Strasbourg, 14/02/2006 (Agence Europe) - The marathon debate in the European Parliament on the Directive on services in the internal market confirmed the political importance of this legislative proposal for the relaunch of the European project and the Lisbon Strategy. The speeches of the main political decision makers indicated that Parliament was to speak with one voice to impose their will. The Council welcomed the compromise between the two main political groups. The Commission has said that it was ready to support amendments that won large-scale approval and called on the Council to find a compromise as quickly as possible - why not from April. EP President Josep Borrell spoke of the “30,000 demonstrators” who marched peacefully outside the European institution.
On 14 February in plenary session, German Social Democrat Evelyne Gebhardt, rapporteur, said, as she opened the discussions, that MEPs had in their hands the most important legislative proposal of their term. She welcomed the fact that the European Commission had, in 2004, put forward a legislative proposal on the services sector, adding that this proposal was so flawed that it gave the impression that the interests of certain Member States were more important than others. She said that the project had to be completely re-written and that progress had been made. She was confident that it would be possible by Thursday to take decisive steps to have a Directive which did not diminish the “right to work”, did not “undermine environmental and consumer protection” and which was not bureaucratic. According to Mrs Gebhardt, the country of origin principle had absolutely to be removed, because it would have disastrous consequences. She felt that the European Commission valued the work of the Parliament and was not intent on retaining the original text to the letter.
The shadow rapporteur, British Conservative Malcolm Harbour, who worked to achieve the EPP-ED/PES compromise, noted that the problems the Directive might create, particularly social dumping, had often been over-estimated, whereas the opportunities it created, particularly for small and medium-sized enterprises constantly frustrated by red tape, were under-estimated. The draft Directive provided no fewer than 81 measures to remove obstacles to SMEs, he exclaimed.
The European social model must not be threatened nor “social and wage dumping” encouraged, said Martin Bartenstein, speaking on behalf of the Presidency of the Council of the EU. The Austrian Economy and Labour Minister considered that the “services” Directive should not put in doubt Member States right to work, the “posting of workers” Directive, and had to include services of general economic interest (SGEI). A very large Parliamentary majority would be useful, he stated, applauding the initiative of the major political groups on the most controversial areas. He also stressed the key role that the Commission would play after the vote in Parliament.
José Manuel Barroso said that this week was a crucial stage for the “services” Directive, the completion of the internal market and the strategy for growth and employment in Europe. He added that the question was whether the enlarged 25 Member EU could find a solution to deal with the problems that affect citizens. The Commission President said he was convinced that in the Parliament there had to be a strong consensus around the Directive. Yes, he said, we want an internal services market that brings an added value and responds to the legitimate concerns that have been expressed. Mr Barroso continued that the Commission was willing to support everything that represented a step forward for the internal services market and which had the support of a large majority.
Charlie McCreevy, the Internal market Commissioner listed several benefits the future Directive would bring, such improved administrative cooperation and lower costs for companies which have cross-border operations. Echoing Mr Barroso, he said that the Commission intended to take account of amendments that had a wide majority support, and he urged MEPs to take up the challenge and show that Parliament was able to provide the basis for a consensus. Mr McCreevy welcomed the amendments from the Parliamentary internal market committee, seeking to exclude services of general interest (SGI) from the scope of the Directive.
On the subject of the provisions on posted workers, that the EP is on the point of removing from the legislative proposal, Mr McCreevy felt that the Commission should fix “guidelines” for settling the difficulties that have appeared on this subject in Member States. On the suggested suppression of provisions relating to the reimbursement of health care in a cross-border context, the Commissioner warned that it will be necessary in future to take account of the growing EU Court of Justice case-law and that a separate proposal will become necessary.
“We must give concrete substance to the good word of the Lisbon Strategy” said Hans-Gert Pöttering, President of the EPP-ED Group. In his view, the free provision of services has remained “stuck” because of reticence on the part of Member States as the Commission's initial proposal was “ambitious” but “sometimes off the mark”. Now, he commented, “we have almost rewritten the text thanks to the will to compromise” (of the EPP-ED and PES Groups), and the suggested solution “is not a solution on the cheap”. The European elected CDU member also expressed the hope that the European Spring Council would find a “political agreement” on the basis of the result of the Parliament's vote in first reading. The EPP-ED Group met on Tuesday to decide on its definitive position on this file.
“For us, things are quite clear: all economic progress must be linked to better revenue” and high “social and environmental rights”, German Social-Democrat Martin Schulz, President of the PES Group, said. “Today we are putting an end to the aim of Mr Bolkestein” (the former European Commissioner responsible for the internal market at the origin of the proposal), who wanted quite the contrary, Mr Schulz said. “Europe must not let itself be divided” and the attempts made along these lines have been stopped as all the delegations of the former and the new Member States have come together, he said. “We have fought for the European social model”, he added, saying: “those who want to destroy it will come up against the opposition of the Socialist Group” and “a good part of the EPP-ED Group”. He went on to conclude, saying to the Commission and Council: “You have understood that (…) you can no longer circumvent the European Parliament”.
“Mr Bolkestein is still there”, British Liberal Graham Watson retorted on behalf of the ALDE Group of which he is president. Watson was in favour of the country of origin principle for small and medium-sized companies because it will make it possible to cut costs by half. He was highly critical of the attitude of Mr Barroso and Mr McCreevy who, he said, did not sufficiently defend the proposal for a directive: “The Commission hides away in a cowardly manner behind the shilly-shallying of the Member States”.
On behalf of the Greens/EFA Group, German national Heide Rühle denounced the lack of clarity in the compromise reached by the PES and EPP/ED Groups and called for a specific framework directive for the SGI and SGEI. French Communist Francis Würtz, GUE/NGL Group President, recalled the success of the “no-vote” on the European Constitution in France and the Netherlands which placed the supporters of the European Commission's proposal on the defensive.
The compromise suggested is not satisfactory in their eyes, and its group will therefore reject the proposal for a directive during the vote on Thursday or will fight at least in order to include the principle of country of destination in the text and exclude SGI and SGEI. Speaking for the Independence and Democracy Group, the British co-president, Nigel Farage, warned that, with the “services directive”, the burden will be greater on companies that could leave the European Union. For the UEN Group, Adam Jerzy Bielan of Poland urged the Commission to “hold fast” in its effort to create an internal services market.