Free movement of services

The free movement of services implies the right of individual citizens and companies to offer and provide services without hindrance in all EU Member States. Work is currently under way to implement the EU Services Directive.

EU Treaty regulations on the free movement of services essentially cover all types of services provided against payment. Individual citizens and companies are to have the right to offer and provide services in other Member States on the same terms as apply to the country's own citizens and companies.

The Services Directive

"The services sector is of increasing importance to the Swedish economy - it accounts for around 70 per cent of our GDP and employs three quarters of our population," says Minister for Trade Ewa Björling.

"By contrast, exports of services account for no more than 20 per cent of total exports. There is major unexploited potential here that could be unlocked by more flexible, simpler European trade in services," Dr Björling believes.

The Services Directive was adopted in December 2006. The EU Member States and the EEA countries (Iceland, Liechtenstein and Norway) must have implemented the Directive by 28 December 2009 at the latest.

It is a very comprehensive directive that covers many types of services in a range of areas. The Directive aims to make it easier for companies to establish themselves or offer their services on a temporary basis in the EU internal market. To facilitate free movement in the EU/EEA area, the Member States are to eliminate cumbersome and unnecessary bureaucracy, simplify administrative procedures for service providers and enhance the rights of service recipients.

"Swedish companies are ready to expand onto the European market and I see it as my job as Minister for Trade to eliminate the legal and administrative barriers that stand in their way. The EU Services Directive is a very important tool in this respect," says Dr Björling.

All the ministries in the Government Offices and a number of government agencies are involved in efforts to implement the Services Directive in Sweden. The Services Directive Team at the Ministry for Foreign Affairs is responsible for implementation and coordination in the Government Offices.