# EUR-Lex - 52011DC0900 - EN

*|*

# 52011DC0900

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Quality Framework for Services of General Interest in Europe /* COM/2011/0900 final */**

			*

			*

COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

A Quality Framework for Services of
General Interest in Europe

1.
Introduction

The current
economic and financial situation has highlighted more than ever the fundamental
role of services of general interest (SGI) in the European Union (EU). In areas
such as health care, childcare or care for the elderly, assistance to disabled
persons or social housing, these services provide an essential safety net for
citizens[1]
and help promote social cohesion. Services of general interest in the field of education,
training and employment services play a key role in the growth and jobs agenda.
In the knowledge economy, schools, training centres and universities have to be
of the highest quality to guarantee that young people are equipped with new
skills for new jobs. At the same time, the budget constraints that currently
confront public administrations and the need for fiscal consolidation make it
necessary to ensure that high-quality services are provided as efficiently and
cost-effectively as possible.

The President's
Political Guidelines of 2009[2]
already refer to the modernisation of the services sector as one way to boost
new sources of growth and social cohesion and state we "need to give a
boost to the overall development of the social and health's services sector,
for instance by establishing a quality framework for public and social
services, thus recognising their importance in the European model of
society"[3].
Europe 2020[4]
reconfirmed the need to develop new services, delivered both physically and
on-line, that generate growth and create jobs. This can include innovative
services of general interest.

While the Treaty
has always ensured that Member States have the flexibility to provide quality
services of this type, the Treaty of Lisbon has introduced new provisions:
Article 14 of the Treaty on the Functioning of the European Union (TFEU), and Protocol
no 26 on services of general interest. It has also given Article 36 of the
Charter of Fundamental Rights the same legal value as the Treaties. It is in
this new context that the Commission has decided to bring together in a single
quality framework the comprehensive set of actions which it is pursuing on
services of general interest. This will ensure that in the coming years the
regulatory environment at EU level continues to reinforce the social dimension
of the single market, to take better account of the specific nature of these
services, and to meet the challenge of delivering them in a way which
incorporates the values of quality, safety and affordability, equal treatment,
universal access and users' rights recognised in the Protocol.

The objective
of this Communication, which is also a follow-up to the Single Market Act[5], is to present the quality
framework which consists of three complementary strands of action:

–
Enhancing clarity and legal certainty on how EU
rules apply to services of general economic interest (SGEI), and revising the
rules when necessary to ensure that specific needs are catered for. This
constant review is essential given the evolving nature of these services. The
Commission is presenting alongside this Communication reforms of two key sets
of rules - for State aid for services of general economic interest and for public
procurement - both of which will increase flexibility and simplification for
Member States when providing these services. These reforms also aim at increasing
consistency between both policies and to deliver greater assurance to stakeholders
who fully comply with the public procurement rules that, under certain
conditions, they also fulfil the relevant State aid requirement under the
Altmark judgment. This should provide more legal certainty and simplification
to public authorities and undertakings[A1] .

–
Ensuring access to essential services: the
Commission will take forward its commitment to ensure access for all citizens
to essential services in specific sectors building on recent actions in the
field of basic banking, postal services and telecommunications.

–
Promoting quality: the Commission will reinforce
its commitment to promoting quality in the field of social services, and will
use these achievements in this area as a model for other services of general
interest.

Basic
concepts

The debate on services of general interest
suffers from a lack of clarity on terminology. The concepts are used
interchangeably and inaccurately. Stakeholders have asked the Commission to
provide clarity. In doing so, however, the Commission is bound by EU primary
law and the Court's case-law. Moreover, the concepts are dynamic and evolve.

Service of general interest (SGI): SGI are services that public authorities of the Member States classify
as being of general interest and, therefore, subject to specific public service
obligations (PSO). The term covers both economic activities (see the definition
of SGEI below) and non-economic services. The latter are not subject to
specific EU legislation and are not covered by the internal market and
competition rules of the Treaty. Some aspects of how these services are organised
may be subject to other general Treaty rules, such as the principle of
non-discrimination.

Service of general economic interest
(SGEI): SGEI are economic activities which deliver
outcomes in the overall public good that would not be supplied (or would be
supplied under different conditions in terms of quality, safety, affordability,
equal treatment or universal access) by the market without public intervention.
The PSO is imposed on the provider by way of an entrustment and on the basis of
a general interest criterion which ensures that the service is provided under
conditions allowing it to fulfil its mission.

