Speedy Parliament approval expected for services directive deal

By Simon Taylor

Date: 01/06/06

The European Parliament is expected to give rapid approval to the deal on the services directive reached by EU competitiveness ministers this week.

UK centre-right MEP Malcolm Harbour, who drafted the EPP-ED's position on the directive, said: "My view is that there will be little need to change the fundamental principles of the text." He predicted that there would be a "strong move in Parliament to keep up the momentum" adding that MEPs would "proceed to the second reading as soon as we get the text... in July".

Austria chalked up a major achievement for its presidency of the EU when ministers reached a political agreement on 29 May on the highly controversial directive.

In the end, only one country, Lithuania, abstained from the deal in protest at exemptions in the directive on the grounds of public policy, health and environmental concerns.

A key element in getting the deal was a screening clause which requires all member states to report to the Commission any legal requirements for foreign companies providing services. The Commission will check each year that such measures are not a barrier to providing services.

Another crucial concession was that member states will have three rather than two years to implement the directive, which was important in winning France's support for the deal.

Austrian Economics Minister Martin Bartenstein said that the agreement showed that the EU had "regained its ability to act" a year after the failure of the referendum on the constitution in France. MEPs are expected to complete a second reading under the Finnish presidency.

In a separate move, the Socialist group this week presented its own draft directive on services of general economic interest. PES group leader Martin Schulz said the aim of the move was to "put pressure" on the Commission to present a proposal.

Article reports that the European Parliament was expected to give rapid approval to the deal on the proposed Services Directive, reached by EU competitiveness ministers on 29 May 2006. MEPs were expected to complete a second reading under the Finnish Presidency of the Council in the second half of 2006.

• Primary Source

European Commission: PreLex: COM(2004)2: Proposal for a Directive of the European Parliament and of the Council on Services in the Internal Market http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2002:002:FIN

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