The European Commission insisted it will not withdraw plans to open Europe's services sector to cross-border competition, despite French pressure for the proposals to go "back to the drawing board".
A spokeswoman for the European Union (EU)'s executive said that liberalisation of the vast services sector was a "crucial element" of the relaunch of the so-called Lisbon Agenda, the EU's flagging plans to boost competitiveness.
"There is no question of the commission withdrawing the services directive," added the spokeswoman, Francoise Le Bail, saying she wanted to correct a misleading impression in some press reports this week.
She admitted however that there were "serious difficulties" in implementing the draft directive, which was originally proposed by a former Dutch interior market commissioner, Frits Bolkestein.
In particular problems focus on a so-called country of origin clause in the draft EU law, under which companies proposing services in a number of EU states can apply the legislation of their home country, and not that of their clients.
"The commission is ready to work with the European Parliament and the Council (of EU governments) to find solutions to these difficult problems," she said.
French President Jacques Chirac said this week that he wanted to see the services directive "go back to the drawing board."
France fears that such a law -- which would be applicable across all 25 EU member states -- would allow a company to set up shop in Poland, for instance, where labour is cheaper, and provide a service back to France at a lower cost than that faced by French competitors abiding by French laws.
By: N. Peter Kramer
