Launching of a public consultation document on proposed EU Directive on provision of services within the Internal Market.

Date: 8/7/2004
Issued On: 8/7/2004

Ministry for Competitiveness & Communications launches public consultation document on proposed EU Directive on provision of services within the Internal Market.

"We want to be your voice in the European Union" - Competitiveness and Communications Minister Censu Galea

"Government is committed to promoting business and facilitating procedures by which entrepreneurs who are service providers can operate," Competitiveness and Communications Minister Censu Galea said on Thursday morning when launching a consultative paper on a proposed EU directive on the provision of services within the Internal Market.

Minister Censu Galea said that now that Malta has a voice within the European Union Government wanted to get feedback from the public on proposed legislation that is currently being reviewed by the institutions of the EU where Malta is actively participating as a Member State. He explained that with this objective in mind the Ministry for Competitiveness and Communications has commissioned a report by a team Economists headed by Prof. Lino Briguglio to analyse the proposed EU Directive on the provision of services within the internal market so that it can initiate a public consultation exercise.

"We want to ensure that all the interested parties in Malta are aware of what is being proposed so that they will be in a position to form an opinion and come up with comments, suggestions and proposals for discussion", Minister Galea said.

While giving details on the proposed Directive, Minister Galea stressed the fact that this is a proposed EU Directive and as such it is far from being the finished article. As its title amply implies it is aimed at improving the freedom of establishment of service providers and cross-border movement of services by making it easier for European citizens and businesses to conduct trade in services. The focus of the Directive is the reduction of regulatory requirements and the simplification of administrative procedures.

The Commission's proposal for a Directive on Services in the Internal Market is a major step forward in the implementation of the Lisbon Agenda which was drawn up with the scope of making Europe one of the most competitive, dynamic and knowledge-based economies in the world by 2010. It is common knowledge that services constitute a large segment of all EU economies, and the internal market cannot be said to be functioning efficiently if market imperfections remain in the services sectors. The aim of the proposed Directive is precisely to ensure that the market for services operates flexibly and efficiently, thereby delivering better value for money to the European businesses and
citizens alike. In turn this should promote economic growth, and foster the international competitiveness of the EU.

Minister Galea added that the ever-increasing global competition amongst the major trading blocs such as the United States and Asia means that the biggest trading bloc in the world, the European Union, has to develop its single market further in order to facilitate business processes which will thrive in the ever-increasing reality of stiff global competition.

This consultation document attempts to summarize and to simplify the text of the proposed directive and in addition it aims to put forward a number of discussion points relating to the possible impact on service providers as well as users of services in Malta. These discussion points also draw attention to crucial areas of impact where feedback from the service providers and service recipients would be most required. Prior to the launch of this public consultation process, The Ministry for Competitiveness and Communications has also initiated discussions with a number of other Ministries that are responsible for various sectors of the civil society that fall within the scope of this proposed directive. Each of these Ministries will approach the constituted bodies in its area of remit with the aim of eliciting their reactions and suggestions. This process will continue in parallel with the public consultation exercise.

At this early stage in the consultation process, it is important that we raise some pertinent questions to draw the attention of providers and recipients on these issues.


The provisions could have a number of positive implications for the conduct of services business in Malta. Particular areas which may be affected include the limitations on the imposition of quantitative and territorial restrictions, the simplification of business licensing procedures, the setting up of one-stop-shops and the composition of the bodies granting the licenses.

The Minister went on to stress that while the document being launched today should provide a summary of the proposed Directive and attempt to raise a number of points for discussion regarding their likely impact on the Maltese business scene, the discussion presented in this document is by no means intended to be comprehensive nor complete. It is aimed at raising awareness so as to stimulate feedback from interested parties likely to be affected by the Directive. It is thanks to this feedback that the Maltese Government will be able to make constructive suggestions regarding the provisions to be incorporated in the Directive, in the best interests of the specific conditions of the local business sector and that of the EU Single Market.

A further step is planned where the various reactions and comments will be brought forward at a MEUSAC meeting while there is also the possibility that the Ministry may decide to hold meetings with special interest groups. Eventually these processes should culminate in a consolidated position document which will be brought for the approval of
the Parliamentary Standing Committee for EU Affairs.

The Ministry for Competitiveness and Communications is calling for written submissions from services providers and their regulators, and from services recipients who could potentially be affected by the proposed EU Directive. The deadline for submissions is 1st August, 2004.

The submissions received will be considered in drawing up the response of the Government of Malta to the Directive. It is anticipated that the Directive will be discussed at EU level prior to its adoption in 2005. All responses will be treated with the utmost confidentiality.

Submissions should be sent to:

The Permanent Secretary
Ministry for Competitiveness and Communications
Casa Leoni, St. Joseph High Road
Sta. Venera

Tel: 21484845
Email: info.mcmp@gov.mt
Fax: 21480083

Click here to view Consultation Paper

Click here to view proposed EU Directive

Click here to view European Commission proposal for a Directive on services: Frequently Asked Questions

Copies of the consultation document can also be collected from the Ministry for Competitiveness and Communications, Casa Leoni 476, St. Joseph High Road, Sta Venera