European professional bodies and governments were this week told to work together and review all professional rules against competition principles and abolish those that fail the test - or face action from the European Commission.

Addressing a high-level commission conference in Brussels on the regulation of professional services, EU competition commissioner Mario Monti also highlighted his support for multi-disciplinary partnerships (MDPs).

Setting out the commission's stall to liberalise professional regulation where possible, Mr Monti said he did not intend to move slowly.

The commission will issue a report in early 2004 that will set out the standards it expects professional bodies and governments to consider.

He noted the ruling of the European Court of Justice in Wouters last year - which upheld the Dutch Bar's ban on MDPs - in which the court said anti-competitive restrictions have to be objectively justified as being in the public interest.

Mr Monti said the commission was mainly in an 'advocacy' stage, but it is thought that it is prepared to take enforcement action where necessary.

He stressed that the Wouters case did not prohibit MDPs.

Support for MDPs came from a variety of sources, including City practice Clifford Chance.

The firm said different rules on MDPs across the EU cause 'significant obstacles'.

The English ban on MDPs inhibits the firm from co-operating with other professionals in countries such as Germany where limited forms of MDPs are allowed.

Helge Kolrud, president of the Council of Bars and Law Societies of the European Union, criticised the commission for acting 'as if economic criteria are the only ones to be applied to the professions.

This is simply not true of the justice sector'.

Several leading English law firms attended the conference, including Allen & Overy, Clifford Chance, Herbert Smith, Lovells, Simmons & Simmons and Wragge & Co.

The Department for Constitutional Affairs also sent a delegation.

By Neil Rose in Brussels