The European Parliament is set to ratify a directive passed yesterday to reduce the administrative burden on services companies operating across borders.

The Services Directive is designed to reduce beauracracy and red tape and is due to come into force in 2010 once rubber stamped by European Commission ministers next month.

Opponents to the legislation claim it will threaten local wages and jobs, while those in favour of the deregulation argue that it will foster competition and create more jobs across the region.