Providing Legal Clarity and Securing Policy Space for Public Services through a Legal Framework for Services of General Economic Interest: Squaring the Circle?

Abstract: The body of European law which affects public services (services of general economic interest) is constantly growing, and thereby increasingly reducing the political autonomy of Member States and their regional and local subunits to finance and organize public services. This causes uncertainty among public authorities and service providers alike. A legal framework for services of general economic interest could reconcile EC law with public services and provide for greater legal clarity. However, such a framework raises a number of fundamental legal questions concerning its legal basis and its relationship with other sources of EC law. This contribution argues that a legal framework for services of general economic interest could clarify key terms of EC law affecting public services, and could be based on the current EC Treaty. A legal framework could not however, alter the overall framework of primary law with its emphasis on competition in a free market.