EU fails to agree on full liberalization of services

Wednesday saw the conclusion of a European Union summit in Brussels focused on the Lisbon Agenda, which is aimed at making Europe's economy more competitive. The main issues on the table were the liberalisation of services and changes to the stability pact.

Prime Minister Stanislav Gross in Brussels, photo: CTK

One of the most discussed issues was the so-called "Bolkenstein Directive" regarding the free movement of services. It initially planed full liberalization of services, but countries like Germany and France were afraid of the influx of cheap services from the new EU countries and refused the original version of the reform. The Czech Republic was on the contrary in favour of the liberalization. As the Prime Minister Stanislav Gross says, he hopes that not only services but also the movement of labour will be fully free in the future.

"For us it is important that the free zone in Europe will not only include the free movement of capital and goods, but also the free movement of services and workers as well. This is our position. That was our position when we joined the EU, and that is the kind of EU we want in the future."

Mr Gross says other European Union countries share his views.

"Great Britain's government, for instance, is also very much in favour of liberalisation in this field. Britain did not introduce a transition period for the free movement of labour, and its experience has been positive. We were told at the yesterday's dinner that the UK does not regret this step, and that not having a transition period hasn't caused them any problems."

Czech Foreign Minister Cyril Svoboda (on the right), photo: CTK

But economic issues were not the only thing on the agenda at this EU summit. Czech Foreign Minister Cyril Svoboda told me he and his colleagues had discussed the Union's foreign policy - such as the postponement of accession talks with Croatia.

"The decision of the European Council is that Croatia is welcome to start the negotiations, but there is one precondition: the full cooperation with the International Criminal Court for former Yugoslavia. We decided today to set up a task force - Javier Solana, the European Commission, Austria and the United Kingdom - just to make an assessment for the European Council to be better informed before taking the so-called final decision."

Mr Svoboda said another issue discussed in Brussels was Kofi Annan's proposal to radically overhaul the United Nations, adding that his main concern was that the UN Security Council should be more effective.