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.

Public opinion polls show the French voting against the European Constitution in the referendum at the end of May partly because they object to the directive.

The debate has become very heated with massive demonstrations organised by workers’ groups who fear allowing services from hairdressing to architecture to operate across borders will lead to low pay and social dumping.

For the second time in a week Mr Barroso challenged the French leader to explain the services initiative fully to his citizens.

“The referendum is not about the services directive. It’s on the European Constitution and I think the prime responsibility to explain that to the French people is the French politicians; it’s up to them to explain what is at stake - the European Constitutional Treaty, nothing else, not domestic policies or Turkish membership or anything else,” he told a pre summit press conference in Brussels yesterday.

Mr McCreevy, responding to the growing furore in France in particular, announced some weeks ago that he was willing to make substantial changes in the directive put forward by the previous commission.

This appears to have reassured countries that were wary of the move, such as Sweden and Belgium.

However, France, apparently supported by Germany and Spain, appear to want the legislation withdrawn.

Studies show an EU wide common market in services would create many new jobs and boost economies, especially in Ireland and the new member states.