Social services of general interest (SSGI): these include social security schemes covering the main risks of
life and a range of other essential services provided
directly to the person that play a preventive and socially cohesive/inclusive
role[6]. While some social services (such as statutory social security schemes)
are not considered by the European Court as being economic activities, the
jurisprudence of the Court makes clear that the social nature of a service is
not sufficient in itself to classify it as non-economic[7]. The term social service of
general interest consequently covers both economic and non-economic activities.

Universal service obligation (USO): USO are a type of PSO which sets the requirements designed to
ensure that certain services are made available to all consumers and users in a
Member State, regardless of their geographical location, at a specified quality
and, taking account of specific national circumstances, at an affordable price.
The definition of specific USO are set at European level as
an essential component of market liberalization of service sectors, such as electronic
communications, post and transport.

Public service: Public service is used in article 93 TFEU in the field of
transport. However, outside this area, the term is sometimes used in an ambiguous
way: it can relate to the fact that a service is offered to the general public
and/or in the public interest, or it can be used for the activity of entities
in public ownership. To avoid ambiguity, this Communication does not use the
term but follows the terminology "service of general interest" and
"service of general economic interest".

2.
institutional setting: Changes introduced by the
treaty of lisbon

The Treaty of
Lisbon, Protocol no 26 on Services of General Interest and Article 36 of the
Charter of Fundamental Rights underline clearly the importance of services of
general interest in the EU, and set out the principles that guide the EU
approach to these services. They provide a sound basis for pursuing a flexible
and pragmatic approach which is essential in this field given the differences
in needs and preferences that stem from different geographical, social and
cultural situations.

The Protocol
establishes, for the first time at primary law level, the fundamental
principles which apply to services of general interest. It makes clear that the
principles need to be adapted to the different services at stake and,
therefore, no “one size fits all” approach is possible. It also confirms that
the provisions of the Treaties do not affect the competence of Member States to
provide, commission and organise non-economic services of general interest. The
need to distinguish between economic and non-economic activities remains,
however, and a case-by-case analysis continues to be necessary since the nature
of these activities evolves constantly. It is for this reason that the
Commission keeps the situation under review as explained in Section III below.

According to Article
14 TFEU, “the Union and the Member States, each within their respective
powers and within the scope of application of the Treaties, shall take care
that such services operate on the basis of principles and conditions,
particularly economic and financial conditions, which enable them to fulfil
their missions”. This Article creates the possibility for the Union to
legislate in the field of services of general economic interest by setting the
principles and conditions, particularly economic and financial conditions,
which enable them to fulfil their missions, using a regulation and through the
ordinary legislative procedure. It makes clear that any such regulation must be
"without prejudice to the competence of Member States, in compliance
with the Treaties, to provide, to commission and to fund such services".
This acknowledges the fact that the organisation, delivery and financing of
such services are primarily for Member States to decide at national, regional
or local level. Various public consultations and an on-going dialogue with
stakeholders will continue to examine the need for legislation based on Article
14 TFEU. The consensus at this stage seems to be that this not an immediate
priority[8].
The Commission is of the view that a sectoral approach, where tailor-made
solutions can be found to concrete and specific problems in different sectors,
is more appropriate at this stage.[9]

The Commission
will keep under review the need to revise existing sectoral legislation which
includes universal service obligations, and the possible need to create new
universal service obligations in other sectors. The Commission will also
analyse the appropriateness of establishing the principles and conditions which
enable specific public services to fulfil their missions on the basis of Article
14 TFEU. Respect for the existing diversity of services and situations within
the EU will remain a guiding principle in the Commission's assessment.

3.
A quality framework for services of general interest
in Europe

Over the years,
the demand for services of general interest and the way they are provided has
changed significantly. Services which the State traditionally delivered
directly have increasingly been outsourced by national, regional and local
authorities, and are now often provided by the private sector (either profit or
not-for-profit). This change in approach is driven by processes of
deregulation, by changes in government policies, and changes in users' needs
and expectations. Since many of these services are of an economic nature, the internal
market and competition rules apply to them, in so far as the application of
such rules does not obstruct the performance, in law or in fact, of the
particular tasks assigned to them.Indeed having access to a range of offers on
the price and quality of services can bring significant choice and benefits for
public authorities. While some stakeholders are concerned about the impact of
these rules, in particular on social services, the Commission is convinced that
they can be applied in a way that takes into account specific needs and that enhances
the provision of the services. The rules must of course be revised on an
on-going basis to ensure that they can continue to provide the necessary
flexibility for public authorities to respond to evolving needs of the society
and keep up to date with technological change.

