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Image header Agence Europe
Europe Daily Bulletin No. 7860
ANNEX /

The following points emerge from the Internal Market, Consumer Affairs and Tourism Council's open debate on 28 September 2000 and from Member States' contributions in writing:

Article 16 of the Treaty establishes the role of services of general economic interest in ensuring the European Union's social and territorial cohesion. Without prejudice to Articles 73, 86 and 87, it also recognises the important place occupied by services of general economic interest in the shared values underlying the European social model.

In Lisbon, in March 2000, the European Council adopted an overall economic and social strategy for the European Union, so as to ensure its smooth integration into the new economic age dawning with the rapid development of information technology, while keeping faith with the European social model. In our economies open to competition, services of general economic interest play an irreplaceable part in ensuring the overall competitiveness of the European economy, made attractive by the quality of its infrastructure, the high level of training of its workforce and the strengthening and development of networks throughout the territory, and in accompanying the changes under way by maintained social and territorial cohesion.

In that connection the new, revised Commission communication on services of general interest has been very well received, particularly as a result of the following points:

the scope of services of general economic interest should not remain fixed, but should reflect our rapidly changing economic, scientific and technological environment;

the contribution made by services of general economic interest to European competitiveness serves specific purposes: protection of consumer interests, user safety, social cohesion and regional planning, sustainable development;

the importance of the principles of neutrality, freedom and proportionality has been reaffirmed. These guarantee that Member States are free to determine the tasks and manner of operation of services of general economic interest, with the Commission bearing responsibility for ensuring compliance with the internal market and competition rules;

the tasks performed by services of general economic interest should be carried out in such a way as to meet the legitimate expectations of consumers and citizens looking for affordable prices in a transparent pricing system, and anxious for access on equal terms to quality services essential to their economic, territorial and social integration.

In addition, a number of concerns have been expressed:

Application of internal market and competition rules should allow services of general economic interest to perform their tasks under conditions of legal certainty and economic viability which ensure inter alia the principles of equal treatment, quality and continuity of such services. There is a need here especially for clarification of the relationship between methods of funding services of general economic interest and application of the rules on State aid. In particular, the compatibility of aid designed to offset the extra costs incurred in performing tasks of general economic interest should be recognised, in compliance with Article 86(2).

The contribution made by services of general economic interest to economic growth and social well-being fully warrants regular assessment of the way in which their tasks are being performed, particularly in terms of quality of service, accessibility, safety and fair and transparent pricing. Such assessment could be conducted under the Cardiff process, on the basis of contributions from Member States and reports by the Commission, exchange of good practice or peer review. Citizens and consumers could also be consulted via the "Forum on the internal market in the service of citizens and SMEs".

Discussions held in the context of Article 16 of the Treaty, stipulating that "the Community and the Member States, each within their respective powers and within the scope of application of this Treaty, shall take care that such services operate on the basis of principles and conditions which enable them to fulfil their missions", have shown the need for further consideration of these matters.

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ANNEX III