News
BackThe discussions on new rules for services of public interest at EU level are once again in full swing. Only a few weeks ago, the Commission presented draft proposals for the state aid rules to services of general economic interest; this week, the Committee on Economic and Monetary Affairs of the European Parliament will vote on a resolution on this subject. The European Economic and Social Committee (EESC) devoted a separate conference to the issue. However, it is not yet clear what the final proposal of the European Commission will look like in the end; the intention is to publish it in February 2012. However, individual comments of the Commission give rise to concerns that the pursuit of profit will increasingly take priority over public services.
The comment of a Commission official at the conference of the European Economic and Social Committee concerning social housing can at best be described as cautious: one had to consider the so-called de minimis regulation, which provided for a € 150,000 limit for public services; beyond this, the Single Market was not allowed to be affected. However, with regard to the new proposals the Commission was only concerned with clarifications, such as the definition of “state activities” and “services of general economic interest”.
Member of European Parliament (MEP) Castex: the only services left to the public sector are the loss makers
Although the Social Democrat MEP Françoise Castex was basically positive about the draft proposals of the Commission, she strongly criticised the general attitude of the European Commission. The Single Market philosophy of the Commission would result in the fact that communities would only be left with those services, which were loss-making. In other words: public sectors will have to spend more as profits from public services are privatised and can no longer be offset against losses from other public services. Castex was also clear concerning social housing: this should remain within the competence of the Member States; decisions should be made by national authorities. Another approach could have negative consequences for both housing and urban planning.
EESC representative Raymond Hencks: the Single Market has already failed in the finance and property sector
EESC representative Raymond Hencks was far more critical. The Single Market had already failed in the finance and property sector. This mistake must not be allowed to continue in respect of social housing. One had to take into account that the Member States had different successful concepts for affordable housing; however, the Commission would only provide for one single approach. The right to decent housing must not be allowed to fall victim to the market, insists Hencks. The de minimis regulation too had to be far more generous, said the EWSA representative.
Liberalisation of public services via EU trade agreements with third countries?
There has been resistance against the pro-liberalisation Commission policy in respect of public services for many years. Social non-governmental organisations, labour representatives, as well as cities and communities are taking a stance against this approach adopted by the Commission. Experiences from the past show that the liberalisation on services of general interest entail disadvantages for consumers, employees and public sectors. The only beneficiary of this policy is the economic sector. In order to have its will in spite of the resistance of this broad alliance, the European Commission has been considering for some months to include public services in free trade agreements with third countries. Taking this route via international trade agreements would mean a further step towards the liberalisation of public services. The European Parliament is currently dealing with the issue of state aid rules for public services in an own-initiative report. At the beginning of this week, the Economics Committee voted on the draft report; it will be put to vote in plenary in November. However, the negotiations on the state aid rules for services of general economic interest promise to become even more suspenseful as soon as the European Commission will present its final proposals in February 2012.
AK EUROPA has already made critical comments on the liberalisation approaches of the European Commission in several position papers. Within the scope of a joint seminar of AK EUROPA, the European Federation of Public Service Unions (EPSU) and the Austrian Trade Union Federation the points of criticism of the labour organisations regarding the plan of the Commission to include public services in bilateral trade agreements will be presented in detail to representatives of the EU institutions in Brussels on 7 November.
Further information:
Information on the seminar on “Trading away Public Services?” on 7 November in Brussels
Position of AK on services of general interest in bilateral free trade agreements
Position of AK on the modernisation of EU public procurement policy
Member of European Parliament (MEP) Castex: the only services left to the public sector are the loss makers
Although the Social Democrat MEP Françoise Castex was basically positive about the draft proposals of the Commission, she strongly criticised the general attitude of the European Commission. The Single Market philosophy of the Commission would result in the fact that communities would only be left with those services, which were loss-making. In other words: public sectors will have to spend more as profits from public services are privatised and can no longer be offset against losses from other public services. Castex was also clear concerning social housing: this should remain within the competence of the Member States; decisions should be made by national authorities. Another approach could have negative consequences for both housing and urban planning.
EESC representative Raymond Hencks: the Single Market has already failed in the finance and property sector
EESC representative Raymond Hencks was far more critical. The Single Market had already failed in the finance and property sector. This mistake must not be allowed to continue in respect of social housing. One had to take into account that the Member States had different successful concepts for affordable housing; however, the Commission would only provide for one single approach. The right to decent housing must not be allowed to fall victim to the market, insists Hencks. The de minimis regulation too had to be far more generous, said the EWSA representative.
Liberalisation of public services via EU trade agreements with third countries?
There has been resistance against the pro-liberalisation Commission policy in respect of public services for many years. Social non-governmental organisations, labour representatives, as well as cities and communities are taking a stance against this approach adopted by the Commission. Experiences from the past show that the liberalisation on services of general interest entail disadvantages for consumers, employees and public sectors. The only beneficiary of this policy is the economic sector. In order to have its will in spite of the resistance of this broad alliance, the European Commission has been considering for some months to include public services in free trade agreements with third countries. Taking this route via international trade agreements would mean a further step towards the liberalisation of public services. The European Parliament is currently dealing with the issue of state aid rules for public services in an own-initiative report. At the beginning of this week, the Economics Committee voted on the draft report; it will be put to vote in plenary in November. However, the negotiations on the state aid rules for services of general economic interest promise to become even more suspenseful as soon as the European Commission will present its final proposals in February 2012.
AK EUROPA has already made critical comments on the liberalisation approaches of the European Commission in several position papers. Within the scope of a joint seminar of AK EUROPA, the European Federation of Public Service Unions (EPSU) and the Austrian Trade Union Federation the points of criticism of the labour organisations regarding the plan of the Commission to include public services in bilateral trade agreements will be presented in detail to representatives of the EU institutions in Brussels on 7 November.
Further information:
Information on the seminar on “Trading away Public Services?” on 7 November in Brussels
Position of AK on services of general interest in bilateral free trade agreements
Position of AK on the modernisation of EU public procurement policy