European Parliament resolution on the Commission communication ‘Services of General Interest in Europe’ (COM(2000) 580 — C5-0399/2001 — 2001/2157(COS))
Date: 2001-11-13
Institutions: European Parliament
Subjects: European social policy, competition policy, liberalisation of the market, provision of services, public service, services of general interest, single market

13.6.2002

EN

Official Journal of the European Communities

C 140 E/153

Tuesday 13 November 2001

12. Services of general interest in Europe

A5-0361/2001

European Parliament resolution on the Commission communication ‘Services of General Interest
in Europe’ (COM(2000) 580 ) C5-0399/2001 ) 2001/2157(COS))

The European Parliament,

(cid:1) having regard to the Commission communication (COM(2000) 580 (cid:1) C5-0399/2001),

(cid:1) having regard to Article 36 of the European Union’s Charter of Fundamental Rights concerning access

to services of general economic interest,

(cid:1) having regard to Articles 2, 5, 16, 73, 81(3), 86, 87, 88 and 295 of the EC Treaty,

(cid:1) having regard to its previous resolutions on general interest services, in particular its resolution of
17 December 1997 (1) on the communication from the Commission on services of general interest
in Europe (COM(1996) 443 (cid:1) C4-0507/96) and its resolution of 18 May 2000 on the draft directive
amending Commission Directive 80/723/EEC on the transparency of financial relations between
Member States and public undertakings (2) (SEC(1999) 404 (cid:1) C5-0102/2000 (cid:1) 2000/2065(COS)),

(cid:1) having regard to the conclusions of the Nice European Council concerning general interest services

and the statement of 11 December 2000 on general interest services,

(cid:1) having regard to the hearing on this subject conducted by the Committee on Economic and Monetary

Affairs on 6 March 2001,

(cid:1) having regard to Rule 47(1) of its Rules of Procedure,

(cid:1) having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of
the Committee on Culture, Youth, Education, the Media and Sport, the Committee on Employment
and Social Affairs and of the Committee on Industry, External Trade, Research and Energy (A5-0361/
2001),

A. whereas general interest services are to be seen as part of the European Social Model,

B. whereas the policy of liberalising various services of general

interest may have both positive and
negative effects on members of the public/users, and whereas therefore this policy requires a precise
and comparative evaluation of the quality of the services provided before embarking upon further
liberalisation,

C. whereas, under Article 16 of the EC Treaty, general interest services in Europe occupy an important
place in the Community and play an essential role in promoting social and territorial cohesion,

D. whereas, pursuant to Article 36 of the Charter of Fundamental Rights of the European Union, the
Union recognises and respects access to services of general economic interest as provided for in
national laws and practices, in accordance with the Treaty establishing the European Community, in
order to promote the social and territorial cohesion of the Union,

E. whereas, having regard to the principle of subsidiarity, pursuant to Article 5(2) of the EC Treaty, it
will, in certain conditions strictly laid down by Community provisions, be for the Member States and
their local authorities to decide which services are of general economic interest and the appropriate
method of management,

F. whereas the development of the single market has led to more intense competition between public
and private undertakings, and it is therefore important and right for competition rules to be applied
fairly and effectively,

(1) OJ C 14, 19.1.1998, p. 74.
(2) OJ C 59, 23.2.2001, p. 238.

C 140 E/154

Official Journal of the European Communities

EN

13.6.2002

Tuesday 13 November 2001

G. whereas the judgments of the Court of Justice in the cases of Corbeau of 9 May 1993 and the
municipality of Almelo of 17 April 1994 state the conditions subject to which certain exclusive rights
assigned to a service of general interest may be exempted from competition rules,

H. whereas, pursuant to Article 295 of the EC Treaty, the EU must be neutral with regard to systems of

property ownership,

I. whereas public undertakings and undertakings which have been granted special or exclusive rights,
pursuant to Article 86(1) of the EC Treaty, or entrusted with services of general economic interest,
pursuant to Article 86(2) of the EC Treaty, are an important economic factor in the Community and
the Member States,

J. whereas the introduction of the European single currency and increasing globalisation will mean in
future that competition law in the EU must be applied uniformly to prevent or remove cross-border
distortions of competition,

K. whereas defining and structuring general interest services remains in principle the responsibility of the
appropriate level of authority while at the same time complying with the law on state aid applied on a
uniform basis, guaranteed through verification by the Commission under the supervision of the Euro-
pean Court of Justice,

L. whereas development of general interest services on the basis of the social market economy model

must be a key element of European economic, financial and social policy,

M. whereas compliance with the provision of services of general interest in the countries applying for
accession, and the process of their development, is an important aspect that must be taken into con-
sideration in the course of accession negotiations,

N. whereas compliance with the specific situation in rural areas (socially disadvantaged regions, remote

locations, etc) must be given special consideration,

I.

