Free movement of goods, services, people and capital rests on a legal framework consisting of direct application of Treaty rules, harmonised European rules, national rules and mutual recognition. The task of implementing and ensuring compliance with these rules lies, in practice, with a large number of public authorities in the 27 Member States and the 3 EFTA countries.

In order to carry out this task, Member State authorities need to co-operate closely. When Member States and their public authorities need to recognise each others' rules (subject to certain conditions), there is a particular need for confidence and trust. That can only be established on the basis of contact and easy access to information.

IMI is funded under the IDABC programme (Interoperable Delivery of European eGovernment Services to public administrations, businesses and citizens) with a total budget of € 1,300,000 over a period of five years (2005-2009).

The Internal Market Information system (IMI) is being developed to improve communication between Member State administrations. It is an electronic tool that provides a system for the exchange of information so that Member States can engage in more effective day-to-day co-operation in the implementation of the Internal Market legislation. IMI is meant to help overcome important practical barriers such as different administrative and working cultures, different languages and a lack of clearly identified partners in other Member States. Its aim is to reduce administrative burdens and to increase efficiency and effectiveness in day-to-day co-operation between Member States.

Initially, IMI will be used to support the mutual assistance provisions of the revised Professional Qualifications Directive (2005/36/EC). From December 2009, IMI will also be used to support the administrative cooperation provisions of the Services Directive (2006/123/EC). IMI is designed as a general system to support multiple areas of internal market legislation and it is envisaged that its use will be expanded to support further legislative areas in the future.

In Phase 1 the first version of the application will be developed to support the revised Professional Qualifications Directive (2005/36/EC). The aim is to pilot a test version with four professions (accountants, doctors, pharmacists and physiotherapists).

In Phase 2 the Professional Qualifications Directive application will be further developed to include more functionality and more professions. A first version of the production application will be implemented (2008).

Phase 3 will run concurrently with Phase 2. In Phase 3 further development work will be carried out in order to extend IMI to support the Services Directive (2006/123/EC). A pilot version will be launched in early 2009.