European Union member states last night agreed to back a controversial proposal aimed at opening up the region's services market, drawing the line under one of the most divisive pieces of recent European legislation.

The compromise came after a last-ditch attempt by governments from central and eastern Europe to secure better access for their workers and service companies to the richer member states in western Europe. Their stance - supported by the Netherlands and Luxembourg - at one point threatened to reopen the rift between old and new EU countries, but ultimately resulted only in cosmetic changes to the draft law.