EU Leaders Compromise on Services Directive Amid Fears of "Social Dumping"

French President Jacques Chirac has expressed concerns about the proposed Services Directive, fearing it could lead to "social dumping" with jobs moving to cheaper labor markets in Eastern Europe. However, despite opposition from France, Germany, and other member states, the European Commission has agreed to revisit certain aspects of the proposal. The compromise text supports a complete opening of the market for services while protecting the European social model.

Key Takeaways:

The EU leaders compromised on the Services Directive, agreeing to revisit certain aspects to address concerns about "social dumping".
France, Germany, and other member states opposed the Directive due to fears of jobs moving to Eastern Europe.
The European Commission has agreed to preserve the European social model while promoting growth and employment.
President Chirac stressed the importance of protecting the European social model, fearing that the Directive could lead to social dumping.
President Barroso rejected suggestions that the proposal would be withdrawn completely, stating that the Commission reserves the right to withdraw any proposal if it becomes ineffective.
The Parliament is preparing for its first reading of the proposal, which will take place in June.
President Chirac downplayed the link between the Services Directive and the impending French referendum on the EU Constitution.
President Barroso stressed the importance of France voting "Yes" to the Constitution, stating that it is essential for France's influence in the EU.

Statistics:

75,000-strong demonstration took place in Brussels ahead of the Summit on March 20, organized by trade unions.
400+ member states are against the current Services Directive proposal, including France and Germany.
50% of MEPs in the Parliament are likely to support the Directive, including the EPP-ED and Liberal groups.
The Directive's opponents account for less than 50% of MEPs in the Parliament.