In 2002, the Commission will unveil a schedule for member states to remove specific barriers to trade, present non-legislative supporting measures (e.g. codes of conduct) and suggest harmonized rules for service provision where absolutely necessary. A procedure will also be proposed to ensure mutual recognition among states of rules and practices, while also ensuring the protection of the public interest.

Frits Bolkestein, Internal Market Commissioner suggested that this new strategy "marks a step change for Internal Market policy towards the free movement of services. To date we have tended to approach services on a sector by sector basis which has led to an over-emphasis on sector-specific detail when so many of the necessary changes are common to a wide range of services. This new approach to the problem reflects the fundamental shift in Europe from a manufacturing to a service-driven economy."

Stage One - 2001
The Commission is to distribute a detailed survey to more than a thousand enterprises within the European Union (http://europa.eu.int) to identify persistent problems in the provision of services across borders. The results of the survey will be used to pinpoint specific areas in which infringement procedures should be used or accelerated. At the same time, the Commission will work with the member states through the European Parliament (http://www.europarl.eu.int/home/default_en.htm) to encourage the quick adoption of current proposals, while also reviewing the existing Directives to increase their effect on the efficient functioning of the Internal Market in services.

Stage Two - 2002
Following the analysis of the survey results from Stage One, the Commission will provide an inclusive list of current persistent barriers with a request for their removal by member states. The Commission will also suggest harmonized rules (where deemed necessary).

The Commission invites comment on the new strategy, and welcomes comments in writing prior to June 1, 2001 sent to:

European Commission
Attention DG MARKT/E
Rue de la Loi/Wetstraat 200
B-1049 Brussels
E:mail: MARKT-services@cec.eu.int

Related Sites
The Internal Market Strategy for Services - Frequently Asked Questions - 
http://europa.eu.int/comm/internal_market/en/services/services/servicesfaq.htm

The Single Market: Getting the Principle of Mutual Recognition to Work More Effectively - 
http://europa.eu.int/comm/internal_market/en/update/general/mutual.htm

The Single Market: Two Proposals to Facilitate the Cross-Border Provision of Services - 
http://europa.eu.int/comm/internal_market/en/services/services/53.htm

European Union Proposes '.eu' Domain
The European Commission has adopted a proposal to create a registry to run the internet domain '.eu'. Erkki Liikanen, Commissioner responsible for Enterprise and Information Society stated that "today's proposal brings Europe one step closer to making the "dot EU" top level domain a reality. Whilst national extension codes will continue to exist, the "dot EU" top level domain will provide Europe's companies the additional possibility of identifying themselves as European or pan-European companies on the Internet. The creation of dot EU will also open up the possibility of registering more names on the Internet and will thus boost Internet use and e-commerce in Europe in line with the objectives of the Commission's eEurope Action Plan (http://europa.eu.int/comm/information_society/eeurope/index_en.htm)."

The adoption of the proposal comes after the launch of a public consultation in February 2000, a report on the consultation in July 2000 and the publication in October 2000 of the Internet EC-Panel of Participants advisory report.

The Commission is confident that the '.eu' registry will provide users of the Internet in the EU with a greater sense of identity, and further strengthen the use of the Internet and e-commerce. Further consultation is to be undertaken on the registration policy for second-level domains, and the introduction and use. Suggested second level domains (SLD) are '.press.eu', 'ngo.eu', 'event.eu' and so on. It has been suggested that the institutions of the European Union and all official EU addresses could use an exclusive SLD such as '.union.eu'

Solicitors in England and Wales to Be Graded in National Assessment
Each of the 80,000 solicitors in England and Wales is to be graded on their professional record in a national assessment program. All are to be given a 'risk-rating' from one to five (five being the worst rating) in order that the public can receive guidance about the quality of service they might expect.

The results of the assessment will be made public and Janet Paraskeva, the Law Society's (http://www.lawsociety.org.uk) chief executive, predicted that solicitors with the best ratings would want to publicize the fact. Last year the Law Society received 19,000 complaints and removed 73 solicitors from the register, while suspending 38 and fining 72. At the same time, the Office for the Supervision of Solicitors (Office for the Supervision of Solicitors) inspected the accounts of almost 400 firms and ordered the closure of 113 practices. Recently, the Lord Chancellor (http://www.open.gov.uk/lcd/), Lord Irvine of Lairg, was critical of the backlog of complaints at the OSS and stated that it must improve the complaints handling process. Ms Paraskeva, said she would "encourage" the OSS to examine practices suspected of "poor service and misconduct". She confirmed that where necessary law firms found guilty of malpractice or misconduct would be shut down to protect the public. She stated that "any profession that wished to retain the public's confidence cannot allow malpractice by its members to go undetected," adding, "so we will be firm but fair on those who are found guilty."

The Law Society is also continuing with plans to force the worst offenders to pay to cover the cost of handling complaints. Ms Paraskeva noted that the reforms are a part of a "tougher enforcement regime" that aims to ensure the public "get the service they deserve."

OECD Agreement on Taxation of e-Commerce
The Organisation for Economic Cooperation and Development (OECD) (http://www.oecd.org) has produced new guidelines on the issue of taxation of electronic commerce. The guidelines from the OECD's Committee on Fiscal Affairs are, to a large extent, similar to current tax rules in that revenue is to be taxed in jurisdictions in which a service provider has a 'permanent establishment'. According to the committee, a web site does not meet this standard. Consequently for example, a French provider would not be taxed in Canada, simply because Canadian citizens are purchasing services on its web site. Further, the committee ruled that the placement of servers in a country would, as a general rule, make a provider liable to the tax (in that the building housing the server is judged to constitute 'permanent establishment').

While the European Union Council of Ministers is in no way legally obliged to observe an OECD ruling, it has in practice previously done so in this area.