A European policy for services of general interest

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A European policy for services of general
interest
Pacific Economic Cooperation Council

• Presentation of CEEPs initiative towards a
• European Framework on SGIs
• Yves Cousquer, Vice-chair of the CEEP

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
2
Context

• Services of general interest (SGIs) are a key
  part of the European Model of Society
• Since years there has been an intensive
  discussion on SGIs at European level
• Council Declarations, Green and White Papers,
  public consultations
• EU Parliament reports, Commission communications
• European Economic and Social Committees Opinion
  on the future of SGIs, issued in July 2006
• European Parliament voted last week a Services
  Directive after three years of debates. It
  doesnt deal specifically with SGIs.
• In the absence of a legal frame, SGIs follow
  first the internal market policies and obey its
  four freedoms - free movements of goods,
  services, capital persons
• There is not enough legal security for
  authorities in charge of and providers of
  services of general interest that would allow
  for sustainable planning and organisation of
  these services.

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
3
PROGRAMME FOR PUBLIC SERVICESIN THE MODERN WORLD
(1/3)

• Services and enterprises of general interest
  (SGIs) provide the basic infrastructure on which
  Europes societies and economies depend.
• Health services, public transport, communication
  systems, education and energy and water supply
  are all examples of these SGIs.
• They are a key element of the European Social
  Model, especially in relation to social and
  territorial cohesion.
• They have a critical role to play in the economic
  development of Europe, including in the
  achievement of the Lisbon objectives.
• They are major players in the development of
  sustainable solutions to the environmental
  challenges of today and tomorrow.
• They will be key to resolving the demographic
  problems that are common throughout Europe.

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
4
PROGRAMME FOR PUBLIC SERVICESIN THE MODERN WORLD
(2/3)

• CEEP is the organisation that represents all
  these services and enterprises at European level.
  
• Its priority objective is always the general
  interest.
• CEEPs experience is that this objective is
  often best achieved through the in-house
  application of techniques such as benchmarking.
  At the same time, competition can be useful and
  its members are willing to work in partnership
  with the private sector, where this benefits the
  public.
• A common European approach is needed to safeguard
  and nourish SGIs to ensure that they continue to
  serve the public while adapting to the changes
  generated by globalisation.
• CEEP strongly believes that
• Greater legal clarity for services and
  enterprises is urgently needed
• The principle of subsidiarity requires that the
  relevant authorities have freedom of choice over
  how public services are operated
• There is a need for a common understanding about
  the interface between the private sector and
  public services, including in relation to
  competition and public/private partnerships
• Investment in public services and enterprises on
  the Invest to Save principle is a growth
  factor.

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
5
PROGRAMME FOR PUBLIC SERVICESIN THE MODERN WORLD
(3/3)

• CEEP now calls on the Commission, the Parliament
  and Member States, together with other social
  partners and stakeholders, to support this vision
  for Public Services in the Modern World.
• Its Manifesto outlines
• a general European framework for Services of
  General Interest
• policies in relation to competition and to
  public/private partnerships
• the case for a targeted programme of public
  investment to get the Lisbon agenda back on
  track
• a set of principles for the continuous
  improvement of public services.

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
6
CEEP Policy Objectives

• Freedom of choice for SGI operators over methods
  of service delivery.
• Sufficient legal clarity for authorities and
  providers and to avoid further interventions by
  the European Court of Justice.
• Respect for the principle of subsidiarity to
  prevent encroachment by the EC on Member State
  competences and by Member States on sub-state
  competences, including those which are the
  responsibility of regional and local authorities.
• A voice at European level for those authorities
  with responsibility for SGIs to ensure that
  future EU policy developments are formulated in
  consultation with the relevant authorities.
• Continuous improvement of SGIs in a context that
  protects the public interest in the long term.

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
7
FRAMEWORK to Guarantee and Develop SGEIs (1/3)

• Chapter 1 General provisions
• Article 1 Object
• Article 2 Field of application
• Article 3 Relations with other provisions of
  Community law
• Chapter 2 Shared responsibility between Member
  States and the Community
• Article 4 Subsidiarity
• Article 5 Responsibility of the Member States
  and the Community
• Article 6 Responsibility of the Community
• Chapter 3 General principles
• Article 7 The rules of the Treaty
• Services of general economic interest are subject
  to the general principles of the Treaty
  transparency, proportionality, non-discrimination
  and equality of treatment.
• The responsible authorities and the operators of
  services of general economic interest are subject
  to the rules of the Treaty, as long as those
  rules do not prevent the satisfactory
  accomplishment of the particular tasks assigned
  to them.

