ECONOMIC SGIs Market forces - You have to pay

1. SERVICES OF GENERAL INTEREST (COM 1996 – 2000 - 2007) SGIs = SGEIs + NESGIs Services under specific obligations to garantee a general interest objective SGEIs NESGIs • NON – ECONOMIC SGIs • Public authorities functions • exclusively social functions • UE law doesn’t apply but only general principles of the Treaty • ECONOMIC SGIs • Market forces • - You have to pay • > UE law applied but primacy of the mission of general interest on the treaty rules Services of General Interest SSGEIs NESSGIs SOCIAL SERVICES OF GENERAL INTEREST (COM 2006 - 2007) SSGIs = SSGEIs + NESSGIs Specific general interest objectives Fondamental Rights – social risks – basic social needs

2. SERVICES OF GENERAL INTERET : ECONOMIC versus NON ECONOMIC ? Services subject to specific obligations of public services (OPS) to guarantee the accomplishment of an objective of general interest Eurocontrol EURES Galiléo CEN - CENELEC EU Administration (…) Electricity Gas Telecom Post Transports Audiovisual Community SGI NETWORK SERVICES ruled by Community law (Sectorial Directives) PUBLIC AUTHORITY FUNCTIONS Police Justice Registry Office Defence Administration Cost guard Harbour pilots (…) Water – Water Treatment Waste, recyclage paper School canteens Funeral services Harbour services Fundraising > SIG (…) • ECONOMIC SGIs • there is a market • the service is remunerated • economic reward in return • > Application of the rules of competition and the common market, unless they impede the accomplishment of the mission of general interest (art 86.2) • NON – ECONOMIC SGIs • Public authority functions • Exclusively social functions • > Non application of the rules of competition and the common market (art 50) . SOCIAL SERVICES by non mandatory capitalisation <…..Social protection…> by mandatory <…… education…........> cost sharing Social Housing Personal services Fight against exclusion Inclusion Accomodation Provision of work for > public system unemployed persons HEALTHCARE SERVICES Hospital public system Nursing Services Patient Transport • EXCLUSIVELY SOCIAL FUNCTIONS • No remuneration – free of charge • no economic reward in return • no market • Mandatory social protection / cost sharing (principle of solidarity, disconnection of contributions / services, non profit-orientated) • (ECJ) not ruled by Community law (exclusive competence of the Member States subject to manifest error / ECJ) Economic Social and Healthcare Services Non-Economic Social and Healthcare Services ((( ))) ECJ GREY ZONE Social and Healthcare Services of general interest objectives of general interest = social protection, public healthcare (Social Fundamental Rights – coverage of social risks – basic social needs)

3. THE « EASY » ROAD TO SECURE STATE AIDS TO SOCIAL SERVICES MEMBERS STATES DECISIONS (UNDER THE FINAL CONTROL OF THE COURT) EU STATE AID CONTROL IN > support = State Aids > OK IN CHECK POINT ALTMARK SSGEIs (Control of the Court on the legal foundation) OUT > support = State Aids CHECK POINT MONTI-KROES ECONOMIC ACTIVITY Small SGEIs, social housing and hospital > OK but with a LEGAL ACT defining specific missions, obligations and fair compensation NESSGIs Others > notification to Brussel for control OUT NON-LIBERALISED ACTIVITY support = State Aids = notification for EU control Control of the Court on the legal foundation NON-ECONOMIC ACTIVITY NO CONTROL (State-Aid regulation do not apply) EU ESSENTIAL FUNCTION OF THE STATE / SOLIDARITY