The article is devoted to possibilities for elimination the existing barriers which hamper the successful development of the Latvian service sector within the European Union. As a mean for making business environment more favourable for service providers is considered the proposal for a Directive of the European Parliament and of the Council on services in the internal market. Personally taking part in the elaboration process of the directive’s text, the authors had a unique possibility to thoroughly investigate the influence of separate directive’s elements on the current situation in the Latvian service field and the position of other European Union’s member states towards the directives elements. On the basis of the expected value criteria, as well as taking into account the performed analysis, there is proposed a Latvian state strategy and an action tactics in order to support the national interests of the service sector in the market of the European Union.