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Glossary of summaries

Free movement of services

Under European Union (EU) law, a service is defined as a transaction which is provided in exchange for money and which is not governed by the rules relating to freedom of movement for goods, capital and persons.

Article 56 of the Treaty on the Functioning of the European Union (TFEU) prohibits restrictions on providing services in respect of nationals of EU Member States who are established in a Member State other than that of the person for whom the services are intended. With some exceptions (mentioned under Articles 51, 52 and 346 TFEU), the person providing the service may temporarily carry out their activity in the Member State where the service is provided, under the same conditions as those imposed by that Member State on its own nationals.

The EU’s services directive (Directive 2006/123/EC) sets out rules governing the vast majority of services, with the exception of financial services, certain electronic communications services, temporary work agencies’ services, private security services and gambling. It allows businesses to be set up and to provide services in Member States other than their own. The directive requires Member States to remove unjustifiable or discriminatory requirements affecting the setting up or carrying out of a relevant service in their country. To meet the rights of the users of services, it requires Member States to:

  • remove obstacles for users wanting to use services supplied by providers set up in another Member State, such as obligations to obtain an authorisation;
  • abolish discriminatory requirements based on the user’s nationality or place of residence;
  • make available general information and assistance on legal requirements, in particular consumer protection rules, and on compensation procedures applicable in other Member States.

Article 53 TFEU provides for the adoption of directives by the European Parliament and the Council of the European Union concerning the mutual recognition of diplomas and other qualifications required in each Member State for access to regulated professions.

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