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Europe Daily Bulletin No. 8882
Contents Publication in full By article 13 / 42
GENERAL NEWS / (eu) eu/internal market/services

Commission states it does not intend to restate its proposal on internal market services

Brussels, 04/02/2005 (Agence Europe) - Speaking through its spokesperson on Friday, the Commission wished to clear matters up on the subject of the proposal for a directive on services given the “misunderstandings that still exist”. The Commission's position is as follows: “Liberalisation of services is an essential element in the Lisbon Strategy. The Commission hopes services will be liberalised. It is out of the question to withdraw the proposal”. The Commission has neither thought of it or said it. (See p.11 for the Parliament's stance).

President Barroso admits that the proposal raises “major difficulties” mainly on the subject of the principle of country of origin and the impact that the directive could have on a “number of sectors”. At the heart of the proposal for a directive, application of the principle of country of origin would allow a service provider to operate in other Member States according to the legislation of the country of origin. The Commission is therefore ready to “work with the Parliament and Council to find solutions to these difficult problems” in order to rapidly adopt the directive. In answer to questions on the possibility that the Commission might amend its project, the spokesperson said “it is too early to say what we shall do”. On the principle of country of origin, she pointed out that, among the fears aroused on this principle, “some are justified and others are not”. She did not give any examples.

During Wednesday's presentation of the Commission's contribution to reviving the Lisbon process, José Manuel Barroso repeated that a directive on services is “essential” because services are at the heart of the Internal Market (EUROPE of 3 February, p.7). President Barroso promised that the Commission would come back to this later in the year, but that in the meantime he would seek a debate with Parliament as soon as possible while assuring that services of general interest are never brought into question.

The principle of the country of origin raises the question of competition between national legislations against the objective of minimum harmonisation of rules, and the proposal of directive on services hence becomes each day one of the key European themes. It causes strong reaction which exceeds the traditional political divisions and erupts in national debates on ratification of the European Constitution.

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