Brussels, 12/05/2004 (Agence Europe) - On Wednesday, the European Commission adopted a long-awaited White Paper on services of general interest. It confirms that it does not for now intend to present a framework directive establishing common principles for defining and financing public service missions. The question will not be settled until the Constitution takes effect, towards 2006 and after assessment of the impact that liberalisation will have on network industries. The Commission is, on the other hand, planning to clarify competition rules by July 2005 concerning public service financing, as well as rules for the attribution of public contracts. A communication announced for the year 2005 would specify the Community approach in the field of social and health services.
The Commission takes the some 300 responses to its Green Paper of May 2003 as a base for its White Paper. Despite contrasting views, there is consensus regarding the need to ensure the provision of quality and affordable services of general interest to all citizens and companies in the European Union, it says. There is convergence as far as the Community's "values and objectives" are concerned: - universal service, continuity, service quality, financial accessibility, user and consumer protection. These elements remain "essential" for social and territorial cohesion as well as EU competitiveness.
Very general in its statement of facts, the Commission remains also very cautious when it comes to consequences. It says it is not necessary to give the Community additional powers as far as services of general interest are concerned. It insists, rather, on respect of subsidiarity, stressing that it is essentially up to the competent authorities at national, regional and local level to define, organise, finance and control services of general interest. Nonetheless, it supports the article of the Constitution proposed by the European Convention (Article III-6), specifying that European law should define the economic and financial "principles and conditions" allowing for public service missions to be accomplished.
Noting that there is no consensus on how appropriate it is to have a framework directive on services of general interest, the Commission considers it is better not to present a proposal for now, but to review the issue at a later date and review the question once the constitutional treaty is in force.
The Commission, on the other hand, will continue its sectoral approach, which has hitherto prevailed. The need for adjusting legislation will be examined after the publication of reports on: application of universal service in electronic communication (before July 2005), the telecommunications package (by July 2006), postal services (end 2006), electricity and gas (January 2006), and television without borders (early 2005). As there is no agreement on liberalisation of the water sector, the Commission will simply make an assessment by "end 2004". As a majority are against the Community measures concerning media pluralism as things stand at the moment, the Commission considers it is up to Member States to protect this pluralism. An evaluation of the evolution of networks providing services of general interest is soon to be published.
The Commission intends to present "before the end of 2005" a report on the need for horizontal measures on: consumer interests, the follow-up and assessment of services of general interest, the application of rules on state aid and financial compensation, the use of structural funds for supporting services of general interest. From now on, the application of competition rules and state aid will be clarified by "July 2005" via: 1) decision exempting notification of aid of relatively limited amounts (namely "compensation paid to local general economic service providers") as well as aid for hospital and social housing; 2) Comity framework setting assessment criteria for compensation for services for higher amounts; 3) an amendment to directive 80/723 on "transparency of financial relations between Member States and public companies", which will outline that the directive applies to all forms of compensation (direct aid, special or exclusive rights, market operators' contributions, average tariffs, solidarity based finance). Transport is not affected; 4) clarification of conditions that amount to state aid, as well as the distinction between economic and non-economic services.
In order to fine-tune the legislation on public procurement, the Commission is planning to present "before the end of 2004" proposals on public-private partnerships. These proposals will be based on consultation recently launched on the subject (EUROPE 5 May p 9).
In the area of health care and social services a communication will be presented in 2005. It will draw up the balance sheet of Community policies that have a link with provision of social services, health and services of general interest and will lay down the organisation and how the social and health services will work in Member States. The communication is also expected to present an assessment mechanism for long term health care up via the "open method of coordination.