The
Commission's approach to providing a quality framework is based on three
strands of action: first, increasing clarity and legal certainty on the EU
rules that apply to these services; second, providing the tools that enable
Member States to ensure that citizens have access to essential services and
reviewing the situation on a regular basis; and third, promoting quality
initiatives in particular for social services which address particularly
important needs.

1. Strand
1: Increasing clarity and legal certainty

The Commission
aims to ensure that the EU regulatory framework which has an impact on the way services
of general economic interest are organised, financed and provided, enables them
to accomplish their public service mission. To do so, the Commission has an
on-going dialogue with stakeholders from all sectors to identify areas where
the legal framework may need to be clarified or amended. Two examples of this
commitment are the revisions of the State aid rules for services of general
economic interest and the public procurement rules which accompany this
Communication.

In these
reforms, the Commission has sought to achieve further consistency between State
aid and public procurement policies to the benefit of stakeholders. To the
extent possible, the Commission has created a more coherent framework. The
Commission considers that full compliance with open or restricted public
procurement procedures awarded on the basis of either the lowest price or,
under certain conditions, the most economically advantageous tender means that
the contract is awarded at the "least cost to the community" as
required by the Court as one of the conditions for excluding the existence of State
aid.

1.1. The
revision of the State aid rules for services of general economic interest

The EU rules which
apply to the public financing of services of general economic interest adopted
by the Commission in 2005 have proved to be effective. However, the Commission
and stakeholders agree that they can be made clearer, simpler and more
proportionate to ensure an easier application and, hence, to promote a more
efficient delivery of high quality services, to the benefit of citizens. The
reform has three objectives: to clarify the basic concepts relevant to SGEI, to
simplify the State aid rules for small services organised at a local level and
which have a limited effect on trade between Member States, and to introduce a
more targeted treatment of other services, so as to better differentiate medium
size services and social services, on the one hand, and, on the other hand, large-scale
activities with a clear EU wide dimension which will be subject to a more
effective competition scrutiny.

On the basis of
these objectives, the Commission has adopted or proposed a number of important
changes:

·
First, a new Communication addresses a number of
issues that have raised questions of interpretation at national, regional and
local level.

·
Second, in future a larger number of social
services will be exempted (irrespective of the amount of compensation) from the
ex ante notification and assessment process by the Commission, if they fulfil
some basic conditions of transparency, correct definition and no
overcompensation. This list now includes, in addition to hospitals and social
housing, services of general economic interest meeting social needs as regards
health and long term care, childcare, access to and reintegration into the
labour market, and the care and social inclusion of vulnerable groups.

·
Thirdly, there will be a deeper and more focused
scrutiny of large aid measures, for example in the field of network industries,
which may have a significant impact on the functioning of the Internal Market. For
these cases, Member States will be required to include in the compensation
mechanism incentives for efficiency gains over the life of the contract,
tailored to the needs of specific sectors.

·
Finally, the Commission is proposing a new de
minimis rule specifically for services of general economic interest which
will exclude the existence of aid and, hence, the need for Commission scrutiny
for amounts of aid up to €500.000 over a three year period. For certain
sectors, in particular transport and public broadcasting, special sectoral
rules continue to apply.

1.2. The
reform of the rules on public procurement and concessions

The Commission is
also proposing a significant reform of the rules on public procurement and
concessions which will promote better quality in the provision of the services
of general economic interest.

First, the
reform provides for specific treatment for social and health services. These
will be subject to a lighter regime which takes into account their specific
role and characteristics. They will be subject to higher thresholds and will
have to comply only with transparency and equal treatment obligations. In
addition, in order to encourage a quality approach, the reform promotes the use
of the economically most advantageous tender criterion which means that Member
States do not have to award such services on the basis of the lowest price
alone.

