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EUROPEAN REVIEW

ISSUE 30 - Page 4

Some movement on services directive not enough for unions

THE EUROPEAN COMMISSION HAS taken account of trade union objections to its proposed Services Directive by dropping controversial parts of it but this has not satisfied unions who are now calling for the proposal to be scrapped and taken back to the drawing board. The proposal, also known as the Bolkenstein directive after the Commissioner who originally thought it up, had become a political 'hot potato' (see our last two issues) after unions realised that its 'country of origin' principle would allow firms to compete to provide services throughout the EU by re-locating to a Member State with lower standards. Furthermore it was not clear if the draft law included sensitive sectors such as health care.

EUServDirDemo
John Monks and TUC President Jeannie Drake march at the front of the demonstration

Now health and safety has been excluded so that countries will continue to be able to inspect and regulate foreign companies. According to Commission President Jose-Manuel Barroso:

'As the Directive was written, it would not have been successful É That is the reason why the Commission unanimously accepted to make some changes'. However John Monks, general secretary of European union confederation ETUC speaking at a 75,000 strong demonstration in Brussels said ''I call today on the Commission to withdraw the current text, throw it in the waste paper basket and start again. Put Bolkestein's Frankenstein back into cold storage and start listening to the people of Europe'. TUC General Secretary Brendan Barber added

Barroso, J.M.

'The Services Directive would fire the starting gun on a race to the bottom. It would create flags of convenience across the whole of Europe, in every part of the service sector. It would undermine the very point of the European social model'. Meanwhile the European Parliament's Internal Market Committee will hold open working party sessions as it writes a report on the directive and the Economic and Social Committee, an EU body that brings together, unions, employers and other social organisations, will push for a two-stage plan to adopt the directive in 'a pragmatic solution to meeting the kinds of problems which have arisen'.

Jose Manuel Barroso. President of the European Commission

It believes that a Europe-wide market in services can be beneficial while 'no watering down of existing social protection, wage and safety standards in the work place' need take place as a result of the directive.

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'As the Directive was written, it would not have been successful É That is the reason why the Commission unanimously accepted to make some changes'. However John Monks, general secretary of European union confederation ETUC speaking at a 75,000 strong demonstration in Brussels said ''I call today on the Commission to withdraw the current text, throw it in the waste paper basket and start again. Put Bolkestein's Frankenstein back into cold storage and start listening to the people of Europe'. TUC General Secretary Brendan Barber added		'The Services Directive would fire the starting gun on a race to the bottom. It would create flags of convenience across the whole of Europe, in every part of the service sector. It would undermine the very point of the European social model'. Meanwhile the European Parliament's Internal Market Committee will hold open working party sessions as it writes a report on the directive and the Economic and Social Committee, an EU body that brings together, unions, employers and other social organisations, will push for a two-stage plan to adopt the directive in 'a pragmatic solution to meeting the kinds of problems which have arisen'.
	Jose Manuel Barroso. President of the European Commission

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