Brussels, 18/10/2012 (Agence Europe) - In response to an accusation by Marc Tarabella (S&D, Belgium), who is European Parliament rapporteur on review of European public procurement directives, the European Commission denied, on Thursday 18 October, that it was working with a view to opening up mandatory social security services to competition. It considers Tarabella's assertion to be mistaken and highly regrettable, resulting from an inexact reading of the legislative proposal concerned.
In a press release, Internal Market Commissioner Michel Barnier takes up by saying the package “in no way questions the national organisation of social security services and in no way compels States or communities to outsource missions within their scope of competence. The scope does not change in relation to the current situation” (our translation throughout).
The Commission states that making it an obligation for a State to privatise its social welfare system would run counter to the Treaty and to case law, as Tarabella himself writes. It goes on to add that public procurement rules apply only in so far as a State or a community takes it own decision to outsource part of its competences under a public contract.
Annex 16. The EP rapporteur bases his argument on Annex 16 of the legislative proposal. He speaks of his surprise at discovering Annex 16. The Commission, he points out, explains in that annex that compulsory social security should each year be the subject of a contract notice after which the public authorities would chose the best candidate. In other words, he says, any private operator could potentially obtain a contract relating to social security. That, he explained, is not only unacceptable but also illegal. The Commission, however, considers that reference to Annex 16 does not change rule of law on the matter - all services are listed as priority services or not priority services, and social security belongs to the second category. It goes on to add that, whether in the context of the current directives or the legislative proposal, the reference in the annexes to social security services is only relevant in so far as a member state wishes to outsource its social security to an economic operator under a public contract. The scenario is possible but highly unlikely, it states.
In order to dispel all misunderstanding on the matter, the Council has drafted an amendment to the text of the proposal stipulating that a service - of whatever nature - is only covered by the proposal in that a member state has opted for a benefit based on a public procurement contract. (MB/transl.jl)