Second, there
is now greater legal certainty on how EU public procurement rules apply to
relations between public authorities. "Public-public cooperation"
concerns situations where public entities such as local authorities cooperate
in order to fulfil public tasks. While the public status/legal nature of
parties to a public contract is not in itself sufficient to exclude related
contracts from the scope of EU public procurement directives, the reform
clarifies, in line with European Court of Justice case-law, the cases where
such contracts are not covered by EU public procurement rules. The new rules
will ensure that the application of public procurement rules will not interfere
with the freedom of public authorities to decide how to organise and carry out
their public service tasks. In turn, there are provisions to ensure that
public-public cooperation does not cause distortions of competition in relation
to private economic operators.

Third, the
reform recognises the importance in certain circumstances of a procedure with
negotiation and prior publication when awarding contracts for the provision of
services of general economic interest, and has ensured that this is part of the
tool box available for contracting authorities.[A2] Similarly, the
Commission has proposed to enable public authorities to take into consideration
as award criteria the life cycle of the requested products, services or works.
This reform will also help to ensure that contracts are not awarded on the
basis of the lowest price only but adequately reflect increased environmental
and societal considerations.

Finally, the
reform will introduce a new self-standing regime for concessions. This is
particularly important for services of general economic interest as concession
contracts are traditionally used to deliver public services or utilities
obligations. The key features of the public procurement reform will also apply
to concessions, and, as for procurement contracts, there will be new rules on
the modification of existing contracts. In some sectors, concessions can be
granted from 20 up to 100 years and, as a consequence are more likely to need
to be revisited during their lifetime. On the basis of the case law of the
Court, the Commission proposes to introduce new provisions which specify under
which conditions a modification of the terms of a concession contract is
allowed without a new competitive tendering, and provisions to ensure
compliance with the equal treatment and non discrimination principles.

The reform of
the public procurement rules is one of the twelve priority actions of the
Single Market Act which the Commission has confirmed in the Annual Growth
Survey 2012 should be fast-tracked. The Commission therefore calls on the
Parliament and the Member States to reach agreement on these proposals by the
end of 2012.

1.3.
Communication and information actions on how to apply EU rules

The Commission
is committed, to helping public authorities, service providers, users and other
stakeholders to better understand and apply EU rules to services of general
economic interest, in response to the questions and requests for explanations
that have been raised by stakeholders.[A3] The Commission
has taken a number of actions in this area.

At the end of
2010, the Commission published a new guide[10]
which covers three key issues:

–
how Member States can finance these services in
compliance with State aid rules;

–
how public authorities can use public
procurement rules and, at the same time, ensure quality, innovation, continuity
and comprehensiveness of social services,

–
how Internal Market rules and, in particular,
the Services Directive, apply to social services without preventing Member
States from regulating them to guarantee quality and accessibility.

This guide has replaced the document on Frequently Asked Questions and
takes into account developments in case-law, Commission decisions, changes to
the legislative framework, discussions within the Social Protection Committee (SPC)[11] and questions received from
stakeholders through the Interactive Information Service (IIS)[12]. The IIS is an on-line service which provides information to citizens, service
providers, public authorities and other stakeholders and allows them to raise
questions about EU law and services of general economic interest. Since it
started to work in January 2008, the Commission services have replied to nearly
200 questions through this service.

The Commission
has also produced a guide on "buying social"[13] which is a tool to help public
authorities to buy goods and services in a socially responsible way in line
with EU rules. It highlights the contribution which public procurement can make
to social policy. The document contains practical examples on a broad range of
social issues, such as promoting equal opportunities and employment
opportunities, improving labour conditions, social inclusion of vulnerable
persons, such as disabled persons, and compliance in substance with the
provisions of the fundamental ILO conventions. A new edition of "Buying
Green! A handbook on green public procurement"[14] was published in October 2011.
The handbook provides guidance on how to reduce the
environmental impacts of public sector consumption and how to use green public procurement
to stimulate innovation in environmental technologies, products and services.

The Commission
Staff Working Paper on public-public cooperation[15] summarises and explains the
case-law of the ECJ on how public procurement rules apply to situations where
public entities such as municipalities cooperate in order to fulfil public
tasks conferred on them (see above Section 1.2). It should contribute to the
better understanding of the legal provisions in order to mitigate legal risks
surrounding this form of cooperation between public authorities.

