Gary McGann, the president of employers group IBEC, has said the organisation is disappointed to see how the services directive has been misrepresented by some EU member states.
Mr McGann said there were unfounded fears that the legislation would undermine social systems.
Speaking at IBEC's biennial lunch in Dublin, he said the employers group fully supported the new constitution. But he said Ireland needed to maintain its independence on tax issues.
At today's event, the EU Commissioner for Internal Markets, Charlie McCreevy, said a recent study carried out in Denmark said the introduction of the services directive would create 600,000 jobs.
But Mr McCreevy said it had become clear to him that there are aspects of the current text which are giving rise to serious concerns.
He said it was up to the European Parliament to make its own decisions on any amendment it wished to bring forward on the matter.
