lagglng beblno to speeo up."
ln|o
bttp://ec.europa.eu/lnternal_market/company/olrectors-remun/lnoe×_en.btm
bttp://ec.europa.eu/lnternal_market/company/lnoepenoence/lnoe×_en.btm
|noepenoent non-e×ecutlve olrectors
Tbe Commlsslon's 2004 Pecommenoa-
tlon on tbe role o| non-e×ecutlve or su-
pervlsory olrectors ano on supervlsory
boaro commlttees set out to lmprove
sbareboloers' control over top e×ecu-
tlves by reln|orclng tbe presence o| lnoe-
penoent olrectors on boaros ano boaro
commlttees.
Tbe Commlsslon |lnos ln lts latest report
tbat a majorlty o| Member States broaoly
comply wltb tbe recommenoatlons, but
some weaknesses remaln.
Tbere ls evloence o| a clear treno ln re-
cent years towaros tbe lmprovement o|
corporate governance stanoaros ln tbe
LU. Pegulatory overbauls bave resulteo
ln reln|orceo sa|eguaros along tbe llnes o|
tbe Pecommenoatlon ln most Member
States, wltb most countrles |ollowlng lts
provlslons |ully or to a large e×tent. Pe-
|orm ls stlll ongolng ln certaln Member
States.
Comply or e×plaln
Tbe 'comply or e×plaln' prlnclple, unoer
wblcb companles cboose to eltber com-
ply wltb, or to justl|y oevlatlons |rom tbe
corporate governance cooe, ls wloely
applleo ln Member States as tbe corner- rr
stone o| corporate governance compll-
ance. However, ln a number o| Member
States olsclosure on compllance or justl-
|lcatlon (tbe corporate governance state-
ment) ls at present stlll purely voluntary.
All Member States now requlre or rec-
ommeno tbe presence o| lnoepenoent
olrectors on (supervlsory) boaros, wblcb

"|n some Member States, managers may
stlll be able to bave a major ln|luence
on tbelr own remuneratlon ano control
over tbe company's accounts may be
lnsu||lclent. Tbe costs |or tbe company
ano rlsk o| abuse may remaln blgb."
ln|o
Florence Francols-Poncet
TLL: +32 (0)2.299 38 16
FAX: +32 (0)2.299 85 34
Markt-F2@ec.europa.eu
Corporate Governance
N
o
46 2 007 - , , ,
8
N
o
4 6 20 0 7- , , ,
9
Number of cases
0 50 l00 l50 200 250 300
28¬2%
38¬3%
5l¬4%
59¬4%
96¬7%
96¬7%
ll0¬8%
l48¬ll%
l64¬l2%
2l9¬l6%
278¬2l%
|nternal Market Scoreboaro:
'Member States neeo to |ocus
on correctly applylng |M rules'
T
be |nternal Market 'Scoreboaro' pub-
llsbeo ln [uly 2007 sboweo tbat most
Member States now appear to be on tbe
rlgbt track ln lmplementlng tbe Dlrec-
tlves agreeo at LU level. Ano lnoeeo nlne
Member States bave alreaoy reacbeo tbe
new target o| 1° set by tbe Councll o|
Mlnlsters earller tbls year.
Tbougb tbe latest |lgures sbow a sllgbt
reverse ln tbe treno compareo to tbe
prevlous survey, tbe Commlsslon ls nev-
ertbeless bope|ul tbat progress wlll be
resumeo ano re|lecteo ln tbe ne×t Score-
boaro to be publlsbeo ln [anuary 2008.
An area o| concern, bowever, ls tbe |all-
ure o| Member States to apply |nternal
Market rules correctly. |noeeo only |our
Flgures |or 8ulgarla ano Pomanla bave not
been lntegrateo lnto tbls Scoreboaro's
|lgures, glven tbe enormous task tbey
|aceo ln transposlng tbe wbole LU acquls
ln tlme |or accesslon. || tbelr average oe|l-
clt (5.2°) were taken lnto account, tbe
overall average woulo be blgber at 1.8°.
Nlne Member States ÷ Lltbuanla, Latvla,
Slovakla, Denmark, Germany, Lstonla, Cy-
prus, Malta ano Slovenla ÷ bave alreaoy
reacbeo tbe new 1° lnterlm target.
However, only 16 out o| 25 Member
States bave remalneo below tbe celllng
o| a 1.5° transposltlon oe|lclt compareo
to 21 ln December 2006.
Lltbuanla sbows tbe way
|n terms o| puttlng LU rules lnto natlonal
law, Lltbuanla ls |lrmly ln |lrst posltlon, |ol-
loweo by Latvla. Lstonla ano France bave
acbleveo tbelr best results ever. 8elglum
bas equalleo lts May 2002 best per|orm-
ance wltb a 1.5 ° oe|lclt level, wblle Ger- rr
many ano Malta bave equalleo tbelr best
results |rom 6 montbs ago.
Denmark, altbougb stlll close to tbe top
o| tbe 'league', bas seen lts per|ormance
sllp by 0.6 percentage polnt, ln contrast
to lts prevlous e×cellent per|ormance. All
otber Member States tbat bave remalneo
below 1.5° bave nevertbeless seen tbelr
per|ormance sllp.
Four Member States tbat reacbeo tbe
Scoreboaro

Accorolng to tbe Commlsslon's latest |nternal Market Scoreboaro, on
average 1.6° o| |nternal Market Dlrectlves bave mlsseo tbe oeaollne |or
belng wrltten lnto natlonal law, tbougb tbe general treno ls golng ln tbe
rlgbt olrectlon. Tbe lncorrect transposltlon ano appllcatlon o| |nternal
Market rules remalns a problem, bowever, ano tbere ls an upwaro treno
ln tbe number o| ln|rlngement cases.
Member States bave manageo to reouce
tbe number o| ln|rlngement proceeolngs
agalnst tbem.
|mplementatlon o| Dlrectlves
At 1.6°, tbe average transposltlon oe|lclt
÷ tbe percentage o| |nternal Market Dl-
rectlves tbat bave not been lmplementeo
lnto natlonal law ln tlme ÷ |or tbe 25
Member States (l.e. not lncluolng 8ulgarla
ano Pomanla) remalns above tbe new ln-
terlm target o| 1°.
Tbe new target o| one percent, to be
acbleveo by 2009, was set a|ter Member
States bao reacbeo tbe prevlous target o|
1.5° at tbe eno o| 2006.
ln|o bttp://ec.europa.eu/lnternal_market/score/lnoe×_en.btm
1.5° target ln December 2006 bave |alleo
to oo so tbls tlme arouno. Tbese are tbe
Netberlanos, |relano (by a small margln),
Polano ano Spaln.
Tbe Netberlanos, bowever, seem to be
well on track to lmprove on tbls per|orm-
ance ln sl× montbs' tlme.
Portugal lags beblno
Portugal's result ls 3 tlmes worse tban tbe
olo LU target. Last tlme arouno, Portugal
was alreaoy tbe worst per|ormer, yet lts
oe|lclt bas lncreaseo |urtber by a worry-
lng 1.4°.
Lu×embourg ano |taly bave botb sllppeo
0.5° or more, but tbere are lnolcatlons
tbat tbls sllppage wlll only be temporary
|or Lu×embourg.
Polano bas ooubleo lts oe|lclt, wblle tbe
Czecb Pepubllc aooeo 0.7° ano seems lll-
prepareo to reacb tbe target ln tbe near
|uture.
Greece's oe|lclt, tbougb stlll above tbe
target, represents lts best-ever per|orm-
ance.
|n|rlngement treno ls up
Tbe lncorrect transposltlon ano appllca-
tlon o| |nternal Market rules remalns a
problem. Tbere ls an upwaro treno ln tbe
number o| ln|rlngement cases, ano tbe
LU-25 average ls now 53 cases |or eacb
Member State, up |rom 50 sl× montbs
ago. Malta, Polano ano |relano, ln par- rr
tlcular, bave eacb recoroeo a substantlal
lncrease ln tbe number o| ln|rlngement
cases over tbe last bal| year.
Only |our Member States - Greece, |taly,
tbe Netberlanos ano Spaln - manageo to
reouce tbe number o| ln|rlngement pro-
ceeolngs.
Most ln|rlngements are |ouno ln tbe areas
o| envlronment, ta×atlon ano customs un-
lon, ano energy ano transport (see cbart)
- accountlng |or almost bal| o| all cases.
Ta×atlon ano customs unlon matters
bave overtaken energy ano transport as
tbe secono most lmportant source o| ln-
|rlngements over tbe past bal| year.
Progress wltb procurement
|n tbe |lelo o| publlc procurement, gooo
progress bas been maoe ano tbere bas
been a net oecrease o| 17 ln tbe number
o| cases over tbe past 6 montbs, wbllst
tbe number o| cases ln tbe |lelo o| serv-
lces bas remalneo stable at arouno 110.
Scoreboaro
ln|o
¨For some Member States tbe results are
very olsappolntlng. 8ut overall tbere are
slgns tbat we wlll be back on track agaln
ln sl× montbs' tlme," commenteo |nter- rr
nal Market ano Servlces Commlssloner
Cbarlle McCreevy.
¨Member States now neeo to |ocus on
correctly applylng |nternal Market rules
ano on solvlng ln|rlngement cases more
qulckly tban ls tbe case tooay."
Average transposltlon oe|lclt ln [uly 2007
Coe· ·|··,e·e·t coses os c| /o, 700¯
[ustlce, |reeoom securlty
Healtb ano consumer protectlon
|P/Pegulateo pro|esslons
Lnterprlse
Publlc procurement
Servlces
Lmployment
Lnergy ano transport
nlon Ta×atlon ano customs un
onment Lnvlro
&VIEOHS[RSJMRJVMRKIQIRXTVSGIIHMRKWTIVWIGXSV
- ¯ootc· o·! c.stc·s .·c· ·.'es o·e t·e secc·! ·cst ·oc·to·t sc.·ce c| ·|··,e·e·ts
ln|o
Marc vereecken
TLL: +32 (0)2.295 97 18
FAX: +32 (0)2.299 21 06
Markt-83@ec.europa.eu

"Tbe new target o| one percent,
to be acbleveo by 2009, was set
a|ter Member States bao reacbeo
tbe prevlous target o| 1.5° at tbe
eno o| 2006."
3.6
l.9
l.6
l.9
l.8
l.6
l.2
£U-25 in bIue: £U-27 in red
P
e
r
c
e
n
t
a
g
e
0
l
2
3
4
1ul. 2007 Dec. 2006 1ul. 2006 Dec. 2005 1ul. 2005 Dec. 2004
0
l
2
May
2007
Nov.
2006
May
2006
Nov.
2005
May
2005
Nov.
2004
l.7
l.4
l.6
l.5
l.4
l.2
LPTA
|n|ormatlon soclety
N
o
4 6 2007- , , ,
8
N
o
46 2 00 7- , , ,
9
Number of cases
0 50 l00 l50 200 250 300
28¬2%
38¬3%
5l¬4%
59¬4%
96¬7%
96¬7%
ll0¬8%
l48¬ll%
l64¬l2%
2l9¬l6%
278¬2l%
|nternal Market Scoreboaro:
'Member States neeo to |ocus
on correctly applylng |M rules'
T
be |nternal Market 'Scoreboaro' pub-
llsbeo ln [uly 2007 sboweo tbat most
Member States now appear to be on tbe
rlgbt track ln lmplementlng tbe Dlrec-
tlves agreeo at LU level. Ano lnoeeo nlne
Member States bave alreaoy reacbeo tbe
new target o| 1° set by tbe Councll o|
Mlnlsters earller tbls year.
Tbougb tbe latest |lgures sbow a sllgbt
reverse ln tbe treno compareo to tbe
prevlous survey, tbe Commlsslon ls nev-
ertbeless bope|ul tbat progress wlll be
resumeo ano re|lecteo ln tbe ne×t Score-
boaro to be publlsbeo ln [anuary 2008.
An area o| concern, bowever, ls tbe |all-
ure o| Member States to apply |nternal
Market rules correctly. |noeeo only |our
Flgures |or 8ulgarla ano Pomanla bave not
been lntegrateo lnto tbls Scoreboaro's
|lgures, glven tbe enormous task tbey
|aceo ln transposlng tbe wbole LU acquls
ln tlme |or accesslon. || tbelr average oe|l-
clt (5.2°) were taken lnto account, tbe
overall average woulo be blgber at 1.8°.
Nlne Member States ÷ Lltbuanla, Latvla,
Slovakla, Denmark, Germany, Lstonla, Cy-
prus, Malta ano Slovenla ÷ bave alreaoy
reacbeo tbe new 1° lnterlm target.
However, only 16 out o| 25 Member
States bave remalneo below tbe celllng
o| a 1.5° transposltlon oe|lclt compareo
to 21 ln December 2006.
Lltbuanla sbows tbe way
|n terms o| puttlng LU rules lnto natlonal
law, Lltbuanla ls |lrmly ln |lrst posltlon, |ol-
loweo by Latvla. Lstonla ano France bave
acbleveo tbelr best results ever. 8elglum
bas equalleo lts May 2002 best per|orm-
ance wltb a 1.5 ° oe|lclt level, wblle Ger- rr
many ano Malta bave equalleo tbelr best
results |rom 6 montbs ago.
Denmark, altbougb stlll close to tbe top
o| tbe 'league', bas seen lts per|ormance
sllp by 0.6 percentage polnt, ln contrast
to lts prevlous e×cellent per|ormance. All
otber Member States tbat bave remalneo
below 1.5° bave nevertbeless seen tbelr
per|ormance sllp.
Four Member States tbat reacbeo tbe
Scoreboaro

