Barroso picks a fight with Socialists on public services

European Commission President José Manuel Barroso is set to frustrate centre-left MEPs and trade unions later this month (20 November) by ignoring their demands for new legislation to protect public services against further liberalisation.

A paper setting out the Commission’s approach to services of general interest, to be approved on 20 November, says that further clarification of how EU competition and single market rules apply to public services is needed. But it does not back demands by Socialist MEPs and trade unions for new legislation to protect public services.

The paper says that a protocol in the new Treaty of Lisbon, which is to enter into force in 2009, has consolidated the EU’s framework for dealing with services of general interest. The protocol stresses the importance of services of general interest and the rights of public authorities to decide how to provide them.

"By spelling out the role of the Union, the protocol closes this debate by bringing more clarity and certainty of EU rules," the Commission’s paper says, adding that "it is time to conclude the debate, and to focus on implementation".

Instead of new legislation, the Commission suggests an internet bulletin board or "interactive assistance service" which citizens and public authorities could use to ask questions about how EU law applies to public services. The Commission would post answers to questions on its website.

The Commission will in 2008 carry out an analysis of the effects of liberalisation on services of general interest.

The paper points out that EU competition and single market rules only apply to services which are paid for, while non-economic services, such as police, justice and social security schemes, are exempt and are only covered by EU rules against discriminatory treatment. Non-economic services are not covered by the services directive while some economic services, such as healthcare and some social and transport services, are specifically excluded from the directive, the paper points out.

But the Commission paper refutes the argument that public services need greater protection from competition. "The Commission considers that the objectives of developing high-quality, accessible and affordable services of general economic interest and of an open and competitive internal market are compatible and should be mutually supportive," the paper says.

Portuguese centre-left MEP Joel Hasse Ferreira said that the Commission was wrong to argue that the debate on the need to ensure greater protection of public services was over. "It is an illusion to want to conclude a debate that is not finished," he said. Ferreira said that the Commission’s decision to publish the paper at the same time as a planned review of the single market review was "important to show the links between competition and internal market rules and services of general interest". But he added: "It could be a step, but it’s not enough."

The Commission’s approach was also criticised by Dutch Socialist MEP Erik Meijer, who suggested that the paper would get a rough ride from the European United Left group in Parliament. "It’s very negative. The conclusion that there is not a problem [with services of general interest] is not my conclusion or that of my group and my party," Meijer said.

Fears that the EU’s belief in competition and liberalisation would undermine public services played a part on the French and Dutch rejection of the EU constitution in 2005. French President Nicolas Sarkozy insisted on removing a reference to "undistorted competition" from the text of the Lisbon treaty, which seeks to replace the constitution, as a way of defusing French opposition. The Dutch government insisted on an additional protocol on services of general interest in the new treaty, following a number of unpopular state aid rulings against Dutch social housing and urban transport schemes.

More than 400,000 people have signed a petition launched by the European Trade Union Confederation calling for legislation to protect public services.

European Commission President José Manuel Barroso is set to frustrate centre-left MEPs and trade unions later this month (20 November) by ignoring their demands for new legislation to protect public services against further liberalisation.