Business groups called yesterday for MEPs to reject an amendment aimed at diluting a key piece of law intended to promote cross-border trade.
A services directive, intended to help cross-border trade, includes the country-of-origin principle, by which a business providing services would be subject only to the law of its home country while operating in any of the European Union’s 25 member states.
Unions have said that this would let non-British EU companies ignore UK laws on safety and minimum wages laws when operating in Britain. After an outcry by Amicus and other unions, a coalition of groups on the Left and the Centre Right in the European Parliament has tabled an amendment proposing the dilution of the principle.
A debate will be held today before a vote on Thursday.
Business groups, including the Institute of Directors (IoD), urged MEPs to reject the amendment, calling it a hurdle to moving the EU economy into the 21st century. Miles Templeman, director-general of the IoD, said: “A directive without the country-of-origin principle will leave businesses barely any better off than they are now.”