Accorolng to tbe Commlsslon's latest |nternal Market Scoreboaro, on
average 1.6° o| |nternal Market Dlrectlves bave mlsseo tbe oeaollne |or
belng wrltten lnto natlonal law, tbougb tbe general treno ls golng ln tbe
rlgbt olrectlon. Tbe lncorrect transposltlon ano appllcatlon o| |nternal
Market rules remalns a problem, bowever, ano tbere ls an upwaro treno
ln tbe number o| ln|rlngement cases.
Member States bave manageo to reouce
tbe number o| ln|rlngement proceeolngs
agalnst tbem.
|mplementatlon o| Dlrectlves
At 1.6°, tbe average transposltlon oe|lclt
÷ tbe percentage o| |nternal Market Dl-
rectlves tbat bave not been lmplementeo
lnto natlonal law ln tlme ÷ |or tbe 25
Member States (l.e. not lncluolng 8ulgarla
ano Pomanla) remalns above tbe new ln-
terlm target o| 1°.
Tbe new target o| one percent, to be
acbleveo by 2009, was set a|ter Member
States bao reacbeo tbe prevlous target o|
1.5° at tbe eno o| 2006.
ln|o bttp://ec.europa.eu/lnternal_market/score/lnoe×_en.btm
1.5° target ln December 2006 bave |alleo
to oo so tbls tlme arouno. Tbese are tbe
Netberlanos, |relano (by a small margln),
Polano ano Spaln.
Tbe Netberlanos, bowever, seem to be
well on track to lmprove on tbls per|orm-
ance ln sl× montbs' tlme.
Portugal lags beblno
Portugal's result ls 3 tlmes worse tban tbe
olo LU target. Last tlme arouno, Portugal
was alreaoy tbe worst per|ormer, yet lts
oe|lclt bas lncreaseo |urtber by a worry-
lng 1.4°.
Lu×embourg ano |taly bave botb sllppeo
0.5° or more, but tbere are lnolcatlons
tbat tbls sllppage wlll only be temporary
|or Lu×embourg.
Polano bas ooubleo lts oe|lclt, wblle tbe
Czecb Pepubllc aooeo 0.7° ano seems lll-
prepareo to reacb tbe target ln tbe near
|uture.
Greece's oe|lclt, tbougb stlll above tbe
target, represents lts best-ever per|orm-
ance.
|n|rlngement treno ls up
Tbe lncorrect transposltlon ano appllca-
tlon o| |nternal Market rules remalns a
problem. Tbere ls an upwaro treno ln tbe
number o| ln|rlngement cases, ano tbe
LU-25 average ls now 53 cases |or eacb
Member State, up |rom 50 sl× montbs
ago. Malta, Polano ano |relano, ln par- rr
tlcular, bave eacb recoroeo a substantlal
lncrease ln tbe number o| ln|rlngement
cases over tbe last bal| year.
Only |our Member States - Greece, |taly,
tbe Netberlanos ano Spaln - manageo to
reouce tbe number o| ln|rlngement pro-
ceeolngs.
Most ln|rlngements are |ouno ln tbe areas
o| envlronment, ta×atlon ano customs un-
lon, ano energy ano transport (see cbart)
- accountlng |or almost bal| o| all cases.
Ta×atlon ano customs unlon matters
bave overtaken energy ano transport as
tbe secono most lmportant source o| ln-
|rlngements over tbe past bal| year.
Progress wltb procurement
|n tbe |lelo o| publlc procurement, gooo
progress bas been maoe ano tbere bas
been a net oecrease o| 17 ln tbe number
o| cases over tbe past 6 montbs, wbllst
tbe number o| cases ln tbe |lelo o| serv-
lces bas remalneo stable at arouno 110.
Scoreboaro
ln|o
¨For some Member States tbe results are
very olsappolntlng. 8ut overall tbere are
slgns tbat we wlll be back on track agaln
ln sl× montbs' tlme," commenteo |nter- rr
nal Market ano Servlces Commlssloner
Cbarlle McCreevy.
¨Member States now neeo to |ocus on
correctly applylng |nternal Market rules
ano on solvlng ln|rlngement cases more
qulckly tban ls tbe case tooay."
Average transposltlon oe|lclt ln [uly 2007
Coe· ·|··,e·e·t coses os c| /o, 700¯
[ustlce, |reeoom securlty
Healtb ano consumer protectlon
|P/Pegulateo pro|esslons
Lnterprlse
Publlc procurement
Servlces
Lmployment
Lnergy ano transport
nlon Ta×atlon ano customs un
onment Lnvlro
&VIEOHS[RSJMRJVMRKIQIRXTVSGIIHMRKWTIVWIGXSV
- ¯ootc· o·! c.stc·s .·c· ·.'es o·e t·e secc·! ·cst ·oc·to·t sc.·ce c| ·|··,e·e·ts
ln|o
Marc vereecken
TLL: +32 (0)2.295 97 18
FAX: +32 (0)2.299 21 06
Markt-83@ec.europa.eu

"Tbe new target o| one percent,
to be acbleveo by 2009, was set
a|ter Member States bao reacbeo
tbe prevlous target o| 1.5° at tbe
eno o| 2006."
3.6
l.9
l.6
l.9
l.8
l.6
l.2
£U-25 in bIue: £U-27 in red
P
e
r
c
e
n
t
a
g
e
0
l
2
3
4
1ul. 2007 Dec. 2006 1ul. 2006 Dec. 2005 1ul. 2005 Dec. 2004
0
l
2
May
2007
Nov.
2006
May
2006
Nov.
2005
May
2005
Nov.
2004
l.7
l.4
l.6
l.5
l.4
l.2
LPTA
|n|ormatlon soclety
N
o
46 2 007 - , , ,
10
8etter Pegulatlon
LQIR bttp://ec.europa.eu/enterprlse/regulatlon/better_regulatlon/lnoe×_en.btm
ln|o
Publlc llmlteo llablllty companles wlll no longer bave to oroer costly e×-
pert reports ln cases o| mergers ano olvlslons, unless tbere ls a specl|lc
request |rom sbareboloers. A|ter a tbree montbs |ast track proceoure,
tbe Luropean Parllament bas accepteo a Commlsslon proposal |or re-
movlng unnecessary buroens on small buslnesses.
Subscrlbe to Luropean Lconomy News, tbe
quarterly magazlne o| tbe Dlrectorate-General
|or Lconomlc ano Flnanclal A||alrs ano keep up
to oate wltb oevelopments relatlng to econom-
lcs ano |lnance ln tbe LU.
Tbe latest lssue ([uly 2007) lncluoes artlcles on
Cyprus ano Malta's |ortbcomlng aooptlon o| tbe
euro, bow tbe current economlc gooo tlmes ln
Lurope sboulo be useo to consolloate publlc |l-
nances, a new Commlsslon travelllng e×blbltlon
on tbe euro, ano an economlc pro|lle o| tbe Slo-
vak Pepubllc.
Luropean Lconomy News
ls avallable |ree o| cbarge at:
bttp://ec.europa.eu/economy_|lnance/een
LU cuts reo tape at recoro speeo -
small companles save tlme ano money
T
be proposal to cut reo t
a package o| ten '|ast track ac
presenteo by tbe Commlsslon a |ew
montbs ago ano now awalts agreement
by tbe Member States.
Tbe proposal potentlally applles to more
tban 600,000 publlc llmlteo llablllty com-
panles across Lurope, ano ln partlcular
to tbose owneo by a llmlteo number o|
sbareboloers.
to ln|orm sbareboloers
a|t terms o| mergers or olvl-
slons ls consloereo to be unnecessary
ano represents costly paperwork not
requlreo by sbareboloers. Tbls ls par- rr
tlcularly tbe case wltb small- ano me-
olum-slzeo enterprlses (SMLs) wbere
sbareboloers take an actlve part ln tbe
oay-to-oay management o| tbe buslness.
|t ls estlmateo tbat tbe average cost o|
commlsslonlng sucb an e×pert report
amounts to rougbly 3,500 LUP ano many
SMLs bave loentl|leo tbe requlrement as
a bureaucratlc buroen.
However, tbe new proposal ensures tbat,
l| sbareboloers stlll see a neeo |or tbe
e×pert reports, tbey wlll contlnue recelv-
lng tbem.

S p e c l a l
F e a t u r e
slstance servlces to belp lnolvlouals or companles know
tbelr rlgbts ano - l| neeo be - to en|orce tbem.
'=SYV)YVSTI³ ÷baslc |acts
A gooo startlng polnt |or |lnolng out about your LU
rlgbts ls tbe =SYV )YVSTI webslte (bttp://ec.europa.eu/
youreurope/). Tbls Commlsslon-run webslte, wblcb was
prevlously tbe (MEPSKYI[MXL'MXM^IRW&YWMRIWW portal, o||ers
general guloes ano country-specl|lc |act sbeets wltb ln|or- rr
matlon on cltlzens' rlgbts, lncluolng rlgbts relateo to |ree
movement. |t also provloes aovlce on bow to e×erclse
tbese rlgbts ln practlce ano ls avallable ln all LU o||lclal
languages.
Tbe alm o| =SYV )YVSTI ls to provloe onllne ln|ormatlon
ano lnteractlve servlces wltb a cross-boroer olmenslon.
|t brlngs togetber ln|ormatlon |rom Communlty ano na-
tlonal sources to provloe comprebenslve ano easlly ac-
cesslble ln|ormatlon on key aspects o| moblllty ln tbe
Slngle Market. At tbe same tlme, lt o||ers ln|ormatlon to
enterprlses on buslness oevelopment opportunltles ano
practlces ln tbe LU. |ts prlmary |ocus ls on cltlzens wlsb-
lng to work or stuoy ln anotber Member State, or LU
enterprlses wantlng to relocate to open a new brancb ln
anotber LU country.
CSS ÷ |ree legal aovlce
Tbe'MXM^IRW7MKRTSWX7IVZMGI (CSS) operates ln conjunctlon
wltb =SYV )YVSTI ano o||ers |ree ano personal aovlce to
cltlzens on specl|lc problems tbey encounter ln tbe Slngle
Market.
Tbe CSS ls partlcularly almeo at LU cltlzens wbo encoun-
ter problems wltb moblllty. || you are on tbe move ln
Lurope ano are wonoerlng about your rlgbts - car regls-

2 007 - , , ,
11
8etween 1986 ano 1992 tbe LU aoopteo nearly 280 sepa-
rate ltems o| leglslatlon as part o| a programme to belp
open natlonal markets ano complete tbe Slngle Market.
|n many areas, ol||erent sets o| natlonal regulatlons were
replaceo by one common Luropean rule to vastly reouce
tbe compllcatlon ano cost o| oolng buslness across LU
boroers. |n otber areas, a slmple 'mutual recognltlon' prln-
clple was lntroouceo. Member States agreeo to glve eacb
otbers' laws ano tecbnlcal stanoaros tbe same vallolty as
tbelr own, ano tbe compllcateo aooptlon o| new leglsla-
tlon was avoloeo.
8aslc rlgbts
For cltlzens, tbe Slngle Market rules represent tbe rlgbt
to llve ano work ln otber LU countrles wltb access to a
wloe cbolce o| quallty prooucts ano servlces at low prlc-
es. For tbe buslness
communlty, tbe Slngle
Market provloes tbe
opportunlty to traoe
ln a oomestlc market
o| 500 mllllon consum-
ers, baseo on tbe rule
o| law, wltb mutual re-
spect ano trust.
Tbe rules ano regula-
tlons relatlng to tbe
Slngle Market are com-
ple× ano volumlnous.
Knowlng your rlgbts ln
tbe LU can be a cbal-
lenge |or any cltlzen or company. |n aooltlon to pursulng
a programme o| regulatory slmpll|lcatlon, tbe Luropean
Commlsslon bas set up varlous ln|ormatlon tools ano as-
"Tbe rules ano regulatlons relatlng
to tbe Slngle Market are comple×
ano volumlnous. Knowlng your
rlgbts ln tbe LU can be a cballenge
|or any cltlzen or buslnessman but
varlous tools are now avallable to
belp you know your rlgbts ano - l|
neeo be - to en|orce tbem."

C¡crc: ca¢ ¥c||c |e je|a ecre crec 06
|c|||t ||acate Kecer| ZJJl ÷
hcrºe:| |e¢c¡': w|a¢lc||: ler |emerrew': :|er|lc||: 08
ûa ||e rec¢ w||| ||e ecre 10
I|e eteaem¡ el '|eºc||c 1J
¥c||aj |c¡ w|||e
||e :ca :||ae:
U:|aj jrew|| |e¢c¡, ea:cr|aj jrew|| |emerrew
Mogozino ol |ho Diroc|oro|o·Gonorol lor Economic ond Finonciol Alloirs
£u80F£AN £C0N0M¥
lS
S
M
1
8
3
0
·
5
1
8
0
y
Euk0PEAh
C0MMI55I0h
N
o
4 6 2007- , , ,
10
8etter Pegulatlon
LQIR bttp://ec.europa.eu/enterprlse/regulatlon/better_regulatlon/lnoe×_en.btm
ln|o
Publlc llmlteo llablllty companles wlll no longer bave to oroer costly e×-
pert reports ln cases o| mergers ano olvlslons, unless tbere ls a specl|lc
request |rom sbareboloers. A|ter a tbree montbs |ast track proceoure,
tbe Luropean Parllament bas accepteo a Commlsslon proposal |or re-
movlng unnecessary buroens on small buslnesses.
Subscrlbe to Luropean Lconomy News, tbe
quarterly magazlne o| tbe Dlrectorate-General
|or Lconomlc ano Flnanclal A||alrs ano keep up
to oate wltb oevelopments relatlng to econom-
lcs ano |lnance ln tbe LU.
Tbe latest lssue ([uly 2007) lncluoes artlcles on
Cyprus ano Malta's |ortbcomlng aooptlon o| tbe
euro, bow tbe current economlc gooo tlmes ln
Lurope sboulo be useo to consolloate publlc |l-
nances, a new Commlsslon travelllng e×blbltlon
on tbe euro, ano an economlc pro|lle o| tbe Slo-
vak Pepubllc.
Luropean Lconomy News
ls avallable |ree o| cbarge at:
bttp://ec.europa.eu/economy_|lnance/een
LU cuts reo tape at recoro speeo -
small companles save tlme ano money
T
be proposal to cut reo t
a package o| ten '|ast track ac
presenteo by tbe Commlsslon a |ew
montbs ago ano now awalts agreement
by tbe Member States.
Tbe proposal potentlally applles to more
tban 600,000 publlc llmlteo llablllty com-
panles across Lurope, ano ln partlcular
to tbose owneo by a llmlteo number o|
sbareboloers.
to ln|orm sbareboloers
a|t terms o| mergers or olvl-
slons ls consloereo to be unnecessary
ano represents costly paperwork not
requlreo by sbareboloers. Tbls ls par- rr
tlcularly tbe case wltb small- ano me-
olum-slzeo enterprlses (SMLs) wbere
sbareboloers take an actlve part ln tbe
oay-to-oay management o| tbe buslness.
|t ls estlmateo tbat tbe average cost o|
commlsslonlng sucb an e×pert report
amounts to rougbly 3,500 LUP ano many
SMLs bave loentl|leo tbe requlrement as
a bureaucratlc buroen.
However, tbe new proposal ensures tbat,
l| sbareboloers stlll see a neeo |or tbe
e×pert reports, tbey wlll contlnue recelv-
lng tbem.

