ECONOMIC SGIs

- Market forces- You have to pay

> UE law applied but primacy of the mission of general interest on the treaty rules

NON – ECONOMIC SGIs

-Public authorities functions-exclusively social functions

UE law doesn’t apply but only general principles of the Treaty

SGEIs NESGIs

SSGEIs NESSGIs

SOCIAL SERVICES OF GENERAL INTEREST (COM 2006 - 2007)SSGIs = SSGEIs + NESSGIs

Specific general interest objectivesFondamental Rights – social risks – basic social needs

SERVICES OF GENERAL INTEREST (COM 1996 – 2000 - 2007)SGIs = SGEIs + NESGIs

Services under specific obligations to garantee a general interest objective

Services of

General Interest

Social and Healthcare Services of general interestobjectives of general interest = social protection, public healthcare

(Social Fundamental Rights – coverage of social risks – basic social needs)

SERVICES OF GENERAL INTERET : ECONOMIC versus NON ECONOMIC ?Services subject to specific obligations of public services (OPS) to guarantee the accomplishment of an objective of general interest

ElectricityGasTelecomPostTransportsAudiovisual

NETWORK SERVICES ruled by Community law (Sectorial Directives)

Water – Water TreatmentWaste, recyclage paperSchool canteensFuneral servicesHarbour servicesFundraising > SIG(…)

SOCIAL SERVICES by non mandatory capitalisation <…..Social protection…> by mandatory <…… education…........> cost sharing Social Housing

Personal services Fight against exclusion

InclusionAccomodation

Provision of work for > public systemunemployed persons

HEALTHCARE SERVICES Hospital public system

Nursing Services Patient Transport

PoliceJusticeRegistry OfficeDefenceAdministrationCost guardHarbour pilots(…)

PUBLIC AUTHORITY FUNCTIONS

Economic Social and Healthcare Services

Non-Economic Socialand Healthcare Services

Community SGI

not ruled by Community law(exclusive competence of the Member States subject to manifest error / ECJ)

EXCLUSIVELY SOCIAL FUNCTIONS-No remuneration – free of charge-no economic reward in return-no market-Mandatory social protection / cost sharing (principle of solidarity, disconnection of contributions / services, non profit-orientated)(ECJ)

EurocontrolEURESGaliléo

CEN - CENELECEU Administration

(…)

GREY ZONE

ECONOMIC SGIs-there is a market-the service is remunerated-economic reward in return> Application of the rules of competition and the common market, unless they impede the accomplishment of the mission of general interest (art 86.2)

NON – ECONOMIC SGIs-Public authority functions-Exclusively social functions

> Non application of the rules of competition and the common market (art 50)

((( )))

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ECJ

THE « EASY » ROAD TO SECURE STATE AIDS TO SOCIAL SERVICES

ECONOMIC ACTIVITY

NON-ECONOMIC ACTIVITY

ESSENTIAL FUNCTION OF THE STATE / SOLIDARITY

Control of the Court on the legal foundation

SSGEIs

NESSGIs

support = State Aids = notificationfor EU control

MEMBERS STATES DECISIONS (UNDER THE FINAL CONTROL OF THE COURT)

EU STATE AID CONTROL

CHECK POINT ALTMARK

IN > support = State Aids > OK

OUT > support = State Aids

CHECK POINT MONTI-KROES

Small SGEIs, social housing and hospital > OK but with a LEGAL ACT defining specific missions, obligations and fair compensation

Others > notification to Brussel for control

EU

NON-LIBERALISEDACTIVITY

NO CONTROL(State-Aid regulation do not apply)

IN

OUT

(Control of the Court on the legal foundation)

Specificmission

Public servicesobligations

Entrustedundertakings

Qualification of SGEIsby public authoritiy

Under the manisfest error control

Basic human and social Needs – vital Needs – real NeedsNecessity to satisfy thoses needs – General Interest - protection from market forces

Economic conditions to satisfy thoses needs

Fundamental Rights – Social protection – Social and territorial Cohesion - Solidarity

Common principles of SGEIs General principles of the Treaty

Universal accessContinuityQualityAffordabilityProtection of users

TransparencyProportionnalityEqual treatmentNecessityAnti-discrimination

Legal public ActAct of entrustment

Health care – Housing – Job – Education - Inclusion – TrainingSocial protection regime – Elderly care – Child care – Handicap…

Users

Public tenderingConcessions of services

Exclusive RightsSpecial Rights

Compensations

Obligation to deliver the servicesObligation to contract / users