Malta preparing but still a long way to go

Malta hopes to be able to implement the EU's Services Directive by the end of next year.

According to a new study issued by Eurochambers - representing Chambers of Commerce in all the EU member states including Malta - the island's technical preparations are gaining ground although many important decisions are still to be taken.

Half way through the preparatory phase of the implementation of this fundamental directive, to enter into force by December 2009, Malta has still to finish a screening exercise of all its legislation to be affected by the new directive, make the necessary changes and decide what type of mechanism it will set up to serve as a point of single contact (PSC) as required by the directive.

According to Eurochambers, the Maltese government has just started the legislative screening process covering all relevant legislation, authorisation schemes and procedures. These also include examining the terms and conditions of all current licences and service activities that have been identified as falling under the scope of application of the implementation measures of this directive. Eurochambers said the exercise, captained by the Ministry of Finance, is planned to be concluded by next November.

"The involvement of the competent authorities from the outset of the process seeks to ensure that the process is as comprehensive as possible," the study states.

On the need set by the directive that each member state is to establish a PSC to serve the purposes of all the services falling under this directive, the report states that preliminary discussions and consultation with stakeholders are under way but no final decision on which method is to be used has been taken yet.

According to Eurochambers, the Maltese authorities are considering three options: either to integrate the PSC with other existing internal market service facilities, such as a one-stop-shop; to have a centralised physical point of contact; or just a pure electronic point of contact through a portal.

Overall, the Eurochambers report shows that, when compared to last January, a number of countries have already improved their preparations for the implementation of this directive. However, some fundamental problems still need to be solved.

The most backward member states in their preparations are Italy and Greece, the report states.

Factbox

The Services Directive was adopted on December 12, 2006 and creates a free market for the services sector in the European Union (EU), to match the existing ones for goods, people and capital.

Member states have three years to transpose the directive, which will enter into force by the end of 2009.

The directive requires member states' governments to simplify procedures and remove barriers to cross-border service provision.

The objective is to achieve a genuine internal market in services by removing legal and administrative barriers to the development of service activities between member states.

The directive will guarantee service providers more legal certainty if they want to exercise two fundamental freedoms (freedom of establishment and freedom to provide services) enshrined in the EC Treaty.

This will make it easier for businesses to provide and use cross-border services in the EU, thus increasing cross-border competition in service markets, bringing down prices and improving quality and choice for consumers.