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BackThe Commission announces a review of the state aid rules on public services in a new Communication. The text informs that the review would only concern so-called services of general economic interest. According to the Commission, the Member States had a broad margin of discretion as to which services it would cover; however, it mentions in the same breath that competition and trade should not be affected to such a degree that they would act against EU interests. Hence, the questions, which services should continue to be provided and financed by the public sector, remains wide open. Which consequences that might have for consumers and employees working in this sector is not mentioned.
The Commission informs in its Communication that it is the objective to create more clarity between economic and non-economic activities. Another aim is a more diversified and proportionate approach to the different types of public services. Rules for certain types of small-scale public services and for certain social services should be simplified.
Classifying a service as a service of general economic interest (SGEI) could mean that these services have to be put out for tender by the public sector. In 2004, the AK already informed in a study on liberalising public services in the EU and in Austria on significant deteriorations of working conditions and with regard to consumers, using several examples among others from the water, transport or the postal services sector.
The protestation of the Commission that the quality of the services was close to its heart is not new. However, the practice shows that the quality of many services after the liberalisation had not improved but deteriorated. The impact on employment relations are not at all mentioned in the Communication.
The intention according to the European Commission is to have the draft legislation prepared and published by the end of July. The revision of the so-called SGEI package should be complete by end of November 2011.
Link to the Communication of the Commission: State aid rules on Services of general economic interest
Classifying a service as a service of general economic interest (SGEI) could mean that these services have to be put out for tender by the public sector. In 2004, the AK already informed in a study on liberalising public services in the EU and in Austria on significant deteriorations of working conditions and with regard to consumers, using several examples among others from the water, transport or the postal services sector.
The protestation of the Commission that the quality of the services was close to its heart is not new. However, the practice shows that the quality of many services after the liberalisation had not improved but deteriorated. The impact on employment relations are not at all mentioned in the Communication.
The intention according to the European Commission is to have the draft legislation prepared and published by the end of July. The revision of the so-called SGEI package should be complete by end of November 2011.
Link to the Communication of the Commission: State aid rules on Services of general economic interest