Tag Archives: Services of general interest

Consumer access to basic payment accounts

Outline of the Community (European Union) legislation about Consumer access to basic payment accounts

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Employment and social policy > Social inclusion and the fight against poverty

Consumer access to basic payment accounts

Document or Iniciative

Commission Recommendation 2011/442/EU of 18 July 2011 on access to a basic payment account (Text with EEA relevance) [OJ L 190 of 21.7.2011].

Summary

European consumers who do not have a payment account should be able to open and use a basic payment account, irrespective of their financial situation or their place of residence in the European Union (EU). The Commission therefore recommends that at least one payment service provider * offers this service in each Member State.

Characteristics of a basic payment account

The payment services offered must enable as a minimum:

all the operations required for the opening, operating and closing of a payment account to be carried out;
money to be placed on a payment account;
cash withdrawals from a payment account;
execution of payment transactions, by credit transfers or by transfers of funds, including through a payment card (however, without the possibility of becoming overdrawn).

Access to a basic payment account should not be made conditional on the purchase of additional services.

Charges associated with a basic payment account

Member States should ensure that the basic payment account is provided either free of charge or at a reasonable charge. Where the provision is not free of charge, the total amount of charges for using the minimum payment services should be reasonable.

In all cases, all other charges provided for in the account contract should be reasonable, including those applied where consumers do not meet their contractual obligations.

The amount of charges to the consumer should be calculated according to the:

national income levels and consumer prices;
average charges associated with payment accounts in the Member State concerned;
total costs relating to the provision of the basic payment account.

Supervision and dispute resolution

Member States should designate competent authorities independent from payment service providers to monitor compliance with these recommendations.

In addition, they should ensure that complaint and redress procedures are put in place in the event of disputes.

Consumer information

If a service provider rejects an application to open an account, it must provide a justification for its refusal and inform the consumer in writing. However, limitations to this right to information may be made by legislative measures on the grounds of national security or public order.

Service providers must provide sufficient information on the specific features of the accounts offered, the associated charges and their conditions of use.

Member States should organise public awareness-raising campaigns concerning the options offered by basic payment accounts, pricing conditions and the options for of out-of-court proceedings in the event of disputes.

Key terms
Payment service providers: specifically organisations which can be credit, payment or electronic money institutions or post office giro institutions.

New European commitment for services of general interest

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New European commitment for services of general interest

Outline of the Community (European Union) legislation about New European commitment for services of general interest

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Single market for services

New European commitment for services of general interest

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, of 20 November 2007, accompanying the Communication on “A single market for 21st century Europe” – Services of general interest, including social services of general interest: a new European commitment [COM(2007) 725 final – not published in the Official Journal].

Summary

The Commission identifies the essential principles which may be applied to Services of General Interest (SGIs) (FR) throughout the whole European Union (EU). This Communication constitutes a reference framework for the governance of, and compliance with, the specificities of SGIs. This is the case before the entry into force of the Treaty of Lisbon and its Protocol on Services of General Interest.

Diversity of the Services of General Interest

SGIs are subject to public service obligations. It is for the public authorities at national, regional or local level to decide the nature and scope of the SGIs. Public authorities can provide these services themselves or they can entrust the responsibility of providing them to public or private entities.

For its part, the EU retains shared responsibility which enables it to regulate and define the conditions for the operation of SGIs with a European dimension.

The SGIs are divided into two categories and are governed by different European rules:

services of general economic interest (SGEIs), which are provided for remuneration, are subject to European internal market and competition rules. However, derogations to these rules may be authorised in order to ensure that the general interest is respected. Certain SGIs have a European dimension, specifically the large network industries (postal services, telecommunications, transport services and the supply of electricity and gas) and are regulated by specific European rules. In addition, European rules relating to public procurement, environmental protection and consumer protection may be applied to them;
non-economic services, such as police, justice and statutory social security schemes, are not subject to specific European legislation, nor to the internal market and competition rules.

In practice, the operation of these services often differs from one Member State to another. Furthermore, the distinction between economic and non-economic services requires case-by-case analysis of each activity.

Social services of general interest

The way in which Social Services of General Interest (SSGIs) are provided is generally personalised in order to meet the needs of vulnerable users, and is based on the principle of solidarity and equal access.

They may be of an economic or non-economic nature, including in the case of non-profit making organisations. The definition of economic activity depends essentially on the way in which the activity is provided, organised and financed, and not on the legal status of the service provider.

They are mainly:

statutory and complementary social security schemes, covering the main risks of life (health, ageing, occupational accidents, unemployment, retirement and disability);
other services provided directly to the person such as social assistance services, employment and training services, social housing or long-term care.

Modernising the European rules

The Commission commits to adopting a series of actions based on the Protocol on Services of General Interest annexed to the Treaty of Lisbon. These actions shall enable the European regulatory framework applicable to SGIs to be consolidated. The actions are based on the following objectives:

improving access to information and developing communication tools, such as the creation of an interactive information service or a single market assistance service;
adopting sectoral policies, specifically in the fields of energy, transport, e-communication, and postal, social and health services;
monitoring actions to guarantee quality, transparency and good progress.

