The Services Directive approaches final agreement

national | eu | news report Wednesday September 06, 2006 10:18 by Sinéad Ní Bhroin snibhroin at gmail dot com

The Services Directive approaches final agreement
Sinéad Ni Bhroin 05.09.2006

The Services Directive approaches final agreement
Sinéad Ni Bhroin 05.09.2006

Internal Market Committee Rapporteur Evelyne Gebhardt (PES, DE) yesterday (Sep 4th) issued a press statement that indicates the European Parliament’s eagerness to wrap up the Services Directive by the end of the year.

The European Council of Ministers has agreed on the Commission’s proposed amended Services Directive text. It is believed the areas of healthcare & social services have been rewritten but that the Commission & the Council have taken a common position by not making any changes to the Parliaments amendments made earlier this year during the 1st reading debate to Article 16, previously referred to as the ‘Country of Origin Principle’.

Some observers will not be surprised by this common position as the Article now referred to as ‘Freedom to Provide Services’ still goes a long way to ensuring the protection of workers rights. For example a service provider setting up business in a member state does not have to open an office in the member state country. Nor do they have to register with a regulatory body. The responsibly of ensuring workers rights, terms & conditions are being enforced lies solely with the member state.

Whilst yesterdays towards 2016 ratified Partnership Agreement incorporates new measures to uphold labour standards the ongoing exposés akin to last years GAMA scandal do little to give confidence to ordinary workers. The rejection of the Partnership deal by the Irish Bankers Association, the 2 main Teachers Union & the abstention of Mandate & the INO bear testament to this, it could be argued.

Gebhardt plans to table 11 amendments to the Directive in the 2nd reading due to take place & be voted on during the November Parliamentary Plenary. The right to work, social services, consumer protection, administrative cooperation between member states & a review clause will be incorporated in the latter amendments. It is worth noting that her proposed amendments to social services will be important to watch as this area was redrafted by the Commission after the 1st Parliamentary reading (vote). I think also worth noting is that she is not proposing any amendments to the Commission changes on healthcare. Perhaps this is because they are not significant & if so this may be due to the Commissions stated intention to begin drafting a Healthcare Directive.

However she will not introduce changes to the wording of Article 39.5, which according to the Presidency is of “fundamental importance to the Council”. This article states that Member States must submit to the Commission justification for special restrictions imposed on a cross-border service provider. Restrictions will be authorised to comply with the ‘Freedom to Provide Services’ article. However Gebhardt will oppose the provisions of Article 39 which gives the Commission the right to publish an ‘interpretative communication” She says “It is up to the Court of Justice to interpret the law” she points out, stressing that Council & Parliament are the joint legislators & not just the Commission.”

Unfortunately the reality within the European Union is that the Commission act as instigators for European law which now makes up over a quarter of our domestic laws. Remember that the Commission are not elected by the people of Europe & consist of policy makers such as Charlie McCreevy. However on this occasion Gebhardt's point regarding the ECJ leaves European workers between a rock & a hard place. Many EU critics have pointed out that The European Court of Justice has favoured the service provider in previous judgements.

Gebhardt will present her draft report this month for debate after which it will be voted on in October at an extraordinary meeting of the Internal Market Committee in Strasbourg. It is scheduled that the agreed text will then be put to the European Parliament November Plenary meeting for a 2nd reading.