The European Commission today renewed its criticism on heavy regulation of many professions.
The EC said consumers lose out because they pay more for the services of lawyers, engineers, pharmacists and others.
Advertising restrictions, limits on entry into the profession and "recommended prices" are ploys that have grown up over a long period of time to keep prices high and put a damper on competition in the EU, the commission said.
Eighteen months after the commission issued its first report on the matter, it found that only three of the 25 European Union member states - Denmark, The Netherlands and Britain - were making good progress in reform.
EU states need to "tackle anti-competitive regulatory restrictions on the professions and give that reform strong political backing domestically," Competition Commissioner Neelie Kroes said.
A commission official said if nothing happens in two years it will consider stepping in, but might make exceptions and take legal action in special circumstances, as it did against prices charged by Belgian architects.
The EC has studied rules governing lawyers, notaries, engineers, architects, pharmacists and accountants.
It found the countries that have done nothing at all towards reform are the Czech Republic, Cyprus, Finland, Greece, Malta, Spain and Sweden.
France, Germany, Ireland, Lithuania and Slovakia have made minor reforms and are laying the groundwork to examining existing regulations.
Austria, Estonia, Hungary, Latvia, Slovenia and Portugal have made minor reforms. Belgium, Italy, Luxembourg and Poland have only laid the groundwork for a study.