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BackMany local authorities within the European Union award services of general interest such as the maintenance of road infrastructure, health services or refuse collection to third parties. Which rules shall apply to the so-called service concessions has now been defined by the European Commission in the European Parliament. However, giving their initial reaction, several MEPs voiced their concern that the proposal was now so complex, that many - in particular smaller - communities would find it difficult to cope with tendering these services. Apart from that, the Commission proposal would not make it clear whether social services would also fall within this scope criticised the EU representatives.
As Joanna Szychowska, Head of Unit at the European Commission, DG Internal Market and Services, pointed out right at the start, it was the objective of the proposal, to make tendering simpler and to create more legal certainty. The idea of the Commission was by no means to privatise public services or to oblige the public sector to tender concessions, tried the official to reassure the MEPs.
None of the political parties was able to master much enthusiasm for the Commission proposal. In general, the competent rapporteur Philippe Juvin of the European People’s Party is adopting a positive attitude towards a new Directive on the Award of Concession Contracts: the efficient use of public funds was to be welcomed; Public Private Partnerships could provide a solution, in particular in times of strained public budgets. Any improvement of legal certainty would also be desirable. However, Juvin finds the text very complicated; the provisions had to be made much better to understand. Although, due to the complexity, the rapporteur pledges sufficient time, he nevertheless would like to achieve rapid agreement based on a tight schedule.
The competent Group Spokesman of the Socialists & Democrats, Pier Antonio Panzeri, criticised the lack of social and qualitative award criteria. Apart from that, adequate discretionary powers had to be provided for local authorities and the communities. The new proposal was to improve services, not making them worse, was Panzeri’s critical comment on the Commission text. His party colleagues Barbara Weiler and Evelyne Gebhardt added that it was not quite clear whether social services should also be covered by the Directive on the Award of Concession Contracts. Furthermore, at EUR 5 million, the threshold value for these services had been set significantly too low. Unfortunately, no lessons had been learned from the decisions by the European Court of Justice. The text had become unbelievably complicated, said Gebhardt, and would certainly not create legal certainty.
The Green MEP Heide Rühle does not understand the reason for a new proposal on the Directive on the Award of Concession Contracts. A possible reason would be market failure or a distortion of competition. However, this is exactly what Rühle does not detect. Similar comments were made by the European Left Cornelis de Jong and Andreas Schwab of the European People’s Party. According to Schwab, an impact assessment should provide arguments in favour of reviewing the Directive. However, this was not the case; hence the basis for the new text was insufficient.
Following the critical comments of the EU representatives, the EU official’s reaction was defensive: the texts were drafted as comprehensible as possible; however, the subject was very complex. Social services were not affected by the Directive, said Szychowska. However, she regards the threshold value of EUR 5 Million as being set at the right level.
In view of the scepticism of so many MEPs it remains to be seen whether the Commission will succeed in pushing the proposal through. A hearing on the service concessions has been planned for March 2012. According to the current time schedule, the Committee will vote on the Parliamentary report in October; the vote in the plenum has been scheduled for December 2012.
None of the political parties was able to master much enthusiasm for the Commission proposal. In general, the competent rapporteur Philippe Juvin of the European People’s Party is adopting a positive attitude towards a new Directive on the Award of Concession Contracts: the efficient use of public funds was to be welcomed; Public Private Partnerships could provide a solution, in particular in times of strained public budgets. Any improvement of legal certainty would also be desirable. However, Juvin finds the text very complicated; the provisions had to be made much better to understand. Although, due to the complexity, the rapporteur pledges sufficient time, he nevertheless would like to achieve rapid agreement based on a tight schedule.
The competent Group Spokesman of the Socialists & Democrats, Pier Antonio Panzeri, criticised the lack of social and qualitative award criteria. Apart from that, adequate discretionary powers had to be provided for local authorities and the communities. The new proposal was to improve services, not making them worse, was Panzeri’s critical comment on the Commission text. His party colleagues Barbara Weiler and Evelyne Gebhardt added that it was not quite clear whether social services should also be covered by the Directive on the Award of Concession Contracts. Furthermore, at EUR 5 million, the threshold value for these services had been set significantly too low. Unfortunately, no lessons had been learned from the decisions by the European Court of Justice. The text had become unbelievably complicated, said Gebhardt, and would certainly not create legal certainty.
The Green MEP Heide Rühle does not understand the reason for a new proposal on the Directive on the Award of Concession Contracts. A possible reason would be market failure or a distortion of competition. However, this is exactly what Rühle does not detect. Similar comments were made by the European Left Cornelis de Jong and Andreas Schwab of the European People’s Party. According to Schwab, an impact assessment should provide arguments in favour of reviewing the Directive. However, this was not the case; hence the basis for the new text was insufficient.
Following the critical comments of the EU representatives, the EU official’s reaction was defensive: the texts were drafted as comprehensible as possible; however, the subject was very complex. Social services were not affected by the Directive, said Szychowska. However, she regards the threshold value of EUR 5 Million as being set at the right level.
In view of the scepticism of so many MEPs it remains to be seen whether the Commission will succeed in pushing the proposal through. A hearing on the service concessions has been planned for March 2012. According to the current time schedule, the Committee will vote on the Parliamentary report in October; the vote in the plenum has been scheduled for December 2012.