The concept of general interest services in the EU

1.
Notes the Commission’s communication on general interest services and agrees with the statement
therein that what ‘is to be regarded as a service of general interest and how it should be operated are issues
that are first and foremost decided locally’; notes also that European citizens should receive high-quality
services at affordable prices and, where justified by the social situation, free of charge;

Calls on the Commission to perform without delay a precise and comparative evaluation of the real
2.
impact of the policy of liberalisation of services of general interest before embarking upon further liberali-
sation;

Approves the option chosen by the Commission, which regards the Cardiff process as a framework
3.
for regular evaluation of the functioning of services of general economic interest within the single market;

Points out that services of general economic interest must ensure equality of access, security of

4.
supply, continuity, high quality and democratic accountability;

Supports the common aim of the Heads of State and Government and the Commission to ensure
interest services results in greater

5.
that the application of competition law in connection with general
predictability and increased legal certainty;

6.
Calls on the Laeken European Council to support vis-à-vis the Commission its proposal for a frame-
work directive on the objectives and organisational arrangements of services of general interest based on
Article 95 of the EC Treaty; this directive should create a legal framework which guarantees the availability
of services of general interest to the public, particularly pursuant to Article 16 of the EC Treaty;

13.6.2002

EN

Official Journal of the European Communities

C 140 E/155

Tuesday 13 November 2001

7.
Expects, therefore, the Commission to define in the framework directive the common principles on
which services of general interest are based at an appropriate tier of subsidiarity, to specify and define the
common principles of democratic and transparent regulation, to ensure active involvement of citizens and
users in the process of definition, evaluation and contract appraisal and to institutionalise a common
pluralist appraisal procedure;

Calls on the Commission to ensure consistency between the principles set out in its framework

8.
directive and the provisions governing specific industries already adopted;

9.
Notes that, after an initial phase of implementing the internal market, by opening up national net-
works to competition, a phase which has not yet been completed, the Union is now entering a second
phase in which the expansion of cross-border trade and the emergence of pan-European operators and
networks makes it necessary to define powers and responsibilities at European Union level for services of
general interest;

10.
Is aware that the Lisbon European Council set the EU the goal of becoming the world’s most
dynamic economic area and notes that this presupposes rewarding all economic operators for innovation
and ideas;

Points out that effective state control over subsidies, provided that it is tailored to the requirements

11.
and characteristics of services of general interest, is reasonable and necessary;

12.
Notes that the European Union is entitled to control abusive practices only to determine whether
there is a serious breach of fair competition, which is guaranteed to Union citizens, throughout EU
territory with a cross-border impact at the same time;

13.
Stresses the importance of non-profit organisations, as organisations springing from civil society
(working with volunteers, non-commercial, form of organisation which is responsive to citizens, no
owners), as a third pillar in addition to the market and the State, and points to their importance for
citizens’ ability to organise self-help;

14.
Emphasises further that the decisive factor is not who performs the general interest services but that
quality is improved, accountability, affordability and sustainable development are maintained, and effi-
ciency, security of provision and continuity are used as criteria for the award of contracts; welcomes the
Commission’s announcement that it will not lay down any preconditions as to whether general interest
services are to be provided by public or private undertakings;

15.
Notes that the European Treaties serve both aims, as they commit both the EU and the Member
States to a policy of fair competition, and they also emphasise the need to guarantee access to general
interest services;

16.
Notes that general interest services in general should be taken to mean services that are important
for people’s daily lives, including therefore transport, postal services, telecommunications, education, hos-
pitals, social services, drains, refuse collection and water and energy supply, particularly electricity;

