1. The Service Directive
Summary

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

3. 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

4. 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: people demonstrated in Brussels against the service directive

5. 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