European Commission EPRS assessment of Directive 2005/36/EC in the EU; SPI to boost cross-border recognition

European Commission EPRS assessment of Directive 2005/36/EC in the EU; SPI to boost cross-border recognition

Skills portability initiative – Key findings on the implementation of Directive 2005/36/EC

Briefing Implementation Appraisal EPRS | European Parliamentary Research Service Skills portability initiative – Key findings on the implementation of Directive 2005/36/EC Nora Hahnkamper-Vandenbulcke with Matteo Ricotta Published: August 2026 | Document number: PE 774.743 In this briefing • Background and existing EU policy framework • European Commission reports and consultations in preparation of the initiative • European Parliament position and oversight activities • Views of the European Court of Auditors (ECA) • Views of EU advisory bodies and agencies • Expert and stakeholder views This briefing is one in a series of implementation appraisals produced by the European Parliamentary Research Service (EPRS) on the operation of existing EU legislation in practice. Each briefing focuses on a specific EU law that is announced to be amended or reviewed in the European Commission’s annual work programme. Implementation appraisals aim at providing a succinct overview of publicly available material on the implementation, application and effectiveness to date of that specific EU law, drawing on input from EU institutions and bodies, as well as external organisations. Key findings Labour mobility is a cornerstone of European integration. As one of the four fundamental freedoms of the single market, EU citizens have the right to move, live and work freely in another Member State. The recognition of professional qualifications, governed by Directive 2005/36/EC (the Professional Qualifications Directive or PQD), plays a central role in supporting the free movement of workers and services. By establishing a common framework, it has enabled EU citizens to access labour markets in other countries more easily, thereby facilitating cross-border mobility. This has been particularly important for regulated professions where access is subject to different national rules. Despite several revisions over the past decade, an assessment conducted by the European Commission in February 2026 identified persistent challenges in the directive’s effectiveness and implementation. Besides complex and lengthy recognition procedures, these include limited use of EN

existing simplification tools, uneven implementation across Member States, insufficient digitalisation and inconsistent information available to professionals. In light of these findings, the Commission’s 2026 work programme announced a skills portability initiative (SPI), expected in Q3 2026. The initiative aims to improve the cross-border recognition of skills and professional qualifications, addressing labour shortages in strategically important sectors such as healthcare. More specifically, it is expected to enhance the transparency of qualifications and the use of digital tools, introduce recognition systems for third-country nationals, and contribute to the expansion and modernisation of recognition systems under the PQD, possibly involving a revision of the PQD. Background and existing EU policy framework As one of the four fundamental freedoms of the single market, EU citizens have the right to move, live and work freely in another Member State. This principle is laid down in Article 45 of the Treaty on the Functioning of the European Union (TFEU), which guarantees equal treatment for workers regardless of their nationality. In response, the EU has progressively developed a comprehensive set of rules governing the movement of workers across borders (i.e. labour mobility). These include provisions on the free movement of workers, coordination of social security systems and posting of workers. Over time, thanks to these measures, cross-border mobility has become an increasingly prominent feature of the European Union labour market. Since the Union’s enlargements in the 2000s, the number of EU citizens living or working in another Member State has steadily increased.1 According to the Commission’s most recent report on intra-EU mobility,2 in 2024 around 10.1 million EU citizens of working age lived in another Member State, and the total number of people who moved for work reached around 14 million. A key aspect of EU action in this area concerns the recognition and use of professional qualifications across Member States. With the adoption of Directive 2005/36/EC on the mutual recognition of professional qualifications, which consolidates 15 directives in this area, the EU has established a legal framework allowing professionals to have their qualifications recognised in another Member State, enabling them to access regulated professions across the EU. While some professional activities are harmonised at EU level, in many cases Member States retain the authority to set their own requirements, which may restrict access. Regulated professions are those which can only be practised or accessed by individuals holding specific qualifications, which may vary significantly between Member States. This framework was further modernised in 2013 through Directive 2013/55/EC, which improved the digitalisation, efficiency and transparency of recognition procedures, particularly for regulated professions. It notably introduced the European professional card (EPC), an electronic certificate issued via an EU-wide online procedure to simplify the recognition of qualifications. The EPC has been available since 2016 for certain regulated professions. The 2013 revision also empowered the Commission to adopt delegated and implementing acts, which has ensured regular updates acknowledging scientific and technical progress. To prevent unnecessary barriers to mobility, the EU also adopted Directive (EU) 2018/958. This requires Member States to carry out a proportionality assessment before introducing or modifying any 2 European Parliamentary Research Service