17.
Assumes that the Commission’s competition policy will comply with Article 151 of the EC Treaty,
and that the European Union will do its utmost to make allowance for the cultural interests of the Member
States and take the particularities of the cultural sector, and its diversity, into account, with due regard for
the principle of subsidiarity;

18.
Points out that, pursuant to Article 16 of the EC Treaty, the Community and the Member States
have an obligation to define the tasks of services of general economic interest as well as the way they are
carried out, and therefore must impose obligations to provide certain services on the service providers,
whether public or private, on terms enabling them to carry out their tasks;

Stresses the importance of reliable conditions for the provision of general
19.
(high quality, wide availability, optimum price, social balance and lasting security of provision);

interest services

20.
Emphasises that a good many general interest services can be provided on the basis of fair com-
petition, and stresses that private and public undertakings must, as a matter of principle, be treated equally
in that connection;

C 140 E/156

Official Journal of the European Communities

EN

13.6.2002

Tuesday 13 November 2001

21.
Considers that the co-responsibility of private and public operators for services of general interest
will also have to be clarified within the framework of work on the social responsibility of businesses,
which is on the European social agenda agreed at Nice;

22.
Notes that general interest services can be provided most beneficially for the citizens if they are
publicly and clearly defined and there are economic-efficiency criteria to be complied with; considers that
where these services involve economic activities, as many providers as possible must, as a matter of prin-
ciple, be given the opportunity to carry out these tasks competitively through a public invitation to tender;

23.
Notes that if the public authorities in the Member States impose service obligations on undertakings
and grant financial compensation from public funds for imposing these obligations, this does not consti-
tute aid, as long as the compensation does not go beyond what is needed to even out the burden imposed
by the public authorities;

24. Welcomes the fact that the Commission advocates a very comprehensive range of general interest
services and in achieving this aim recognises the principle of subsidiarity and the Member States’ freedom,
subject to certain conditions, to define and control general interest services;

Points out that local authorities must remain free to choose the method of managing the services of
25.
general
interest for which they are responsible pursuant to the provisions of their respective Member
States, and that such discretion includes the right to use direct management or to delegate the manage-
ment of those services; stresses, however, that where a local authority decides to delegate the management
of the services of general interest for which it is responsible, it must be required to use systematic com-
petitive tendering, in accordance with Community law; stresses also that the entities which manage ser-
vices of general interest under a direct management arrangement should not be in a position to take over
external markets, outside their territorial area of activity, but this must not prevent inter-communality;

26. Welcomes the Commission’s statement that services of general economic, social and regional inter-
est should be provided in the EU even when the market does not provide sufficient incentives;

27.
Shares the Commission’s view that to fulfil public service obligations, special or exclusive rights
may be granted without infringing competition law, and special funding mechanisms for the additional
obligations may be devised;

28.
Agrees with the Commission that so-called ‘non-economic activities’, mainly prerogatives of the
State and its local authorities, such as internal and external security, the administration of justice and the
conduct of foreign relations, are not subject to EU competition rules;

29.
Supports the Commission in its view that services in connection with national education, public
health and compulsory basic social security schemes, activities that are a matter of government, such as air
traffic control authorities or bodies responsible for preventing pollution at sea, and those provided by non-
profit organisations, in particular social, charitable and cultural institutions, should be excluded from the
application of competition and internal market rules;

Emphasises that apart from the issue of competitive neutrality in the provision of general interest
important aspects of the provision of these services must be, in particular, whether they are
for citizens, users and tax-payers, their quality,

30.
services,
economically, socially and environmentally beneficial
financing (cid:1) including the transparency thereof (cid:1) reliability and monitoring;

31.
Assumes that in further consultations the Commission will use examples, guidelines, and communi-
cations, together with proposals for regulations on exemptions, to provide further clarification of the
controversial questions with regard to legal clarity and the areas of application of European competition
law;

13.6.2002

EN

Official Journal of the European Communities

C 140 E/157

32.
Considers that, within the framework of the WTO negotiations, the Commission should seek cla-
rification of certain provisions of the General Agreement on Trade in Services (GATS) in order to make it
clear that WTO rules do not affect the right of Member States to regulate services of general interest and to
adopt measures in this field;

