Mandelson urges vote for services directive

EU trade commissioner Peter Mandelson yesterday called on members of the European parliament to vote in favour of the controversial…

EU trade commissioner Peter Mandelson yesterday called on members of the European parliament to vote in favour of the controversial services directive.

In a speech ahead of next week's critical vote on the directive, Mr Mandelson also warned against opposition openness and a drift to populism throughout Europe.

"For the long-term, this legislation is vital to the success in creating the knowledge-based services economy which Europe must become as giants like China emerge as the new industrial workshops of the world," he said. "Don't vote against the future."

The directive seeks to liberalise the European market in services by giving service providers the same access to the single market as manufacturers.

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It covers sectors such as accountancy, legal services and construction and has provoked concern that it could undermine working conditions in states such as France and Germany.

Mr Mandelson's support for the services directive comes as political parties in the European Parliament try to agree on a series of amendments to its text before the vote on February 16th.

Socialist MEPs want to boost the protection offered to workers that are posted to other EU member states to provide services. However, industry groups are concerned that the amendments do not restrict their operations.

Mr Mandelson said the revised proposal must meet legitimate concerns that are real. However, he said it must also lay a firm foundation for the completion of a single market in services, just as the EU established in the 1990s a single market for goods.

"Let no-one ever say that the European Parliament is a toothless tiger. It has in its hands the future of critical legislation that is about the creation of a new economic opportunity and a stronger European growth path," said Mr Mandelson.

A vote against the services directive by MEPs next week would probably kill the legislative proposal, which was initiated by the commission more than two years ago, according to parliamentary sources.

However, the president of the European parliament, Josep Borrell, said yesterday he thought there was a basis for compromise between political parties in the parliament and a successful vote next week.

The services directive falls within the bailiwick of EU internal market commissioner Charlie McCreevy and will probably define his term of office in the commission.

Last week Mr McCreevy said he is willing to amend parts of the directive to take account of the concerns of some MEPs.