The Commission pays specific attention to
the social services sector. The biennial reports on social services of
general interest[16]
published in 2008 and 2010 monitored developments in the social services sector
and fostered dialogue at European level. . The Commission has also helped successive
Council Presidencies in organising the SSGI Forums which have been essential in
sharing information and promoting dialogue and better understanding of the
rules among stakeholders. The Commission is committed to support future rotating Presidencies of the Council to organise the 4th
European Forum on Social Services of General Interest in around twelve months'
time.

The Commission will continue to work within
the Social Protection Committee which, working with all
relevant institutional and civil society stakeholders, will prepare a report by
the end of 2013 on the application of EU rules to SSGI.

2. Strand
2: Ensuring access to essential services

The sectoral
legislation adopted at EU level has always carefully balanced the need to
increase competition and the use of market mechanisms with the need to
guarantee that every citizen continues to have access to essential services of
high quality at prices that they can afford. This has been the case, for
instance, in the network industries from telecommunications and postal services
to transport and energy. In addition, the Commission's annual Consumer Markets
Scoreboard[17]
monitors the performance of around 30 services markets with regard to
comparability, trust, problems and complaints, overall satisfaction, switching
and choice.

Given that users'
needs and technologies evolve constantly, it is necessary to review regularly
both existing universal services obligations and the need to introduce new
ones. The examples below illustrate the pro-active approach which the
Commission takes in this field. Member States remain free to extend existing
universal service obligations, or to introduce new ones, provided that the
measures comply with EU law.

2.1. Postal
services

The Third
Postal Directive[18] is a milestone in the reform of postal markets in Europe which
began in 1992. It has brought many benefits to citizens, including improvements
in the quality of service and new, innovative postal delivery services. The
Directive defines the minimum requirements regarding the scope of the universal
service obligation: a high quality postal service must be provided (at least)
five working days a week, throughout the entire territory, at affordable prices
for all users for basic letters and parcels of certain weights, and for
registered and insured items. It also contains provisions to ensure the high quality
of the postal universal service and the Commission is monitoring how it is
being implemented. It has recently set up a European Regulators Group for Postal
Services (ERGP)[19]
which works on issues such the financing of the universal service obligation
and monitoring of market outcomes[20].
The Commission has also created a Postal Users Forum, which had its first
meeting in December 2011 and brought together end-users – both individual
customers and businesses – with other stakeholders including[A4] operators and
trade unions, to look at evolving consumer needs in a changing communication
environment and with a view to the sustainable development of the sector.

In the context
of its work on e-commerce the Commission will present a Green Paper on the
cross-border parcel delivery in 2012. This will focus
on issues such as the quality of cross-border postal delivery services and
their pricing to identify solutions for obstacles experienced by consumers and
business. The Commission also intends to present the results of two studies on
the pricing behaviour of postal operators and its effects on the markets, and
the principles to calculate the net cost of the postal universal service
obligation (USO). By the end of 2013 it will present the Fourth Report on the
Application of the Postal Services Directive.

2.2. Basic
banking services

Access to basic
payment services under fair conditions is important for financial and social
inclusion and to allow consumers to benefit fully from the single market. In
early 2011, the Commission did an impact assessment to examine whether EU
legislation was needed in this area. Having considered all options, the
European Commission decided, at this stage, to propose a Recommendation[21]. It aims to ensure that basic
payment services and a payment card are offered to every EU citizen and
resident who does not already have a payment account in the Member States where
they seek to open one. This basic payment account should be provided either
free or at a reasonable charge by payment services providers. The
Recommendation sends a clear message to Member States and providers about what
is expected while leaving flexibility at national level on how to achieve it.

The
Recommendation also provides criteria for assessing how Member States have
implemented it and to see whether further action is necessary. On the basis of
a review and impact assessment which it will carry out in 2012, the Commission
will decide whether further action is necessary in this area.

2.3. Transport

Public service
obligations in the transport sector are laid down in specific pieces of
legislation for air services, inland transport and maritime transport[22]. This sector-specific
legislation establishes the principles that Member States should follow when
defining public service obligations in each transport mode.

The 2011 White
paper[23]
on transport states that a higher share of travel by collective transport,
combined with minimum service obligations, will allow increasing the density
and frequency of service, thereby generating a virtuous circle for public
transport modes.

