European small business says the completion of the "internal market for services" is a vital step in enhancing the competitiveness of the EU but must not come at any cost.
UEAPME, the European small and medium business organisation, is calling on MEPs to support the compromise amendments proposed by the rapporteur and Socialist MEP, Evelyne Gebhardt (PSE) during the crucial vote on the Services Directive in the Internal Market committee on Tuesday.
"Completing the internal market for services is a vital step in enhancing the competitiveness of the EU but this must not come at the expense of the high standards in the services sector," Luc Hendrickx, UEAPME Director of Enterprise Policy and External Relations told EU Reporter.
"The compromises being proposed by the rapporteur strike the right balance between the opening up of the services sector and maintaining the quality of services and consumer protection," he added.
The proposals to clearly limit the application of the country of origin principle to specific areas of business regulation overcome many of the problems inherent in the initial proposal. Ensuring that the regulation of standards for service provision remains the domain of the country of destination will prevent the undercutting of service quality in the EU.
UEAPME also welcomed the general acceptance that the country of destination must be responsible for supervising the service providers operating within their jurisdiction. This is clearly the only effective way to ensure that these businesses will comply with applicable rules.
"The exclusion of the references to the Posting of Workers Directives from the Services Directive will remove any legal uncertainty in this area and it is important that MEPs support this proposal," stated Hendrickx.
"While not the ideal solution to this over-complicated legislative text, the rapporteur's compromise offers a rational approach addressing key concerns associated with the original proposal."