EU Directive on Services

Part of the debate – in the House of Lords at 11:08 am on 21 July 2005.

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Photo of Lord Triesman Lord Triesman Parliamentary Under-Secretary, Foreign & Commonwealth Office, Parliamentary Under-Secretary (Foreign and Commonwealth Office) 11:08, 21 July 2005

My Lords, I agree with my noble friend. The negotiations on the scope of the directive as regards who will be covered by it and who will not are not yet resolved; they are ongoing. That should comfort those who may be fearful regarding particular services. However, the overall benefits are accurately stated: benefits to all states; value added of about 1.1 per cent to some €33 billion; and productivity gains without question. In addition, real wages in the EU would rise by nearly half a per cent while the return on capital would increase by 1.1 per cent. Were we able to achieve those kinds of liberalisation, the quality of the economies of Europe, not all of which are in great shape, would unquestionably improve.