A proposed EU directive that would let European health companies run clinics in Britain outside national regulatory controls threatens the safety of patients, the Royal College of Nursing said last night.

It voiced its concern about plans to allow EU service companies to trade in any member state if they meet the safety and quality standards in their home country. The general secretary, Beverly Malone, said: "There's a real danger that there could be a race to the bottom in terms of standards, with unscrupulous companies setting up in countries with the least rigorous regulation in order to then maximise profits elsewhere."

But the EU directive is supported by the DTI because it will give thousands of British companies a better chance of competing in Europe.

The RCN will hold talks with DTI officials tomorrow to impress upon them that the safety of healthcare is more important than free trade.

It fears an influx of poorly regulated providers from new EU member states, which would be free to set up care homes, cosmetic surgery units, therapy clinics and treatment centres.

The DTI has accepted that hospitals should remain under British quality controls, but it has not recognised the need to extend this to other elements of healthcare.

The Department of Health said: "We welcome the service directive as a very important proposal. But, along with many other member states, we think public healthcare should be removed from the directive.

"The NHS will only use independent sector providers which meet NHS standards."