Brussels, 08/12/2003 (Agence Europe) - On Wednesday, the European Commission may decide to extend the current system of reduced VAT for highly labour intensive services, diplomatic sources indicated on Friday. On Monday, the Commission confirmed that it was considering several options - either extending the current system (due to expire at the end of December) or confirming that for six months no infringement proceedings will be launched against Member States continuing to apply reduced VAT, or publishing a new proposal to replace the text unveiled in July 2003 harmonising the list of services to which reduced VAT applies. At the last Ecofin Council, Commissioner Frits Bolkestein refused to extend the system, despite all ministers requesting this (see EUROPE of 26 November, p.7). Adopting a report by Christa Randzio-Plath, last week, the European Parliament urged the Commission to extend the 1999 reduced VAT scheme on an experimental basis. The Commission should not be so dogmatic about this system, which had helped to reduce cash-in-hand work and create jobs, said Randzio-Plath, astonished at Commissioner Bolkestein's stance in the face of huge support from the European Parliament and the fifteen Member States on this matter."