The Service Directive Summary

Service Directive's aim is to liberalize service market in EU Free movement of services is part of the TEC – but not implemented Commission: 600.000 new jobs Services reflect 70% of EU's economic activity Increased quality and choices for consumers Service legislation existed already: Telecommunication, Financial Services

The content of first proposal Freedom of establishment: administrative simplification Country of origin principle: provide services to consumers in other MS on the basis of the laws of its country of establishment

The country of origin principle created fears of social dumping Competition of workers between workers in different parts of Europe – the debate about the Polish plumber Countries with high standards need to deregulate March 2005: 100.000 people demonstrated in Brussels against the service directive

In reaction to the protest the service directive was modified May 2006: Council approved a revised text: Country of origin principle not included any more Exceptions for free movement are allowed when it collides with other public interests The huge protest shows how EU legislation can lead - justified or not - to a conflict between old and new MS