European Commission President Jose Manuel Barroso has said he believes the Austrian government, which took over the EU presidency on Sunday, can achieve a deal on the bloc's plan to open its market in cross-border services.
The European Parliament is expected to vote on the bill in February.
The commission will probably amend its proposal, which drew fierce controversy last year after the parliament's first reading, Mr Barroso told Austrian weekly news magazine Profil.
"After the first reading in the European Parliament, we will presumably amend our proposal," Mr Barroso said.
"Therefore I believe a political agreement is at least not ruled out under Austria's EU presidency."
Austrian chancellor Wolfgang Schuessel, holding the 25-nation bloc's chair for the next six months, has told the Commission to redraft its proposal for the bill, saying it must not promote "social dumping", or local workers being undercut by cheaper workers from other member states.
Schuessel, who faces elections this year as polls show voters fearful of losing jobs to eastern neighbours, reiterated his call on the Commission to draft a fresh bill.
"The old one is so fervently criticised from all sides that it is de facto blocked," he said in an interview with the International Herald Tribune.
Mr Barroso said one of the Austrian government's key tasks would be advancing the Commission's aim to make the EU the world's most competitive economy by 2010.
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