European Economic and Social Committee
Section for Transport, Energy, Infrastructure and the Information Society"
Brussels, 15 July 2015
Note for the file
To:
Members of the PSG "Services of General Interest"
Copies:
Alan Hick, Director of Legislative Works B
Birgit Fular, Head of Unit, TEN Section
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Subject: Activity report of the permanent study group "Services of General Interest"
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1.
Introduction
The permanent study group "Services of General Interest" (PSG) was reappointed on 20 October
2010. It aims to identify and promote the expectations of civil society concerning Services of General
Interest (SGIs) with the overarching aim of ensuring the access of Europe's citizens to high quality
and affordable SGIs. SGIs are a core component of the European economic, social and legal systems
and are a supporting pillar of the European social model and a social market economy. They include
areas such as housing, water and energy supply, waste and sewage disposal, public transport, health,
social services, youth and family, culture and communication within society, including broadcasting,
internet and telephony.
SGIs help people lead dignified lives and ensure that everyone has the right to access essential goods
and services. They ensure justice, social cohesion and social integration and contribute to the equal
treatment of all EU citizens. As a key factor of economic, social and territorial cohesion and of
sustainable development, SGIs can and should also mitigate the consequences of the current financial,
economic and social crisis.
The PSG is composed of 21 members (22 if the Section president is included):
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EN
Mr Balon has been appointed president of the PSG during the second half of the mandate, while
Mr Hencks has served as president during the first half.
2.
Activities
2.1. Opinions
The following opinions have been adopted since the reappointment of the PSG:
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TEN/517 (2014) – The affordability of SGEIs: definition, measurement, challenges,
European initiatives (own-initiative opinion). Rapporteur: Mr Hencks
TEN/484 (2012) – Issues with defining social housing as a service of general economic
interest (own initiative opinion). Rapporteur: Mr Hencks
TEN/482 (2012) – Quality Framework for SGIs in Europe (CESE 1316/2012) Rapporteur:
Mr Simons
TEN/455 (2011) – Reform of the EU State Aid Rules on Services of General Economic
Interest. Rapporteur: Mr Hencks
TEN/421(2010) – What SGIs do we need to combat the crisis? Rapporteur: Mr Hencks
The main message of the PSG contained in the opinions can be summarized as below.
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Public intervention is needed to secure the provision of SGIs
There is a clear political and financial responsibility of the public sector to co-ordinate the provision
of SGIs. Leaving this purely to market forces is not appropriate. This doesn't mean however that the
entire responsibility should lie within the public sector. Non-profit organisations and social enterprises
in particular have demonstrated their capabilities in providing excellent SGIs in a sustainable manner
while ensuring democratic control, input and participation. In comparison with the private sector, nonprofit organisations tend to offer a stronger focus on social needs.
SGIs are particularly needed in the current context of socio-economic crisis in several Member States
In face of the financial and economic crisis, it is becoming increasingly difficult for Member States to
ensure the provision and quality of essential SGIs. This has led to increased poverty rates in several
countries. Innovative approaches to the provision of SGIs involving non-profit organisations such as
charities and foundations, as well as social enterprises, could help to enrich the current dialogue
between social partners and contribute to the development of affordable and high quality solutions.
Towards an objective evaluation of SGIs
To promote an increasing role of non-profit organisations and social enterprises, the European
Commission should evaluate the status of SGIs in all Member States – particularly social SGIs. This
process would help identifying those sectors where the free market is particularly weak and where
public financing is primarily needed.
2.2. Events
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Conference "Social housing investment: economic models facing EU policies", 10 October
2011. The conference discussed the evolution of the social housing model in the context of EU
policies. Three main topics were tackled: the compatibility of State aids to social housing with EU
laws; the financing challenges; and integrating energy efficiency measures.
Hearing "Allocation of social housing: Why the European Commission needs to change the
game?", 30 October 2012. The event was organised in the framework of the own-initiative
opinion by Mr Hencks "Issues with defining social housing as a service of general economic".
Conference "Social housing: what role for the European Union?", 24 June 2013. Although the
EU does not have legislative powers in the field of housing, housing policies of Member States
are touching several European policies. The conference discussed recent developments in the field
of social housing and concrete proposals on the EU role according to key stakeholders.
