By Bruno Waterfield - 15th November 2006
MEPs have accepted assurances from the European commission as the EU’s services directive heads for a final vote in Strasbourg.
German Socialist MEP Evelyne Gebhardt asked internal market commissioner Charlie McCreevy for clarity over changes made by national governments to the European parliament’s draft.
Key outstanding points have focused on the directive’s impact on the enforcement of national social legislation, labour law and criminal sanctions in areas such as health and safety.
There were also concerns over the commission’s powers to set guidelines and a parliament request that the European court of justice, not the Brussels executive, should be charged with interpreting the directive.
Giving pledges on the scope and impact of the directive, McCreevy warned MEPs that further amendments would reopen the debate and “jeopardise” the compromise.
“I hope my assurances are enough to accommodate the concerns raised by some,” he said.
“The commission wants to state unambiguously that the services directive does indeed not affect labour law laid down in national legislation and established practices in the member states.”
“Member states will be able to apply their criminal law rules not only to service providers established in their territory but also to service providers from other member states providing services within their territory.”
Gebhardt accepted the tabled compromise and acknowledged that legal uncertainties surrounding issues such as the role of the EU courts had been clarified.
The controversial legislation has divided EU member states and citizens since being tabled by the commission in January 2004 – in a bid to make good on a 1957 Treaty of Rome promise to create a free market in services.
Rows over public services, fears over migrating cheap labour from new eastern European EU countries and concerns that social standards would slide have made the legislation a totem for many of Europe’s citizens.
The services directive has been widely blamed for last year’s French referendum rejection of the EU constitution, an event that plunged Europe into crisis.
The parliament has played a major role in amending the directive to take into account these fears – watering down and limiting the scope of a free market overhaul of services across Europe.
Wednesday’s vote is based on the EU assembly’s February 2006 first reading but national governments made “a few minor modifications” in July, changes that MEPs will scrutinise.
A key parliament change to the directive is the removal of “the principle of the country of origin”, the key tenet of EU single market rules.
Under the principle, providers of services have only to comply with legislation in their home country, sparking fears that low cost competitors in the east could drive down wages and labour standards.
Under the parliament’s compromise – or fudge – providers keep the right to offer services in another EU country than the one in which they are established.
But members states can impose restrictions that are “non-discriminatory, proportional and necessary” to ensure public order, public health and the environment.
Public services, such as health and education, are not covered by the directive, unlike utilities such as water and gas supply.
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