McCreevy set to water down ‘Frankenstein’ services directive

EUROPEAN leaders signalled their willingness to rework the services directive last night.

Dubbed the Frankenstein Directive by opponents, who say it will drive down workers pay and conditions, it is expected to be considerably watered down.

Seen as the flagship directive of the new commission the man charged with piloting it into law, Internal Market Commissioner Charlie McCreevy, has already indicated he is willing to make major changes.

But French President Jacques Chirac was pushing for it to be withdrawn completely and redrawn as opponents threatened to sink the European Constitution referendum in France at the end of May because of it.

The draft directive, which is already highly complex, now looks likely to be rewritten to exclude education and public services from its scope.

This is seen as a major victory for Mr Chirac but a blow to commission president Jose Manuel Barroso who earlier this week told the French they should explain to their citizens that the draft directive had nothing to do with the constitution.

Finance Minister Brian Cowan last night said Ireland supported the directive aimed at creating a single, borderless market for services from hairdressing to architecture.

The country of origin principle that the rules applicable in the state where a company is registered would apply to employees where ever the company was operating is alarming French and German workers in particular.

They fear being flooded with companies from lower cost, new member states that would depress wages locally.