Brussels, 15/05/2006 (Agence Europe) - On Friday 12 May, the Council of the EU held its first in-depth discussion at permanent representative level (Coreper) on the "services" directive. The four-hour discussion focused on the scope of application of the legislative proposal (articles 1 to 3) and provisions governing the cross-border provision of services (articles 16 and 17), in line with the mandate conferred by the economy ministers to the Council during their informal meeting at Graz (see EUROPE 9178). Several of those attending the meeting described the attitude of the national delegations as "constructive" and "realistic" as, whilst reiterating their own stances, they showed "willingness to reach an agreement". The objective of the Austrian Presidency is to reach a political agreement at the Competitiveness Council of 29 May. Two meetings of Coreper are planned in the meantime, on 17 and 24 May.
The Austrian Presidency has put "a few propositions on the wording" to the delegations concerning the scope, according to an expert close to the negotiations. Several delegations have misgivings about the scope of the exclusion of certain services, particularly audiovisual services and transport. Others have called for clarifications on the fact that the "services" directive will not affect the criminal law of the Member States. As for the exclusion of social services, a politically sensitive sector, this will be discussed later this week: in its modified proposal, the Commission did not take up the exclusion of social services as voted on by the European Parliament at first reading in its entirety (see EUROPE 9167 and 9133). It is suggesting the exclusion of social services "relative to social housing, childcare, aid to families and other needy people".
Talks have also started on the subject of provisions on the cross-border provision of services, but the Austrian Presidency has not yet made any text proposals. "A good majority of Member States" is said to be dissatisfied with the parliamentary compromise taken up by the Commission, according to a Council source. This means that the Presidency will have to make a proposal which "goes against this majority", the source added. Nevertheless, a provision establishing the law to be applicable to the cross-border provision of services is unlikely to be reintroduced. In its initial proposal, the Commission introduced the principle of country of origin, whereby the law applicable to the cross-border provision of services will be that of the country in which the company is established. The EP compromise and the modified proposal of the Commission refer to the principle of freedom to provide services, listing the requirements which the Member States will not be able to invoke in order to limit this type of service provision, but without specifying which law will be applicable.