Member Article

EU service industry opened to cross-border competition

The European Parliament yesterday approved a bill making it easier for EU service providers to set up their business in other Member States. The EU Service Directive is aimed at opening up the EU service industry to cross-border competition by cutting much of the red tape that estate agents, caterers, consultants, plumbers and other service providers have faced in the past when offering their services in another Member State.

The Directive, which is expected by 2010, will introduce a new electronic database to help Member States share information and work more closely together. Each Member State will also have to set up a single contact point online for all necessary information and applications.

The Directive, passed on the second reading, was welcomed by Trade Minister Ian McCartney. He said: “This Directive is genuinely market opening. Importantly, it achieves this goal without affecting essential protections in areas such as health and employment. “It is good news for both UK businesses and UK consumers. We will now have a Europe where businesses and entrepreneurs can tap into new markets without facing a mountain of unnecessary rules and regulations. Competition will increase, giving consumers a much greater variety and choice of services, resulting in higher quality at reduced prices.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .