Thursday

28th Mar 2024

Barroso said to back watered down services law

European Commission president Jose Manuel Barroso has hinted to colleagues in the college of commissioners that he will back the compromise version of the services directive that emerged this week in the European Parliament, according to British media.

Mr Barroso signalled the consensus plan on the table is not exactly what he had desired to boost competition in the heavily protected services sector, but it can still "deliver results for the European economy," writes the Financial Times quoting one of Mr Barroso's colleagues.

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The compromise was filed on Wednesday (8 February) by senior members of the two biggest parliamentary groups, the centre-right EPP-ED group and the socialist PES faction.

It removes a controversial "country of origin" principle stating that companies can offer services across borders according to their home country rules.

Instead, the compromise says member states are obliged to refrain from imposing extra burdens on foreign firms, but they are allowed to avoid competition in services linked with public interest areas, such as health, social issues or education.

The EU executive is reportedly split on its attitude towards the new compromise package.

Some commissioners, like the internal market chief Charlie McCreevy have supported Mr Barroso on the need for a deal that attracts the widest possible support.

But others, such as British trade commissioner Peter Mandelson, warn that a green light to the watered down directive would mean a back-down before protectionist forces in Europe.

Differences remain

A similar message has come from several EU countries.

German economics minister Michael Glos has cautiously welcomed a parliamentary deal over the services law, but also warned that it may prove an "open door to protectionist measures" by member states, FT Deutschland reports.

Unclear definitions should be clarified in the coming weeks, he urged.

Meanwhile, six countries, including Britain, the Netherlands, Poland and Hungary wrote to the European Commission on Thursday (9 February) and reminded it of the bloc's need for an "effective" directive, according to the UK daily Independent.

The centre-right EPP-ED itself has also faced dissent among MEPs from Sweden, Germany and new member states who favor a more liberal version of the blueprint.

The EPP-ED group announced it would decide its final position on the tabled amendments on Tuesday (14 February), following the debate in Strasbourg plenary and prior to the vote on Thursday.

Stakeholders divided

Several business organisations have expressed disappointment over the emerging compromise, likely to be adopted next week, but have also shown pragmatism in calling for some kind of deal rather than to scrap the law as a whole.

On the other hand, the European trade unions (ETUC) have reiterated their opposition to the legislation, dubbed the "Bolkestein directive" after its ex-commissioner author, and "welcomed the progress" in the European parliament.

Trade unions will be demonstrating in front of the Strasbourg parliamentary building next week to express their demand for protection of the EU's social model in the directive.

Ukraine slams grain trade restrictions at EU summit

Restrictions on Ukrainian agricultural exports to the EU could translate into military losses in their bid to stop Russia's war, Ukrainian president Volodymyr Zelensky warned EU leaders during their summit in Brussels on Thursday.

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With the war in Ukraine showing no signs of ending any time soon, EU leaders will meet in Brussels on Thursday and Friday (21 and 22 March) to discuss how to boost the defence capabilities of Ukraine and of the bloc itself.

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Rather than assuming a pro-European Labour government in London will automatically open doors in Brussels, the Labour party needs to consider what it may be able to offer to incentivise EU leaders to factor the UK into their defence thinking.

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