MEPs seek compromise on EU services law

Centre-right MEPs will agree to scrap demands aimed at stopping protectionism in order to win overall support for the controversial services directive.

Speaking to journalists on Thursday, Malcolm Harbour MEP, the shadow rapporteur on the services proposal, said that the EPP-ED group would agree to Socialist requests that provisions ensuring that member states do not impose unfair restrictions on posted workers should be deleted.

“This is not because we do not believe this is not an important issue – far from it,” said Harbour. “It is simply that this issue should be sorted out at the intergovernmental level.”

According to Harbour, the correct implementation of existing legislation on the posting of workers would ensure that there were no undue restrictions – such as the requirement to set up a local office – on any workers, including those in the service sector.

“We have asked the Austrian EU presidency to push for the rapid implementation of the posting of workers directive by member states,” Harbour said.

Harbour recognised that MEPs from the new member states, whose workers are likely to be the most affected by attempts to block market access, would be disappointed by the move.

“They might consider that we are walking away from an important issue, and could vote against it. But I don’t believe we are walking away, or that this will influence the outcome of the vote.”

Harbour said he hoped the substantial backing for his amendments at last November’s internal market committee would be reflected in the plenary vote on February 16.

Yet despite Harbour’s confidence, the EPP’s change of heart is clearly aimed at facilitating a compromise on more contentious issues with centre-left MEP Evelyne Gebhardt, parliament’s rapporteur on the dossier.

The country of origin principle and whether or not to include public services within the scope of the proposal remain key sticking points.

“The right of companies to provide services – the country of origin principle – is supported by EU case law, so the directive cannot reduce those rights, as some of the amendments would suggest.”

“And we still firmly believe that services of general economic interest [public services operated by private companies] should be open to competition.”

Harbour said that there was a clear willingness to find a compromise with the socialist group, but warned that his group would not be prepared to back down on key issues simply to win approval for the services “package” as a whole.

“We could agree to exclude employment agencies and security services from the scope of the directive, because the European commission has signalled that it is ready to prepare separate legislation to cover these sectors.”

“But we will never agree to any text that we consider would deliver a bad services directive.”

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