The Directive is intended to make it much easier for service
providers to set up shop and conduct business in another EU member
state. Discriminatory bureaucratic restrictions will also be banned
and it will also be simpler than in the past to provide services
temporarily in another EU country. Consumers should have more
choice when they choose a service provider and costs are also
expected to fall.
In February, when MEPs gave the text a first reading, a
compromise was forged between the largest political groups in the
Parliament. This meant a controversial “country of origin”
principle was replaced and several areas such as healthcare and
audiovisual services were removed.
The "country of origin" principle would have allowed workers
from one country to work in another, but they would have been
subject to the employment law in their country of origin. This
would have had an impact on wages, working hours and
conditions.
The EU Council of Ministers has already indicated its support
for the Parliament's position and European Commissioner Charlie
McCreevy welcomed yesterday's vote by MEPs as "a milestone in the
history of the European Parliament".
A Commission spokesman told OUT-LAW today that formal approval
of the Directive is expected by the Council before the end of the
year. The 25 members of the EU will then have three years to
implement its provisions into their national laws.
