Local Euro MP backs open services market

12.58.03pm GMT Wed 15th Nov 2006

Local Euro MP, Diana Wallis, will back moves in the European Parliament in Strasbourg today, Wednesday, in approving a law boosting competition in services, which she describes as 'one of the most important pieces of legislation to pass through the European institutions in years'.

The Services Directive will make it easier for caterers, software companies, plumbers and other service providers to do business across European borders.

The law was at first opposed by some EU member states, afraid of being undercut by countries with low labour costs. However, they passed a version of it in May and MEPs are likely to back it too.

Speaking in Strasbourg, Diana Wallis MEP, who is leader of the Liberal Democrats in the European Parliament, said:

"Today sees the finalisation of one of the most important pieces of legislation to pass through the European institutions in years. This issue has been hotly debated in most European countries and was a crucial factor in France's rejection of the Constitutional Treaty.

"Sadly, little attention has been paid to it in the UK when it will be vastly beneficial to our economy. What we are left with is yet another positive from Europe likely to slip through unnoticed and unreported."

Note:

Ministers from the member states are expected to give the Services Directive their final blessing in December, paving the way for it to come into force in December 2009.

The EU has long backed the principle of free movement of services, but has failed so far to make it a reality.

The services sector accounts for 70% of all wealth and jobs generated in the EU, and supporters of the directive say it could add 30bn euros (£20bn) to the bloc's GDP and create up to 600,000 new jobs.