European Commission issues new draft of services directive

Last month the European Commission produced a revised version of its controversial services directive, two and a half months after the European parliament rejected some of the more contentious measures.

The European Trade Union Confederation (ETUC) mobilised a 50,000-strong demonstration against the directive outside the Parliament before the vote. And following the Parliament’s decision, the Commission made a commitment to take account of its views.

ETUC general secretary John Monks said: “We appreciate the fact that the Commission has respected its commitment, although we will need to check the various changes in more detail”.

The new draft still aims to create a single market for services, allowing a company based in one member state to provide services in another. But, in contrast to the earlier version, it allows member states to impose conditions on how they provide these services, in order to protect “public policy, public security, public health and … the environment”.

These conditions must, however, operate in a way which is “non-discriminatory, proportionate and necessary”.

In addition the new draft does not affect employment law and excludes a wide range of services, including telecommunications, healthcare and some social services.

The amended directive now goes to the council of ministers, which brings together representatives of member states, before going back to the Parliament.