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Europe Daily Bulletin No. 10236
Contents Publication in full By article 23 / 31
GENERAL NEWS / (eu) eu/social services

Commission defends its views on social housing

Brussels, 14/10/2010 (Agence Europe) - During a hearing of the finance committee of the Dutch parliament on the “Dutch case”, Alexander Italianer, Director General of the European Commission DG Competition, argued in favour of the view that social housing is a social public service that must be defined taking disadvantaged groups directly into account. He called for the effective application of the Commission's decision of 15 December 2009.

The decision in question, which took effect on 1 January 2010, provided for reform of the universal notion of social housing by bringing in a single income ceiling of €33,000 for eligibility to social housing, the social services of general interest (SSGI) group points out. Other than the question of the Commission's authority to impose such a decision on a member state, all players heard by the Dutch finance committee - namely local authorities, tenants, social landlords, university experts, etc. - were unanimous about the question of placing a cap on income. The single €33,000 ceiling cannot be applied as local housing markets operate at present. The reason for this is that it will penalise middle income households (33,000 to 40,000) in regions where there is pressure on property markets where only social housing is accessible these earners.

The new cabinet under Mark Rutte of the Netherlands has made it known that it plans to apply this reform in the housing market structure, albeit gradually.

According to leaks from the hearing behind closed doors, the Commission will not go back on its decision unless an obvious error has been made on its part, or if new Dutch government proposals call for another decision, said Alexander Italianer. In the meantime, the December 2009 decision will be applied.

Further to this hearing, held just a few days before the 3rd forum on SSGI, all actors should call for talks to be reopened with the Commission on the basis of new, more relevant criteria for access to social housing.

In a memo on the development of social housing, Laurent Ghekière (SSGI) underlines that the European debate on the meaning of social housing, namely the nature of specific missions assigned to social housing bodies by member states, was put to a panel of ECJ judges (Case T-202-10). The verdict of the General Court of the EU on the mission of social housing as a service of general interest is expected during 2012. Whatever the result, it should become case law for all SSGI.

Belgian presidency of EU Council of Ministers: 3rd SSGI forum. Those taking part in the 3rd forum of social services of general interest, to be held in Brussels on 26 and 27 October, will have to answer two key questions: How can recognition of the specific nature of social services be ensured at European level? What quality criteria can there be on a European scale?

The place of social services within the European legal environment will be discussed in the light of state aid, questions of free establishment and the free provision of services, and public market regulations. Difficulties of the law and its application, and solutions taking into account the impact of the new Lisbon Treaty will be challenges facing the 3rd SSGI forum, the Belgian presidency states.

Furthermore, the forum will also tackle questions of how to deal with the theme of quality within social services at European level, and that of how to make a quality framework possible, and what the content and structure of this would be. The presidency indicates that the Commission will at that time publish its bi-annual report on social services. Information: http://www.eutrio.be (G.B./transl.jl)

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