Written question asked by Ian Davidson (Labour) on Tuesday, 5 April 2005, in the House of Commons. It was due for an answer on Thursday, 7 April 2005. It was answered by Denis MacShane (Labour) on Thursday, 7 April 2005 on behalf of the Foreign and Commonwealth Office.

Foreign and Commonwealth Office

Question: To ask the Secretary of State for Foreign and Commonwealth Affairs, if he will make a statement on the proposed EU Directive on Services.

Answer: Mr. Davidson: To ask the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the proposed EU Directive on Services. [224992] Mr. MacShane: The European Council of 22-23 March 2005 underlined that a fully operational internal market in services is vital to promoting growth and employment, and to strengthening competitiveness. The services sector in Europe contains vast untapped potential--services account for over two-thirds of EU GDP, but for only 20 per cent. of intra-EU trade. Independent analysis from Copenhagen Economics predicts that the draft Services Directive could create 600,000 jobs. As my right hon. Friend the Prime Minister made clear in his Statement to the House on the European Council on 24 March 2005, Official Report, columns 1013-1015, the services directive will be at the heart of the next phase of the Lisbon programme. Negotiations are still at an early stage--we will work closely with the EU institutions and with our European partners to address genuine concerns and to build a broad consensus as anticipated in the council conclusions.

Secondary information