| Author (Person) | McLauchlin, Anna |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.12, No.5, 9.2.06 |
| Publication Date | 09/02/2006 |
| Content Type | News |
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Hearts and flowers will be the last thing on MEPs' minds on Valentine's Day (14 February) when they battle over the hugely controversial issue of opening up the EU services market. Differing national positions have split party lines, meaning that the outcome of the vote two days later is still difficult to predict. But following intense negotiation yesterday (8 February), the Parliament's two biggest factions, the centre-right EPP-ED group and the Socialists (PES) agreed to put forward a joint proposal on the key sticking point: the rules that should apply to service providers operating abroad (Article 16). Instead of referring to a particular principle, the compromise will mean that service providers will abide by the rules of the country in which they are operating provided that these are "non-discriminatory, necessary and proportionate". The EPP-ED had originally pushed for the EU country of origin principle - whereby providers rely on their home legislation - to dominate the proposal. Malcolm Harbour (UK, EPP-ED), shadow rapporteur for the directive, said of the compromise yesterday: "I must emphasise that it is by no means certain that our group will accept it." One of the problems is that the new member states, and even some German MEPs, feel that diluting the country of origin principle smacks of protectionism from older EU members. New member states are also splitting political parties because they back tightening laws on the posting of workers to different member states (Articles 24 and 25). As it stands, some member states still make it difficult for workers to be posted to their country despite existing EU law which stipulates certain conditions to facilitate this. The EPP-ED accepted the deletion of these two articles, a key demand from trade unions and the socialists, on the understanding that the European Commission would tackle these extra restrictions in a review of the posting of workers directive. Yesterday Employment and Social Affairs Commissioner Vladim�r S pidla said: "Should both articles be deleted, the Commission will carefully review the situation in the member states." The parties failed to reach agreement on the scope of the directive. Under the draft voted through by the internal market committee in November, healthcare, gambling and audiovisual services would be excluded but other largely privatised services would fall under the scope of the directive. The EPP-ED has also agreed to exclude temporary work agencies, security services and social services, but rapporteur Evelyne Gebhardt (German Socialist) warned yesterday that the EPP-ED's exclusion of social services did not go far enough and that the Socialists would continue to fight for a majority to exclude entirely all privatised public services - or services of general economic interest. Lobbying efforts are set to become increasingly intense in the run up to the vote. The European Trade Union Confederation (ETUC) has already called for its members to stage a huge demonstration in Strasbourg on 14 February, pushing for the dilution of several parts of the directive, while Europe's businesses are stepping up their lobbying to convince MEPs to support the country of origin principle. According to sources, the Commission is also split on how to take the directive forward once MEPs have voted. Charlie McCreevy, the internal market commissioner, who is in charge of the dossier, has consistently said that he intends to use the Parliament's text as a basis for future negotiation with national governments. McCreevy has the backing of Commission President Jos�anuel Barroso and Enterprise Commissioner G�nter Verheugen. But some of his colleagues, notably competition chief Neelie Kroes, Trade Commissioner Peter Mandelson and commissioners from the new member states, are understood to be unhappy that the proposal is not ambitious enough and are calling for a redraft. Some MEPs see free movement of services as a linchpin of the European Union. Others see it as the beginning of the end of the EU's social model. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
