Freedom of establishment and provision of services and mutual recognition of diplomas

Objectives: The intention is to ensure that the self-employed (whether working in commercial, industrial or craft occupations or the liberal professions) are free to exercise their profession throughout the Community, in terms of both freedom of establishment and freedom to provide services, especially with regard to the best economic location. This implies eliminating discrimination on the grounds of nationality and, if these freedoms are to be used effectively, measures to make it easier to exercise them, especially harmonisation of national access rules or their mutual recognition.

The EC Treaty lays down the principle that the self-employed may freely exercise an activity in two ways: the person or firm may set up in another Member State (freedom of establishment: Art. 43 (52)) or offer their services across frontiers in other Member States while remaining in their country of origin (freedom to provide services: Art. 49 (59)). Any new restrictive measures have been prohibited since the Treaty came into force, and existing restrictions were to be abolished by Council directives before the end of the transition period under a general stage-by-stage programme (Arts. 44 and 52 (54 and 63)).

Drafting of legislation for mutual recognition sector by sector, sometimes with more extensive harmonisation of national rules, is always a long and tedious procedure. The resulting difficulties have led to consideration of a general system of recognition of the equivalence of diplomas, by level, which is valid for all regulated professions that have not been the subject of specific Community legislation.

The system has been set up in three stages:

§ 1990, recognition of higher education diplomas awarded on completion of professional education and training of at least three years’ duration (Directive 89/48 of 21 December 1988).

§ 1992, expansion of the system to diplomas, certificates and qualifications that are not part of long-term higher education, with two levels:

§ shorter post-secondary or professional courses,

§ secondary courses (Directive 92/51 of 18 June 1992).

§ In 1999 a system was introduced for the mutual recognition of qualifications for access to certain commercial, industrial or craft occupations that are not yet covered by the previous directives (textiles, clothing, leather, wood etc.) (Directive 99/42 of 7 June 1999).

In all three cases, the host Member State may not refuse access to the occupation in question if applicants have the qualifications required in their country of origin. However, it may demand a certain length of professional experience if the training they received was of a shorter duration than in the host country. If the training differs substantially, it may require an adaptation period or aptitude test, at the discretion of the applicant unless the occupation requires a knowledge of the national law.