LE FONCTIONNEMENT INSTITUTIONNEL

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What are the consequences of the Services
Directive on the organisation of Social Services
of General Interest such as Housings and Social
Care ?
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ITHE INSTITUTIONNAL GAMELooking for a consensus
1. The actors of the european consensus
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THE INSTITUTIONNAL PROCEDURE

• The Actors

COUNCIL
COMMISSION
PARLIAMENT
Court of Justice
Court of Counts
Social and Economic Comittee
Regions Committee
Investments European Bank
European Central Bank
Institutions of décision
Institutions of Control
Institutionnal organs
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THE INSTITUTIONAL PROCESS

• The Council

COUNCIL
COMMISSION
PARLIAMENT

• Composed by member states ministerial
  representatives
• 9 specialised shapes
• work prepared by the CSA for agriculture,
  dedicated committees and COREPER for general
  affairs
• Variable system of vote depending on the subject

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THE INSTITUTIONAL PROCESS

• The Commission

COUNCIL
COMMISSION
PARLIAMENT

• Composed by one commissioner by state member
• Monopoly of the initiative
• Represents the Community interests and protect
  the treaty
• 23 General Directions (18000 people)

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THE INSTITUTIONAL PROCESS

• The Parliament

COUNCIL
COMMISSION
PARLIAMENT

• Composed of 732 members elected for 5 years
• Represents peoples
• Competencies for budget and political control
• 7 political groups diverses intergroups
  national groups
• 12 plenary sessions in Strasbourg, 2 weeks per
  month in Brussels

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THE INSTITUTIONNAL GAMELooking for a consensus
2. The legislative procedure
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THE INSTITUTIONNAL GAME

• SUM-UP

Decides upon Conflicts among The Council
EUROPEAN COUNCIL Meeting of states chiefs
COMMISSION 25 members in 2006, named by member
states
COUNCIL Legislative Organ representing member
states specialised shapes (Ecofin, Agriculture,
etc.)
PARLIAMENT Legislative Organ Located in
Strasbourg. 732 MP elected for five years
Proposes regulation and directive to
legislative organs
Directives and Regulations
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THE INSTITUTIONNAL GAME
SUM-UP
Elected president for two years and a half
EUROPEAN COUNCIL Meeting of states chiefs
Decides upon Conflicts among The Council
Representing the proportion of each member state
new function of foreing affairs ministry
COMMISSION 25 members in 2006, named by member
states
COUNCIL Legislative Organ representing member
states specialised shapes (Ecofin, Agriculture,
etc.)
PARLIAMENT Legislative Organ Located in
Strasbourg. 732 MP elected for five years
Proposes regulation and directive to
legislative organs
President elected by Parliament, reduced number
of commissioners to 15
Directives and Regulations
Generalisation of the qualified majority vote
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GREEN PAPER
Consulting document destined to launch a wide
debate between actors
WHITE PAPER
The white paper contains propositions of
communitarian actions in a specific field
COMMUNICATION
The communication expresses the will of the
European Commission
The Commission has the monopoly of initiative
Act project
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1 lecture
Commission Proposal
EP position
Council refuses the EP position and proposes its
position
Council approves PE position
2 lecture
EP approves
EP refuses
EP proposes amendements
Commission advice
Council approves
Council does not approve all amendements
Conciliation
Conciliating committee
Conciliating committee does not approve the
common project
Conciliation committee approves a common project
3 lecture
EP or Council doesnt adopt the common project
EP or Council adopt the common project
Act adopted
Act non adopted
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The Comitology 
GESTION COMITTEE (article 4) -exécutive
measure Budget-linked- Blocking advice for 3
months, permetting the council to
decide on Qualified majority
REGULATION COMITTEE (article 5) -exécutive
measure Budget-linked- Blocking advice for 3
months, permetting the council to
decide on Qualified majority
COUNCIL
COMMISSION
Procédure comittee CONSULTATIVE (article 3) Non
blocking advice
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THE INSTITUTIONNAL PROCEDURE

