Brussels, 10/05/2004 (Agence Europe) - On Wednesday, the European Commission will be publishing a White Paper on services of general interest (utilities) but is not planning any new legislation at this stage, despite calls for a framework directive from the European Parliament and representatives of local authorities. The Commission is expected to hold back on this issue until the Constitution comes into force since the draft Constitution as prepared by the European Convention (Article III-6) gives a legal basis for defining public services characteristic (access, funding and the like).
Meanwhile, the Commission will be sticking to its sector-by-sector approach and is planning to publish guidelines on requirements and means of funding public services with regard to network industries like post, telecoms, energy and transport. Water is not expected to be included in this list in the immediate future, but will be considered in a consultation exercise before the end of the year. The European Parliament opposed any liberalisation of water supplies when voting on the Herzog Report on utilities in January 2004 (see EUROPE of 15 January, p. 14) and the Miller Report in March 2004 (see EUROPE of 13 March, p. 11).
In a Communication planned for 2005, the Commission may decide to outline the policy it recommends with regard to social services and sanitation, an issue which is particularly sensitive in the light of the discussions at Council level about the services directive that plans to liberalise all services according to the principle of mutual recognition.
The White Paper will also confirm that before the end of the year, the Commission will unveil details of when state aid for utilities may be acceptable and when such aid will have to be notified. In February 2004, the Competition Commissioner, Mario Monti, has to abandon plans to directly publish a proposal, deciding to simply hold a consultation exercise on minimum thresholds applicable to requirements to notify public subsidies (see EUROPE of 18 February, p.11).