A new European Services Directive could "assist the realisation of the single market" by removing the legal and administrative barriers that prevent businesses from offering their services in another country.

It could add €33 billion (£22.6 billion) to the value of the services sector, according to Tina Sommer, European affairs chairman for the Federation of Small Businesses.

David Frost, director general of the British Chamber of Commerce, which represents UK business around the world, said the proposed directive would allow "Europe to grow and create more jobs".

"It will allow SMEs to trade freely across borders without imposing additional regulatory burdens on those that choose to trade only nationally," he told the smallbusiness website.

Miles Templeman, director general of the Institute of Directors, a non party-political business organisation, said that the directive would not adversely affect minimum rates of pay, working hours, paid holiday or maternity leave.

The European Parliament's first reading takes place tomorrow and the vote is on February 16th, reports smallbusiness.

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