A draft European directive that would enable small and medium-sized businesses to sell services in other EU member states faces a key vote in the European Parliament this month with several UK business organisations urging MEPs to approve it.

The coalition of business support groups claims the draft Directive on Services in the Internal Market will make it easier to sell services in other member states, thereby boosting job creation, economic growth and consumer choice.

‘The Services Directive could take an axe to over 90 trade barriers and add €33 billion to the value of the services sector, which is dominated by SMEs,’ comments Tina Sommer, European Affairs Chairman for the FSB. ‘This directive is essential to the realisation of the single market; it is long overdue.’

‘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,’ explains Miles Templeman, Director General of the Institute of Directors. ‘MEPs should ignore the misleading propaganda about “social dumping”. This directive is about building a more prosperous European economy.’

‘The country of origin principle is key,’ claims David Frost, Director General of the British Chambers of Commerce. ‘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.’

The European Parliament’s First Reading debate takes place on 14 February and the vote is on 16 February.