ABSTRACT
The share of private and public services in Gross Domestic Product exceeds 50 per cent — as high as 70 per cent in some cases — and accounts for almost 60 per cent of total employment for the OECD as a whole. The continuous shift towards services is part of the revolution which is transforming the structure and functioning of mature economies. The continuous shift towards services is part of the revolution which is transforming the structure and functioning of mature economies. Service functions can be carried out within manufacturing firms or they can be contracted out to independent service firms. The promotion of producer service industries should include tax adjustments aimed at reducing any discrimination of services compared to manufacturing industry. The general policy proposals can only be made operational in taking into account the specific conditions and problems of service activities and countries in Europe.
