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The former finance minister was uncharacteristically silent as the initial commission put forward by its new president Jose Manuel Barroso was rejected following a scandal involving remarks made by Rocco Buttiglione, the proposed justice commissioner from Italy. McCreevy also kept his head down when a second row erupted, this time surrounding sleaze allegations against the French nominee.
There were no such problems with McCreevy’s own nomination. “Champagne Charlie” sailed through his European parliament hearing, leaving MEPs laughing in the aisles and winning plaudits from media outlets that had no previous experience of the Kildare man’s unique sense of humour.
The awarding of the influential internal market portfolio to McCreevy was seen as a victory for free-market economics over protectionist policies put forward by France and Germany, the eurozone’s economic powerhouses. Both Berlin and Paris had coveted the post, which oversees the functioning of the EU’s internal market where goods, people, capital and services are supposed to move effortlessly across borders in the enlarged 25-nation bloc.
Though the tax powers and surveillance of the free movement of goods were hived off to other commissioners, it remains a meaty portfolio covering everything from liberalising financial markets to beating states that fail to implement EU legislation with a big stick. But what are McCreevy’s chances of success in pushing through his agenda?
THE immediate challenges will test the resolve of the former accountant who is used to springing surprises such as decentralisation on unsuspecting colleagues and taking on his critics, most of whom seem to fall into the “left-wing pinkos” category.
“He may be tempted to railroad things through as he did in the Dail,” said Proinsias de Rossa, a Labour MEP. “But if he brings that attitude with him to the European parliament, he’s going to come a cropper.”
McCreevy, 55, has the sole right of initiative in drafting legislative proposals but must get agreement from EU governments and the European parliament before his plans can become law.
He won’t have much time to settle in either. There is one proposal waiting in his in-tray that is causing huge division across Europe, a plan to liberalise services across sectors including retail, travel agencies, advertising, employment agencies, healthcare services, doctors, lawyers and tax advisers.
“It’s a very difficult and controversial piece of legislation, arguably the biggest liberalisation bill since the beginning of the single market,” said Alasdair Murray from the Centre for European Reform, a London-based think tank.
The services covered in the proposal represent 50% of the European economy. The commission says red tape is killing cross-border trade and it is armed with a Dutch study, which forecasts that implementing the plan could increase commerce by up to 35%.
Given the stagnant state of the mainland European economy this single piece of legislation could prove the vital catalyst for growth. It could also cement McCreevy’s reputation in Europe in the same way that he made an indelible mark on Ireland’s finances.
The proposal applies the so-called country of origin principle to services. This means that so long as a company complies with the rules operating in its home state, it can sell services across the 25-nation bloc rather than having to comply with 25 sets of national rules.
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