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
8
FRAMEWORK to Guarantee and Develop SGEIs (2/3)

• Chapter 3 General principles
• Article 8 Principles
• Objective To guarantee fundamental principles
  which should be taken into account when it comes
  to specific rules on services of general economic
  interest
• The responsible authorities and the operators of
  services of general economic interest should take
  into account the following fundamental principles
  if they are relevant to the service concerned and
  appropriate
• economic, territorial and social cohesion as well
  as sustainable development
• universal and equal access
• continuity
• affordability
• solidarity
• a high level of quality, security and safety
• adaptability to change and constant improvement
  of efficiency
• operation close to citizens
• respect for consumers and users rights
• monitoring and evaluation of the performance
• transparency and democratic control.

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
9
FRAMEWORK to Guarantee and Develop SGEIs (3/3)

• Chapter 4 Organisation and internal market
• Article 9 Free choice of service provider (modes
  of provision)
• Article 10 Authorisation schemes
• Article 11 Exclusive and special rights
• Article 12 In-house
• Chapter 5 Financing and rules of competition
• Article 13 Financing
• Article 14 Rules on compensation
• Financial compensation granted to providers of
  services of general economic interest is
  compatible with competition rules if
• this is a compensation for a clearly defined and
  entrusted public service obligation,
• the compensation does not exceed the costs of the
  obligation,
• and allows an appropriate return of investment.
• Article 15 Types of compensation
• Article 16 Transparency
• Chapter 6 Regulation
• Article 17
• Chapter 7 Evaluation
• Article 18 Evaluation of services of general
  economic interest

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
10
Fostering citizens confidence in an enlarged
Europe by modernising services of general
interest CEEP XVIIth Congress Bucharest, 7/8
Sept 2006

• Services of general interest are essential to
  all, rich and poor, old and new Member
  States, as well as to the future of European
  Union as a whole.
• High quality services of general interest are
  indispensable for any economic and social
  progress in Europe. Their proper operation is a
  condition for Europe to use the whole potential
  of its enlargement in a globalised economy.
• Sustainable development of services of general
  interest can only be reached if diversity and
  unity are combined into an integrated European
  approach.
• Considering the European Social Model, CEEP
  points out to fundamental values of equality,
  non-discrimination, solidarity, with universal,
  free or cheap access to education and health care
  and reiterates that they are an essential basis
  for a successful modern economy and a fair
  society.
• When EU comes to build new foundations for its
  Social Model, it should address as main aspects
  job market, lifelong learning, longer period of
  active life, fighting against poverty, social
  exclusion and corruption as well as changing of
  funding sources, or good balance between private
  and public, in personal life or organisations.
• Investors and responsible authorities, including
  local authorities in new Member States, should
  bear in mind that they have a strong
  responsibility not only for business but also for
  the well-being of citizens. Local and regional
  authorities have a prominent role to play as
  developers and employers, a role that is at first
  glance locally restricted but can have a strong
  impact at national and European levels.

European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
11
Fostering citizens confidence in an enlarged
Europe by modernising services of general
interest CEEP XVIIth Congress Bucharest, 7/8
Sept 2006

• For the sake of Europe, CEEP asks the European
  Union, old and new Member States, and social
  partners, both at national and at European level
  to
• actively work for the maintenance, setting-up and
  improvement of physical, environmental, social
  and cultural infrastructures,
• enable the employers and employees
  organisations in the new Member States to become
  strong and independent in order to gain the
  benefits resulting from a working social
  dialogue,
• enhance the principle of subsidiarity as a tool
  for increased efficiency, better territorial
  cohesion and improved solidarity between
  Europeans.

