BAK President Renate Anderl opened the evening by outlining the central role of public services in society. Vera Weghmann, Head of the Public Services International Research Unit (PSIRU) at the University of Greenwich, then presented policy options for shaping public services in the interests of all. Jan Willem Goudriaan, General Secretary of the European Federation of Public Service Unions (EPSU), followed with the employees’ perspective. The subsequent discussion focused on how EU policy can strengthen public services, support cities and local authorities, and secure good working conditions and high-quality services. Iris Strutzmann (AK Vienna) moderated the evening.

Public services ensure security of supply, social stability and inclusion

In her opening speech, Renate Anderl emphasised that everyone makes use of public services on a daily basis. This applies, for example, to the supply of water, energy and transport, the health and education sectors, as well as housing and digital infrastructure. Effective public services safeguard reliable provision, social stability and inclusion. They also create employment: 43 per cent of workers in Austria are employed in public services, and an AK study estimates that their climate-friendly expansion could generate a significant number of additional jobs by 2030.

However, privatisation and liberalisation in recent years have led to a deterioration in both service provision and working conditions. It is therefore of crucial importance that local authorities continue to have the option of in-house contracting. To this end, in mid-June, AK together with trade unions, the Association of Austrian Cities and Towns and other stakeholders in Austria and abroad, sent a joint statement to the EU Commission. In conclusion, Anderl set out two specific demands. Firstly, the supply of drinking water must always take priority over its industrial use, and the liberalisation of water supply must be prevented. Secondly, as regards to the housing sector, limited-profit and social housing should be exempt from EU state aid rules.

Public ownership as the key to socio-ecological transformation

For Vera Weghmann, how public services are organised is one of the most important political issues of our time. This is because high-quality and environmentally sustainable public services are essential for a functioning democratic in the future. However, in recent years there has been increasing privatisation and financialisation of public services. The issue of ownership is key here. According to Weghmann, whilst public owners can invest in infrastructure, ensure service provision and plan for the long term, many financial investors focus on short-term returns and exit strategies.

Public ownership is particularly important in areas where infrastructure and public services are needed for social and environmental transition. It helps pursue social goals despite short-term economic pressures, expands democratic decision-making and strengthens trust. At the same time, the provision of public services in Europe must not be at the expense of other regions but must ensure global responsibility and fair working conditions throughout the supply chains. Major challenges can only be overcome through greater public involvement, democracy and solidarity.

A European investment strategy for Services of General Interest

In the final speech before the discussion, Jan Willem Goudriaan once again emphasised the vital importance of public services for economic development and social cohesion. However, at present, public services are facing considerable challenges. These include staff shortages, wage restraint, increasing work intensity and inadequate funding for public services. The COVID-19 pandemic made clear the consequences of cuts in this area.

To address these challenges, he called for a new European investment strategy for public services. At the same time, European fiscal rules should be reformed to better protect public investment over the long term. To finance such an investment drive, Goudriaan called for a fairer distribution of the tax burden and a more rigorous fight against tax evasion. This would be the only way to ensure the long-term funding and strengthening of public services. He also emphasised that trade unions needed to be more closely involved in political decision-making processes in order to represent workers’ interests effectively.

Further links

AK EUROPA: Affordable housing in Europe. EU is focusing on cooperation and joint solutions
AK EUROPA: Sustainable economic policy and social security as the basis for the EU´s competitiveness
AK EUROPA: Revision of the EU procurement directives. Social and environmental criteria must be given greater consideration
AK EUROPA: Water resilience in Europe. Putting people and planet first
AK EUROPA: Shifting mobility to rail. Lessons from rail liberalisation and a new direction for people and planet
AK Wien: Forderungen für eine starke Daseinsvorsorge (German only)
A&W-Blog: Daseinsvorsorge: Europas unterschätzter Schlüssel für Wettbewerbsfähigkeit und Demokratie (German only)
A&W-Blog: Daseinsvorsorge in Europa stärken, um sicher durch die Krise zu kommen (German only)