Ministers Reach Agreement On Services Directive

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

31 May 2006

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

Speaking to reporters on Monday, Austrian Economy Minister Martin Bartenstein announced that:

"With great satisfaction I can tell you that we were able to get a breakthrough on the services directive."

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.

EU Internal Market Commissioner Charlie McCreevy, who proposed the revised text, welcomed its approval announcing, according to the BBC, that:

"If you were a wagering person... you would have got very long odds against that occurring."

Observers are anticipating that the final approval of the directive should be a mere formality, given the similarity of the versions approved by the European Parliament and by the ministers.

Recommended