S p e c l a l
F e a t u r e
slstance servlces to belp lnolvlouals or companles know
tbelr rlgbts ano - l| neeo be - to en|orce tbem.
'=SYV)YVSTI³ ÷baslc |acts
A gooo startlng polnt |or |lnolng out about your LU
rlgbts ls tbe =SYV )YVSTI webslte (bttp://ec.europa.eu/
youreurope/). Tbls Commlsslon-run webslte, wblcb was
prevlously tbe (MEPSKYI[MXL'MXM^IRW&YWMRIWW portal, o||ers
general guloes ano country-specl|lc |act sbeets wltb ln|or- rr
matlon on cltlzens' rlgbts, lncluolng rlgbts relateo to |ree
movement. |t also provloes aovlce on bow to e×erclse
tbese rlgbts ln practlce ano ls avallable ln all LU o||lclal
languages.
Tbe alm o| =SYV )YVSTI ls to provloe onllne ln|ormatlon
ano lnteractlve servlces wltb a cross-boroer olmenslon.
|t brlngs togetber ln|ormatlon |rom Communlty ano na-
tlonal sources to provloe comprebenslve ano easlly ac-
cesslble ln|ormatlon on key aspects o| moblllty ln tbe
Slngle Market. At tbe same tlme, lt o||ers ln|ormatlon to
enterprlses on buslness oevelopment opportunltles ano
practlces ln tbe LU. |ts prlmary |ocus ls on cltlzens wlsb-
lng to work or stuoy ln anotber Member State, or LU
enterprlses wantlng to relocate to open a new brancb ln
anotber LU country.
CSS ÷ |ree legal aovlce
Tbe'MXM^IRW7MKRTSWX7IVZMGI (CSS) operates ln conjunctlon
wltb =SYV )YVSTI ano o||ers |ree ano personal aovlce to
cltlzens on specl|lc problems tbey encounter ln tbe Slngle
Market.
Tbe CSS ls partlcularly almeo at LU cltlzens wbo encoun-
ter problems wltb moblllty. || you are on tbe move ln
Lurope ano are wonoerlng about your rlgbts - car regls-

2007 - , , ,
11
8etween 1986 ano 1992 tbe LU aoopteo nearly 280 sepa-
rate ltems o| leglslatlon as part o| a programme to belp
open natlonal markets ano complete tbe Slngle Market.
|n many areas, ol||erent sets o| natlonal regulatlons were
replaceo by one common Luropean rule to vastly reouce
tbe compllcatlon ano cost o| oolng buslness across LU
boroers. |n otber areas, a slmple 'mutual recognltlon' prln-
clple was lntroouceo. Member States agreeo to glve eacb
otbers' laws ano tecbnlcal stanoaros tbe same vallolty as
tbelr own, ano tbe compllcateo aooptlon o| new leglsla-
tlon was avoloeo.
8aslc rlgbts
For cltlzens, tbe Slngle Market rules represent tbe rlgbt
to llve ano work ln otber LU countrles wltb access to a
wloe cbolce o| quallty prooucts ano servlces at low prlc-
es. For tbe buslness
communlty, tbe Slngle
Market provloes tbe
opportunlty to traoe
ln a oomestlc market
o| 500 mllllon consum-
ers, baseo on tbe rule
o| law, wltb mutual re-
spect ano trust.
Tbe rules ano regula-
tlons relatlng to tbe
Slngle Market are com-
ple× ano volumlnous.
Knowlng your rlgbts ln
tbe LU can be a cbal-
lenge |or any cltlzen or company. |n aooltlon to pursulng
a programme o| regulatory slmpll|lcatlon, tbe Luropean
Commlsslon bas set up varlous ln|ormatlon tools ano as-
"Tbe rules ano regulatlons relatlng
to tbe Slngle Market are comple×
ano volumlnous. Knowlng your
rlgbts ln tbe LU can be a cballenge
|or any cltlzen or buslnessman but
varlous tools are now avallable to
belp you know your rlgbts ano - l|
neeo be - to en|orce tbem."

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N
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46 200 7- , , ,
12
N
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4 6 2 00 7 - , , ,
13
12
tratlon problems, obtalnlng soclal securlty coverage, etc.
- tbls aovlsory servlce wlll provloe guloance ano some
practlcal aovlce.
Tbe CSS servlce ls |ree o| cbarge ano tbe replles provloeo
by multlllngual legal e×perts are personallseo, objectlve,
ano qulck. Pesponses are glven by pbone or e-mall ln one
o| tbe 20 o||lclal languages tbat can be requesteo. From
September on, tbe servlce wlll be avallable ln 23 languages
wltb tbe aooltlon o| Pomanlan, 8ulgarlan ano |rlsb.
Tbe CSS legal e×perts set out to clarl|y tbe relevant rules
ano l| necessary olrect tbe cltlzen towaros tbe booy wblcb
can best belp solve tbe problem. Tbey can also o||er aovlce
on bow to assert cltlzen's rlgbts ano obtaln reoress. || an
lncorrect appllcatlon o| LU law ls olscovereo, tbe case wlll
be re|erreo to tbe relevant servlce capable o| oeallng wltb
lt. |n some cases, tbls wlll be tbe SOLv|T problem-solvlng
servlce oescrlbeo below.
CSS ls currently oeallng wltb some 1,000 questlons per
montb.
SOLv|T: problem-solvlng network
Your rlgbt to move, establlsb a company or traoe ln an-
otber LU country are baslc LU prlnclples. However, rules
are open to lnterpretatlon. Wbat can cltlzens ano busl-
nessmen oo wben tbey know tbelr LU rlgbts are not belng
observeo?
Tbe Commlsslon ano Member States bave recognlseo
tbat tbere can be cases ln wblcb tbe rules wblcb bave been
agreeo ln 8russels by natlonal governments are not prop-
erly applleo by otber levels o| tbe natlonal aomlnlstratlons.
Tbe oeclslon was maoe tbere|ore |lve years ago to set
up an LU-wloe problem solvlng network tbat woulo try
to resolve problems relateo to 'moblllty' rlgbts |or busl-
nesses ano cltlzens.
All LU countrles - as well as Norway, |celano ano Llecb-
tensteln - bave establlsbeo tbelr own natlonal SOLv|T
centres. Tbese centres are sta||eo wltb small teams o| LU
speclallsts wbo cooperate vla an onllne oatabase to raplo-
ly ano pragmatlcally solve problems submltteo by cltlzens
ano buslnesses. Tbe Commlsslon contrlbutes wltb a sup-
port team wltbln DG |nternal Market ano Servlces wblcb
provloes oally asslstance to SOLv|T centres on legal, tecb-
nlcal ano proceoural lssues.
SOLv|T ls commltteo to |lnolng real solutlons wltbln a
10 week oeaollne ano SOLv|T's 2006 per|ormance report
sbows an lmpresslve track recoro ln resolvlng a ra|t o|
tborny lssues even |aster tban ln prevlous years.
'=SYV)YVSTI- Cltlzens'
'=SYV)YVSTI - 8uslness'

Tbe 8uslness sectlon provloes practlcal ln|ormatlon ano
aovlce to belp buslnessmen operate ln otber LU coun-
trles.
|t covers lssues ranglng |rom tbe reglstratlon o| compa-
nles, publlc procurement, ta×es, buslness olrectorles, varl-
ous |unolng opportunltles to employment laws.
· Luropean ano Natlonal ln|ormatlon - general LU-
wloe buslness ln|ormatlon ln a varlety o| tbematlc
areas ano languages.
· Use|ul Llnks & Aooresses
13
cases submltteo to tbem wltbln an average tlme o| 60
oays.
|n 2006, 69° o| SOLv|T cases were submltteo by cltlzens.
Tbe major problem areas |or cltlzens were soclal secu-
rlty (23°), ta×atlon (16°), ano recognltlon o| pro|esslonal
quall|lcatlons (15°). 8uslnesses submltteo 31° o| all cases,
mostly relateo to market access |or prooucts (8°) ano tbe
provlslon o| servlces ano establlsbment (11°).
Moreover, lnvolvement wltb tbe SOLv|T problem-solv-
lng process ls encouraglng a growlng number o| Member
States to be more proactlve ln brlnglng natlonal rules ln
llne wltb LU law. Tbanks to SOLv|T, tbey are lncreaslngly
aware o| tbe practlcal problems encountereo by cltlzens
ano buslnesses movlng wltbln Lurope, maklng tbem more
wllllng to cbange tbelr leglslatlon wltbout |ormal Commls-
slon lnterventlon.
Per|ormance over 5 years
Tbe SOLv|T network bas been ln operatlon |or |lve
years ourlng wblcb bunoreos o| cltlzens ano buslnesses
bave been able to get |ast ano e||ectlve solutlons to tbelr
problems. Tbe 'SOLv|T ln actlon' sectlon (see page 15)
provloes a |ew e×amples o| concrete problems |or wblcb
SOLv|T |ouno solutlons.
Durlng lts |lrst year o| operatlon, SOLv|T banoleo arouno
12 cases per montb. Tooay, SOLv|T ls oeallng wltb more
tban 65 cases per montb, brlnglng tbe system on a par wltb
tbe Commlsslon's |ormal complalnt proceoure, wblcb reg-
lstereo 1,049 complalnts last year.
|t ls also lnterestlng to note
tbat tbe number o| regls-
tereo ln|rlngement cases bas
oecreaseo by 36° slnce 2002
wblle SOLv|T bas trlpleo lts
case volume over tbe same
perloo.
SOLv|T seems tbere|ore to
be |ul|llllng lts role as a |ast
ano e||lclent alternatlve |or
many potentlal ln|rlngement
cases. |t oemonstrates tbat
even wltbln a comple× multl-
cultural organlsatlon llke tbe
Luropean Unlon, lt ls posslble
to sbl|t |rom a tlme-consum-
lng |ormal proceoure to an
ln|ormal, pragmatlc ano |ast-
track approacb.
¨Over tbe past |lve years, SOLv|T bas oellvereo real so-
lutlons to bunoreos o| real problems ln Lurope. Ano by
2 0 07 - , , ,
gettlng all tbe partles togetber ln|ormally lt oellvers tbose
solutlons o|ten wltbln weeks, not years oown tbe llne,"
salo |nternal Market ano Servlces Commlssloner Cbarlle
McCreevy at a press con|erence celebratlng SOLv|T's |lve
year annlversary.
¨|t's a great e×ample o| tbe LU ano Member States work-
lng togetber. Over 1,800 Luropeans can now oo more ln
tbe Slngle Market tbanks to SOLv|T ÷ | bope tbe ne×t |lve
years wlll prove even more success|ul."
Scope |or |urtber oevelopment
Wbllst tbe vallolty o| tbe SOLv|T approacb ls recognlseo,
SOLv|T bas certalnly not yet acbleveo lts |ull potentlal.
Prevlous annual reports argueo
tbat tbe real potentlal o| SOLv|T
n terms o| case volume was
lkely to be at more tban 1,600
cases per year, baseo on tbe case
submlsslon level o| tbe most ac-
tlve SOLv|T centres.
Tbls volume bas not been
reacbeo yet, malnly oue to tbe
ack o| resources ln almost bal|
o| tbe SOLv|T centres. Tbe |our
LU countrles wltb tbe largest
populatlon slzes (Germany, tbe
Unlteo Klngoom, France ano
taly) submltteo proportlonately
ow numbers o| cases ln 2006.
Facts ano |lgures
- |n 2002 SOLv|T reglstereo arouno 10 new cases per
montb: |lve years later tbls |lgure bas lncreaseo to 60.
- Over tbe past |lve years, tbe average resolutlon rate
|or SOLv|T cases remalneo stable at 80 °.
- O| all resolveo cases ln slnce 2002, 71° were
resolveo wltbln tbe SOLv|T oeaollne o| ten weeks.
- Average case banollng tlme oecreaseo slgnl|lcantly
|rom an average o| 79 oays ln 2002 to 54 oays ln
2006.
- Cltlzens submltteo two tblros o| SOLv|T cases. Tbe
major problem areas |or cltlzens were soclal securlty,
ta×atlon ano recognltlon o| pro|esslonal
quall|lcatlons.
- 8uslnesses submltteo one tblro o| SOLv|T cases.
Tbelr maln problem areas are ta×atlon, market access
|or prooucts, tbe provlslon o| servlces ano |reeoom
o| establlsbment.
Tbe success|ul e×perlence o| tbe SOLv|T lnltlatlve over tbat past
ñve years bas oemonstrateo tbat tbls ln|ormal approacb can resolve
problems wltb Slngle Market rlgbts wltbln 10 weeks. Tbe servlce
now neeos to be glven greater publlclty, ano more resources are
requlreo |or tbe SOLv|T centres ln Member States.
Commlssloner Cbarlle McCreevy: ¨|t's a great e×ample o| tbe LU ano
Member States worklng togetber."
Tbe Cltlzens sectlon o| tbe webslte provloes oetalleo
practlcal ln|ormatlon on an lnolvloual's rlgbts ano oppor- rr
tunltles ln tbe Slngle Market plus ano o||ers aovlce on bow
to e×erclse tbese rlgbts ln practlce.
· Luropean General Guloes - a general overvlew o|
your LU-wloe rlgbts ano opportunltles ano o| bow to
make e||ectlve use o| tbem.
· Luropean ano Natlonal practlcal ln|ormatlon -
more tban 90 lnolvloual |actsbeets provloe oetalleo
practlcal ln|ormatlon about e×erclslng your rlgbts
botb at LU level ano ln a specl|lc LU country.
· Use|ul Llnks & Aooresses
N
o
46 2007- , , ,
12
N
o
46 2 007 - , , ,
13
12
tratlon problems, obtalnlng soclal securlty coverage, etc.
- tbls aovlsory servlce wlll provloe guloance ano some
practlcal aovlce.
Tbe CSS servlce ls |ree o| cbarge ano tbe replles provloeo
by multlllngual legal e×perts are personallseo, objectlve,
ano qulck. Pesponses are glven by pbone or e-mall ln one
o| tbe 20 o||lclal languages tbat can be requesteo. From
September on, tbe servlce wlll be avallable ln 23 languages
wltb tbe aooltlon o| Pomanlan, 8ulgarlan ano |rlsb.
Tbe CSS legal e×perts set out to clarl|y tbe relevant rules
ano l| necessary olrect tbe cltlzen towaros tbe booy wblcb
can best belp solve tbe problem. Tbey can also o||er aovlce
on bow to assert cltlzen's rlgbts ano obtaln reoress. || an
lncorrect appllcatlon o| LU law ls olscovereo, tbe case wlll
be re|erreo to tbe relevant servlce capable o| oeallng wltb
lt. |n some cases, tbls wlll be tbe SOLv|T problem-solvlng
servlce oescrlbeo below.
CSS ls currently oeallng wltb some 1,000 questlons per
montb.
SOLv|T: problem-solvlng network
Your rlgbt to move, establlsb a company or traoe ln an-
otber LU country are baslc LU prlnclples. However, rules
are open to lnterpretatlon. Wbat can cltlzens ano busl-
nessmen oo wben tbey know tbelr LU rlgbts are not belng
observeo?
Tbe Commlsslon ano Member States bave recognlseo
tbat tbere can be cases ln wblcb tbe rules wblcb bave been
agreeo ln 8russels by natlonal governments are not prop-
erly applleo by otber levels o| tbe natlonal aomlnlstratlons.
Tbe oeclslon was maoe tbere|ore |lve years ago to set
up an LU-wloe problem solvlng network tbat woulo try
to resolve problems relateo to 'moblllty' rlgbts |or busl-
nesses ano cltlzens.
All LU countrles - as well as Norway, |celano ano Llecb-
tensteln - bave establlsbeo tbelr own natlonal SOLv|T
centres. Tbese centres are sta||eo wltb small teams o| LU
speclallsts wbo cooperate vla an onllne oatabase to raplo-
ly ano pragmatlcally solve problems submltteo by cltlzens
ano buslnesses. Tbe Commlsslon contrlbutes wltb a sup-
port team wltbln DG |nternal Market ano Servlces wblcb
provloes oally asslstance to SOLv|T centres on legal, tecb-
nlcal ano proceoural lssues.
SOLv|T ls commltteo to |lnolng real solutlons wltbln a
10 week oeaollne ano SOLv|T's 2006 per|ormance report
sbows an lmpresslve track recoro ln resolvlng a ra|t o|
tborny lssues even |aster tban ln prevlous years.
'=SYV)YVSTI- Cltlzens'
'=SYV)YVSTI - 8uslness'

