By Bruno Waterfield - 23rd March 2005
Europe’s leaders did not climb down over moves to liberalise the service sector to save Jacques Chirac’s face, the EU presidency has insisted.
A row over European Commission measures to create a free EU market in services has hit the French referendum campaign as a vote looms in May.
In a bid to avert a disastrous ‘non’ vote and appease the French president the controversial services directive is to be re-written.
But Luxembourg Prime Minister and holder of the EU presidency Jean-Claude Juncker has strongly denied a French fear factor in the re-think.
“I like to destroy legends before they take shape,” he told journalists on Wednesday.
“A new legend has been taking shape, namely that the debate changed because of the referendum in France.”
“To say that the council changed the debate because of the looming vote in France is simply not true.”
Juncker has moved to dismiss reports that a single market in services has dropped off a five-year old Lisbon agenda to boost EU economic growth.
“If the directive were withdrawn, we would give the impression that the opening of services had vanished from the European agenda,” he said.
“It must remain on the European agenda because the Lisbon Strategy, which speaks of growth, employment and competitiveness, requires us to open the services market.”
But in contrast to the commission, Juncker is acknowledging protests over the services directive – and heralding a major re-write.
“The drafting of the directive's text will take into account the double imperative of the opening of the services market as well as respect for the European social model,” he said.
“We sometimes give the impression that Europe is largely indifferent to the consequences this directive has on the daily life of people. This is not true. Our work will be an in-depth examination of a response to the expectations that have been expressed.”
Juncker also denied splits between ‘old’ Western Europe, countries such as Germany and France, and new Eastern EU members, such as Poland of Slovakia.
Commission critics and trade unions have warned of ‘social dumping’ if companies from low regulation countries are allowed to compete in EU members states with high levels of social protection.
“We can not create the impression Europe was split into two… fighting against social dumping is an obligation both for East and West Europe,” he said.
Commission President José Manuel Barroso claimed that Brussels did not expect substantial changes to a services directive he inherited from his predecessor Romano Prodi.
“I do not expect any changes that will put in doubt our overall objective,” he said.
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