national rules restricting access to regulated professions, ensuring that such measures are justified and proportionate. It should be noted, however, that current rules on professional qualifications do not apply to third- country nationals, with some exceptions (notably nationals from Iceland, Liechtenstein, Norway and Switzerland). In addition to the latter, other third-country nationals may also benefit from equal treatment under specific EU directives and international agreements.3 In 2023, the Commission issued a recommendation on recognising the qualifications of third-country nationals, calling for closer alignment with the procedures established in Directive 2005/36/EC. Recent economic disruptions have brought renewed attention to the state of the EU labour market, particularly in the aftermath of the COVID‑19 pandemic. According to the latest report by the European Employment Services (EURES), many sectors continue to face labour and skills shortages, notably in healthcare, information and communication technologies, transport, construction and hospitality. Skills mismatches are also widespread, with workers’ competences not always aligning with labour market needs or being fully utilised. This is partly due to persisting obstacles limiting the movement of workers across Member States, which could otherwise help fill existing gaps in the labour market. In particular, difficulties in having skills and professional qualifications recognised in a timely manner and effectively used are often identified as key barriers to labour mobility in the EU.4 These challenges have contributed to the broader debate regarding the EU’s declining competitiveness on the global stage, as highlighted by Mario Draghi’s report of September 2024. Similarly, Enrico Letta’s April 2024 report on the future of the single market noted that the free movement of people ‘remains the least developed of the four freedoms’. Against this backdrop, the European Commission has increasingly put the development of skills and human capital at the top of its political agenda. It has laid the groundwork for a series of initiatives aimed at improving education and training systems, promoting lifelong learning and better aligning skills supply with labour market demand. In March 2024, the European Commission adopted the labour and skills shortages action plan, which identified ‘improving fair intra-EU mobility of workers and learners’ as a key policy area. Building on this, a Union of skills strategy was then launched in March 2025 to strengthen the EU’s human capital, integrating policies across education, employment, industrial development and migration. This strategy suggests developing a skills portability initiative (SPI) to address the limited portability of qualifications and skills in the EU. Accordingly, the Commission work programme (CWP) for 2026 scheduled the presentation of a ‘fair labour mobility package’ in the third quarter (Q3) of 2026. The package is expected to include a communication aimed at simplifying labour mobility and social security coordination rules, alongside three legislative proposals for a European Social Security Pass (ESSPASS), a stronger mandate for the European Labour Authority (ELA) and the skills portability initiative. To support its preparation, the Commission launched stakeholder consultations during the implementation dialogue on fair labour mobility, held in Brussels on 16 September 2025. This was followed by a series of public consultations on the fair labour mobility package (5 January to 2 February 2026), the strengthening of the European Labour Authority through a mandate review (5 December 2025 to 2 January 2026), the skills portability initiative (5 December 2025 to 27 February 2026), and the European Social Security Pass (22 January to 16 April 2026). 3 Skills portability initiative – Key findings on the implementation of Directive 2005/36/EC

This briefing focuses on the SPI as part of the fair labour mobility package. The initiative will consist of three strands of action, including the modernisation and expansion of recognition procedures for regulated professions through a possible revision of Directive 2005/36/EC.5 Main provisions of Directive 2005/36/EC The Recognition of Professional Qualifications Directive (PQD) was adopted in September 2005 and fully transposed by Member States by September 2010, almost three years after the transposition deadline of 20 October 2007 set out in its Article 63. The directive seeks to support two core freedoms of the internal market: the free movement of persons and services, as established in Article 26 of the TFEU. As outlined in the recitals, ‘for nationals of the Member States, this includes, in particular, the right to pursue a profession, in a self-employed or employed capacity, in a Member State other than the one in which they have obtained their professional qualifications’ (recital 1). It is also recalled that Article 53 of the TFEU provides for the adoption of directives to ensure the mutual recognition of diplomas, certificates and other formal qualifications. Article 1 sets out the purpose of the PQD, establishing a framework under which a Member State that requires specific qualifications for a regulated profession must recognise those obtained in other Member States. A definition of ‘regulated profession’ is provided in Article 3(1), referring to a ‘professional activity or group of professional activities, access to which, the pursuit of which, or one of the modes of pursuit of which is subject, directly or indirectly, by virtue of legislative, regulatory or administrative provisions to the possession of specific professional qualifications’. The scope of the directive applies only to nationals of Member States, both employed and self‑employed (Article 2). Service provision on a temporary and occasional basis in another Member State, while remaining established in the home country, does not require prior recog