The European Commission decides to refer BELGIUM to the Court of Justice of the European Union for not complying with the Services Directive

Today, the European Commission decided to refer Belgium to the Court of Justice of the European Union for not complying with the Services Directive (2006/123/EC).

The Services Directive is the main EU legal instrument in the area of services. Its objective is to ensure that service providers do not face unjustified barriers when they wish to establish themselves in another Member State or to provide their services cross-border from their home country.

According to the Commission, the Belgian rules on financial guarantees required in the context of the selling of dwellings “in future state of completion” (buying on plan) create an unjustified obstacle for the provision of construction services. Belgian law requires that non-approved entrepreneurs provide a 100% financial guarantee, as opposed to only a 5% guarantee from approved contractors having gone through a Belgian certification scheme. The Belgian certification scheme is excessively difficult to access for non-Belgian entrepreneurs. This obstacle makes it difficult for construction companies outside Belgium to access markets, go cross-border and scale up. Consequently, users of these services (private citizens but also many businesses) are unable to benefit from the most competitive and innovative services available on the single market.

The Commission had initially sent a letter of formal notice in February 2023, followed by a reasoned opinion in November 2023. The Commission considers that efforts by the authorities have, to date, been insufficient and is therefore referring Belgium to the Court of Justice of the European Union.

Background

The Commission launched an infringement proceeding for non-compliance of the Belgian law with the rules on the temporary cross-border provision of services under Article 16 of the Services Directive and for non-compliance with Article 23 of that Directive setting conditions under which insurance requirements and financial guarantees can be imposed for establishment in a Member State.

The Commission action follows the priorities announced in the Communication ‘Single Market at 30' to further improve the functioning of the EU Single Market. In particular, priority is on enforcing existing Single Market rules and removing Member State-level barriers in industrial ecosystems with the greatest economic integration potential including construction services.

For More Information

EU infringement procedure

Infringement decisions database

July 2024 infringement package

Infringement procedure Belgium (INFR(2022)4120)