3) Right of Establishment and Freedom to Provide Services

Content of Chapter

Right of Establishment and Freedom to Provide Services is one of the four freedoms (free movement of goods, services, people and capital) of single market. It covers industrial, craftwork and commercial activities, as well as the activities pursued by self-employed persons. This chapter consists of three main areas:

1. Directive regarding right of establishment and provision of services

The right of establishment and freedom to provide services are closely interrelated. The right of establishment enables to carry on a stable and continuous economic activity in another Member State. The right of establishment entitles persons and companies to set-up of agencies, branches or subsidiaries in other Member States under the conditions laid down for its own nationals by the law of the country where such establishment is affected. The freedom to provide services facilitate to offer services on a temporary basis in another Member State, without being established.  

2. Directives regarding recognition of professional qualifications

In respect of the right of establishment and freedom to provide services, professional qualifications and their mutual recognition between the Member States are significant. EU legislation splits professions into two groups and implements two different systems.

The first group of professions have common minimum training conditions, which are regulated clearly and implemented correspondingly in all Member States. In this group, doctors, nurses, dentists, midwives, veterinary surgeons, pharmacists and architects take part. The system of automatic recognition of professional qualification is implemented for abovementioned professions in the EU.

The second group of professions do not have any necessary regulations, such as minimum training conditions for pursuing the profession in the EU.  Each Member State is free to compose its national legislation concerning these professions. The system of automatic recognition does not exist for these professions. If an EU citizen wants to provide services in a country other than the one in which s/he is trained, professional qualification of this person will be recognized by the appreciation of the related Member State.

Establishment of mechanisms like Points of Single Contact (PSC) and National Assistance Centres are required by EU acquis within the context of this Chapter. These structures assist EU citizens, who wish to provide service, establish business and accordingly have their professional qualifications recognized in another member state, to obtain information and make online application. Member states’ own citizens can also use these services as well.

3. Directives regarding postal services

Another area in the scope of the chapter is postal services. The related EU acquis covers the areas of responsibility of universal services, abolishment of the monopoly in postal services, financing of universal services and the establishment of an independent authority, which is responsible for regulation and control of postal services.

The explanatory screening meeting of Chapter 3, “Right of Establishment and Freedom to Provide Services”, was held on 21-22 November 2005 and the bilateral meeting was held on 19-20 December 2005 in Brussels. Screening Report was finalised by 17 April 2007 by the Commission. In the letter of EU Presidency dated 31 October 2007, opening benchmark was set relating to the chapter.

Opening Benchmark

Right of Establishment and Freedom to Provide Services is among the 8 chapters in which the negotiations were suspended due to the dispute on the implementation of the Additional Protocol. There is one technical opening benchmark:

1. A detailed strategy which should include a timetable of all necessary steps in terms of legislative alignment and institutional capacity in order to comply with the acquis covered by this chapter.

Progress Achieved

The Ministry for EU Affairs prepared a comprehensive technical assistance project by considering demands and needs of all relevant stakeholders in order to carry out the work with an objective of fulfilling the opening benchmark on a sound basis. The Project was implemented between September 2014 and September 2016. Through this project, legislative screening and gap analyses were done within the scope of the alignment with the EU acquis both on the right of establishment and freedom to provide services (RoE and FPS). Moreover, draft action plans and draft legislation text were prepared. (http://hizmetlerprojesi.com/Home)

Related Directory in the European Commission

Right of Establishment and Freedom to Provide Services chapter is under the responsibility of DG Grow - Internal Market, Industry, Entrepreneurship & SMEs.

For detailed information on Right of Establishment and Freedom to Provide Services:

https://ec.europa.eu/info/departments/internal-market-industry-entrepreneurship-and-smes_en

Screening Meetings

Explanatory Screening Meeting (21-22 November 2005)

Biletaral Screening Meeting (19-20 December 2005)

Screening Report