Context

This Communication follows on from the 2004 Commission White Paper and the 2006 opinion of the Parliament which contributed to the debate and converging views on the role and approach of the EU with regard to SGIs. It also draws on the results of the public consultation on social services of general interest initiated in 2006.

Related Acts

Commission Staff Working Document – Guide to the application of the European Union rules on state aid, public procurement and the internal market to services of general economic interest, and in particular to social services of general interest [SEC(2010) 1545final – Not published in the Official Journal].

The Commission publishes a guide aimed at clarifying the European rules applicable to Services of General Interest and to Social Services of General Interest. The Commission specifies the rules relating to the freedom of establishment and the freedom to provide services in the internal market, to competition, to the Service Directive, to State aid, to public procurement and to the service concessions of public authorities.

Green Paper on public-private partnerships

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Green Paper on public-private partnerships

Outline of the Community (European Union) legislation about Green Paper on public-private partnerships

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Businesses in the internal market > Public procurement

Green Paper on public-private partnerships

The phenomenon of public-private partnerships (PPPs), which re-define the relationship between the public and private spheres, is expanding rapidly. This Green Paper takes stock of existing practices in the European Union from the perspective of Community legislation. In letting those involved express their views, it launches a debate on whether a specific legal framework should be drawn up at European level.

Document or Iniciative

Green Paper on public-private partnerships and Community law on public contracts and concessions [COM(2004) 327 final].

Summary

PPPs describe a form of cooperation between the public authorities and economic operators. The primary aims of this cooperation are to fund, construct, renovate or operate an infrastructure or the provision of a service. PPPs are present in sectors such as transport, public health, education, national security, waste management, and water and energy distribution. At European level, they help implement the European Initiative for Growth and trans-European transport networks.

PPPs are characterised by:

the duration of the relationship between the partners;
the method of funding the project;
the role of the partners in the definition of objectives, design, completion, implementation, and funding;
the distribution of risks.

The Green Paper distinguishes two types of PPP:

PPPs of a purely contractual nature.
In this case, the partnership is based solely on contractual links and may fall within the scope of European Directives on public procurement;
PPPs of an institutional nature.
These PPPs involve cooperation within a distinct entity and may lead to the creation of an ad hoc entity held jointly by the public sector and the private sector or the control of a public entity by a private operator.

Analysing PPPs from the perspective of Community legislation

There is no specific legal framework for PPPs at European level. The Green Paper therefore seeks to examine whether the Treaty establishing the European Community (EC Treaty) and its secondary legislation is suitable and sufficient to cope with the particular challenges posed by PPPs. This analysis looks at both the selection of the private partner and the implementation of the partnership.

Any act whereby a public entity entrusts the provision of an economic activity to a third party must be examined in the light of the rules and principles of the EC Treaty. With regard to the freedom of establishment and the freedom to provide services (Articles 43 to 49), these principles encompass transparency, equality of treatment, proportionality and mutual recognition. The EC Treaty thus applies to PPPs.

Certain forms of PPPs are subject to European legislation on public procurement procedures. Revised in 2004, this legislation introduces a new procedure for awarding contracts: the competitive dialogue. This dialogue provides a legal basis for certain forms of PPPs in the case of very complex projects for which a competent authority has a specific need and seeks the economic operator offering the optimum technical solution.

PPPs may be involved in works or services concessions. These can be distinguished from public contracts insofar as at least part of the economic operator’s remuneration comes from operation of the infrastructure or service. At European level, concessions fall partly, or in the case of services concessions entirely, outside the scope of the European directives on public procurement. The Commission’s Interpretative Communication on concessions under Community law [Official Journal C 121 of 29 April 2000] sheds light on the obligations incumbent on the public authorities when selecting the applicants to whom concessions are granted.

Is there a need for a specific legal framework for PPPs at European level?

Professional circles complain about the lack of legal clarity in Community legislation, a situation which is holding back the expansion of PPPs.

The Green Paper launches a public consultation on the best way to ensure the development of PPPs under conditions of effective competition and legal clarity. It asks a total of 22 questions which deal in particular with the following topics:

the framework of the procedures for selecting the private partner;
the establishment of private initiative PPPs;
the contractual framework and any changes made in the course of a PPP;
sub-contracting;
the importance of effective competition in the case of institutionalised PPPs.

The Commission promises to analyse and publish the results of the contributions made to the public consultation. It will, where appropriate, submit concrete follow-up initiatives. There are various possibilities, none of which is compulsory: binding legislation, an interpretative communication, the better coordination of national actions, or the exchange of best practice among Member States.

Background

As announced in its Strategy for the internal market 2003-2006, the European Commission has published the Green Paper on public-private partnerships (PPPs).

PPPs have been expanding rapidly over the last fifteen years or so. The public authorities make increasing use of them in view of the budgetary constraints with which they are confronted. In this way, they can benefit from private sector know-how. Another advantage lies in the savings made possible by PPPs as they incorporate all the stages of a project, from its design through to exploitation. On a more general level, PPPs also contribute to the Community debate on services of general interest. The development of PPPs also forms part of the changing role of the State in the economy, as it moves away from being a direct operator towards the role of organiser, regulator and controller.

