A plan to open up Europe's services market will end up being radically altered, a senior EU lawmaker said on Tuesday, dismissing suggestions it would delay attempts to revive the European economy and fuel xenophobia. In March, EU leaders agreed the plan -- put forward by the European Commission -- should be reworked after it raised fears in France and Germany that services from lower wage member states in Eastern Europe would undercut those in Western Europe. French campaigners for a "No" vote against the planned European constitution in a May 29 referendum have seized on the proposed directive on services as an example of workers' benefits being undermined by European Union rules. The European parliament's internal market committee discussed a report by German Social Democrat member Evelyne Gebhardt on Tuesday that watered down the Commission's text, listing many services that should be outside its scope. Gebhardt, arguing for what she called fair and equal competition, said services such as sewage and refuse collection should be excluded, while others like like advertising, cleaning and IT should be included. --MORE 2324 Local Time 2024 GMT