New law to facilitate business across borders

Businesses will find it easier to provide and use cross-border services in the EU when the Services Directive becomes law at the end of December, Finance Minister Tonio Fenech said.

The directive would provide Maltese businesses with yet another tool allowing them to make the best use of the benefits of EU membership.

Addressing a seminar on the subject organised by the Malta Business Bureau, Mr Fenech said the directive "fits in perfectly with our primary objective of creating more and better jobs".

The directive is aimed at increasing cross-border competition in service markets, bringing down prices and improving quality and choice for consumers.

To start operating, businesses will no longer require a licence in a substantial number of services. They will only require a notification unless permits related to facilities on the premises are required or to safeguard public health. Services accounted for between 60 and 70 per cent of economic activity in the EU, so it was important to remove bureaucracy and open up borders to enterprises in the sector, Mr Fenech said.

He added that services acc-ounted for a high proportion of growth in the local economy in terms of GDP and employment creation. However, only 20 per cent of services in the EU were traded across borders.

The MBB held the seminar to analyse the implications of the directive, which is expected to prompt a number of amendments to local licensing regulations, affecting a broad cross-section of business sectors.

Carlos Almaraz, the deputy director of the Internal Market Department of Business Europe, said that, despite some progress, there were serious risks of late and incorrect transposition of the directive. Member states had to continue their efforts beyond the December 28 implementation deadline.

The MBB's CEO, Joseph Tanti said the bureau was planning to publish guidance notes in an easy-to-read format.

According to a study conducted in July by Eurochambers, Malta is prepared for the introduction of the directive, with its level of preparation classified as one of the most advanced among the 27 member states.