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History of the OECD Model Tax Convention
Europe debated over the so-called Bolkestein directive; the European Union enlarged to encompass ten new countries, notably Eastern Europe. Terrorist attacked in Madrid, leading the European Union to adopt biometrics. Secondment procedures tightened in France.
20 January 2004 – The implementation circular for the Sarkozy Law was published (after a shorter time period than usual). From this point on, foreign children in France must necessarily obtain a travel document (Document de Circulation, DCEM), a legal obligation that had not necessarily been enforced previously.

Early 2004 – The European single market commissioner, Fritz Bolkestein, drafted a directive concerning the free circulation of services, which created an uproar in several European Union countries, and particularly in France. This draft directive proposed to establish the country of origin principle for provision of services inside the European Union.

If this principle were applied, only the laws of the country of origin would apply, which raised fears of social dumping from firms established in countries with more flexible social laws. This draft directive also raised fears of numerous relocations to those countries, notably with the enlargement of the European Union to ten new Eastern European countries as of 1 May 2004. Due to the uproar, the directive was put on hold.

11 March 2004 – Terrorist attacks in Madrid. To reinforce its security, the European Union decided to include biometric data (fingerprints and photographs) in its identity papers. This decision concerned passports for EU nationals and visas for third-country nationals visiting Europe. The Sarkozy Law had partially anticipated this provision.

26 March 2004 – DPM/DMI 2 circular no. 143 set up a new administrative formality to facilitate foreign upper managers coming to France. The OMI became the only correspondent for the employer, and the new procedure made it possible for visa delivery in three weeks (rather than three months). It also authorized spouses of these upper managers to work in France. To be eligible for this procedure, the senior manager must receive a gross monthly salary higher than 5,000 euros, and his/her spouse a gross monthly salary of 2,000 euros.

1 May 2004
– The European Union was enlarged to ten new member countries: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. Among these ten new member countries, only two (Cyprus and Malta) are eligible for full freedom of movement of workers on 1 May 2004: Cypriot and Maltese nationals could work in France without a work permit and could reside there without a residence permit.

Nationals from the eight other countries were subject to a transition period of two years, which the French government could lengthen by another three years. During this transition period, nationals from these countries could come to France without a visa and could reside there without being able to work freely.

As soon as they want to work, their employer would have to apply for a work permit, and they would have to have a residence permit.

1 June 2004 – Swiss nationals no longer needed a work permit to come work in France.

In 2004 – Administrative formalities regarding secondment of foreign workers in France became stricter. Legislation did not change, but laws were applied more strictly, notably to prevent social dumping. For example: From this point on, foreign workers seconded to France from a country that had not signed an international Social Security treaty with France would have to pay contributions to the French social security system. Private health insurance coverage, which had until this point been illegal but tolerated for residence lasting less than three months, was no longer accepted.
Last Updated on Thursday, 08 October 2009 17:57