The attribution
of public service contracts defining public service obligations in the
different transport modes must respect the principles of transparency,
non-discrimination and award following a competitive tendering procedure. This
can best be achieved by means of open public tender procedures. The quality of
passenger transport services will be of increasing importance in the coming
years, given the ageing population and the need to ensure that public (collective)
transport is an attractive alternative to individual transport, helping to
achieve resource efficiency and fuel security objectives. The creation of a dynamic,
open rail market should bring significant benefits for passengers in terms of
quality, efficiency and volume of services offered) and for the public
authorities and tax payers through reduced public funding for public service
contracts.

In 2012, the
Commission intends to make a proposal on the opening of the market for national
passenger services in 2012. This follows the opening of the market for freight
services and for international passenger services. The Commission will also consider
revising the public service regulation for inland transport in 2012 to
generalize competitive tendering procedures for the award of public service
contracts for the railway sector. While Member States have a wide margin of
discretion in identifying areas where it is necessary to impose public service
obligations for passenger transport services, to be sustainable these services
need to be efficient, high quality and provided in a stable financial context.
Mandatory tendering should help to ensure this.

2.4. Energy

The Third
Energy Package entered into force on 3 March 2011. It defines universal service
obligations, contains clear provisions on public service obligations and
consumer protection for both electricity and natural gas and provides for the
protection of vulnerable customers against energy poverty[24]. Measures adopted on the basis
of these Directives must be in the general interest, clearly defined,
transparent, non-discriminatory and verifiable, and guarantee equality of
access of EU electricity and gas companies to EU national consumers and vice
versa.

To promote the implementation of
competitive, energy efficient and fair retail markets the Commission
established the Citizens' Energy Forum[25]
in 2008 as a regulatory platform based on the experience gained in previous fora.
The Commission Staff Working Document "An Energy Policy for
Consumers"[26]
took stock of the consumer benefits that existing energy policy measures
provide. It identified a range of EU legislative and policy initiatives that
contribute directly or indirectly to improving consumer welfare in the energy
sector.

In line with
the European Council Conclusions of December 2011, Member States should
implement the Third Energy package fully and as quickly as possible. The
Commission underlines the importance in this context for Member States to define
clearly the concept of vulnerable customers. The Commission plans to organise a
5th meeting of the Citizens' Energy Forum in November 2012 to continue
fostering stakeholders' dialogue on key issues such as the protection
of vulnerable customers, the optimal retail market model, price
transparency, and the possible benefits of smart meters on energy demand
management.

2.5. Electronic
communications

The Universal
Service Directive in the field of electronic communications[27] provides a social safety-net
where market forces alone do not deliver affordable access to basic services
for consumers, particularly where they live in areas which are difficult or
costly to service, or who have low incomes or disabilities. The safety-net
concept covers three specific objectives: availability, affordability and
accessibility. The Commission has recently adopted a Communication on universal
service in e-communications[28]
reporting on the outcome of the public consultation in 2010 and the third
review of the scope of universal service obligation in electronic
communications. One of the key questions addressed is what role universal
service obligations should play in meeting the objective "broadband for
all". From the analysis the Commission concludes that there is currently
no need to modify the scope of the universal service obligation at EU level.The
analysis also concludes that further guidance on how to implement the universal
service rules is needed given the risk of divergent national approaches and the
potential financial implications for industry. The Commission will put forward this
guidance in 2012 and it will help to tackle the risk of social exclusion while
allowing, according to the principle of subsidiarity, for account to be taken
of different national circumstances, the need to minimise market distortions,
and to avoid imposing a disproportionate burden on the sector[29].

3. Strand
3: Promoting quality – the example of social services of general interest

Social services of general interest play a major role in European
societies by contributing to social protection and social inclusion. At the
same time, demand for these services increases as the ability to finance them
becomes more constrained, currently as a result of the economic crisis and, in
the longer term, of demographic ageing. The Commission, the Member States and
stakeholders representing service users and providers have undertaken a number
of recent initiatives in the area of social services' quality.

In 2007[30],
the Commission announced a strategy to support the quality of social services
across the EU. As a follow-up, the Commission has supported, via the PROGRESS
programme[31],
European initiatives to develop tools for quality definition and measurement
and has supported the development, within the Social Protection Committee of a voluntary
European Quality Framework for social services.

3.1.
Projects supported by the PROGRESS programme

From 2008 to 2010, the PROGRESS programme financed eight projects to
develop tools for the definition, measurement, assessment and improvement of
social services quality with a special focus on long-term care. All the
projects had trans-national partnerships and exchanged good practices among
public authorities, service providers and other actors with different cultural backgrounds
and dealing with different legal and administrative context and different
socio-economic conditions. Practically all projects highlighted the importance
of involving users in the definition and evaluation of social services quality[32].

