Brussels, 24/09/2002 (Agence Europe) - On Wednesday the European Commission is expected to adopt by written procedure, a proposal on the extension of the reduced VAT system that can be applied in labour intensive services in Member States. This announcement was made last week by President Prodi during a visit to Brussels by the French Prime Minister Jean-Pierre Raffarin, who requested that hotel and catering be included in the services benefiting from a reduction in VAT. The President of the Commission had indicated that he was not in principle hostile to this idea but suggested that it would be difficult to obtain consensus at the Council on this point (see EUROPE 16/17 September p 8). Member States are expected to present an impact assessment to the Council before 1 October, which evaluates the impact the directive has so far had on employment.