Consumers to benefit from proposed single market for services

CONSUMERS should soon be able to choose services, from travel operators to accountants, from any EU country.

At present red tape, different standards and national licensing requirements stand in the way of an open market in services throughout Europe.

But in the biggest shake-up to competition in the EU in over 10 years the European Commission announced proposals to open up the market in services.

The move was immediately welcomed by Enterprise Minister and Tánaiste Mary Harney who said making it a reality would be one of the priorities of the Irish EU presidency over the next six months.

“This directive has the potential to be far-reaching in terms of its impact on doing business in Europe and in stimulating competition and consumer choice.

“I have already made it clear that I regard the opening up of EU borders to trade in services to be critical to the creation of more and better jobs in an enlarged European Union. Making progress in this important area will be a key priority for me during Ireland’s presidency,” the Tánaiste said.

Even though services account for almost three-quarters of the EU’s wealth, the emphasis so far has been on creating a common market throughout the member states for manufactured goods.

This has met with limited success with consumers able to buy goods cross-border with fewer tax and other obstacles than before the single market was established in 1993.

But now, with so much of Europe’s economy in services, the Commission decided to extend the concept to this area.

Countries will have to change rules and reduce regulations which have kept professions such as doctors, accountants and lawyers from practicing in other member states.

Member states will also have to harmonise standards for services, so that a business in one member state where it is legally recognized will be recognised in all others.

Internal Market Commissioner Fritz Bolkestein, unveiling the proposal yesterday, said it should be particularly useful to small and medium enterprises that up to now have found it very difficult to operate across national borders in the EU.