BUCHAREST DECLARATION Extracts from CEEP XVII
th Congress
European Centre of Enterprises with Public
Participation and of Enterprises of General
Economic Interest
12
Feedback on PECC Guidelines for PPP

• From Sydney 2004 to Sydney 2006 through Santiago
  2005 Hanoi 2006

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Guidelines for PPPIntroduction and background

• Looking for better public service management and
  responding to infrastructure needs
• Towards implementing Principles for good Public
  Private Partnerships practices
• AG sept 05 2 seminars (Sydney dec 04, Santiago
  dec 05) Hanoi 06
• The need for improved forms of governance
• PPP, a tool to implement sustainable development
  policies

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Principles for successful PPP

• Inclusive development and affordability
• The role of infrastructure in improving the
  living conditions of the society and granting
  people access to basic services at an acceptable
  cost is essential.
• Building trust and cooperation, at the heart of
  successful PPP
• With local authorities
• With the staff retained
• With consumers and population
• Stability and predictability (of socio-economy
  laws of the country)
• What are the needs of the public entity, to-day
  to-morrow, and after?
• Is there a PPP local market?
• Which legal institutional framework? Which
  contractual negotiation dialogue to start with?
  With which clarity and adaptability of the
  contract?
• Accountability and risk management
• PPP a means of improving Public Services
  Performance evaluation
• IPSAS, a means of convergence between the 2 Ps
  accounting standards
• Sustainable development, a means of bringing
  together accountability and risk management
• Infrastructure financing optimization
• What to do before looking for new financing?
• The role of a private operator when it comes to
  investment financing
• Facilitating the financing of basic infrastructure

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PPPs Principles Good PracticesAdditional
issues addressed since Hanoi

• From Principles to Good Practices
• Good use of PECC Document / Diversity
• Transferability cross-countries, times, fields
• Cultural acceptance of PPP solutions, at
  pre-assessment phase
• Real cases experience vs knowledge
• What is the contribution of Private Sector?
• Legal framework of a given project to distinguish
  and articulate with Global legal environment of a
  country
• How to secure long term partnership?
• Sequencing of projects and Institutional
  evolutions sequencing

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Guidelines for successful PPP versus
FRAMEWORK to develop SGEIs

• PECC PRINCIPLES FOR SUCCESSFUL PPPs
• Inclusive development and affordability
• The role of infrastructure in improving the
  living conditions of the society and granting
  people access to basic services at an acceptable
  cost is essential.
• Building trust and cooperation, at the heart of
  successful PPP
• With local authorities,
• the staff retained,
• consumers and population
• Stability and predictability (of socio-economy
  laws of the country)
• What are the needs?
• Is there a PPP local market?
• Which legal institutional framework? Which
  contracts?
• Accountability and risk management
• Public Services Performance evaluation
• IPSAS
• Sustainable development, a means of bringing
  together accountability and risk management

• CEEP PROPOSED FRAMEWORK FOR SGEIs
• Chapter 2 Shared responsibility between Member
  States and the Community
• Chapter 3 General principles
• Article 7 The rules of the Treaty / General
  Principles
• Article 8 Principles
• economic, territorial and social cohesion as well
  as sustainable development
• universal and equal access
• continuity
• affordability
• solidarity
• a high level of quality, security and safety
• adaptability to change and constant improvement
  of efficiency
• operation close to citizens
• respect for consumers and users rights
• monitoring and evaluation of the performance
• transparency and democratic control.
• Chapter 4 Organisation and internal market
• Article 9 Free choice of service provider (modes
  of provision)
• Article 10 Authorisation schemes

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Public-privé, statut-contrat

•  La Nation ayant été inventée en sa ville
  capitale, la France a sacralisé lEtat
• De toutes les démocraties, la française est la
  plus centralisée, celle où le rôle de
  ladministration publique est le plus important
• Il nous faut redéfinir les sphères du public et
  du privé, et faire passer sous contrat des
  activités et domaines qui sont aujourdhui sous
  statut. Relativisant lopposition public-privé,
  on ferait apparaître une complémentarité qui
  nest pas bien reconnue aujourdhui. Pourvu que
  les syndicats nen restent pas à une définition
  corporative des services publics. Un bon  marché
  public  est souvent plus favorable à lusager et
  à lEtat que ne peut lêtre une entreprise
  publique qui a tendance à se considérer comme le
  seul juge dun service dont elle nest que
  lexécutant.
• Notre Etat doit changer profondément et se
  limiter pour accomplir parfaitement les tâches
  qui sont incontestablement les siennes 

Edgard Pisani VIVE LA RÉVOLTE ! Un vieil homme
et la politique
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Thank you for your attention
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Recommendations to stakeholdersalong the
Principles
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Recommendations to stakeholders at each stage of
PPPs