Although MEPs approved the wider EU Services Directive, which opens up the services sector to cross-border competition, the so-called country-of-origin principle was a major point of contention, with security and fire association Euralarm advocating its withdrawl on the grounds that it could lead to a drop in standards in many countries.
Part of the Euralarm campaign, the British Security Industry Association’s chief executive David Dickinson welcomed the decision. He told Platform: “In a sophisticated market such as the UK, where self-regulation and the willingness of various sectors – especially CCTV and other electronic security providers – to subscribe to the highest standards, has been a feature for many years, the dangers of allowing this approach were clear for all to see.”
He added: “We could not contemplate untested, unlicensed and sub-standard goods and services being foisted upon UK customers by those who would seek to locate their businesses in whichever EU state offered the lowest standards of quality or control.”
But the IT industry expressed “real disappointment” at the ruling. Mark MacGann, director-general of EICTA, the European Information & Communications Technology Industry Association, said: “Without the country-of-origin principle it isn’t very attractive for companies to set up in other countries.” He went on to suggest that watering down the directive would prevent the EU developing a competitive IT services industry.