Directive faces changes

EU: The European Parliament will today consider a proposal for sweeping changes to the Services Directive, a controversial plan…

EU: The European Parliament will today consider a proposal for sweeping changes to the Services Directive, a controversial plan to liberalise the EU market in services, writes Denis Staunton.

Evelyne Gebhardt, the European Parliament's rapporteur on the directive, wants to exempt public services from its scope and to scrap the "country of origin" principle that would allow service providers to operate throughout the EU under the rules of their home country.

Trades unions have warned that the "country of origin" principle could encourage businesses to establish in countries with the lowest wages and poorest social protection.

Ms Gebhardt, a German socialist, said yesterday that service providers should fulfil the minimum standards of the country where the service is provided.

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