Plans to facilitate the provision of services in the EU single market have taken a “major step forward”, with MEPs deciding that services of general economic interest should be included in the scope of the European Union (EU) Services Directive

Members of the Internal Market Committee in the European Parliament have agreed a compromise on several aspects of the European Union (EU) Services Directive, a proposed piece of legislation that has caused much controversy across Europe, not least in the UK.

Just prior to the Christmas recess, Members of the European Parliament (MEPs) voted to accept the principles of a framework Directive rather than a number of sectoral Directives. They have also agreed on a range of clauses concerning the purpose of the Directive, its relationship with other European Community legislation (including the Directive on the Temporary Posting of Workers), administrative co-operation between Member States and clauses seeking to make it easier for a company providing services to ‘set up shop’ and ‘trade’ in another Member State.

However, agreement between the political groups involved did not manage to resolve two of the most contentious issues: the country of origin principle (by which a service provider is broadly subject to the legislation of their country of establishment and not the country where the service is provided) and the scope of the Directive (in other words, precisely which services it will cover).

Rapporteur Evelyne Gebhardt (PES, DE), who made several proposals to the Committee, commented: “On labour issues, the law of the country in which the service is provided must apply. This is a matter of great importance.”

Malcolm Harbour MEP – EPP-ED spokesperson in the European Parliament’s Internal Market Committee – said: “We have proposed that companies delivering public services on a commercial basis should enjoy the freedoms offered by the Directive, but sensitive areas such as security services and the audiovisual sector are likely to be excluded.”

The BSIA’s chief executive David Dickinson told SMT: “We welcome some of these comments as a step in the right direction. We should pay tribute to all of those organisations who have been working, and will continue to work, to ensure a sensible outcome to this legislation for the UK’s security industry.”

Source

SMT