Financial Times FT.com

Schroder's U-turn on services dismays business

By Bertrand Benoit in Berlin and Tobias Buck in Brussels

Published: February 5 2005 02:00 | Last updated: February 5 2005 02:00

Germany has joined France in asking the European Commission to rethink ambitious plans to open the services sector to cross-border competition.

The move is a surprising U-turn for Gerhard Schröder, the German chancellor and hitherto a vocal supporter for the liberalisation of the Europe Union's services sector. It could scupper hopes of member states reaching an agreement on the legislation this year.

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