Tbe 8uslness sectlon provloes practlcal ln|ormatlon ano
aovlce to belp buslnessmen operate ln otber LU coun-
trles.
|t covers lssues ranglng |rom tbe reglstratlon o| compa-
nles, publlc procurement, ta×es, buslness olrectorles, varl-
ous |unolng opportunltles to employment laws.
· Luropean ano Natlonal ln|ormatlon - general LU-
wloe buslness ln|ormatlon ln a varlety o| tbematlc
areas ano languages.
· Use|ul Llnks & Aooresses
13
cases submltteo to tbem wltbln an average tlme o| 60
oays.
|n 2006, 69° o| SOLv|T cases were submltteo by cltlzens.
Tbe major problem areas |or cltlzens were soclal secu-
rlty (23°), ta×atlon (16°), ano recognltlon o| pro|esslonal
quall|lcatlons (15°). 8uslnesses submltteo 31° o| all cases,
mostly relateo to market access |or prooucts (8°) ano tbe
provlslon o| servlces ano establlsbment (11°).
Moreover, lnvolvement wltb tbe SOLv|T problem-solv-
lng process ls encouraglng a growlng number o| Member
States to be more proactlve ln brlnglng natlonal rules ln
llne wltb LU law. Tbanks to SOLv|T, tbey are lncreaslngly
aware o| tbe practlcal problems encountereo by cltlzens
ano buslnesses movlng wltbln Lurope, maklng tbem more
wllllng to cbange tbelr leglslatlon wltbout |ormal Commls-
slon lnterventlon.
Per|ormance over 5 years
Tbe SOLv|T network bas been ln operatlon |or |lve
years ourlng wblcb bunoreos o| cltlzens ano buslnesses
bave been able to get |ast ano e||ectlve solutlons to tbelr
problems. Tbe 'SOLv|T ln actlon' sectlon (see page 15)
provloes a |ew e×amples o| concrete problems |or wblcb
SOLv|T |ouno solutlons.
Durlng lts |lrst year o| operatlon, SOLv|T banoleo arouno
12 cases per montb. Tooay, SOLv|T ls oeallng wltb more
tban 65 cases per montb, brlnglng tbe system on a par wltb
tbe Commlsslon's |ormal complalnt proceoure, wblcb reg-
lstereo 1,049 complalnts last year.
|t ls also lnterestlng to note
tbat tbe number o| regls-
tereo ln|rlngement cases bas
oecreaseo by 36° slnce 2002
wblle SOLv|T bas trlpleo lts
case volume over tbe same
perloo.
SOLv|T seems tbere|ore to
be |ul|llllng lts role as a |ast
ano e||lclent alternatlve |or
many potentlal ln|rlngement
cases. |t oemonstrates tbat
even wltbln a comple× multl-
cultural organlsatlon llke tbe
Luropean Unlon, lt ls posslble
to sbl|t |rom a tlme-consum-
lng |ormal proceoure to an
ln|ormal, pragmatlc ano |ast-
track approacb.
¨Over tbe past |lve years, SOLv|T bas oellvereo real so-
lutlons to bunoreos o| real problems ln Lurope. Ano by
2 00 7 - , , ,
gettlng all tbe partles togetber ln|ormally lt oellvers tbose
solutlons o|ten wltbln weeks, not years oown tbe llne,"
salo |nternal Market ano Servlces Commlssloner Cbarlle
McCreevy at a press con|erence celebratlng SOLv|T's |lve
year annlversary.
¨|t's a great e×ample o| tbe LU ano Member States work-
lng togetber. Over 1,800 Luropeans can now oo more ln
tbe Slngle Market tbanks to SOLv|T ÷ | bope tbe ne×t |lve
years wlll prove even more success|ul."
Scope |or |urtber oevelopment
Wbllst tbe vallolty o| tbe SOLv|T approacb ls recognlseo,
SOLv|T bas certalnly not yet acbleveo lts |ull potentlal.
Prevlous annual reports argueo
tbat tbe real potentlal o| SOLv|T
n terms o| case volume was
lkely to be at more tban 1,600
cases per year, baseo on tbe case
submlsslon level o| tbe most ac-
tlve SOLv|T centres.
Tbls volume bas not been
reacbeo yet, malnly oue to tbe
ack o| resources ln almost bal|
o| tbe SOLv|T centres. Tbe |our
LU countrles wltb tbe largest
populatlon slzes (Germany, tbe
Unlteo Klngoom, France ano
taly) submltteo proportlonately
ow numbers o| cases ln 2006.
Facts ano |lgures
- |n 2002 SOLv|T reglstereo arouno 10 new cases per
montb: |lve years later tbls |lgure bas lncreaseo to 60.
- Over tbe past |lve years, tbe average resolutlon rate
|or SOLv|T cases remalneo stable at 80 °.
- O| all resolveo cases ln slnce 2002, 71° were
resolveo wltbln tbe SOLv|T oeaollne o| ten weeks.
- Average case banollng tlme oecreaseo slgnl|lcantly
|rom an average o| 79 oays ln 2002 to 54 oays ln
2006.
- Cltlzens submltteo two tblros o| SOLv|T cases. Tbe
major problem areas |or cltlzens were soclal securlty,
ta×atlon ano recognltlon o| pro|esslonal
quall|lcatlons.
- 8uslnesses submltteo one tblro o| SOLv|T cases.
Tbelr maln problem areas are ta×atlon, market access
|or prooucts, tbe provlslon o| servlces ano |reeoom
o| establlsbment.
Tbe success|ul e×perlence o| tbe SOLv|T lnltlatlve over tbat past
ñve years bas oemonstrateo tbat tbls ln|ormal approacb can resolve
problems wltb Slngle Market rlgbts wltbln 10 weeks. Tbe servlce
now neeos to be glven greater publlclty, ano more resources are
requlreo |or tbe SOLv|T centres ln Member States.
Commlssloner Cbarlle McCreevy: ¨|t's a great e×ample o| tbe LU ano
Member States worklng togetber."
Tbe Cltlzens sectlon o| tbe webslte provloes oetalleo
practlcal ln|ormatlon on an lnolvloual's rlgbts ano oppor- rr
tunltles ln tbe Slngle Market plus ano o||ers aovlce on bow
to e×erclse tbese rlgbts ln practlce.
· Luropean General Guloes - a general overvlew o|
your LU-wloe rlgbts ano opportunltles ano o| bow to
make e||ectlve use o| tbem.
· Luropean ano Natlonal practlcal ln|ormatlon -
more tban 90 lnolvloual |actsbeets provloe oetalleo
practlcal ln|ormatlon about e×erclslng your rlgbts
botb at LU level ano ln a specl|lc LU country.
· Use|ul Llnks & Aooresses
N
o
46 200 7- , , ,
14
N
o
4 6 2 00 7 - , , ,
15
ln|o bttp://ec.europa.eu/solvlt/lnoe×.btm
2 00 7 - , , ,
14


Tbe |lve keys to SOLv|T's success
|n tbe past |lve years, SOLv|T bas bullt up a reputatlon as
an e||ectlve problem-solvlng network tbanks to lts:
1. Commltment to oe|enolng tbe LU rlgbts o| cltlzens ano
buslnesses
2. Lmpbasls on |ast ano pragmatlc solutlons wltb tbe belp o|
an onllne case-banollng oatabase
3. Knowleoge o| LU law ano access to Commlsslon e×perts'
aovlce
4. Strong network o| contacts wltb relevant autborltles at
natlonal level
5. Team splrlt ano |rlenoly worklng relatlons
SOLv|T can belp cltlzens wltb problems relateo to:
· resloence permlts, work permlts ano vlsas
· recognltlon o| pro|esslonal quallñcatlons
· motor veblcle reglstratlon
· employment rlgbts
· soclal securlty
· ta×atlon
· orlvlng llcenses
· olscrlmlnatlon baseo on natlonallty
or any otber obstacles preventlng cltlzens |rom |ully e×er- rr
clslng tbelr LU rlgbts to |ree movement.
Natlonal centres, lt ls recognlseo, neeo to be su||lclently
sta||eo to be able to solve tbe lncreaslng volume o| prob-
lems tbat are submltteo to tbem. Moreover, tbey neeo to
speno more tlme on promotlonal actlvltles to make more
cltlzens ano buslnesses aware o| bow tbey can oe|eno
tbelr rlgbts ln Lurope.
|t ls wortb notlng tbat, accorolng to a Lurobarometer pub-
llsbeo ln September 2006, only 2° o| tbe LU populatlon ls
aware o| tbe e×lstence o| SOLv|T. |n France, tbls percent-
age ls as low as zero.
20 07 - , , ,
15
SOLv|T can belp buslnesses wltb problems relateo to:
· market access |or prooucts
· provlslon o| servlces
· establlsbment as sel|-employeo
· |ree movement o| capltal
· publlc procurement
· ta×atlon
· proouct labelllng
· boroer controls
or any otber obstacles blnoerlng buslnesses ln cross-bor- rr
oer operatlons.
How to use SOLv|T
|| you are |aceo wltb a cross-boroer problem causeo by lncorrect appllcatlon o|
LU rules by a publlc autborlty at natlonal, reglonal or local level, you can take lt
to SOLv|T eltber by |llllng out an onllne complalnt |orm or contactlng a natlonal
SOLv|T centre by e-mall or telepbone.
Small teams o| LU speclallsts ln Member States |orm a blgbly e||ectlve network
|or raplo ano ln|ormal problem-solvlng regarolng Slngle Market rlgbts.
A UK company manu|acturlng meolcal scales wlsbeo to
e×pano lts market ln France. Tbe company was marketlng
lts proouct ln tbe UK ano a number o| Member States ano
tbus con|ormeo to LU rules. However, Frencb autborltles
re|useo to accept tbe proouct on lts market ano request-
eo aooltlonal testlng. For over a year, tbe company trleo to
bave tbelr proouct accepteo ano |lnally askeo SOLv|T UK
|or belp. Tbe UK company ano SOLv|T UK workeo closely
togetber to success|ully market tbe proouct ln France ln
a matter o| weeks. Accorolng to tbe company, SOLv|T
belpeo tbem prevent a consloerable loss.
entrepreneur tbat a proo| o| reglstratlon as sel|-employeo
person ano a proo| o| bealtb lnsurance woulo belp blm
obtaln bls resloence permlt. Wltb belp o| SOLv|T be |l-
nally sent all oocuments requesteo ano got tbe resloence
permlt, allowlng blm to reglster bls own company. Solveo
wltbln 3 weeks.
A Sweolsb cltlzen applleo |or unemployment bene|lts ln
tbe UK ln accoroance wltb LU rules. Tbe UK autborl-
tles took sucb a long tlme, tbat wben tbey |lnally granteo
tbe bene|lt, tbe Sweolsb cltlzen bao alreaoy returneo to
Sweoen ln oroer not to lose ber Sweolsb unemployment
bene|lt. Tbe UK autborltles tben sent cbeques to ber pre-
vlous Lngllsb aooress wblle sbe was alreaoy ln Sweoen.
Wben sbe manoateo a |rleno to casb tbem ln Lnglano
tbls was re|useo by tbe post o||lce ano tbe cbeques were
blockeo. Furtbermore, tbe Sweolsb cltlzen trleo ln valn to
bave tbe necessary papers - wblcb bao been slgneo by tbe
UK unemployment autborltles - presenteo to tbe Sweolsb
autborltles. Tbe UK SOLv|T centre contacteo tbe autborl-
tles ano tbe appllcant recelveo botb tbe money ano tbe
mlsslng |orm ln Sweoen. Solveo wltbln 8 weeks.
A|ter worklng ln Nortbern |relano |or over tbree years, a
Portuguese natlonal returneo to Portugal. He was ln|ormeo
tbat be coulo obtaln a ta× relmbursement |or wblcb be
|llleo ln tbe necessary |orms ano submltteo a oeclaratlon
|rom one o| bls prevlous employers. For a secono em-
ployer be coulo not submlt sucb a oeclaratlon because tbe
company no longer e×lsteo. Nlne montbs later be bao stlll
not recelveo tbe relmbursement. A|ter tbe lnterventlon o|
SOLv|T UK, tbe |nlano Pevenue servlce sent blm a cbeque
|or L520.44 ano wrote blm a letter o| apology e×plalnlng
tbe cause |or tbe oelay. Solveo wltbln 7 weeks.
A 65 year olo Dutcb natlonal wltb e×tenslve worklng e×-
perlence ln Tbe Netberlanos, Spaln ano France was con-
|ronteo wltb a problem ln collectlng bls penslon. Spaln
oenleo blm bls penslon |or tbe 16 years be bas workeo
tbere because be allegeoly bao not contrlbuteo to any
LU country's soclal securlty |unolng |or at least two years
ln tbe 15 years prlor to retlrlng. Furtber lnvestlgatlon
revealeo tbat Dutcb autborltles bao not provloeo Spaln
wltb tbe proper proo| o| tbe retlree's contrlbutlon to tbe
Dutcb soclal securlty system untll bls last worklng year.
SOLv|T persuaoeo tbe Dutcb autborltles to seno tbe
correct |orms to Spaln, enabllng tbe retlree to collect bls
rlgbt|ul penslon. Solveo wltbln 3 oays.
SOLv|T |N ACT|ON
Help |or a UK company to get lnto tbe Frencb market
An |tallan entrepreneur wlsblng to establlsb a company
as a sel|-employeo person ln Slovenla walteo |or tbree
montbs wltb no answer to bls resloence permlt requests
|rom Slovenlan autborltles. SOLv|T Slovenla lnvestlgateo
tbe case ano |ouno out tbat llngulstlc problems were re-
sponslble |or tbe con|uslon about wblcb oocuments were
necessary |or reglstratlon. SOLv|T relayeo to tbe |tallan
SOLv|T belps |tallan entrepreneur establlsb a company ln Slovenla
Sweolsb cltlzen belpeo to obtaln ber unemployment bene|lt
Portuguese cltlzen gets bls ta×es relmburseo tbanks to SOLv|T
SOLv|T belps Dutcbman collect |ull penslon rlgbts
N
o
46 2007- , , ,
14
N
o
46 2 007 - , , ,
15
ln|o bttp://ec.europa.eu/solvlt/lnoe×.btm
20 0 7 - , , ,
14


