The European Parliament has adopted a watered-down bill to open Europe's services market to cross-border competition.
Services make up more than 60% of the EU economy but companies face many barriers when trying to operate outside their home country. The bill covers trades as diverse as hairdressing, software engineering, plumbing and catering.
MEPs adopted a heavily amended version by 394 votes to 215 with 33 amendments after voting to remove the most disputed 'country of origin' principle, under which companies that provide services in another EU state would have been allowed to do so under their home country rules only.
As amended, companies will be free to provide services in any EU country but must respect the labour, health, safety and environmental standards of the host country.
The two main factions in the EU assembly, the centre-right European People's Party (EPP) and the socialists, backed the changes. The marathon, at times rowdy, voting session lasted more than two hours with some 500 amendments under consideration.
Known as the 'Bolkestein directive' after former EU Internal Market Commissioner Frits Bolkestein, the bill sparked bitter opposition among trade unions, and was partly blamed for the 'No' vote in France's referendum on the EU constitution last year.
Bolkestein's successor, Charlie McCreevy, called the parliament vote 'a real advance, a step that no one would have believed possible just 12 months ago'. The European Commission, which tabled the legislation to boost jobs and competitiveness, said in a statement it would start work on a modified proposal based on the parliament vote.
