‘Old EU bad for business’, say newcomers

By Anna McLauchlin

Date: 18/11/04

THE European Commission's internal market directorate-general is investigating claims that some 'old' member states are deliberately blocking business from companies in new member states following complaints from Polish companies.

A spokesman for the Commission's internal market department told European Voice that Polish companies had accused authorities in the Netherlands, Italy, France, Germany, Austria and Denmark of preventing them from establishing business under EU law.

"We will write informally to all the governments concerned to ask for more information," he said.

"But we have only heard from companies, we have not had any complaints from the Polish government."

Independent MEP and Chairman of the European Parliament's petitions committee Marcin Libicki has also complained to both outgoing Commissioner Frits Bolkestein and the Dutch presidency.

A Swedish commercial agent sent a petition to the committee on behalf of his Polish clients claiming that the Swedish national tax administration failed to apply the proper EU procedure when they tried to set up business there.

According to Libicki, a Pole, the problem is most pronounced at local level where there is a reluctance to accept that the new member states are now part of the European Union.

Libicki states in his letter: "European rules of internal market and competition are breached by local law or by the improper practice of local administrations."

The letter gives the example of local authorities in Germany that require "perfect knowledge of German" in order for people to establish business in their border towns. Other countries demand documents or residency permits from workers from new countries that are not required for national citizens.

"Our information was from Poland but it is probably true for all member states," Libicka told this newspaper.

"Mr Bolkestein and the Dutch presidency should inform all governments of all EU countries of the problem and, through the official channels, put pressure on the local authorities."

Following complaints from Polish companies the European Commission's DG Internal Market is investigating claims that some 'old' Member States are deliberately blocking business from companies in new Member States, preventing them from establishing business under EU law.