I read with interest the coverage of the seminar organised by the Malta Business Bureau last Friday on the Proposed Services Directive. I do, however, have a technical clarification which should be brought to the attention of readers as it is considered to be of considerable significance.

In the article Malta agrees in principle, but no official position as yet”(TMID, 7 November) the sentence: “Thus, if the Irish company is acting within a legal framework as established in Ireland, then it can set up shop in Malta”, would be technically more correct if it read as follows: “Thus, if the Irish company is established under the applicable rules and regulations governing the service activities it provides, and its providers, in Ireland, it would be able to provide the same services in Malta on a temporary basis without the need to establish itself here”.

The country of origin principle implies that the service provider only has to comply with the administrative and legal requirements of his country of establishment. The member state of destination may not apply additional requirements on the provider. In simple terms, if the service provider has a valid licence in Ireland, it can provide the same services in Malta – on temporary basis – without being required to obtain a licence from the Maltese authorities.

In the same way, this would apply to a Maltese service provider wishing to provide services in Ireland, or any other member state, this provided that the service in question falls within the scope of the Directive and does not fall under any of the general, transitional or case-by-case derogations from the country of origin principle.

This is the fulcrum of the country of origin principle, as the proposed internal market clause in the Directive that will facilitate trade in services between member states and ensures that the member state of destination cannot restrict cross-border services being offered in its territory.

Phyllis Farrugia

MBA (Brunel), DMS (Lon)

Siggiewi