Related Acts

Communication from the Commission of 15 November 2005 to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on public-private partnerships and Community law on public procurement and concessions [COM(2005) 569 final – Not published in the Official Journal].

Social services of general interest

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Social services of general interest

Outline of the Community (European Union) legislation about Social services of general interest

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Single market for services

Social services of general interest

Document or Iniciative

Communication from the Commission of 26 April 2006, Implementing the Community Lisbon programme: Social services of general interest in the European Union [COM(2006) 177 final – Not published in the Official Journal].

Summary

The Member States are given the freedom to define services of general economic interest and particularly social services of general interest, and to define the obligations and missions relating to such services and their organisational principles. On the other hand, the Community framework requires Member States to take certain rules into account when they determine the arrangements for applying the objectives and principles they have established.

This Communication does not deal with health services. In document COM(2006) 122 final, the Commission has undertaken to present a specific initiative for this field.

Social services occupy an important place within European society and the European economy.

Social services often contain one or more of the following organisational characteristics:

they operate on the basis of the solidarity principle;
they are comprehensive and personalised, integrating the response to differing needs in order to guarantee fundamental human rights and protect the most vulnerable;
they are not for profit;
they include the participation of voluntary workers;
they are strongly rooted in local cultural traditions. This finds its expression in particular in the proximity between the provider of the service and the beneficiary;
there is an asymmetric relationship between the provider and the beneficiaries of the service that cannot be assimilated to a ‘normal’ supplier/consumer relationship.

The social service sector, which is in the midst of expansion and experiencing increasing levels of competition, is undergoing a process of modernisation, which may take the following forms:

the introduction of benchmarking methods, quality assurance, and the involvement of users in administration;
the decentralisation of the organisation of these services to the local or regional level;
the outsourcing of public service tasks to the private sector, with the public authorities regulating competition;
the development of public-private partnerships and the use of other forms of funding to complement public funding.

The application of Community rules in the area of social services

The Member States must comply with Community law and the case-law of the Court of Justice when establishing the means of implementing the objectives and principles they have set themselves.

When services of an economic nature are involved, the Member States must ensure that their organisational arrangements are compatible with competition law in particular and also with the rules on the freedom to provide services and freedom of establishment.

The Communication focuses on the most common organisational arrangements:

the partial or complete delegation of a social mission by the public authorities to an external partner or the creation of a public-private partnership;
the granting of public financial compensation to external organisations carrying out a social task of general interest;
regulation of the market.

Analysis of the compatibility with Community law of the organisational arrangements for social services must be carried out on a case-by-case basis.

An in-depth consultation on the specific characteristics of social services

The European Commission intends to consult with all the actors involved, namely the Member States and the providers and users of the services. The consultation will look at:

the factors constituting these characteristics and their relevance to identifying the specific features of social services of general interest;
the ways for the Member States to take these features into consideration when defining tasks of general interest;
the experiences with applying Community law in the field of social services of general interest and the possible problems faced in this context;
how these characteristics could be considered by the Commission when checking compliance with the applicable Community rules.

In order to improve the mutual knowledge of operators and the Commission in matters relating to the application of Community rules and in order to deepen the exchange of information, a monitoring and dialogue procedure in the form of biennial reports will be established.

In early 2006, the Commission launched a study to collect the necessary information to draft the first biennial report. The information will concern the functioning of the sector, its socio-economic importance, as well as the implications of the application of Community law. The results of the study are expected by mid 2007.

Background

This Communication follows the White Paper on services of general interest and the Social Agenda, which announced a systematic approach to identify and recognise the specific characteristics of social and health services of general interest and to clarify the framework in which they operate and may be modernised. In March 2006, the European Council reiterated the need to maintain the European social model in the complex task of making the internal market for services fully operational.

Related Acts

Communication from the Commission on the Social Agenda

[COM (2005) 33 final – Not published in the Official Journal].

The European Commission proposes a new social policy agenda for the period 2006-2010. The main objective of this new agenda is “a social Europe in the global economy: jobs and opportunities for all”.

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 12 May 2004 entitled ” White Paper on services of general interest

” [COM(2004) 374 final – Not yet published in the Official Journal].

Presented as an extension of the Green Paper on services of general interest, the Commission White Paper describes the European Union’s strategy for promoting the development of high-quality services of general interest. It presents the main elements of a strategy aimed at ensuring that all citizens and enterprises in the Union have access to high-quality and affordable services of general interest.

Commission Green Paper

of 21 May 2003 on services of general interest [COM(2003) 270 final – Official Journal C 76 of 25 March 2004].

The Commission, in this Green Paper, undertakes to conduct a complete review of its policies on services of general interest. Its objective is to organise an open debate on the overall role of the Union in the definition of the objectives of general interest pursued by these services and on how they are organised, funded and evaluated. The Green Paper reaffirms the significant contribution of the internal market and competition rules to modernising and improving the quality and effectiveness of many public services, to the benefit of Europe’s citizens and businesses. It also deals with globalisation and liberalisation, raising the question of whether a general legislative framework should be established at Community level for services of general interest.