The Services Directive and the Small Business Act for Europe were discussed during the meeting of the Core Group of the Malta-EU Steering and Action Committee (MEUSAC) held on 5 October.

The Services Directive

The Directive on services in the Internal Market (the "Services Directive" - 2006/123/EC) was adopted by the Council and the European Parliament at the end of 2006. Its objective is to help realising the full potential of the largest sector of the European economy - and the one where the great majority of new jobs are created – the services sector. Both businesses and consumers alike will enjoy more choice and greater competition from the oppotunities that the Directive offers. 

The Directive requires Member States to simplify administrative procedures so as to ease the administrative burden on an enterprise, thus ensuring that its services can be easily offered in other EU countries.  The Directive applies to a vast array of services.  Member States are also required to take concrete legislative measures, as well as to implement a variety of practical measures such as the setting up of points of single contact in each Member State, accessible by electronic means and across boarders, aimed at facilitating life for SMEs in their daily dealings with administrations,  allowing service providers to obtain all relevant information and complete the required procedures through a single access point, without having to contact a whole range of administrative bodies or professional organisations. It also introduces innovative ways, such as the revision of national legislation and the process of mutual evaluation.

The Directive was adopted on 12 December 2006 and has to be implemented by Member States three years after its publication, that is by not later than 28 December 2009. In Malta, the process for implementation of the Directive is managed by the Ministry of Finance, Economy and Investment.  The Ministry identified and is proposing to amend current legislation by means of the Services (Internal Market) Act, which was published as a Bill on 2 October 2009.

Members of the Core Group agreed that the implementation of the Directive will create better opportunities for industry at large.  Discussion among members focused on, amongst others:

• sectors involved in the implementation of the Directive should also be involved in a discussion process, in particular with regard to the laws to be amended as a result of the implementation of the Directive
• the introduction of ecommerce is seen as a positive step forward;
• changes to be implemented with regard to guarantees, taxation and insurance;
• inferior employment conditions when working for companies that are testing new EU markets;
• embassies should be utilised to help businesses set-up shop in Member States;
• safeguarding Maltese enterprise against competition from foreign companies establishing themselves in Malta;
• how to better address the unemployed or those made redundant due to lack of skills;
• equal application of rules to Maltese professionals as well as to those from other EU Member States.

The Small Business Act

The Small Business Act for Europe, adopted in 2008, for the first time provides for a comprehensive policy for the EU and its Member States through:

• a set of 10 principles to guide the concept and implementation of policies both at EU level as well as at Member States level. These principles are essential to introduce added value at EU level, creating the same conditions for all SMEs and improve the legal and administrative environment within the EU;
• a set of new legislative proposals which are guided by the "Think Small First" principle;
• a set of policy measures to implement these new 10 principles according to the needs of SMEs both at EU level and at Member States level.

Core Group members stated that the Public Sector should be more flexible in particular with regard to the services it offers to the private sector.  Members mentioned that payments owed to the private sector by government authorities, including schemes such as the Employment Aid Programme and Training Aid Framework, should be processed more quickly so as not to loose EU funds. The introduction of schemes to facilitate the entry of women into the labour market was also noted.

Presentations were delivered by Mr Anton Spiteri from the Enterprise Policy Directorate within the Ministry of Finance, the Economy and Investment.