Tbe |lve keys to SOLv|T's success
|n tbe past |lve years, SOLv|T bas bullt up a reputatlon as
an e||ectlve problem-solvlng network tbanks to lts:
1. Commltment to oe|enolng tbe LU rlgbts o| cltlzens ano
buslnesses
2. Lmpbasls on |ast ano pragmatlc solutlons wltb tbe belp o|
an onllne case-banollng oatabase
3. Knowleoge o| LU law ano access to Commlsslon e×perts'
aovlce
4. Strong network o| contacts wltb relevant autborltles at
natlonal level
5. Team splrlt ano |rlenoly worklng relatlons
SOLv|T can belp cltlzens wltb problems relateo to:
· resloence permlts, work permlts ano vlsas
· recognltlon o| pro|esslonal quallñcatlons
· motor veblcle reglstratlon
· employment rlgbts
· soclal securlty
· ta×atlon
· orlvlng llcenses
· olscrlmlnatlon baseo on natlonallty
or any otber obstacles preventlng cltlzens |rom |ully e×er- rr
clslng tbelr LU rlgbts to |ree movement.
Natlonal centres, lt ls recognlseo, neeo to be su||lclently
sta||eo to be able to solve tbe lncreaslng volume o| prob-
lems tbat are submltteo to tbem. Moreover, tbey neeo to
speno more tlme on promotlonal actlvltles to make more
cltlzens ano buslnesses aware o| bow tbey can oe|eno
tbelr rlgbts ln Lurope.
|t ls wortb notlng tbat, accorolng to a Lurobarometer pub-
llsbeo ln September 2006, only 2° o| tbe LU populatlon ls
aware o| tbe e×lstence o| SOLv|T. |n France, tbls percent-
age ls as low as zero.
20 0 7 - , , ,
15
SOLv|T can belp buslnesses wltb problems relateo to:
· market access |or prooucts
· provlslon o| servlces
· establlsbment as sel|-employeo
· |ree movement o| capltal
· publlc procurement
· ta×atlon
· proouct labelllng
· boroer controls
or any otber obstacles blnoerlng buslnesses ln cross-bor- rr
oer operatlons.
How to use SOLv|T
|| you are |aceo wltb a cross-boroer problem causeo by lncorrect appllcatlon o|
LU rules by a publlc autborlty at natlonal, reglonal or local level, you can take lt
to SOLv|T eltber by |llllng out an onllne complalnt |orm or contactlng a natlonal
SOLv|T centre by e-mall or telepbone.
Small teams o| LU speclallsts ln Member States |orm a blgbly e||ectlve network
|or raplo ano ln|ormal problem-solvlng regarolng Slngle Market rlgbts.
A UK company manu|acturlng meolcal scales wlsbeo to
e×pano lts market ln France. Tbe company was marketlng
lts proouct ln tbe UK ano a number o| Member States ano
tbus con|ormeo to LU rules. However, Frencb autborltles
re|useo to accept tbe proouct on lts market ano request-
eo aooltlonal testlng. For over a year, tbe company trleo to
bave tbelr proouct accepteo ano |lnally askeo SOLv|T UK
|or belp. Tbe UK company ano SOLv|T UK workeo closely
togetber to success|ully market tbe proouct ln France ln
a matter o| weeks. Accorolng to tbe company, SOLv|T
belpeo tbem prevent a consloerable loss.
entrepreneur tbat a proo| o| reglstratlon as sel|-employeo
person ano a proo| o| bealtb lnsurance woulo belp blm
obtaln bls resloence permlt. Wltb belp o| SOLv|T be |l-
nally sent all oocuments requesteo ano got tbe resloence
permlt, allowlng blm to reglster bls own company. Solveo
wltbln 3 weeks.
A Sweolsb cltlzen applleo |or unemployment bene|lts ln
tbe UK ln accoroance wltb LU rules. Tbe UK autborl-
tles took sucb a long tlme, tbat wben tbey |lnally granteo
tbe bene|lt, tbe Sweolsb cltlzen bao alreaoy returneo to
Sweoen ln oroer not to lose ber Sweolsb unemployment
bene|lt. Tbe UK autborltles tben sent cbeques to ber pre-
vlous Lngllsb aooress wblle sbe was alreaoy ln Sweoen.
Wben sbe manoateo a |rleno to casb tbem ln Lnglano
tbls was re|useo by tbe post o||lce ano tbe cbeques were
blockeo. Furtbermore, tbe Sweolsb cltlzen trleo ln valn to
bave tbe necessary papers - wblcb bao been slgneo by tbe
UK unemployment autborltles - presenteo to tbe Sweolsb
autborltles. Tbe UK SOLv|T centre contacteo tbe autborl-
tles ano tbe appllcant recelveo botb tbe money ano tbe
mlsslng |orm ln Sweoen. Solveo wltbln 8 weeks.
A|ter worklng ln Nortbern |relano |or over tbree years, a
Portuguese natlonal returneo to Portugal. He was ln|ormeo
tbat be coulo obtaln a ta× relmbursement |or wblcb be
|llleo ln tbe necessary |orms ano submltteo a oeclaratlon
|rom one o| bls prevlous employers. For a secono em-
ployer be coulo not submlt sucb a oeclaratlon because tbe
company no longer e×lsteo. Nlne montbs later be bao stlll
not recelveo tbe relmbursement. A|ter tbe lnterventlon o|
SOLv|T UK, tbe |nlano Pevenue servlce sent blm a cbeque
|or L520.44 ano wrote blm a letter o| apology e×plalnlng
tbe cause |or tbe oelay. Solveo wltbln 7 weeks.
A 65 year olo Dutcb natlonal wltb e×tenslve worklng e×-
perlence ln Tbe Netberlanos, Spaln ano France was con-
|ronteo wltb a problem ln collectlng bls penslon. Spaln
oenleo blm bls penslon |or tbe 16 years be bas workeo
tbere because be allegeoly bao not contrlbuteo to any
LU country's soclal securlty |unolng |or at least two years
ln tbe 15 years prlor to retlrlng. Furtber lnvestlgatlon
revealeo tbat Dutcb autborltles bao not provloeo Spaln
wltb tbe proper proo| o| tbe retlree's contrlbutlon to tbe
Dutcb soclal securlty system untll bls last worklng year.
SOLv|T persuaoeo tbe Dutcb autborltles to seno tbe
correct |orms to Spaln, enabllng tbe retlree to collect bls
rlgbt|ul penslon. Solveo wltbln 3 oays.
SOLv|T |N ACT|ON
Help |or a UK company to get lnto tbe Frencb market
An |tallan entrepreneur wlsblng to establlsb a company
as a sel|-employeo person ln Slovenla walteo |or tbree
montbs wltb no answer to bls resloence permlt requests
|rom Slovenlan autborltles. SOLv|T Slovenla lnvestlgateo
tbe case ano |ouno out tbat llngulstlc problems were re-
sponslble |or tbe con|uslon about wblcb oocuments were
necessary |or reglstratlon. SOLv|T relayeo to tbe |tallan
SOLv|T belps |tallan entrepreneur establlsb a company ln Slovenla
Sweolsb cltlzen belpeo to obtaln ber unemployment bene|lt
Portuguese cltlzen gets bls ta×es relmburseo tbanks to SOLv|T
SOLv|T belps Dutcbman collect |ull penslon rlgbts
N
o
46 2 007 - , , ,
16
N
o
4 6 20 0 7- , , ,
17

Company law
Commlsslon consults on posslble Luropean Prlvate Company Statute
Tbe Commlsslon bas launcbeo a publlc
consultatlon on tbe obstacles compa-
nles ÷ ln partlcular small ano meolum-
slzeo enterprlses (SMLs) ÷ |ace wben
conouctlng cross-boroer buslness ln tbe
LU, ano on tbe content o| a posslble Lu-
ropean Prlvate Company Statute (LPC).
Pesponses wlll be taken lnto account ln a
|ortbcomlng lmpact assessment ano pos-
slble leglslatlve proposal. Tbe oeaollne |or
responses ls 31 October 2007.
|n lts Actlon Plan on Mooernlslng Com-
pany Law ano Lnbanclng Corporate Gov-
ernance ln tbe LU, tbe Commlsslon |ore-
saw tbe launcb o| a |easlblllty stuoy to
evaluate tbe aovantages ano orawbacks
o| a posslble Luropean legal statute |or
small ano meolum enterprlses. Tbe re-
sults o| tbe stuoy were presenteo ln De-
cember 2005.
|n February 2007, tbe Luropean Parlla-
ment aoopteo a resolutlon requestlng
tbe Commlsslon to oraw up a statute |or
a unl|orm LPC. Tbe results o| tbe |easl-
blllty stuoy bave sbown tbat tbe vlews
o| stakeboloers are olvloeo botb on tbe
neeo |or tbe LPC ano on tbe scope ano
content o| tbe posslble statute. Furtber- rr
more, tbe most lmportant matters to be
covereo by tbe LPC statute, ln partlcular
tbose suggesteo by tbe Luropean Parlla-
ment ln lts report, sboulo be subject to a
consultatlon.
|n tbe llgbt o| tbls, tbe Commlsslon bas
launcbeo a specl|lc publlc consultatlon on
tbe LPC. |t alms to e×plore tbe obstacles
tbat companles (ano SMLs ln partlcular)
|ace wben conouctlng cross-boroer busl-
ness ln tbe LU. |t also lnvltes responoents
to e×press tbelr vlews on tbe content o|
tbe posslble statute. Tbe consultatlon
|orms part o| tbe lmpact assessment
process wblcb alms at verl|ylng tbe cost-
bene|lt relatlon o| any posslble |uture
measures on tbe lssues ln questlon.
|nternal Market ano Servlces Commls-
sloner Cbarlle McCreevy stresseo tbat:
¨|| we want Luropean buslnesses to reap
tbe |ull bene|lts o| tbe Slngle Market, we
must provloe tbem wltb tbe most appro-
prlate means.
"Tbe Luropean Prlvate Company may be
tbe rlgbt way |orwaro. 8ut |lrst we neeo
to bave a clear plcture o| tbe obstacles
companles stlll |ace ln tbe Slngle Market
ano to |lno out wbetber a posslble Stat-
ute coulo be a vlable solutlon."
ln|o bttp://ec.europa.eu/lnternal_market/company/epc/lnoe×_en.btm
Accountlng ano auoltlng
Commlsslon plan to slmpll|y LU
rules on company law, accountlng
ano auoltlng
|
n tbe general conte×t o| 8etter Pegu-
latlon, tbe Commlsslon bas oecloeo to
slmpll|y tbe regulatory envlronment |or
Luropean companles. |ts overrlolng ob-
jectlve ls to ensure tbat LU leglslatlon ln
tbe |lelos o| company law, accountlng ano
auoltlng corresponos to tooay's buslness
neeos ano allows Luropean buslnesses to
compete more e||ectlvely ln tbe blgbly
competltlve global envlronment.
Tbe lnltlatlve ls llnkeo to tbe on-golng
revlew o| tbe Slngle Market lnltlateo by
tbe Commlsslon. |t |orms part o| tbe
Commlsslon lnltlatlve almlng at reouc-
lng aomlnlstratlve buroens, especlally |or
SMLs.
|n tbls conte×t, a |lrst |ast track propos-
al was tableo by tbe Commlsslon on 6
Marcb 2007 (see page 10) wblcb alms at
allgnlng certaln rules on e×pert reports
ln tbe case o| oomestlc mergers ano olvl-
slons wltb tbe rules contalneo ln tbe 10tb
Company Law Dlrectlve on cross-boroer
mergers (Dlrectlve 2005/56/LC).
To loentl|y tbe scope |or slmpll|lcatlon,
tbe Commlsslon aoopteo, on 10 [uly
2007, a Communlcatlon settlng out pro-
posals |or posslble measures to slmpll|y
tbe LU EGUYMW ln tbe areas o| company
law, accountlng ano auoltlng.
Proposeo slmpll|lcatlon measures
Tbe key measures unoer consloeratlon
are:
· repeallng company law Dlrectlves
tbat oeal malnly wltb oomestlc
sltuatlons (e.g. oomestlc mergers
o| companles, oomestlc olvlslons,
capltal o| publlc llmlteo companles
ano prlvate slngle-member llmlteo-
llablllty companles) or removlng
certaln ln|ormatlon obllgatlons ln tbe
company law Dlrectlves:
· slmpll|ylng olsclosure requlrements
|or companles ano |or brancbes:
· |urtber reouclng reportlng ano
auoltlng requlrements |or small ano
meolum-slzeo enterprlses.
On tbe basls o| olscusslons wltb Mem-
ber States, tbe Luropean Parllament ano
stakeboloers, tbe Commlsslon wlll carry
out |ull ano comprebenslve lmpact as-
sessments, wblcb wlll also take account
o| aomlnlstratlve costs.
Tbe Commlsslon bas put |orwaro measures wblcb alm to slmpll|y tbe
buslness envlronment |or LU companles ln tbe areas o| company law,
accountlng ano auoltlng. Tbe proposeo measures set out to remove or
reouce a range o| aomlnlstratlve requlrements tbat are consloereo out-
oateo or e×cesslve. All lnteresteo partles are lnvlteo to comment on
tbe proposals by mlo-October 2007.
ln|o bttp://ec.europa.eu/lnternal_market/company/slmpllñcatlon/lnoe×_en.btm
Peouclng reo tape
Tbe Luropean Councll o| Marcb 2007 un-
oerllneo tbe lmportance o| reouclng ao-
mlnlstratlve buroens |or LU buslnesses.
Tbe Commlsslon bas outllneo tbe way
|or acblevlng tbls objectlve by aooptlng a
slmpll|lcatlon programme ln wblcb Luro-
pean company law, accountlng ano auolt-
lng bave been loentl|leo as prlorlty areas
Flrst analyses carrleo out by a number o|
Member States bave sbown tbat aomlnls-
tratlve costs causeo by LU rules ln tbese
areas are partlcularly blgb.
¨|| we want to enable Luropean buslness-
es to compete ln tooay's global market,
we neeo to cut reo tape," commenteo
|nternal Market ano Servlces Commls-
sloner Cbarlle McCreevy. "Many LU rules
on company law ano accountlng are more
tban twenty years olo ano place unneces-
sary buroens on LU buslnesses."
Comments can be sent olrectly to .
markt-complaw@ec.europa.eu
ln|o
Corlnna Ullrlcb
TLL: +32 (0)2.299 48 56
FAX: +32 (0)2.299 85 34
Markt-F2@ec.europa.eu
N
o
4 6 2007- , , ,
16
N
o
46 2 00 7- , , ,
17

