German govt's latest idea to stem perceived threat from EU Services Directive

Although the German labor market will probably remain closed to Polish employees until 2011, the EU guarantees companies the freedom of provision of services, which many Polish businesses are taking advantage of in Germany. Gerhard Schroeder's government now wants to force them to pay higher wages, thus undercutting their competitiveness. The Christian-Democratic opposition and the German business community are critical of the idea, saying that it would increase the outflow of jobs abroad, particularly from the Eastern part of Germany. (Gazeta Wyborcza, p. 34) T.J.