Intra-EU trade and investment in service sectors, and regulation patterns

One of the achievements of the of the European Union (EU) is the free movement of goods, services, capital and labour between the member states. The internal market for goods seems to function well, after the implementation of the Single Market programme in 1988. That is however not the case for the internal market in services. Many providers experience impediments if they want to export their services to other EU member states, or in setting up an foreign establishment. The EC (2002) has concluded that these impediments are often caused by national, regional and/or local regulation, to which the service providers, the service or the foreign subsidiary has to comply. <span style="font-family: Times New Roman; font-size: small;"><span style="font-family: Times New Roman; font-size: small;"></span></span> The present report forms a background report for CPB Document 69 that is published jointly with this research memorandum. The project focus is on quantifying the potential impact of newly proposed EU measures for the European internal service market.