Abstract We investigate, from an interdisciplinary perspective, the legal and economic consequences of the EU Services Directive, which was adopted in a revised version on 12 December 2006. Studies on the effect of its original version point to moderate macroeconomic effects. Compared with its initial version, the directive has undergone substantial changes, which have eliminated many core elements that would have triggered additional liberalization in services markets. As a result, the Services Directive has moved away from its economic motivation and is likely to miss its aim of completing the EU internal market for services.