Tuesday 13 November 2001

II. Need for action at European level

Endorses the Commission’s views with regard to the principles of neutrality, freedom of definition
33.
and proportionality and emphasises that by virtue thereof the Member States are free to determine the
tasks and management of general interest services and that it is the Commission’s task to ensure that the
rules on the single market and competition are observed;

34.
Supports the Nice European Council’s calls for the rules on the single market and competition to be
applied in such a way that general interest services are able to carry out their tasks economically and with
legal certainty;

Considers it necessary,

35.
in view of the successes and problems to date in liberalising important
service areas under the single market programme, to perform a better assessment of the impact on social
and regional cohesion before deciding whether it would be appropriate to proceed further with the lib-
eralisation which has been introduced in the areas of transport, electricity, gas and postal services;

Takes the view that progressive liberalisation of services sectors in the European Union must go

36.
hand in hand with maintenance of universal service;

Notes that public and private undertakings should always be given equivalent access to the provi-
37.
sion of services of general interest where that is not specifically excluded by Member State regulations;
stresses the importance of competition and economic-efficiency testing, particularly by way of benchmark-
ing, for optimum service provision;

Points out that respect for the choice of and criteria applying to services of general interest requires
38.
more democratic governance, i.e. legislation adopted under the codecision procedure, applied by the Com-
mission subject to scrutiny by the European Parliament;

Stresses, in the context of the subsidiarity principle, that Member States, regional and local auth-

39.
orities are free to define and choose the service provision they want;

40.
Calls on the Commission, to ensure greater legal clarity, to make clear in which cases intra (cid:1)
Community trade is not affected (local application) and to improve the transparency of the decision-mak-
ing process through a graduated examination process, and calls on the Commission to decide more rapidly
on standard cases and simple complaints in the interests of transparency and greater legal certainty;

41. Welcomes warmly the fact that the Commission in recent months has issued regulations clarifying
and further developing its former guidelines and has thus clarified the situation with regard to aid for
SMEs, the ‘de minimis’ rule and aid for training and environmental protection, and emphasises that aids
to private and public undertakings are admissible only under strict conditions;

Calls on the Commission to clarify how a distinction is to be made between economic and non-
42.
economic activities and what is meant by ‘transparency monitoring’ in conceptual terms in relation to
‘proportionality testing’ in operational terms; stresses that the competition rules do not in any circum-
stances apply to non-economic activities;

Hopes that the Commission will coordinate a regular and pluralist evaluation of the way in which
43.
the tasks of general interest service provision are fulfilled, particularly with regard to the contribution to
the social and territorial cohesion of the Union, quality of services, accessibility on a equal footing and a
balanced and transparent pricing system;

44.
Considers it vital to devise pluralist assessment procedures involving all parties; suggests that the
European Parliament should organise the debate within the various existing forums (Economic and Social
Committee, Committee of the Regions, consultative bodies, associations involved in services of general
interest initiatives and consumer associations); calls for this process to result in consultation before any
decisions are taken;

C 140 E/158

Official Journal of the European Communities

EN

13.6.2002

Tuesday 13 November 2001

Asks the Commission to produce a report assessing the present state and the requirements of SGIs

45.
in the candidate countries;

II. Need for action at Member State level

46.
Considers that the Member States and their subsidiary levels (regions, provinces and local auth-
orities) should in future have greater freedom to draw up their own definitions of general interest services
within the terms of the EU competition rules;

47.
Affirms the EU’s competence in relation to competition policy, which, in view of the challenges of
the single currency, the European single market, globalisation of the economy and technological devel-
opment has assumed all the greater importance, but considers necessary a broad political debate on the
limits of competition policy when it collides with other core policy areas of the EU or on national,
regional or local level;

Takes the view that it is necessary for the Commission to exercise supplementary control over

48.
abuses;

49.
Takes the view that in a parliamentary democracy the structures and a cost/benefit analysis of
modes of service provision must be presented transparently and clearly to citizens and taxpayers together
with competitive alternatives, including the long-term implications for the quality of life of citizens;

50.
Takes the view that there is a fundamental problem with generalised subsidies to all providers of
services in the general interest, as this prevents the services provided from being presented correctly, in
line with demand and need;

51.
Considers therefore that it is legally possible and politically sensible that the additional cost of
services which are to be offered to the public on particularly favourable terms can be offset if necessary
from tax revenue but that the transparency of such financing must be guaranteed;

