The European Commission decided on Wednesday to open an infringement procedure against Belgium for obliging some – mainly foreign – contractors to provide a “disproportionate” deposit to cover payments made by their clients for the building and sale of dwellings.
The deposit has been set at a much higher rate, 100%, for unauthorised contractors than for authorised contractors (5%), the Commission explained in a statement.
This difference restricts the freedom of establishment or provision of services for foreign construction contractors as well as non-construction companies, such as real estate developers, it said. By imposing this bonding regime, Belgian legislation violates several provisions of the Services Directive, it felt.
The opening of this infringement procedure comes in parallel with 23 other procedures against various Member States for non-compliance with the EU legislation on services.
In such cases, the Commission sends a letter of formal notice requesting further information to each of the countries concerned, which must send a detailed reply within two months. The procedure can go as far as the European Court of Justice.
