SERVICES DIRECTIVE: EPP-SOCIALIST COMPROMISE SET TO PASS IN PLENARY VOTE.

Handsome majority?

At group meetings on February 14, most Socialist and EPP-ED Members backed the compromise thrashed. In the EPP (264 MEPs), deputies from the new member states were very critical of it, however, complaining they were excluded from the final cross-party negotiations. Members from Nordic states were unhappy about parts of the deal too. The EPP look likely to win a battle over a key clause in Article 16 - the former country-of-origin principle, now called 'freedom to provide services'. Member states will not be allowed restrict service providers from other member states on "social policy or consumer protection" grounds as the Socialists had been demanding, EP sources say.

Within the Socialist group (200 MEPs), the 31-strong French delegation is likely to reject the compromise, especially if the aforementioned "social policy" clause is scrapped. It may be joined by the Belgian and Greek deputies, inside sources say. The French would prefer this Directive to be preceded by one on services of general interest. Moreover, the 'Bolkestein' Directive, as it has become known, is deeply unpopular in France so backing it in any form would be politically dangerous for them.

As for the Liberals and Democrats (ALDE, 90 MEPs), the French and Italian delegations are willing to back the compromise, but the Germans may vote against, sources say. The group is generally unhappy about the wide discretion that the new text gives to member states to restrict service providers from other member states. In the plenary debate on February 14, group leader Graham Watson (United Kingdom) lambasted the Commission for not defending its original proposal, although sources say ALDE group members were surprised by the ferocity of his criticism.

Meanwhile, the left-wing GUE-NGL group (41 MEPs) and Greens (42 MEPs) remain opposed to the compromise. GUE leader Francis Wurtz (France) said on February 15 it would be worse than the status quo because it would enshrine in a Directive, Internal...