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26th April, 2006

Commission addresses specificities of social services

IP/06/529

Brussels, 26th April 2006

Commission addresses specificities of social services

As social services modernise in many EU Member States, often in partnership with the private sector and non-profit organisations, all involved need clarification on how European law affects this evolving situation. A new Communication adopted today by the European Commission addresses this issue and the rapid changes in 'social services of general interest'. The Communication presents for the first time a list of these services' specific characteristics and reviews the support which they receive from various existing community instruments. It also opens up a process of wide consultation, open to all actors of the sectors, Member States, Social Partners, NGOs and operators of social services, through which the Commission will better take into account the specificities of those services when implementing EU legislation. These services differ from country to country, but can include sectors such as social housing, childcare or services towards families and persons in need. However, it does not deal with health services, which will fall under a separate initiative from the Commission.

More social services of general interest (SSGI) are opening up and diversifying across the EU, meaning a growing proportion now fall under EU internal market and competition law. Until now, these services had been managed directly by public authorities. The legal clarification in today's Communication deals not just with state aid to service providers in the SSGI sector, but also the application of internal market (especially the principle of freedom to provide services and freedom of establishment) and public procurement rules. Therefore the Communication is fully in line with the recently adopted revised proposal for the services Directive. It gives an important message: social services of general interest have specific characteristics distinguishing them from other services of general interest, such as telecommunications and transport. These characteristics include the services being personalised and their aims directly connected with access to fundamental social rights and to the achievement of social cohesion. To reach those aims, social services of general interest are based on solidarity and frequently require the voluntary participation of citizens and of not for profit organisations. They also need to be developed as closely as possible to the users, which explains why local authorities play an important role in ensuring that development and why Member states have the exclusive responsibility in defining their missions and principle of organisation.

Vladimír Špidla, EU Commissioner for Employment, Social Affairs and Equal Opportunities, said that clarification was needed in such an important area. 'We are talking about a big and dynamic sector where a lot of job opportunities will arise in the coming years, which is also an important component of the EU Growth and Jobs strategy. Social services are a key pillar of the European Social Model and it is therefore crucial that the conditions that exist on EU level are conducive to a harmonious development of the sector.

The Communication is based on the balance between social cohesion and openness and on the principle of subsidiarity. It proposes steps to ensure that the EU legal framework takes the specific characteristics of social services into account,' he said. Many financial and political EU initiatives, including social dialogue, already support the social services' development and modernisation.

Today's clarification had been requested by many interested parties. These include Member States, public service employers/employees representatives and non-governmental organisations, who hope that greater clarity will help services continue modernising without contravening EU law. Those expectations have been reiterated at the occasion of a recent Presidency conference organised in Vienna on the 20th of April. The Communication responds to both these requests and those received from stakeholders via a Green Paper consultation. It urges better use of budgets earmarked for social policies, contributing to greater variety and higher quality services.

Today's Communication makes no changes to Community law, but future changes cannot be discounted. To gain a clearer picture of each EU country's approach to social services of general interest, the Commission has launched a study to look at their situation in each Member State. On the basis of the results of this process, as well as consultation with interested parties, the Commission will produce a report describing the latest modernisation trends, case law and developments. It will be published every two years, with the first planned for end 2007. See more on the following website:

http://ec.europa.eu/employment_social/emplweb/news/news_en.cfm?id=153

 
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