Move to allow services operate across borders causing major EU row

EU leaders will relaunch the growth initiative for Europe at their two-day summit beginning today but the controversial Services Directive is threatening to cause a major row.

Already the battle lines have been drawn by Commission President Jose Manuel Barroso and the French President Jacques Chirac over the draft directive.

Mr Barroso made it clear yesterday he is standing side by side with Commissioner Charlie McCreevy, who has responsibility for the controversial legislation.