EU ministers reach deal on opening up services

BRUSSELS, May 29 (Reuters) European Union ministers today agreed to open up the bloc's vast market to cross-border competition in services to boost economic growth.

EU ministers reached political agreement on the draft directive on services, the bloc's most controversial legislation in years.

It will make it easier for service firms to ply their trade, from hairdressing to plumbing and software design, anywhere in the 25-nation bloc.

The rules have been watered down by the member states and the European Parliament after strong protests from labour unions and ''old'' member states like France, who feared cheaper workers from ''new'' member states would undercut local workers.

Reuters VJ VP0125