Austria hopes for EU services deal by June

A political deal on divisive proposals to liberalise the European Union's market in services to boost jobs could be clinched …

A political deal on divisive proposals to liberalise the European Union's market in services to boost jobs could be clinched by June, Austrian Chancellor Wolfgang Schuessel said today.

"I hope that during the Austrian presidency we can present a successful solution," Mr Schuessel told a news conference today at the start of Austria's six-month presidency of the EU.

"My ambition is to bring in the European social partners to be part of the solution," Mr Schuessel added.

The European Commission's proposals would make it easier for companies in any EU member country to offer services across the 25-nation bloc in everything from hair dressing to holiday bookings without having to set up domestic subsidiaries in each country that they operate in.

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Labour unions fear the rules will let firms in richer states displace their more expensive domestic staff with cheaper workers from new member states in central and eastern Europe, undermining benefits, pay and job prospects in richer members.

The plans to liberalise services ranging from hair dressing to tourism were partly blamed for the "No" vote in the French referendum on the new EU Constitution.

The Brussels executive sees the proposals as a key step to boosting jobs and growth by increasing competition in the EU economy's most important sector.

Commission President Jose Manuel Barroso told the news conference that the Brussels executive will wait until the European Parliament votes on the draft rules next month before coming up with a revised text.

Mr Barroso said a "balanced solution" was needed.

"I believe it's possible to have an ambitious services directive but also respond to those concerns expressed by some sectors of our public opinion," Mr Barroso said.

Austrian Economy Minister Martin Bartenstein told reporters after the news conference that Mr Barroso had pledged that the Commission would put forward revised proposals in time for the summit of EU leaders in March.

The new rules must be jointly agreed by member states and the European Parliament before becoming law.