Paper analyses the freedom to provide services, recent judicial practice and trends of developing since "Bolkenstein directive" until today. Directive was suggested with purpose of eliminating obstacles in services area. It provoked controversies not only in EU member states but also in wider public. Previously to second reading of Directive on Services (July 2006) two year work proceded since the Committee published the draft of the Directive. Changes proposal is a balance between liberalization of services and preservation of "European social model". Directive determines general legal frame in which measures of harmonization are used, along with administrative cooperatiopn and development of treatment codex in certain areas. Most important novelty brought by the Directive is changed principle of "country of origin" in "freedom to provide service".