The European Commission has published a sweeping proposal to introduce Europe-wide competition to previously sheltered professions in a move warmly welcomed last night by the Tánaiste, Ms Harney. Report by Tim King in Brussels Mark Brennock, Irish Times Chief Political Correspondent.
A fierce lobbying battle is now expected over the plans to strip away what the Commission calls "archaic" protections enjoyed by some professional and trade groups, including lawyers, architects and pharmacists.
The plan will be discussed on March 11th at a meeting of the EU's Competitiveness Council, chaired by Ms Harney.
The proposal would impose on national governments an obligation to abolish administrative requirements that are a barrier to cross-border provision of services.
The Commission wants the self-regulated professions, such as lawyers and architects, to establish European codes of conduct on professional ethics to ensure national regulations could not be used to prevent cross-border competition.
Under the Commission proposal patients queuing for operations in Ireland could seek hospital treatment elsewhere in the EU if the procedures were not available quickly enough here.
The directive would apply to all services, except the areas of financial services, telecoms and transport where there is already EU legislation.
Retailers, hoteliers and restaurant-owners, consultants, architects, craftsmen, employment agencies, advertising agencies, lawyers and pharmacists would all come under the remit of the law.
The proposal would outlaw discrimination, however disguised, on grounds of nationality. It would be illegal to require that directors or staff of companies be of specific nationalities or that companies be established in the state where the service is provided.
The Commission proposal plays to the agenda set out by the Irish EU Presidency for improving the Union's economic competitiveness.
In a recent letter to his fellow heads of government the Taoiseach wrote: "The services sector, where progress is lagging, requires particular attention, and we intend to significantly advance the proposal for a directive on services."
The European Commissioner responsible for the single market, Mr Frits Bolkestein, wants to see the law take effect in 2007, but the proposal requires the assent of both the Council of Ministers and the European Parliament, and resistance from affected professions could cause delays.
Ms Harney said last night that the directive "has the potential to be far-reaching in terms of its impact on doing business in Europe and in stimulating competition and consumer choice".
The opening up of EU borders to trade in services was "critical to the creation of more and better jobs in an enlarged European Union. Making progress in this important area will be a key priority for me during Ireland's Presidency," the Tánaiste said.