MEPs call for new EU rules on public services

Centre-left MEPs are calling for new legislation to support public services but deny that they have conceded defeat over their inclusion in the services directive.

Socialist members are calling for new rules that would “remove the legal uncertainty in such areas as the application of competition law, single market legislation and rules on subsidies and public procurement”.

They claim that the lack of legal certainty is contributing to a decline in the quality of public services such as housing, social services or energy supply.

Details of the paper will be discussed at a meeting of MEPs and experts on Tuesday, which will also be attended by Martin Bartenstein, Austria’s employment minister and representative of the current EU presidency.

Although the European parliament has no right to initiate legislation – that is the commission’s role – MEPs can request that new rules be drawn up if they feel the Brussels executive is failing in its duty.

“We will go one step further and hand them a ready-made text,” a spokesman for the centre-left MEPs told this website.

But he denied that the move showed that the socialist group had lost its fight to keep public services out of the services directive, which is designed to open up the sector to greater competition.

“This is not a knee-jerk reaction. We have been working on this for some time, since the ‘no’ votes in France and the Netherlands last year.”

“In any case, our proposal is not about competition, it’s about ensuring that Europe’s citizens get the best possible public services.”

“Services such as housing are a vital part of European life, but they are also highly unlikely to ever be open to competition.”

“The question then is how do you protect these services, not from competition but from a deterioration in quality caused by a lack of consistent legislation.”

MEPs will vote next week on the services directive, but remain divided over whether public services should be included within its scope.

Centre-right EPP-ED MEP Malcolm Harbour said last week that he expected the plenary vote to follow that of the internal market committee, which backed the inclusion of most public services.

But socialist MEPs remain confident that amendments put forward by rapporteur Evelyne Gebhardt to exclude public services will win the backing of the majority of voters.

“Public services should be excluded from the services directive. We need legislation in this area, but it has to be balanced,” the spokesman said.

“It’s about getting the best possible balance between quality and competition.”

And he denied that the proposal would pave the way to a return to protectionism.

“It is not about allowing member states to protect ailing public service sectors, it’s about rebuilding confidence in the EU’s ability to respond to the concerns of its citizens.”

The spokesman said that the proposed directive would be presented to the commission and the Austrian EU presidency in April, “probably during the plenary session”.

“We have been talking with many stakeholders, including the socialist commissioners, so it will not come as a bolt from the blue.”

“But it may still surprise the commission.”

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