EU increases services competition

By ROSS TIEMAN
Updated:

 

THE services market that accounts for 70% of EU gross domestic product is being opened further to international competition after a late-night deal between finance ministers in Brussels.

Slashing restrictions on European competition in services ranging from estate agency to catering is expected to benefit Britain' s economy to the tune of £5bn a year, said Britain's Trade Minister, Ian McCartney.

Europe-wide, the deal could benefit consumers by £21bn and create 600,000 jobs, said Labour MEP Ariene McCarthy.

The deal among the 25 EU nations is a watered-down version of the Bolkestein directive, rejected last year after widespread protests in France and elsewhere.

It allows firms in one member state to compete in others without conforming to local bureaucracy. French trade unionists in particular had objected, fearing competition from low-paid workers in eastern Europe would cost jobs in France, where workers enjoy 39 days paid holiday a year.

EU countries will retain the right to constrain cross-border services under the pretext of security, health or environmental concerns. Health care, social services, port services, television and radio, temporary employment agencies and casinos are excluded from the deal.

But it should make it easier for estate agents, lawyers and corporate consultants to offer international services, and make it easier for skilled tradesmen to take jobs in other European countries without having to acquire local qualifications.

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