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European Parliament (EP) voted on Wednesday in Strasbourg of France to approve a directive of the European Union (EU), which makes it easier for services providers to do business in other EU countries, closing a chapter on one of the most hotly-disputed reforms within the EU in years.

The vote lifts the last major obstacle to a reform, which has for three years fueled an often heated debate about how much cross-border competition Europe should have in its vast service sector.

"The European Parliament has put an end to three-year debate on a directive that ... inflamed a lot of emotions in the EU," said EP President Josep Borrell.

Following Wednesday's vote, the directive still have to be formally approved by EU member states, which is expected before the end of the year. EU member states will then have three years to adopt the new rules into their national legislation.

The services sector generates at least half the EU's economic activity and 60 percent of its jobs, but it is still organized largely along national lines, unlike the market for goods, which is subject to fierce cross-border competition in Europe.

The European Commission has long argued that reform was necessary to boost competition, which would in turn fuel faster economic growth and more jobs.

"It is undeniable that the services directive is an essential element in our efforts to boost the European economy and unleash the potential of the internal market for services," Internal Market Commissioner Charlie McCreevy told the EP in a debate ahead of the vote.

McCreevy said the reform would provide "a real added value" to the internal market by cutting red tape, removing barriers and improving legal certainties for businesses ranging from estate agents to car rental companies and architects.

(Xinhua News Agency November 16, 2006)