Small Business Groups urge MEPs to dismiss 'propaganda' on Services Directive

2 February 2006

A coalition of UK business organisations today called on MEPs to boost Europe's small and medium-sized businesses in a crunch European Parliament vote later this month.

In the latest edition of the Brussels-based newspaper, European Voice, the group point out that the draft Directive on Services in the Internal Market will make it easier for SMEs to sell their services in other member states, thereby boosting job creation, economic growth and consumer choice.

The Federation of Small Businesses (FSB), Institute of Directors (IoD) and British Chambers of Commerce (BCC) made their plea ahead of the European Parliament's First Reading debate on 14 February and vote on

16 February. The group said they were keen to counter misleading propaganda surrounding the Directive with the facts.

Tina Sommer, European Affairs Chairman for the FSB, commented:

"The Services Directive could take an axe to over 90 trade barriers and add 33 billion Euro to the value of the services sector, which is dominated by SMEs. This directive is essential to the realisation of the single market; it is long overdue."

Miles Templeman, Director General of the IoD said:

"Contrary to what some lobbyists have claimed, this Directive does not affect national-level employment rights such as minimum rates  of pay, working hours, paid holiday or maternity pay. MEPs should ignore the misleading propaganda about 'social dumping'. This Directive is about building a more prosperous European economy."

David Frost, Director General of the BCC, added:

"The country of origin principle is key. It will allow SMEs to trade freely across borders without imposing additional regulatory burdens on those that choose to trade only nationally. The EU and its institutions say they want Europe to grow and create more jobs. This proposal will help do just that."