52.
Considers that the EU transparency directive which was adopted in 2000 and is soon to be imple-
mented is the appropriate instrument to assist public understanding of the problem of generalised subsidies
in undertakings which perform services in the free market as well as in the public service and thus to
create more clarity and honesty with regard to the use of tax revenues and other aid;

Endorses the Commission’s position to the extent that awarding contracts to private-sector third
53.
parties even in areas of enterprise which have not yet been liberalised is subject to the principle of an
invitation to tender being issued beforehand by the public sector;

Takes the view that wherever services of general

interest can be provided competitively, access
54.
should always be open to public and private undertakings on equal terms; draws attention in that con-
nection to the local-economy subsidiarity principle;

55.
Considers it basically incompatible with the principle of competitive neutrality for public undertak-
ings to be exempted from turnover tax in areas where both private and public undertakings operate, e.g.
the supply of water, gas, electricity, thermal energy or refuse disposal, and takes the view that unilateral
preferential tax treatment of public undertakings is not compatible with EU law and therefore there should
be a principle that public and private undertakings are treated equally with regard to tax legislation;

56.
Recalls that in line with the Copenhagen criteria the candidate countries too may not deliberately
favour their industries and should take advantage of the transitional provisions to reform the status of the
enterprises concerned, reconstruct efficient and fair services of general interest and develop the capacity to
withstand the general pressure of competition;

57.
Stresses that the basic obligation on the public authorities to issue fair and correct invitations to
tender pursuant to European and Member States’ laws can be an effective instrument to prevent distortions
of competition, at the same time allowing the state to define and monitor conditions with regard to
quality, availability and environmental compatibility;

13.6.2002

EN

Official Journal of the European Communities

C 140 E/159

Takes the view that the abolition of state monopolies should not lead to the establishment of

58.
private monopolies;

Tuesday 13 November 2001

Takes the view that with regard to the right to define general interest services, both the Member
59.
States and subsidiary levels must have sufficient rights of democratic participation and powers to ensure an
optimum supply for the public even in competitive circumstances, in particular with regard to description
of services, procedure for invitations to tender and control of service provision;

IV. With regard to particular sectoral cases

60.
Stresses that the EU’s internal market policy has basically led to better quality, lower prices and
better availability at a high level of technology, as is demonstrably the case, for example, in telecommuni-
cations;

Regrets that the Commission and the Member States were incapable of anticipating and managing

61.
the award of UMTS licences as a service of general interest;

Notes that the Commission has clearly set out in its proposal for a directive amending the directive
62.
on the internal market in electricity and gas that the Member States have complete legal freedom to
determine important services in the general interest and that this includes, for example, protecting socially
weaker customers from unjustifiable exclusion from provision, transparency of contract conditions for
consumers, reasonably-priced and transparent settlement mechanisms, supply to remote areas at reason-
able prices to promote social and territorial cohesion, regard for environmental protection and maintaining
and developing infrastructure;

Calls for the Member States to be obliged to use the transparent award procedure laid down by the
63.
Commission for new provision capacities, when this need develops as a result of supply and demand with
a view to guaranteeing security of supply;

Calls on the Commission to submit expert opinions and proposals with regard to waste manage-
64.
ment to ensure that waste is disposed of safely and recycled ecologically even without obligations for
tendering and permits by establishing a market economy framework;

Calls on the Member States to consider, in conjunction with local and regional authorities, whether
65.
the opening up of water supply and waste-water services to private enterprise would contribute to an
improvement in the functioning of these services;

66.
Takes the view that benchmarking, economic-efficiency testing, cooperation and efficiently struc-
tured undertakings should also be sought in water management, and that a good many specific measures
providing limited openings to the market short of full liberalisation will impact favourably on security of
supply, price structures and the protection of ground water and the environment;

67.
Takes the view that despite the special circumstances, water supply and waste-water services need to
be operated on the basis of economic criteria, and calls on the Member States to stimulate this and to
investigate (cid:1) where applicable (cid:1) whether the privatisations carried out so far have contributed to
adequate improvements in the functioning of the water services concerned;

68.
Stresses the need for public banks which contribute to the provision of services of general interest
by making accounts available to all, providing a comprehensive range of financial services to the commun-
ity, facilitating loans for small businesses and promoting a wide range of other public-spirited activities;

