The European Parliament voted to open up the EU services market to competition yesterday in a controversial decision that overcame deep ideological divisions in Europe, writes Jamie Smyth in Strasbourg.
MEPs voted by a majority of 179 in favour of a package of compromise amendments that should breathe new life into the services directive - a controversial piece of EU legislation designed to enable firms to offer services across all 25 member states.
Following the vote, EU commissioner Charlie McCreevy said he would redraft the directive before the end of April and signalled he was now cautiously optimistic it would become law.
"This is a major step forward and a major fence crossed. There is now a good chance of seeing a directive," he said. He will now have to persuade EU member states to adopt the amended directive.
The vote gives fresh hope to firms operating in a range of services sectors - such as advertising, management, and even hairdressing - that they will be able to enter new EU markets without facing the swathe of legal barriers and red tape that currently exist in many states.
MEPs, trade unions and business leaders had bitterly disputed its likely impact on wage rates and working conditions across the EU. Trade unions had expressed fears it would lead to a deluge of firms and personnel from east Europe moving into the original 15 EU states.
However, an alliance of socialists and conservatives last week cobbled together a compromise to enable yesterday's successful vote.