In 2012 the
Commission will support a number of new transnational projects through the
PROGRESS programme aimed at implementing the voluntary European Quality
Framework in different Member States and in a variety of sectors;

3.2. The
Social Protection Committee: voluntary European Quality Framework for social
services

In October 2010, the Social Protection Committee adopted a voluntary
European Quality Framework for social services. It aims to develop a common
understanding of the quality of these services within the EU. It is designed to
be flexible enough to be applied to a variety of social services in the
national, regional and local context in all Member States and to be compatible
with existing national quality approaches. It identifies principles and
criteria that a social service should comply with to address the needs and
expectations of the service user. The Framework also includes elements for a methodology
which should help public authorities to develop at the appropriate level quality
tools (standards or indicators) for the definition, measurement and evaluation
of social services quality. The framework includes a rights-based focus and can
help, for example, to increase the protection of children's rights, when moving
from institutional childcare to alternative care systems.

3.3. Statute for a European Foundation

Foundations which have as their mission to provide public benefit
play an increasing role in providing and financing social services of general
interest in the EU. However, they still face difficulties in establishing
themselves in other Member States or pooling their assets on a cross-border
basis. There is a need to enable foundations of general interest to be
established, to operate and to finance themselves on a cross-border basis, subject
to adequate supervision. This would allow them to reduce the administrative burdens
created by the complexity of running operations in various Member States. This
would ultimately free up more of their resources to promote the wellbeing of EU
citizens.

To bring about these benefits, the Commission will table a proposal in
2012 to create a statute for a European Foundation which will exist alongside
national forms and be optional.

4.
Conclusions

The current
economic and financial crisis is a reminder of the central role that services
of general interest play in ensuring social and territorial cohesion. At the same time, the crisis is having a
significant impact on the public sector as finances are squeezed, and it is
essential that every effort is made to maintain the provision of these services
and improve their quality. This Communication shows
that the Treaties provide the European institutions and Member States with the
necessary legal tools to do this. The European Commission is fully committed to
playing its role by putting in place a quality framework for these services, as
seen in the two proposals on the revision of State aid
rules applicable to services of general economic interest and on public
procurement and concessions which it has tabled in parallel to this
Communication. It will also deliver a series of other actions in the coming
months which taken together will give the EU a sound quality framework for SGI
for the coming years. It will take this work forward as part of its broader
commitment to put the social economy and social
innovation at the heart of its work under the Europe 2020 strategy, as seen
most recently in its Social Business Initiative[33] which supports the development
of new and socially innovative ways of doing business and providing services.

[1]               There is EU legislation, notably in the field of
migration, which ensures that - subject to certain conditions - some categories
of legally residing third-country nationals enjoy equal treatment with
nationals as regards access to and supply of goods and services made available
to the public.

[2]               "Political
guidelines for the next Commission". Brussels, 3 September 2009.

[3]               "Political
guidelines...", page 24.

[4]               "Europe 2020: A Strategy for smart, sustainable
and inclusive growth" COM(2010) 2020).

[5]               "Single
Market Act: twelve levers to boost growth and strengthen confidence"
(COM(2011) 206)

[6]               "Implementing
the Community Lisbon programme: Social services of general interest in the
European Union" (COM(2006) 177 final of 26 April 2006).

[7]               Joined
Cases C-180/98 to C-184/98 Pavlov and Others [2000] ECR I-6451,
paragraph 118; Case C-218/00 Cisal and INAIL, [2002] ECR I-691,
paragraph 37; and Case C-355/00 Freskot [2003] I-5263.

[8]               A
recent example is the European Parliament Resolution of 5 July 2011 on the future
of social services of general interest (2009/2222(INI)), point 48: "Considers
that an EU framework regulation on SGEI, permissible under Article 14 TFEU, is
not the central issue at this time".

[9]               It should be noted that
Article 14 TFEU makes clear that its application is without prejudice to
articles 93, 106 and 107 TFEU which establish the role of the European
Commission in the control of State aid and the conditions under which
derogations from the application of this control can be granted to SGEI. This
is explained further in the Communication on the application of the European Sstate aid rules to compensation granted for
the provision of services of general economic interest (C(2011)9404) adopted
alongside this Communication.