69.
Takes the view that the transparency directive must be implemented in the area of public banks as
well, so that the public obligation and actual costs of carrying out this public obligation can be more
clearly delimited, assessed from the point of view of competition and if necessary financially compensated;

C 140 E/160

Official Journal of the European Communities

EN

13.6.2002

Tuesday 13 November 2001

70.
Takes the view that the Commission communication on services of general interest in Europe does
not give sufficient recognition to the significance of independent welfare associations and independent
agencies which offer a range of services in some Member States on the basis of solidarity, ethics, religion,
charity or cultural diversity;

71.
Therefore stresses the need to grant a block exemption for social and cultural facilities which are
important for the community to allow citizens in future to take advantage of such facilities under special
conditions and at competitive prices, and thus it must be permissible also for public funding to be pro-
vided openly and transparently for that purpose so long as competition is not massively distorted;

Calls for non-commercial activities, e.g. of a social, cultural or charitable nature,

72.
like sovereign
activities in general to be exempted from control of subsidies and in principle from the application of
EU competition law and for relevant guidelines to be developed;

Considers that a list of criteria should be drawn up with regard to the Commission’s definitions of

73.
economic and non-economic activities, when decisions must be made in doubtful cases;

Takes the view that public broadcasting institutions under the public service obligations are not

74.
covered by the European Treaties’ competition rules;

75.
Considers that, in the context of services in the general interest, a specific approach should be taken
to audiovisual services (cid:1) irrespective of the type of audiovisual broadcast, whether public service televi-
sion, private television, video streaming, etc. (cid:1) and culture in order to achieve objectives such as the
protection of fundamental rights and democratic principles, pluralism, access for all to culture and tech-
nological progress, the right of reply, cultural and linguistic diversity and the protection of users and, in
particular, of minors;

76.
Looks favourably on the conclusions of the Lille Colloquy of 19/20 July 2000 on the public service
function of broadcasting, and calls on the Commission to cooperate with the Member States with a view
to considering possible ways of applying the principles of Protocol 32 to the Treaty of Amsterdam;

77.
Confirms that within a Community framework to regulate services of general interest and ensure
their capacity to achieve their objectives, the Member States have a duty, in accordance with the above-
mentioned Protocol, to define the tasks of public service broadcasting organisations and to specify their
financial structure;

Calls on the Commission, the Council and the Member States to create legal certainty for public

78.
service broadcasting and the cultural industries in the implementation of the right of competition;

79.
Calls on the Commission, the Council and the Member States to coordinate their efforts to guaran-
tee users and operators of audiovisual services and the media, by means of a clear and predictable regula-
tory framework, fair and non-discriminatory access to infrastructures and contents;

Affirms the need,

80.
in connection with media markets and audiovisual content, for an objective
definition of a dominant position which takes account of the rapid development of these markets and of
the accompanying dangers of denying access;

Stresses the need to maintain services of general interest, even where providers are operating in a

81.
liberalised market on the basis of general authorisations rather than individual licences alone;

Considers that the assessment of general interest in the field of audiovisual and cultural content

82.
should be subject, at European level, to a high-level, thorough and regular political debate;

83.
Stresses that opening the markets in former state monopoly areas, which is favoured by all the EU
institutions including the Commission, the Council and the European Parliament, should in principle sat-
isfy the model of fair and socially-responsible competition which serves the interests of citizens and takes
account of their changing needs;

13.6.2002

EN

Official Journal of the European Communities

C 140 E/161

Tuesday 13 November 2001

Is convinced that the model of the social market economy is the European model of the future and

84.
the most likely to prove itself strong and sustainable in international competition;

85.
Takes the view that an amendment of Article 16 of the Treaty is not necessary to achieve greater
legal certainty and clarity in the area of general interest service provision and in this connection endorses
the conclusion of the Nice summit that the area of general interest services should not be closely defined;
stresses that in such a dynamic area as general interest services, over-regulation would result in robbing
operators of opportunities and development possibilities which would primarily benefit citizens and tax-
payers;

Instructs its President to forward this resolution to the Council, the Commission, the Economic and

86.
Social Committee and the parliaments of the Member States.

*

*

*