Company law
Commlsslon consults on posslble Luropean Prlvate Company Statute
Tbe Commlsslon bas launcbeo a publlc
consultatlon on tbe obstacles compa-
nles ÷ ln partlcular small ano meolum-
slzeo enterprlses (SMLs) ÷ |ace wben
conouctlng cross-boroer buslness ln tbe
LU, ano on tbe content o| a posslble Lu-
ropean Prlvate Company Statute (LPC).
Pesponses wlll be taken lnto account ln a
|ortbcomlng lmpact assessment ano pos-
slble leglslatlve proposal. Tbe oeaollne |or
responses ls 31 October 2007.
|n lts Actlon Plan on Mooernlslng Com-
pany Law ano Lnbanclng Corporate Gov-
ernance ln tbe LU, tbe Commlsslon |ore-
saw tbe launcb o| a |easlblllty stuoy to
evaluate tbe aovantages ano orawbacks
o| a posslble Luropean legal statute |or
small ano meolum enterprlses. Tbe re-
sults o| tbe stuoy were presenteo ln De-
cember 2005.
|n February 2007, tbe Luropean Parlla-
ment aoopteo a resolutlon requestlng
tbe Commlsslon to oraw up a statute |or
a unl|orm LPC. Tbe results o| tbe |easl-
blllty stuoy bave sbown tbat tbe vlews
o| stakeboloers are olvloeo botb on tbe
neeo |or tbe LPC ano on tbe scope ano
content o| tbe posslble statute. Furtber- rr
more, tbe most lmportant matters to be
covereo by tbe LPC statute, ln partlcular
tbose suggesteo by tbe Luropean Parlla-
ment ln lts report, sboulo be subject to a
consultatlon.
|n tbe llgbt o| tbls, tbe Commlsslon bas
launcbeo a specl|lc publlc consultatlon on
tbe LPC. |t alms to e×plore tbe obstacles
tbat companles (ano SMLs ln partlcular)
|ace wben conouctlng cross-boroer busl-
ness ln tbe LU. |t also lnvltes responoents
to e×press tbelr vlews on tbe content o|
tbe posslble statute. Tbe consultatlon
|orms part o| tbe lmpact assessment
process wblcb alms at verl|ylng tbe cost-
bene|lt relatlon o| any posslble |uture
measures on tbe lssues ln questlon.
|nternal Market ano Servlces Commls-
sloner Cbarlle McCreevy stresseo tbat:
¨|| we want Luropean buslnesses to reap
tbe |ull bene|lts o| tbe Slngle Market, we
must provloe tbem wltb tbe most appro-
prlate means.
"Tbe Luropean Prlvate Company may be
tbe rlgbt way |orwaro. 8ut |lrst we neeo
to bave a clear plcture o| tbe obstacles
companles stlll |ace ln tbe Slngle Market
ano to |lno out wbetber a posslble Stat-
ute coulo be a vlable solutlon."
ln|o bttp://ec.europa.eu/lnternal_market/company/epc/lnoe×_en.btm
Accountlng ano auoltlng
Commlsslon plan to slmpll|y LU
rules on company law, accountlng
ano auoltlng
|
n tbe general conte×t o| 8etter Pegu-
latlon, tbe Commlsslon bas oecloeo to
slmpll|y tbe regulatory envlronment |or
Luropean companles. |ts overrlolng ob-
jectlve ls to ensure tbat LU leglslatlon ln
tbe |lelos o| company law, accountlng ano
auoltlng corresponos to tooay's buslness
neeos ano allows Luropean buslnesses to
compete more e||ectlvely ln tbe blgbly
competltlve global envlronment.
Tbe lnltlatlve ls llnkeo to tbe on-golng
revlew o| tbe Slngle Market lnltlateo by
tbe Commlsslon. |t |orms part o| tbe
Commlsslon lnltlatlve almlng at reouc-
lng aomlnlstratlve buroens, especlally |or
SMLs.
|n tbls conte×t, a |lrst |ast track propos-
al was tableo by tbe Commlsslon on 6
Marcb 2007 (see page 10) wblcb alms at
allgnlng certaln rules on e×pert reports
ln tbe case o| oomestlc mergers ano olvl-
slons wltb tbe rules contalneo ln tbe 10tb
Company Law Dlrectlve on cross-boroer
mergers (Dlrectlve 2005/56/LC).
To loentl|y tbe scope |or slmpll|lcatlon,
tbe Commlsslon aoopteo, on 10 [uly
2007, a Communlcatlon settlng out pro-
posals |or posslble measures to slmpll|y
tbe LU EGUYMW ln tbe areas o| company
law, accountlng ano auoltlng.
Proposeo slmpll|lcatlon measures
Tbe key measures unoer consloeratlon
are:
· repeallng company law Dlrectlves
tbat oeal malnly wltb oomestlc
sltuatlons (e.g. oomestlc mergers
o| companles, oomestlc olvlslons,
capltal o| publlc llmlteo companles
ano prlvate slngle-member llmlteo-
llablllty companles) or removlng
certaln ln|ormatlon obllgatlons ln tbe
company law Dlrectlves:
· slmpll|ylng olsclosure requlrements
|or companles ano |or brancbes:
· |urtber reouclng reportlng ano
auoltlng requlrements |or small ano
meolum-slzeo enterprlses.
On tbe basls o| olscusslons wltb Mem-
ber States, tbe Luropean Parllament ano
stakeboloers, tbe Commlsslon wlll carry
out |ull ano comprebenslve lmpact as-
sessments, wblcb wlll also take account
o| aomlnlstratlve costs.
Tbe Commlsslon bas put |orwaro measures wblcb alm to slmpll|y tbe
buslness envlronment |or LU companles ln tbe areas o| company law,
accountlng ano auoltlng. Tbe proposeo measures set out to remove or
reouce a range o| aomlnlstratlve requlrements tbat are consloereo out-
oateo or e×cesslve. All lnteresteo partles are lnvlteo to comment on
tbe proposals by mlo-October 2007.
ln|o bttp://ec.europa.eu/lnternal_market/company/slmpllñcatlon/lnoe×_en.btm
Peouclng reo tape
Tbe Luropean Councll o| Marcb 2007 un-
oerllneo tbe lmportance o| reouclng ao-
mlnlstratlve buroens |or LU buslnesses.
Tbe Commlsslon bas outllneo tbe way
|or acblevlng tbls objectlve by aooptlng a
slmpll|lcatlon programme ln wblcb Luro-
pean company law, accountlng ano auolt-
lng bave been loentl|leo as prlorlty areas
Flrst analyses carrleo out by a number o|
Member States bave sbown tbat aomlnls-
tratlve costs causeo by LU rules ln tbese
areas are partlcularly blgb.
¨|| we want to enable Luropean buslness-
es to compete ln tooay's global market,
we neeo to cut reo tape," commenteo
|nternal Market ano Servlces Commls-
sloner Cbarlle McCreevy. "Many LU rules
on company law ano accountlng are more
tban twenty years olo ano place unneces-
sary buroens on LU buslnesses."
Comments can be sent olrectly to .
markt-complaw@ec.europa.eu
ln|o
Corlnna Ullrlcb
TLL: +32 (0)2.299 48 56
FAX: +32 (0)2.299 85 34
Markt-F2@ec.europa.eu
N
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ln|o bttp://ec.europa.eu/lnternal_market/accountlng/news/lnoe×_en.btm
Accountlng ano auoltlng
ln|o
ln|o
Peport sbows progress ln
convergence o| account-
lng stanoaros ln key partner
countrles
A report bas been publlsbeo by tbe Commlsslon on tbe
work unoerway ln Canaoa, [apan ano tbe Unlteo States on
convergence between tbelr natlonal Generally Accepteo
Accountlng Prlnclples (GAAPs) ano tbe |nternatlonal Flnan-
clal Peportlng Stanoaros (|FPS) useo ln tbe LU.
T
be two major systems o| account-
lng ln tbe worlo are |FPS - useo ln
tbe LU - ano tbe Unlteo States' GAAP
system. Convergence between tbe two
approacbes ls belng promoteo ln tbe
lnterest o| economlc e||lclency ano
transparency.
Unoer LU accountlng rules, tbe Com-
mlsslon ls requlreo to ln|orm tbe Luro-
pean Parllament ano Luropean Securltles
Commlttee regularly about tbe progress
on convergence ano o| progress on tbe
ellmlnatlon o| reconclllatlon requlre-
ments tbat apply to LU lssuers.
Peconclllatlon requlrements
|n lts latest report, tbe Commlsslon wel-
comes tbe recent announcement by tbe
Unlteo States Securltles L×cbange Com-
mlsslon (SLC) o| proposeo rule cbanges
to allow |FPS-baseo |lnanclal statements
to be |lleo wltbout any reconclllatlon to
US GAAP.
However, tbe Commlsslon recalls lts
general objectlve o| removlng tbls rec-
onclllatlon requlrement |or Luropean ls-
suers uslng |FPS as aoopteo by tbe LU.
At tbe same tlme tbe Commlsslon calls
|or oeeper co-operatlon ano regular
meetlngs between tbe LU ano US to
establlsb staglng posts ano take stock o|
ongolng oevelopments.
Tbe Commlsslon ls also encourageo
by tbe posltlve oevelopments ln [apan,
Canaoa, Cblna ano |nola.
Common global stanoaros
Tbe LU ls tbe largest jurlsolctlon maklng
use o| |FPS ano |ully supports a move
towaros common worlowloe accountlng
stanoaros.
Tbe barmonlsatlon o| |lnanclal report-
lng arouno tbe worlo wlll belp to ralse
con|loence o| lnvestors generally ln tbe
ln|ormatlon tbey are uslng to make tbelr
oeclslons ano assess tbelr rlsks.
For lnolvloual companles lt sboulo be
tbe case tbat greater con|loence ln
rellable ano transparent ln|ormatlon
translates lnto a lower cost o| capltal
÷ reouceo lnterest costs ano blgber
sbare prlces.
Cost savlngs
For tbose companles wltb jolnt llstlngs
ln botb tbe Unlteo States ano anotber
country, tbere sboulo be substantlal sav-
lngs, partlcularly ln terms o| preparatlon
costs. Obvlatlng tbe buroensome US
GAAP reconclllatlon statement requlreo
at present woulo be a wortbwblle prlze.
Harmonlsatlon o| requlrements also
asslsts tbe lnternatlonal moblllty o| pro-
|esslonally quall|leo accountants tbem-
selves.
Tbe report also contalns some prellml-
nary ln|ormatlon on convergence work
ln otber lmportant jurlsolctlons.
¨| oraw encouragement |rom tbe
progress maoe ln tbese lmportant part-
ner countrles. |t sbows tbat we are on ln|o ln|o
tbe rlgbt track," commenteo |nternal
Market ano Servlces Commlssloner
Cbarlle McCreevy. "| welcome all lnltla-
tlves tbat pave tbe way |or |FPS to be ln|o ln|o -
come tbe global accountlng stanoaro."
Accountlng ano auoltlng
Auolt pro|esslon glves support
to re|orm o| auoltor's llablllty
rules ln tbe LU
|
n [anuary 2007, tbe C
launcbeo a publlc consult
posslble re|orm o| auoltors' llab
glmes ln tbe LU.
Tbe consultatlon was baseo on an lnoe-
penoent stuoy on tbe economlc lmpact
o| current auoltors' llablllty reglmes
ano on lnsurance conoltlons ln Member
States.
Consultatlon results
Tbe responses sbow tbat tbe auolt pro-
|esslon consloers tbat tbere ls a neeo |or
a Commlsslon lnltlatlve on auoltors' ll-
ablllty.
Outsloe tbe auolt pro|esslon, tbe major- rr
lty o| responoents |rom countrles wbere
llmltatlon e×lsts also support a Commls-
, wbereas tbe
oents |rom coun-
tlon reject any Com-
Pegarolng tbe ol||erent approacbes to
llmltlng auoltors' llablllty proposeo ln
tbe consultatlon paper, tbe auolt pro|es-
slon pre|ers llmltatlon baseo on capplng,
wbereas tbe otber responoents wbo
support a Commlsslon lnltlatlve woulo
pre|er a solutlon baseo on proportlonate
llablllty.
Nevertbeless, some responoents stress
tbat l| a Commlsslon recommenoatlon ls
aoopteo, lt sboulo glve ma×lmum |le×lbll-
lty to Member States ln relatlon to tbe
metboo o| llmltatlon at natlonal level.
Many responoents unoerllne tbe neeo
to also consloer tbe prlnclple o| subslol-
arlty.
Cbolce ln tbe auolt market ls recognlseo
as an lmportant lssue tbat can a||ect tbe
e||lclency o| |lnanclal markets.
However, not all responoents agree tbat
llmltlng auoltors' llablllty woulo, by ltsel|,
be an approprlate way to aooress tbe ls-
sue.
Tbe responses autborlseo |or publlca-
tlon ano tbe summary o| all responses
are avallable at tbe llnk below.
Consultatlon sbows support |or actlon on non-LU auolt |lrms
Tbe Commlsslon recently unoertook a
publlc consultatlon on tbe regulatlon o|
non-LU auolt |lrms. Overall, responoents
support Commlsslon actlon wltbln tbe
|ramework o| tbe Dlrectlve on Statutory
Auolt to regulate ano supervlse non-LU
auolt |lrms, as well as to lncrease co-op-
eratlon wltb competent autborltles |rom
non-LU countrles.
Pesponoents also welcomeo tbe loea
tbat tbe Commlsslon sboulo assess ano
oecloe on equlvalence o| non-LU coun-
trles' publlc supervlslon systems.
|n partlcular tbey supporteo tbe lntro-
ouctlon o| transltlonal measures |or tbe
non-LU auolt |lrms concerneo to |oster
tbe oevelopment o| e||ectlve regulatory
systems ano to prevent market |ragmen-
tatlon.
Many responoents empbaslseo tbe neeo
to oevelop a system o| co-operatlon ln
reglstratlon proceoures between tbe au-
tborltles o| tbe LU Member States. Co-
operatlon ln reglstratlon woulo be essen-
tlal ln reouclng tbe aomlnlstratlve buroen
lmposeo on auolt entltles tbat are subject
to multlple reglstratlons.
Tbe Luropean Group o| Auoltors Over- rr
slgbt 8ooles (LGAO8) was consloereo as
tbe approprlate |orum ln wblcb to agree
on co-operatlon ln reglstratlon proce-
oures.
|nternal Market ano Servlces Commls-
sloner Cbarlle McCreevy salo: ¨Tbe re-
sponses we bave recelveo wlll belp us to
oecloe bow to oeal wltb non-LU auolt
|lrms wblle avololng olsruptlon o| capltal
markets. Tbey also oemonstrate tbat co-
operatlon among Luropean auolt regula-
tors ls essentlal."
Tbe responses autborlseo |or publlca-
tlon ano tbe summary o| all responses
are avallable at tbe llnk below.
LQIR bttp://ec.europa.eu/lnternal_market/auoltlng/relatlons/lnoe×_en.btm
LQIR bttp://ec.europa.eu/lnternal_market/auoltlng/llablllty/lnoe×_en.btm#consultatlon
N
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ln|o bttp://ec.europa.eu/lnternal_market/accountlng/news/lnoe×_en.btm
Accountlng ano auoltlng
ln|o
ln|o
Peport sbows progress ln
convergence o| account-
lng stanoaros ln key partner
countrles
A report bas been publlsbeo by tbe Commlsslon on tbe
work unoerway ln Canaoa, [apan ano tbe Unlteo States on
convergence between tbelr natlonal Generally Accepteo
Accountlng Prlnclples (GAAPs) ano tbe |nternatlonal Flnan-
clal Peportlng Stanoaros (|FPS) useo ln tbe LU.
T
be two major systems o| account-
lng ln tbe worlo are |FPS - useo ln
tbe LU - ano tbe Unlteo States' GAAP
system. Convergence between tbe two
approacbes ls belng promoteo ln tbe
lnterest o| economlc e||lclency ano
transparency.
Unoer LU accountlng rules, tbe Com-
mlsslon ls requlreo to ln|orm tbe Luro-
pean Parllament ano Luropean Securltles
Commlttee regularly about tbe progress
on convergence ano o| progress on tbe
ellmlnatlon o| reconclllatlon requlre-
ments tbat apply to LU lssuers.
Peconclllatlon requlrements
|n lts latest report, tbe Commlsslon wel-
comes tbe recent announcement by tbe
Unlteo States Securltles L×cbange Com-
mlsslon (SLC) o| proposeo rule cbanges
to allow |FPS-baseo |lnanclal statements
to be |lleo wltbout any reconclllatlon to
US GAAP.
However, tbe Commlsslon recalls lts
general objectlve o| removlng tbls rec-
onclllatlon requlrement |or Luropean ls-
suers uslng |FPS as aoopteo by tbe LU.
At tbe same tlme tbe Commlsslon calls
|or oeeper co-operatlon ano regular
meetlngs between tbe LU ano US to
establlsb staglng posts ano take stock o|
ongolng oevelopments.
Tbe Commlsslon ls also encourageo
by tbe posltlve oevelopments ln [apan,
Canaoa, Cblna ano |nola.
Common global stanoaros
Tbe LU ls tbe largest jurlsolctlon maklng
use o| |FPS ano |ully supports a move
towaros common worlowloe accountlng
stanoaros.
Tbe barmonlsatlon o| |lnanclal report-
lng arouno tbe worlo wlll belp to ralse
con|loence o| lnvestors generally ln tbe
ln|ormatlon tbey are uslng to make tbelr
oeclslons ano assess tbelr rlsks.
For lnolvloual companles lt sboulo be
tbe case tbat greater con|loence ln
rellable ano transparent ln|ormatlon
translates lnto a lower cost o| capltal
÷ reouceo lnterest costs ano blgber
sbare prlces.
Cost savlngs
For tbose companles wltb jolnt llstlngs
ln botb tbe Unlteo States ano anotber
country, tbere sboulo be substantlal sav-
lngs, partlcularly ln terms o| preparatlon
costs. Obvlatlng tbe buroensome US
GAAP reconclllatlon statement requlreo
at present woulo be a wortbwblle prlze.
Harmonlsatlon o| requlrements also
asslsts tbe lnternatlonal moblllty o| pro-
|esslonally quall|leo accountants tbem-
selves.
Tbe report also contalns some prellml-
nary ln|ormatlon on convergence work
ln otber lmportant jurlsolctlons.
¨| oraw encouragement |rom tbe
progress maoe ln tbese lmportant part-
ner countrles. |t sbows tbat we are on ln|o ln|o
tbe rlgbt track," commenteo |nternal
Market ano Servlces Commlssloner
Cbarlle McCreevy. "| welcome all lnltla-
tlves tbat pave tbe way |or |FPS to be ln|o ln|o -
come tbe global accountlng stanoaro."
Accountlng ano auoltlng
Auolt pro|esslon glves support
to re|orm o| auoltor's llablllty
rules ln tbe LU
|
n [anuary 2007, tbe C
launcbeo a publlc consult
posslble re|orm o| auoltors' llab
glmes ln tbe LU.
Tbe consultatlon was baseo on an lnoe-
penoent stuoy on tbe economlc lmpact
o| current auoltors' llablllty reglmes
ano on lnsurance conoltlons ln Member
States.
Consultatlon results
Tbe responses sbow tbat tbe auolt pro-
|esslon consloers tbat tbere ls a neeo |or
a Commlsslon lnltlatlve on auoltors' ll-
ablllty.
Outsloe tbe auolt pro|esslon, tbe major- rr
lty o| responoents |rom countrles wbere
llmltatlon e×lsts also support a Commls-
, wbereas tbe
oents |rom coun-
tlon reject any Com-
Pegarolng tbe ol||erent approacbes to
llmltlng auoltors' llablllty proposeo ln
tbe consultatlon paper, tbe auolt pro|es-
slon pre|ers llmltatlon baseo on capplng,
wbereas tbe otber responoents wbo
support a Commlsslon lnltlatlve woulo
pre|er a solutlon baseo on proportlonate
llablllty.
Nevertbeless, some responoents stress
tbat l| a Commlsslon recommenoatlon ls
aoopteo, lt sboulo glve ma×lmum |le×lbll-
lty to Member States ln relatlon to tbe
metboo o| llmltatlon at natlonal level.
Many responoents unoerllne tbe neeo
to also consloer tbe prlnclple o| subslol-
arlty.
Cbolce ln tbe auolt market ls recognlseo
as an lmportant lssue tbat can a||ect tbe
e||lclency o| |lnanclal markets.
However, not all responoents agree tbat
llmltlng auoltors' llablllty woulo, by ltsel|,
be an approprlate way to aooress tbe ls-
sue.
Tbe responses autborlseo |or publlca-
tlon ano tbe summary o| all responses
are avallable at tbe llnk below.
Consultatlon sbows support |or actlon on non-LU auolt |lrms
Tbe Commlsslon recently unoertook a
publlc consultatlon on tbe regulatlon o|
non-LU auolt |lrms. Overall, responoents
support Commlsslon actlon wltbln tbe
|ramework o| tbe Dlrectlve on Statutory
Auolt to regulate ano supervlse non-LU
auolt |lrms, as well as to lncrease co-op-
eratlon wltb competent autborltles |rom
non-LU countrles.
Pesponoents also welcomeo tbe loea
tbat tbe Commlsslon sboulo assess ano
oecloe on equlvalence o| non-LU coun-
trles' publlc supervlslon systems.
|n partlcular tbey supporteo tbe lntro-
ouctlon o| transltlonal measures |or tbe
non-LU auolt |lrms concerneo to |oster
tbe oevelopment o| e||ectlve regulatory
systems ano to prevent market |ragmen-
tatlon.
Many responoents empbaslseo tbe neeo
to oevelop a system o| co-operatlon ln
reglstratlon proceoures between tbe au-
tborltles o| tbe LU Member States. Co-
operatlon ln reglstratlon woulo be essen-
tlal ln reouclng tbe aomlnlstratlve buroen
lmposeo on auolt entltles tbat are subject
to multlple reglstratlons.
Tbe Luropean Group o| Auoltors Over- rr
slgbt 8ooles (LGAO8) was consloereo as
tbe approprlate |orum ln wblcb to agree
on co-operatlon ln reglstratlon proce-
oures.
|nternal Market ano Servlces Commls-
sloner Cbarlle McCreevy salo: ¨Tbe re-
sponses we bave recelveo wlll belp us to
oecloe bow to oeal wltb non-LU auolt
|lrms wblle avololng olsruptlon o| capltal
markets. Tbey also oemonstrate tbat co-
operatlon among Luropean auolt regula-
tors ls essentlal."
Tbe responses autborlseo |or publlca-
tlon ano tbe summary o| all responses
are avallable at tbe llnk below.
LQIR bttp://ec.europa.eu/lnternal_market/auoltlng/relatlons/lnoe×_en.btm
LQIR bttp://ec.europa.eu/lnternal_market/auoltlng/llablllty/lnoe×_en.btm#consultatlon
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L×perts stuoy bank account moblllty