[10]             Guide to the application of EU rules on Sstate aid, public procurement and the
internal market to services of general economic interest, and in particular to
social services of general interest (SEC(2010) 1545.

[11]             "Report by the Social Protection Committee on the
application of Community law to SSGI" of November 2008

[12]             See:
http://ec.europa.eu/services_general_interest/index_en.htm

[13]             http://ec.europa.eu/social/BlobServlet?docId=6457&langId=en

[14]             Available at: http://ec.europa.eu/environment/gpp/buying_handbook_en.htm

[15]             Commission
Staff Working Paper concerning the application of EU public procurement law to
relations between contracting authorities ('public-public cooperation')
SEC(2011) 1169 final, of 4 October 2011.

[16]             SWD – First
and Second Biennial Reports on social services of general interest, SEC(2008) 2179 and
(SEC(2010) 1284

[17]             http://ec.europa.eu/consumers/consumer_research/editions/docs/6th_edition_scoreboard_en.pdf. For some of these services, such as electricity or bank accounts,
the Commission has carried out in-depth market studies (available on the same
website).

[18]             Directive 2008/6/EC of the European Parliament and of
the Council, of 20 February 2008, amending Directive 97/67/EC with regard to
the full accomplishment of the internal market of Community postal services

[19]             Commission Decision of 10 August 2010 establishing the
European Regulators Group for Postal Services, OJ C 217.

[20]             Documents available on the website of ERGP: http://ec.europa.eu/internal_market/ergp/index_en.htm

[21]             Commission Recommendation on access to a basic payment
account (C(2011)4977).

[22]             Regulation
(EC) no 1008/2008 of the European Parliament and the Council, of 24 September
2008, on common rules for the operation of air services in the Community
(Recast) and Regulation (EC) No 1107/2006 of the European Parliament and the
Council, of 5 July 2006, concerning the rights of disabled persons and persons
with reduced mobility when they are travelling by air; Regulation (EC) no
1370/2007 of the European Parliament and the Council of 23 October 2007 on
public passenger transport service by rail and by road and repealing Council
Regulations (EEC) no 1191/69 and 1107/70; Council Regulation (EEC) No 3577/92
of 7 December 1992 applying the principle of freedom to provide services to
maritime transport within Member States (maritime cabotage).

[23]             White
Paper - Roadmap to a Single European Transport Area. Towards a competitive and
resource efficient transport system. COM(2011) 144

[24]             Directive
2009/72/EC on electricity and 2009/73/EC on natural gas.

[25]             http://ec.europa.eu/energy/gas_electricity/forum_citizen_energy_en.htm

[26]             SEC(2010)
1407 final, of 11 November 2010.

[27]             Directive 2002/22/EC of the European Parliament and of
the Council, of 7 March 2002, on universal service and users' rights relating
to electronic communications networks and services (Universal Service
Directive) , as amended by Directive 2009/136/EC.

[28]             "Universal service in e-communications: report on
the outcome of the public consultation and the third periodic review of the
scope in accordance with Article 15 of Directive 2002/22/EC" (COM(2011)
795 final of 23 November 2001).

[29]             Note that paragraphs 20 to 30 of the Community Guidelines for the application of State aid rules in
relation to rapid deployment of broadband networks (OJ C 235 of 30 September
2009, p. 7) make specific reference to the
definition of SGEI in the electronic communication sector.

[30]             "Services of general interest, including social
services of general interest: a new European commitment" (COM(2007) 725
final of 20 November 2007).

[31]             PROGRESS is the EU programme for employment and social
solidarity which provides financial support to implementation of the objectives
of the European Union's Social Agenda.

[32]             Commission
Staff Working Document "Second Biennial Report on social services of
general interest" (SEC(2010) 1284 final, of 22 October, pp. 59-66.

[33]             "Social Business Initiative – Creating a
favourable climate for social enterprises, key stakeholders in the social
economy and innovation" (COM(2011) 682 final of 25 October 2011)

[A1]Warning:
Multiple white space (space/non-breaking-space/tab).

[A2]Warning:
Multiple white space (space/non-breaking-space/tab).

[A3]Warning:
Multiple white space (space/non-breaking-space/tab).

[A4]Warning:
Multiple white space (space/non-breaking-space/tab).