Vrij verkeer van diensten: Commissie start procedure tegen Oostenrijk en Duitsland (en)

The European Commission has decided to take Germany and Austria to the Court of Justice because of the obligation they impose, in infringement of EC Treaty rules on the freedom to provide services (Article 49), on private inspection bodies in the field of organic farming, including those established in other Member States, to be established in their territory. The Commission has also decided to send Austria formal notice, in the form of a reasoned opinion, requesting it to amend its legislation on regular inspections of pressure vessels (e.g. boilers), which is contrary to the freedom to provide services as laid down by the Treaty. The reasoned opinion is the second stage of the infringement procedure laid down in Article 226 of the EC Treaty. If there is no satisfactory reply within two months, the Commission may refer the matter to the Court of Justice.

If national rules curb the freedom to provide services, firms and especially SMEs are denied opportunities. Their potential clients, whether private individuals or other firms, are denied choice and often better value for money. The competitiveness of the European economy is thus hampered.

In January 2004 the Commission submitted a proposal for a Directive to eliminate many of the barriers which operators currently have to cope with if they want to be established or provide services in several Member States of the European Union (see IP/04/37 and MEMO/04/3).

Germany and Austria: inspections in the field of organic farming

The new German law on organic farming of 15 July 2002 requires all inspection bodies to be established in Germany. Similarly, Austrian law requires private inspection bodies for organic farming to be established in Austria if they are to be approved.

The Commission has decided to refer Germany and Austria to the Court of Justice on account of this establishment requirement, which prevents inspection bodies established in other Member States from providing cross-border services unless they set up new facilities in each country of operation.

Under Article 49 of the EC Treaty, any company or firm providing a service in a Member State in accordance with the national law of that State should be allowed to provide the same service without hindrance in the other Member States. Failure to respect this principle in the case of organic farming inspection bodies has the effect of restricting competition and is likely to adversely affect the producers of organic products who use their services and, indirectly, the consumers of these products.

It must also be pointed out that the conditions of production, control and labelling of these products, as well as the monitoring system which the Member States must set up for such bodies, are covered by Council Regulation (EEC) No 2092/91 on organic production of agricultural products.

Austria: inspections of pressure vessels

The Commission has also decided to send Austria a reasoned opinion on account of its legislation concerning regular inspections of pressure vessels, such as boilers. Only inspection bodies established in Austria can be authorised to perform such work and, moreover, the owners of such equipment, regardless of whether they are private individuals or industrial users, can change to a different inspection body only after being authorised to do so by the authorities and only if there have been delays or negligence on the part of the inspection body. These two provisions prevent bodies established in other Member States from providing any services, which amounts to denying any opportunity to provide cross-border services as laid down by the Treaty.

For the latest information on infringement proceedings involving the Member States, please consult the following website:

http://europa.eu.int/comm/secretariat_general/sgb/droit_com/index_en.htm