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European Council: 23-24 March 2006

My Lords, I agree strongly with both underlying propositions the noble Lord, Lord Brittan, has introduced. The services directive proposed by Commissioner Bolkestein in January 2004 requires the co-decision of both the European Parliament and the Council. In February, the European Parliament voted through a package of amendments. The Commission will present a revised proposal on these areas at the Graz informal meeting on 20 and 21 April. Subject to further discussions, the Austrian presidency will consider whether to press that. We have the foundations of a discussion. It should not slip backwards. That is the point with which I agree most strongly. There are provisions which will make it easier for firms to set up businesses in another state. Barriers are still left, covering such aspects as the minimum distance between opticians and other finer detailed and not particularly intelligent formulations that have existed in the past. Those can all potentially be changed by the proposals. I also agree strongly on the points about protectionism. The reality is that we are a fairly open society. We share many of our major companies and supplies with other Europeans and, indeed, with countries from further afield. Our open markets have delivered better prices. I believe that a better market in a general sense will deliver still better markets for everyone across Europe. In turn, we own a great deal overseas. I do not think that that has ever been to the disbenefit of those countries in which our companies trade and do so very effectively. There are legal barriers to this protectionism. I believe that they will have to be considered if the protectionism becomes a still more dominant theme in some people’s thinking.