Implementation of the Services Directive

A great deal of work is being done in the Government Offices and many government agencies to implement the Services Directive in Sweden. In brief, implementation means that Sweden will:

• Undertake a broad review of regulations to investigate which of them must be amended or revoked.
• Implement legislation to ensure that Sweden lives up to the Service Directive's requirements for service enterprises.
• Establish a common contact point that can provide information to service companies and recipients.
• Ensure ease of remote and electronic communication with the competent authorities for service companies via the contact point.
• Develop supervisory cooperation with other countries.

Proposals for the implementation of the Services Directive in Sweden

A ministry memorandum presents proposals on how the Services Directive should be implemented in Sweden. The memorandum has been circulated to a large number of organisations, agencies and municipalities for consultation.

It is suggested in the memorandum that the Services Directive be implemented in a new act (the act on services in the internal market) and through amendments to sectoral legislation and statutes at lower levels.

Freedom of establishment and free movement of services

To ensure that the Swedish regulations on permits, agencies' permit procedures and other requirements to be satisfied by service enterprises comply with the Services Directive provisions on freedom of establishment and free movement of services, the Government Offices and the agencies concerned have carried out a broad review of regulations in the services sector.

The results show that the Swedish regulations already largely comply with the Directive. No unlawful permits have been identified, but one permit is to be replaced by a notification requirement. In around ten cases adjustments will be made to the requirements that must be satisfied in order to obtain a permit. Swedish provisions cannot always be adapted to a service provider established in a Member State other than Sweden. This necessitates amendments in around ten pieces of legislation. However, in special cases intervention can take place in Sweden, and in these cases it must follow a specific procedure. To further underscore the Directive's principles on freedom of establishment and free movement of services, it is proposed that the new act on services in the internal market contain a provision stating that government and municipal agencies are to work to ensure that these principles have an impact in Sweden.

To cut processing times for permits for service enterprises, decisions on applications must be made by a pre-determined deadline. Service providers are to receive notice of this deadline via an acknowledgement of receipt. An application shall be considered to be approved if no decision is made by this deadline (automatic or 'silent' approval). It is proposed that provisions on deadlines and acknowledgements of receipt be introduced in the new act on services in the internal market. Such rules are also to be introduced into sectoral ordinances in those areas where the permits are regulated. In special cases, such as for enterprises that can affect people's health or safety or the environment, agencies can make exceptions to the automatic or 'silent' approval rule. The memorandum notes that exceptions to these rules are deemed to be justifiable for a large number of permits.

A contact point to facilitate contact with authorities

The ministry memorandum proposes that a contact point, consisting of a web portal and a helpdesk, be established in Sweden. The National Board of Trade, in collaboration with the Swedish Agency for Economic and Regional Growth and the Swedish Consumer Agency, is responsible for developing the contact point, which is due to be up and running by 2010 at the latest.

Service providers will be able to use the contact point to apply for permits and communicate with the permit-issuing agency electronically. The contact point will provide information on Swedish regulations and competent authorities, as well as on the possibility of judicial review. It will also provide other information that may be of practical use when starting up a service enterprise. Consumers will also be able to find information via the contact point, including the requirements to be satisfied by service providers and general information on consumer protection in other Member States.

Information for consumers

The ministry memorandum proposes that service providers should be obliged to provide information that enables consumers to contact them. They will also have to provide identification information about the company and relevant information about the service provided (e.g. price information, guarantees, standard terms and options for the resolution of disputes). The service provider must also ensure that complaints from service recipients are dealt with promptly.

Greater cooperation between authorities

To guarantee effective supervision of service providers, the Services Directive contains provisions designed to develop cooperation between authorities. The competent authorities in all Member States will be able to communicate with each other rapidly and effectively using the Internal Market Information System (IMI). The IMI will facilitate both monitoring and processing of permits on the part of authorities, while easing the administrative burden for service providers. It is proposed that the new act on services in the internal market contain provisions on the obligation for authorities to support other authorities in the EU/EEA area and on the establishment of coordinating authorities to facilitate this cooperation. It is also proposed that the Act contain a provision stating that the competent authorities are to cooperate using the IMI system.