Strasbourg, 27/09/2006 (Agence Europe) - On 27 September the European Parliament adopted (by a large majority) the own-initiative report by German Social-Democrat Bernhard Rapkay on services of general interest (SGI), more than two years after adoption in May 2004 of the European Commission's White Paper (EUROPE 8705). The text adopted in the plenary session is very close to that voted in the economic and financial affairs parliamentary committee (EUROPE 9264), with only three amendments being adopted out of the 35 submitted. The EP is calling on the Commission to “present the appropriate legal initiatives” to adopt according to the co-decision procedure, notably for “social and health services of general interest”. This formula, which does not outline the nature of the desired legal initiatives, allows the PES group to continue to exert pressure in favour of a framework directive and the EPP-ED group to prioritise the sectoral approach in this field. The majority of French socialists voted against the final resolution because they believe that the report is a retreat from the EP's previous resolutions. José Manuel Barroso announced on the eve of the vote that following approval of the Rapkay report, the Commission would adopt a “communication” by the end of 2006 and propose sector initiatives (EUROPE 9273).
In a press release at the end of the vote the socialist group declared, “the ball is in the court of the European Commission”. Ieke van den Burg added that “the European Commission is only able to sketch out the debate. A clear majority from our parliament wants it to take action. We welcome the commitment made yesterday on this subject by president Barroso”.
MEPs did not retain the amendment from the Greens/EFA or that from French socialists which explicitly called for a framework directive for the SGI. Before the vote, the French socialist, Gilles Savary explained to a number of journalists that this amendment in fact retained the wording of the Langens report of 2001 in favour of the elaboration of a framework directive setting out the “Community principles on which services of general interest are based”. He deplored the fact that today, “In the name of a sacred compromise” negotiated “en catimini by the broad coalition” in office in Germany, “one should not mention framework directives”. According to Savary, such a legislative act would allow for definition of “the subsidiarity exercise” and make the principle compatible with internal market rules.
In the final report, which is very close to that voted in committee in mid-September, MEPs point out that, “what is essential is not who provides the services of general interest but rather, making sure that standards for quality and a fair social balance are maintained, as well as the application of criteria based on reliability and continuity of supply”. In the context of services of general economic interest (SGEI), which are “subject to rules governing the internal market, public procurement, competition and sate aid, as well as being able to monitor abuse, the Commission is responsible”. MEPs are therefore calling on the “Commission to clarify the distinction between SGI and SGEI by elaborating operational criteria” while noting, “that a precise definition” of these two kinds of services “will go against the freedom of Member States to define their SGI”.
The report also calls on the Commission to clarify “two major questions: the consequences of the Court of Justice's jurisprudence on the basis of a sectoral approach and the application of competition law to SGI and SGEI, notably in connection with the funding of these services”. It underlines that “the need for sectoral rules in force or those to come based on internal market rules and respect for subsidiarity will not be threatened”. It importantly invites the Commission to submit a draft “sectoral directive” for “social services and health services of general interest”. In a press release, Roselyne Bachelot (EPP/ED, France) appeals for a “legislative initiative” in the social economy sector, which she believes, “clashes with the more significant legal uncertainties of today, in practical terms, the problem of actors on the ground”.
According to the EP, it will also be necessary to “respect the principle of local and regional autonomy, which will confer the competent authority with the right to choose how to provide each service better”. In this respect, in reference to several Court of Justice rulings that limit the freedom of territorial authorities to provide (or confer provision) of SGI outside internal market rules, MEPs are asking to “urgently guarantee more legal security for different forms of inter-municipal organisations (inter-municipal, public private partnerships, granting of franchises)”. Similarly to during the parliamentary committee vote, MEPs did not keep any amendments, this time submitted by several French socialists who wanted a definition of in-house management as in the case of the recent Council agreement on the draft regulation on passenger transport public services (EUROPE 9208).