SAK pleased with service directive

Helsinki (18.11.2006 - Juhani Artto) SAK regards the context of the service directive, approved by the European Parliament, as something good. SAK's chief legal counsel Jorma Rusanen says. "The new directive will facilitate the free movement of services which can be useful also for Finnish service sector companies and employees."

"Foreign service providers have already now relatively free and non-discriminatory entrance to Finland, but Finns do not necessarily have similar possibilities in all other EU Member States", Rusanen says.

Especially in the old Member States, in Central Europe, many barriers to competition and service provision remain. Now, the Member States will have to re-examine their national permit systems, make reports on them and annul any discriminatory aspects.

According to Rusanen the directive's application range is rather broad. The directive will cover Central service industries. At this stage, an exemption will allow a few nationally sensitive services to remain outside the ruling such as general interest services, health care, security, transport, bank and insurance services and gaming. Rusanen emphasises the importance of the exclusion, at this stage. He proposes that the European Commission make moves to prepare a separate framework directive on general interest services.

Rusanen was critical of the Commission's original draft for the service directive. "It would have promoted grey economy and social dumping. It would have weakened host countries' possibilities to control that the working conditions of the host country are applied to posted employees and agency labour."