Conference "Affordability of the Services of General Economic Interest: definition,
measurement, challenges, European initiatives", 25 October 2013. Many European citizens
experience severe difficulty in accessing essential SGIs, especially in the fields of housing,
energy, electronic communications, transport, water, health care and social services. This event
focused on the crucial aspect of safeguarding the existence of affordable SGIs.
Conference "Innovative approaches in providing SGIs at national, regional or local level in
Europe", 4 November 2014. As a follow-up of the study visit to the UK (see point 2.5), a
half-day conference was organised in Brussels to discuss and assess the outcomes of a variety of
innovative approaches in providing public services at national, regional or local level in Europe.
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Conference "The role of the non-profit sector as a provider of social SGIs", 12 March 2015.
This one-day conference took place in Warsaw with the aim of exploring innovative approaches
that tap into the potential of involving the non-profit sector as a provider of SGIs. It was held in
cooperation with the Ministry of Labour and Social Policy/Public Benefit Council of the Republic
of Poland.
Conference "Cooperation between the public sector and civil society in providing social
SGIs", 29 June 2015. The event will exchange best practices of cooperation between the public
sector and civil society in providing social SGIs in different Member States, and reflect on the
provision of social SGIs at the European level. The meeting should feature presentations of
different solutions and ideas from France, Germany and Poland.
2.3. Cooperation with the European Parliament's Public Services Intergroup
A Public Services Intergroup was set up in the European Parliament in Strasbourg on 20 January
2010. The intergroup is an ideal platform for exchange on SGIs between the Parliament, the other EU
institutions and stakeholders, on the basis of the new generally applicable provisions of the Lisbon
Treaty. Three members of the PSG (one per group, including the president) were invited to take part
in the meetings of this intergroup.
2.4. Legal opinion "Is passenger transport a service of general interest?", 23 September 2013
Different debates dealing with SGIs, in part brought by the opinion entitled The quality of rail
services in the EU, highlighted diverging opinions whether passenger transport services could be
considered SGIs. Since this was a legal question and concerns the application of the Treaties, an
independent legal opinion was requested to EESC’s services. The reasoned opinion concluded that
passenger transport is indeed a SGI in the meaning of the Treaties if and to the extent that the activity
concerned has special characteristics compared with those of other economic activities. Such
characteristics stem from the specific public service obligations imposed.
2.5. Study visit to Northampton – London, United Kingdom, 17 and 18 March 2014
SGIs are undergoing progressive and constant changes in the EU. The so-called "UK Big Society" is
the test-bed of a new approach to manage public services. On the 17 March 2014, the PSG met some
of the leading figures of the Northamptonshire County Council and local services providers at the
University of Northampton to study innovative new models of procurement and provisioning in two
distinct service sectors with multi layered local government and private sector (public service
industry) service provision. On the 18 March, the PSG hold the thematic debate "Assessing the
transformation of public services in Europe" at the European Commission Representation in London.
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2.6. Roadmap, 30 June 2014
The PSG produced a series of very concrete recommendations regarding future possible paths for the
EU policy development in the field of SGIs. The document was sent to several MEPs, to selected
Commissioners, and to European Commission officials.
3.
Prospects for the continuation of the PSG
During the current mandate, the PSG has been devoting a particular attention to SGIs as a tool to
counteract the effects of the economic crisis, namely by identifying good practices and innovative
governance methods (provision by the non-profit sector, cooperation between the public and private
sectors, etc.). The time is ripe now to focus on more concrete aspects that could influence the
availability or quality of SGIs. A reflection of three PSG members resulted in the following lines of
action:
 The influence of the foreseen VAT reform in 2017 on the provision of SGIs;
 An assessment of opportunities opened by Junker’s Presidency priorities for public services
(currently, out of eight projects to be funded by the European Investment Bank linked to Junker’s
plan, only one is somehow connected to a public service);
 How the TTIP will deal, and which impacts will have, on SGIs.
These fresh and very specific ideas for the future of the PSG warrant the need to extend the group for
at least five additional years.
TEN Section secretariat
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