Swedish Vaxholm case shows Socialists are living in the past

2.37.15pm BST (GMT +0100) Tue 25th Oct 2005

In a parliamentary debate today in Strasbourg on the subject of a Latvian company (Laval) that had won a tender for a building project in the Swedish town of Vaxholm, Graham Watson MEP, leader of the Alliance of Liberals and Democrats in the European Parliament sharply criticised the Socialist Group's attempt to link an issue of free movement of workers to an attack on the Swedish social model.

"It is therefore disappointing that those who insisted on Commissioner McCreevy and President Barroso coming here today seem more interested in stalling debate than furthering it. Such political manoeuvring aims not only at derailing the Services Directive (which is not the issue in this case) but at one of the fundamental pillars of the Treaty - the free movement of people. We cannot turn our backs on it when it suits us."

"It is not by turning inwards and embracing protectionism that we will overcome our sluggish economic growth and compete with emerging economic giants like China or India. The debate in Parliament today can be seen as part of the ideological battle for Europe's soul. We must decide if we are to be forward-looking or backward-looking. This choice lies at the heart of the discussions at the informal European Council meeting on Thursday in London."