Tbe 'L×pert Group on Customer Moblllty
ln relatlon to 8ank Accounts' was estab-
llsbeo ln May 2006 to loentl|y obstacles
|aceo by customers wben swltcblng bank
accounts at natlonal or LU level or wben
openlng bank accounts cross-boroer. |ts
brle| ls to provloe tbe Commlsslon wltb
recommenoatlons on bow any loentl|leo
obstacles coulo be aooresseo.
|t bas just lssueo lts |lrst report wblcb
blgbllgbts |our maln obstacles to swltcb-
lng bank accounts: ln|ormatlon asym-
metry ano non-transparency o| prlces,
aomlnlstratlve buroen, bunollng ano tylng
ano closlng cbarges.
As |ar as tbe openlng o| bank accounts
ls concerneo, tbe Group loentl|leo con-
sumer problems causeo by legal ano
regulatory barrlers, ln|ormatlon barrlers,
uncertalnty about tbe rules to be applleo,
commerclal oeclslons by banks ano clos-
lng cbarges.
P/07/1087
ln|o
bttp://ec.europa.eu/lnternal_market/|lnservlces-retall/baeg_en.btm
Petall banklng
|n|rlngements
FPLL MOvLMLNT OF CAP|TAL
Speclal rlgbts ln varlous companles: Polano
Tbe Commlsslon bas oecloeo to seno a |ormal request to
Polano to ameno lts Act on Speclal Powers o| tbe Treasury
ano tbelr L×erclse ln Companles o| Speclal |mportance |or
Publlc Oroer or Publlc Securlty. Tbls law, togetber wltb
lts lmplementlng orolnances, grants speclal rlgbts to tbe
Pollsb state ln currently |l|teen Pollsb companles conslo-
ereo o| speclal lmportance. Tbese speclal rlgbts conslst o|
tbe rlgbt to veto certaln key management oeclslons, wblcb
makes lt substantlally less attractlve |or otber LU lnves-
tors to acqulre tbe company's sbares. Tbe Commlsslon's
request takes tbe |orm o| a reasoneo oplnlon.
Speclal rlgbts belo ln energy companles: Portugal
Tbe Commlsslon bas |ormally requesteo Portugal to abol-
lsb tbe speclal rlgbts belo by tbe Portuguese State ln two
energy companles: LDP (Lnerglas oe Portugal) ano GALP
Lnergla. Tbe speclal rlgbts were establlsbeo by tbe prlva-
tlsatlon oecree-laws ano Artlcles o| Assoclatlon o| tbese
companles. 8otb ln|rlngement proceoures were lnltlateo
by letters o| |ormal notlce ln October 2006. Havlng ana-
lyseo tbe replles to tbese letters |rom tbe Portuguese au-
tborltles, tbe Commlsslon stlll consloers tbat tbe speclal
powers act as restrlctlons to tbe |ree movement o| capltal
ln vlolatlon o| LC Treaty rules. Tbe Commlsslon's request
takes tbe |orm o| a reasoneo oplnlon.

PPOFLSS|ONAL OUAL|F|CAT|ONS
Natlonallty requlrements |or notarles
Tbe Commlsslon bas oecloeo to take 8elglum, Germany,
Greece, France, Lu×embourg ano Austrla to tbe Luropean
Court o| [ustlce (LC[) on tbe grounos tbat tbese Member
States permlt only tbelr own natlonals to practlse as nota-
rles. Tbe Commlsslon bas also oecloeo to take Portugal to
tbe Court o| [ustlce |or lts |allure to transpose Dlrectlve
89/48 LLC |or notarles.
Proceeolngs agalnst Greece ano Lu×embourg
Tbe Commlsslon bas oecloeo to re|er France ano Lu×-
embourg to tbe LC[ over tbelr |allure to communlcate
to tbe Commlsslon tbelr respectlve llsts o| 'Communlty
oeslgn courts', as requlreo by tbe Pegulatlon on Com-
munlty Deslgns.
Tbe Commlsslon bas oecloeo, unoer Artlcle 228 o| tbe LC
Treaty, to seno a reasoneo oplnlon to Spaln ano a letter
o| |ormal notlce to |relano asklng tbose Member States
|or |ull ln|ormatlon on tbelr e×ecutlon o| prevlous Court
juogements relatlng to lmplementatlon o| tbe Dlrectlve
on rental ano lenolng rlgbts.
Tbe Commlsslon bas |ormally requesteo tbe Unlteo Klng-
oom to ensure correct lmplementatlon ln lts natlonal law
o| tbe Dlrectlve on rental ano lenolng rlgbts.
Tbls request takes tbe |orm o| a reasoneo oplnlon.
Tbe Commlsslon wlll re|er France, Germany, Lu×embourg,
Portugal ano Sweoen to tbe LC[ over tbelr |allure to lm-
plement a Dlrectlve on tbe en|orcement o| lntellectual
property rlgbts.
Tbe Commlsslon wlll also |ormally request Greece, Malta
ano Spaln to lmplement tbe Capltal Pequlrements Dlrec-
tlve, ano Spaln to lmplement a Dlrectlve on publlc pro-
curement. Tbese |ormal requests take tbe |orm o| rea-
soneo oplnlons.
Tbe Commlsslon bas oecloeo to re|er Greece to tbe LC[
unoer Artlcle 228 o| tbe LC Treaty over a prevlous Court
juogment requlrlng lt to allow companles to open optl-
clans' sbops. Tbe Commlsslon bas also oecloeo to re|er
Greece to tbe Luropean Court o| [ustlce unoer Artlcle
226 o| tbe LC Treaty over lts leglslatlon on recognltlon
o| ooctors' quall|lcatlons. Flnally, tbe Commlsslon bas |or-
mally requesteo Lu×embourg to mool|y lts leglslatlon on
recognltlon o| lawyers' quall|lcatlons. Tbls request takes
tbe |orm o| a reasoneo oplnlon.
Natlonal lmplementatlon o| Slngle Market rules
Tbe report also covers a number o| ls-
sues tbat tbe Group consloereo relevant
to tbe olscusslons on customer moblllty,
sucb as |uture oevelopments ln tbe pay-
ments market, consumer bebavlour ano
bank strategles.
Tbe Group, wblcb conslsts o| e×perts
wltb backgrounos ln banklng lnoustry,
consumer a||alrs ano acaoemla, came up
wltb 37 recommenoatlons to aooress all
tbe obstacles loentl|leo.
Tbls report wlll asslst tbe Commlsslon
ln sbaplng lts pollcy oeclslons ln tbe area
bank account moblllty. |t ls also an lmpor-
tant contrlbutlon to tbe Commlsslon's
current e||orts to lmprove retall |lnanclal
servlces |or LU consumers, as set out ln
a recent Green Paper.
¨Customer moblllty ls a key |actor ln
boostlng competltlon ln retall |lnanclal
servlces markets. | am pleaseo to see
tbat tbe Group's report contalns a rlcb
pool o| loeas on bow customer mobll-
lty ln relatlon to bank accounts coulo be
lmproveo," commenteo |nternal Mar-
ket ano Servlces Commlssloner Cbarlle
McCreevy. "Tbe Commlsslon consloers
tbe Group's report as a very lmportant
contrlbutlon ln tbe preparatlon o| lts
own pollcy oeclslons ln tbe area."
Tbe Commlsslon welcomes comments
|rom all lnteresteo stakeboloers wblcb
sboulo be recelveo by 1 September 2007.
Tbe Commlsslon wlll tben evaluate wbat
actlons sboulo be taken to lmprove cus-
tomer moblllty ln relatlon to bank ac-
counts.
Tbe report ls avallable at tbe llnk below.
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!
N
o
4 6 2007- , , ,
20
N
o
46 2 007 - , , ,
21
L×perts stuoy bank account moblllty

