WRITTEN QUESTION E-1407/96 by Laura De Esteban Martin (PPE) to the Commission (6 June 1996)

Subject: Public services

What criteria does the Commission use to classify public services as essential or non-essential when drafting Community law?

Does the Commission propose to draw up a European charter for public services, and to standardize its criteria by adopting a Community concept of public service?

Could the Commission list any legislation adopted in 1994 and 1995 relating to the concept of public service, or public services in general?

Answer given by Mr Van Miert on behalf of the Commission (15 July 1996)

The Commission considers that the concept of general economic interest referred to in Article 90 of the EC Treaty and also that of an essential service evolve over time, depending on technological developments, economic progress, the development of citizenship and changes in consumer habits. Furthermore, there are disparities of an historical, legal and cultural origin between Member States, both in the very concepts of services of general economic interest and in the associated organizational arrangements. Finally, circumstances vary from one sector to another.

Consequently, where the Commission has defined the concept of universal service in legislation, it has defined it as the supply to all users, with a guarantee of supply and a minimum level of quality and at an affordable price, of a number of services which, according to the characteristics of each sector, can be considered to be essential.

This definition can therefore vary significantly from one sector to another. Thus, in the telecommunications sector the extent of the universal service has been defined in Directive 90/388/EEC of 28 June 1990 on competition in the markets for telecommunications services ((OJ L 192, 24.7.1990. )) and in Parliament and Council Directive 95/62/EC of 13 December 1995 on the application of open network provision (ONP) to voice telephony. ((OJ L 321, 30.12.1995. ))

This concept also changes over time.

Accordingly, services considered as essential and therefore as having to be supplied, where necessary, universally are determined by their very nature on a case-by-case basis according to the situation in all the Member States regarding a given service on a given date. For the rest, it should be pointed out that the Member States have sole responsibility for defining public-service tasks, for allocating special or exclusive rights and for determining the ownership arrangements for enterprises benefiting from such rights.

The Commission has announced its intention of adopting a communication on public services that will explain the principles underlying both past and future Community action in this field. Given the wide variety of concepts of public service in the different Member States and given their exclusive responsibility in this area, such a communication cannot provide a 'Community definition' of public service.

As requested, the Honourable Member will find below a list of the main legislative instruments adopted in 1994 and 1995 relating to the concept of public service. All the instruments concern the telecommunications sector:

- Commission Directive 94/46/EC of 13 October 1994 amending Directives 88/301/EEC and 90/388/EEC in particular with regard to satellite communications. ((OJ L 268, 19.10.1994. )) Through this Directive, satellite earth station equipment and satellite communications services were included respectively in the scope of Directive 88/301/EEC (telecommunications terminal equipment) and Directive 90/388/EEC (telecommunications services). The Directive also gives a definition of the concept of 'special rights' granted by Member States to a limited number of undertakings through any legislative, regulatory or administrative instrument;

- Commission Directive 95/51/EC of 18 October 1995 amending Directive 90/388/EEC with regard to the abolition of the restrictions on the use of cable television networks for the provision of already liberalized telecommunications services. ((OJ L 256, 26.10.1995. )) This Directive refers to the hold-up in the liberalization of the telecommunications sector due to restrictions preventing the use of alternative infrastructure for the provision of liberalized services. It requires Member States to abolish all restrictions on the supply of transmission capacity by cable TV networks;

- Commission Directive 96/2/EC of 16 January 1996 amending Directive 90/388/EEC with regard to mobile and personal communications. ((OJ L 20, 26.1.1996. )) This Directive has amended Directive 90/388/EEC (telecommunications services) by including mobile and personal communications services in its field of application. It also imposes a number of obligations on Member States regarding the licensing conditions for mobile network operators, the designation of radio frequencies and the right to interconnect mobile communications systems with fixed networks and public telecommunications networks;

- the aforementioned Parliament and Council Directive 95/62/EC on the application of open network provision (ONP) to voice telephony.

It is necessary to add to this list the recent Commission Directive 96/19/EC of 13 March 1996 amending Directive 90/388/EEC with regard to the implementation of full competition in telecommunications markets. ((OJ L 74, 22.3.1996. ))