MEPs Respond To Services Directive Breakthrough

by Ulrika Lomas, for LawAndTax-News.com, Brussels

02 June 2006

In the wake of this week's agreement on the services directive by the Council of Ministers - a position largely centred around the Parliament's first-reading amendments - MEPs from the Committee on Internal Market and Consumer Protection (IMCO) stressed the need to wrap up work on the dossier as soon as possible.

EU ministers have approved an amended version of the controversial services directive, which seeks to open the sector up to greater cross-border competition.

However, the hotly disputed "origin of services" clause which caused the deal to be rejected by member states such as France has been removed from the legislation.

The provision would have allowed services to be provided under the rules applicable in the provider's home country, rather than those of the EU member in which the services were being offered.

Rapporteur Evelyne Gebhardt (PES, DE), though pronouncing herself "very pleased" with the Council's agreement, this week noted that she and fellow members will still need to study the Council's text in great detail, particularly with regard to the new provisions on screening (whereby EU states would monitor each others' legislation for restrictions on service providers).

Of the possibility of a second reading agreement with the Council, she stated: "I think it is possible".

"It remains to be seen whether we will want to make some changes", noted IMCO Chair Arlene McCarthy (PES, UK). Highlighting the significance of proper transposition and implementation she was later to say that "the proof of this directive will be in whether it works or not".

According to Mrs Gebhardt's estimates, Parliament will be ready to wrap up work on the second reading this winter, assuming that it receives the text of the Common Position by September.

If the Parliament approves the Common Position, the services directive will be adopted in accordance with the Council's text. If the EP should pass any amendments (by an absolute majority of its members), the amended text will return to the Council for further deliberations.

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