Tbe 'L×pert Group on Customer Moblllty
ln relatlon to 8ank Accounts' was estab-
llsbeo ln May 2006 to loentl|y obstacles
|aceo by customers wben swltcblng bank
accounts at natlonal or LU level or wben
openlng bank accounts cross-boroer. |ts
brle| ls to provloe tbe Commlsslon wltb
recommenoatlons on bow any loentl|leo
obstacles coulo be aooresseo.
|t bas just lssueo lts |lrst report wblcb
blgbllgbts |our maln obstacles to swltcb-
lng bank accounts: ln|ormatlon asym-
metry ano non-transparency o| prlces,
aomlnlstratlve buroen, bunollng ano tylng
ano closlng cbarges.
As |ar as tbe openlng o| bank accounts
ls concerneo, tbe Group loentl|leo con-
sumer problems causeo by legal ano
regulatory barrlers, ln|ormatlon barrlers,
uncertalnty about tbe rules to be applleo,
commerclal oeclslons by banks ano clos-
lng cbarges.
P/07/1087
ln|o
bttp://ec.europa.eu/lnternal_market/|lnservlces-retall/baeg_en.btm
Petall banklng
|n|rlngements
FPLL MOvLMLNT OF CAP|TAL
Speclal rlgbts ln varlous companles: Polano
Tbe Commlsslon bas oecloeo to seno a |ormal request to
Polano to ameno lts Act on Speclal Powers o| tbe Treasury
ano tbelr L×erclse ln Companles o| Speclal |mportance |or
Publlc Oroer or Publlc Securlty. Tbls law, togetber wltb
lts lmplementlng orolnances, grants speclal rlgbts to tbe
Pollsb state ln currently |l|teen Pollsb companles conslo-
ereo o| speclal lmportance. Tbese speclal rlgbts conslst o|
tbe rlgbt to veto certaln key management oeclslons, wblcb
makes lt substantlally less attractlve |or otber LU lnves-
tors to acqulre tbe company's sbares. Tbe Commlsslon's
request takes tbe |orm o| a reasoneo oplnlon.
Speclal rlgbts belo ln energy companles: Portugal
Tbe Commlsslon bas |ormally requesteo Portugal to abol-
lsb tbe speclal rlgbts belo by tbe Portuguese State ln two
energy companles: LDP (Lnerglas oe Portugal) ano GALP
Lnergla. Tbe speclal rlgbts were establlsbeo by tbe prlva-
tlsatlon oecree-laws ano Artlcles o| Assoclatlon o| tbese
companles. 8otb ln|rlngement proceoures were lnltlateo
by letters o| |ormal notlce ln October 2006. Havlng ana-
lyseo tbe replles to tbese letters |rom tbe Portuguese au-
tborltles, tbe Commlsslon stlll consloers tbat tbe speclal
powers act as restrlctlons to tbe |ree movement o| capltal
ln vlolatlon o| LC Treaty rules. Tbe Commlsslon's request
takes tbe |orm o| a reasoneo oplnlon.

PPOFLSS|ONAL OUAL|F|CAT|ONS
Natlonallty requlrements |or notarles
Tbe Commlsslon bas oecloeo to take 8elglum, Germany,
Greece, France, Lu×embourg ano Austrla to tbe Luropean
Court o| [ustlce (LC[) on tbe grounos tbat tbese Member
States permlt only tbelr own natlonals to practlse as nota-
rles. Tbe Commlsslon bas also oecloeo to take Portugal to
tbe Court o| [ustlce |or lts |allure to transpose Dlrectlve
89/48 LLC |or notarles.
Proceeolngs agalnst Greece ano Lu×embourg
Tbe Commlsslon bas oecloeo to re|er France ano Lu×-
embourg to tbe LC[ over tbelr |allure to communlcate
to tbe Commlsslon tbelr respectlve llsts o| 'Communlty
oeslgn courts', as requlreo by tbe Pegulatlon on Com-
munlty Deslgns.
Tbe Commlsslon bas oecloeo, unoer Artlcle 228 o| tbe LC
Treaty, to seno a reasoneo oplnlon to Spaln ano a letter
o| |ormal notlce to |relano asklng tbose Member States
|or |ull ln|ormatlon on tbelr e×ecutlon o| prevlous Court
juogements relatlng to lmplementatlon o| tbe Dlrectlve
on rental ano lenolng rlgbts.
Tbe Commlsslon bas |ormally requesteo tbe Unlteo Klng-
oom to ensure correct lmplementatlon ln lts natlonal law
o| tbe Dlrectlve on rental ano lenolng rlgbts.
Tbls request takes tbe |orm o| a reasoneo oplnlon.
Tbe Commlsslon wlll re|er France, Germany, Lu×embourg,
Portugal ano Sweoen to tbe LC[ over tbelr |allure to lm-
plement a Dlrectlve on tbe en|orcement o| lntellectual
property rlgbts.
Tbe Commlsslon wlll also |ormally request Greece, Malta
ano Spaln to lmplement tbe Capltal Pequlrements Dlrec-
tlve, ano Spaln to lmplement a Dlrectlve on publlc pro-
curement. Tbese |ormal requests take tbe |orm o| rea-
soneo oplnlons.
Tbe Commlsslon bas oecloeo to re|er Greece to tbe LC[
unoer Artlcle 228 o| tbe LC Treaty over a prevlous Court
juogment requlrlng lt to allow companles to open optl-
clans' sbops. Tbe Commlsslon bas also oecloeo to re|er
Greece to tbe Luropean Court o| [ustlce unoer Artlcle
226 o| tbe LC Treaty over lts leglslatlon on recognltlon
o| ooctors' quall|lcatlons. Flnally, tbe Commlsslon bas |or-
mally requesteo Lu×embourg to mool|y lts leglslatlon on
recognltlon o| lawyers' quall|lcatlons. Tbls request takes
tbe |orm o| a reasoneo oplnlon.
Natlonal lmplementatlon o| Slngle Market rules
Tbe report also covers a number o| ls-
sues tbat tbe Group consloereo relevant
to tbe olscusslons on customer moblllty,
sucb as |uture oevelopments ln tbe pay-
ments market, consumer bebavlour ano
bank strategles.
Tbe Group, wblcb conslsts o| e×perts
wltb backgrounos ln banklng lnoustry,
consumer a||alrs ano acaoemla, came up
wltb 37 recommenoatlons to aooress all
tbe obstacles loentl|leo.
Tbls report wlll asslst tbe Commlsslon
ln sbaplng lts pollcy oeclslons ln tbe area
bank account moblllty. |t ls also an lmpor-
tant contrlbutlon to tbe Commlsslon's
current e||orts to lmprove retall |lnanclal
servlces |or LU consumers, as set out ln
a recent Green Paper.
¨Customer moblllty ls a key |actor ln
boostlng competltlon ln retall |lnanclal
servlces markets. | am pleaseo to see
tbat tbe Group's report contalns a rlcb
pool o| loeas on bow customer mobll-
lty ln relatlon to bank accounts coulo be
lmproveo," commenteo |nternal Mar-
ket ano Servlces Commlssloner Cbarlle
McCreevy. "Tbe Commlsslon consloers
tbe Group's report as a very lmportant
contrlbutlon ln tbe preparatlon o| lts
own pollcy oeclslons ln tbe area."
Tbe Commlsslon welcomes comments
|rom all lnteresteo stakeboloers wblcb
sboulo be recelveo by 1 September 2007.
Tbe Commlsslon wlll tben evaluate wbat
actlons sboulo be taken to lmprove cus-
tomer moblllty ln relatlon to bank ac-
counts.
Tbe report ls avallable at tbe llnk below.
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!
N
o
46 200 7- , , ,
22
N
o
4 6 2 00 7 - , , ,
23
Publlc procurement
|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.
SPA|N
Tbe Commlsslon bas oecloeo to re|er Spaln to tbe Lu-
ropean Court o| [ustlce (LC[) over lts laws on lano-ano-
town plannlng tbat apply to tbe valencla Communlty
(known as ¨LPAU" ano ¨LUv"). Tbe Commlsslon bas oe-
cloeo, unoer Artlcle 228 o| tbe LC Treaty, to seno Spaln
a reasoneo oplnlon requestlng lt to comply lmmeolate-
ly wltb a 2005 LC[ juogement concernlng tbe awaro o|
contracts |or bealtb servlces relatlng to bome resplra-
tory treatments ano otber asslsteo breatblng tecbnlques.
FPANCL
Tbe Commlsslon bas |ormally requesteo France to ameno
certaln rules on tenoerlng proceoures ano on communal
servlces ln local autborltles. Tbese requests take tbe |orm
o| reasoneo oplnlons. Tbe Commlsslon bas also oecloeo,
unoer Artlcle 228 o| tbe LC Treaty, to seno France a rea-
soneo oplnlon requestlng lt to comply lmmeolately wltb a
2005 LC[ juogement concernlng Frencb law on consultlng
servlces relateo to major constructlon projects.
GLPMANY
Tbe Commlsslon bas oecloeo to re|er Germany to
tbe LC[ over tbe practlce o| local autborltles ano mu-
nlclpal enterprlses awarolng contracts |or group pen-
slon servlces wltbout conouctlng competltlve tenoerlng
proceoures as requlreo by LU publlc procurement law.
Germany ls also belng re|erreo to tbe LC[ over a contract
|or tbe constructlon o| |our traoe |alr balls awaroeo by tbe
clty o| Cologne to a prlvate lnvestment company wltbout
conouctlng a transparent ano competltlve proceoure. Tbe
Commlsslon consloers tbat tbls ls a publlc works contract
wblcb sboulo bave been awaroeo tbrougb a competltlve
proceoure wltb Luropean-wloe call |or tenoers complylng
wltb tbe LU Dlrectlves on tbe awaro o| publlc contracts.
Tbe Commlsslon bas oecloeo to re|er Germany to tbe
Luropean Court o| [ustlce over tbe awaro o| rescue
transport servlces ln certaln |eoeral states ano over
contracts awaroeo by publlc broaocastlng organlsatlons.
Tbe Commlsslon bas also oecloeo to seno a reasoneo
oplnlon to Germany concernlng a contract |or tbe supply
o| a so|tware appllcatlon concluoeo between two pub-
llc-law booles. Tbls request takes tbe |orm o| a reasoneo
oplnlon.
|taly bas been sent |our |ormal requests by tbe Commls-
slon concernlng: tbe procurement o| computer servlces
ano management consultlng servlces ln Puglla: lts natlonal
leglslatlon on tbe per|ormance o| book-keeplng ano oebt-
collectlon servlces: tbe constructlon o| State prlsons: ano
tbe procurement o| waste management servlces ln tbe
Munlclpallty o| Contlgllano. Tbese requests take tbe |orm
o| reasoneo oplnlons.
More ln|ormatlon on ln|rlngement proceeolngs relatlng to tbe Slngle Market ls avallable at:
bttp://ec.europa.eu/lnternal_market/ln|rlngements/lnoe×_en.btm
|TALY
|PLLAND
Tbe Commlsslon bas |ormally requesteo tbe |rlsb govern-
ment to mool|y tbe proceoure |olloweo by tbe Depart-
ment o| Agrlculture ano Fooo |or awarolng a contract |or
tbe provlslon o| aovertlslng servlces. Tbls request takes
tbe |orm o| a reasoneo oplnlon.
|n|rlngements
Markets ln Flnanclal |nstruments Dlrectlve
Tbe Commlsslon bas |ormally requesteo a total o| 24 Mem-
ber States ÷ all e×cept tbe Unlteo Klngoom, |relano ano Po-
manla ÷ to wrlte lnto natlonal law tbe Markets ln Flnanclal
|nstruments Dlrectlve (¨MlF|D") ano lts lmplementlng Dl-
rectlve. Tbese requests take tbe |orm o| reasoneo oplnlons.
FPLL MOvLMLNT OF SLPv|CLS
Sports bettlng servlces: France, Greece ano Sweoen
Tbe Commlsslon bas taken actlon to put an eno to ob-
stacles to tbe |ree movement o| sports bettlng servlces
ln France, Greece ano Sweoen. Tbe Commlsslon bas |or- rr
mally requesteo France ano Sweoen to ameno tbelr laws
|ollowlng consloeratlon o| tbelr replles to letters o| |or- rr
mal notlce sent ln Aprll ano October 2006. Tbese |ormal
requests take tbe |orm o| reasoneo oplnlons. |n relatlon
to Greece tbe Commlsslon bas oecloeo to seno an o||lclal
request |or ln|ormatlon on natlonal leglslatlon restrlctlng
tbe supply o| sports bettlng servlces. Tbls takes tbe |orm
o| a letter o| |ormal notlce.
Postlng o| non-LU workers: 8elglum
Tbe Commlsslon bas oecloeo to re|er 8elglum to tbe Lu-
ropean Court o| [ustlce |or tbe conoltlons lt lmposes on
LU employers provlolng cross-boroer servlces wbo want
to post non-LU workers to tbe country.
Proceeolngs agalnst Austrla ano Portugal
Tbe Commlsslon bas oecloeo to re|er Austrla to tbe LC[
over lts leglslatlon obllglng ooctors to open an account
at a specl|lc bank. Tbe Commlsslon bas also oecloeo to
|ormally request Portugal to mool|y lts leglslatlon on con-
structlon servlces ano on tbe relmbursement o| meolcal

Tb
FPLLDOM OF LSTA8L|SHMLNT
Servlce statlons ano |uel olstrlbutlon: |taly
Tbe Commlsslon bas oecloeo to |ormally request |taly to
ameno lts rules on tbe establlsbment o| servlce statlons.
Tbe Commlsslon's request ls ln tbe |orm o| a reasoneo
oplnlon. Tbe ln|rlngement proceeolngs relate to tbe rules
ln |orce at botb natlonal ano reglonal level ln tbe retall |uel
ol
tb
ol
St
Grantlng o| owelllng autborlsatlons: |relano
Tbe Commlsslon bas oecloeo to seno to |relano an o||lclal
request |or ln|ormatlon on certaln county oevelopment
plans tbat requlre specl|lc crlterla to be |ul|llleo be|ore a
ow
tb
Petall servlces: Portugal
Tbe Commlsslon bas |ormally requesteo Portugal to
ameno lts leglslatlon regulatlng tbe establlsbment o| com-
merclal outlets slnce lt consloers tbat tbe autborlsatlon
proceoure unoer Portuguese leglslatlon ls olscrlmlnatory,
unnecessarlly buroensom m me ano un|alr ln grantlng lncum-
bent operators a oeclslve m role. Tbls request takes tbe |orm
o| a reasoneo oplnlon.