• The Actors

COUNCIL
COMMISSION
PARLIAMENT
Court of Justice
Court of Counts
Social and Economic Comittee
Regions Committee
Investments European Bank
European Central Bank
Institutions of décision
Institutions of Control
Institutionnal organs
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SOCIAL SERVICE OF GENERAL INTEREST versus SERVICE
DIRECTIVENotion and context
1. The notion of social service of general
interest
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THE NOTION OF  SERVICE OF GENERAL INTEREST 

• Articles 16 of the European Treaty stresses the
  fact that Econonomic services of general
  interest (ESGI) can be esxempted from
  competition regulations when they contribute to
  common values of the Union
• Article 86 explains that competition regulations
  cannot interfere with missions of an enterprise
  which is in charge of a Economic Service of
  General Interest
• Services of General Interest (SGI) can be
  deduced of these (very tiny)
• SIG is a functional notion from the EU point of
  view (on the contrary of the French tradition,
  which define Public services as a organic notion)

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THE HISTORY OF THE NOTION OF  SERVICE OF
GENERAL INTEREST 

• the beginning of the debate web ESGI
  (transportation facilities, energy industries,
  telecommunication industries etc

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THE HISTORY OF THE NOTION OF  SERVICE OF
GENERAL INTEREST 
GREEN PAPER
Green paper on General Interest Services
published in may 2003
WHITE PAPER
White paper published in may 2004
HERZOG REPORT, EP, january 2004
COMMUNICATION
Communication on Social Services of General
Interest published in april 2006
Services Directive, adoption, july 2006
EP resolution on SSGI March 2007
The Commission decided not to launch an act
project in november 2007
Act project
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TO SUM-UP

• The notion of social services of general
  interest is hardly defined in a functional way
• It is compatible with competition, since the
  functional definition of SSGI allows private
  companies to compete on this market
• It nevertheless can explain some exceptions from
  the competition rules (for example state
  subventions), in order to organise certain
  services that otherwise couldnt be developed
• the judge could say if the existence of SSGI
  allows those exceptions or not

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SOCIAL SERVICE OF GENERAL INTEREST versus SERVICE
DIRECTIVENotion and context
2. The service directive
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THE HISTORY OF THE  SERVICE DIRECTIVE 

• Three main issues
• The achievement of the EU internal market
• The faith on the positive consequences of the
  freedom of services on the employment rate and
  common wealth
• The evolution of the notion of subsidiary on
  social services

• A Clear competence of the commission
• Article 42 ECT free movement of workers linked
  to social security rights
• Article 48 ECT free movement of people,
  services, and capital

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1 lecture
Commission Proposal
FEBRUARY 2006
Commission Proposal
JULY 2006
SEPTEMBER 2006
EP position
EP position
Council refuses the EP position and proposes its
position
Council approves PE position
Council refuses the EP position and proposes its
position
2 lecture
EP approves
EP approves
EP refuses
EP proposes amendements
Commission advice
Council approves
Council does not approve all amendements
Conciliation
Conciliating committee
Conciliating committee does not approve the
common project
Conciliation committee approves a common project
3 lecture
EP or Council doesnt adopt the common project
EP or Council adopt the common project
Act adopted
Act adopted
Act non adopted
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THE CONSEQUENCES OF THE  SERVICE DIRECTIVE 

• Is social security considered as a service
  covered by the services directive ? NO
• Social services covered by the 1408/71
  Regulation (and 574/72 implementation Regulation)
  on coordination between social security schemes
  are not concerned by the new Directive
• Poucet et Pistre Case, 1993 affiliation to a
  national social security scheme is compulsory
  because of its aspect of non economical service
  of general interest

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THE CONSEQUENCES OF THE  SERVICE DIRECTIVE 
COUNCIL
COMMISSION
PARLIAMENT
Court of Justice
Court of Counts
Social and Economic Comittee
Regions Committee
Investments European Bank
European Central Bank
Institutions of décision
Institutions of Control
Institutionnal organs
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THE CONSEQUENCES OF THE  SERVICE DIRECTIVE 

• Is social security considered as a service
  covered by the services directive ? BUT
• Healthcare is deeply impacted by the freedom of
  movement, the non discrimination principles, and
  the freedom of services
• Vanbraekel Case, july 2001
• Smits and Peerbooms Case, july 2001
• Watts Case, may 2006

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THE CONSEQUENCES OF THE  SERVICE DIRECTIVE 

• Is social security considered as a service
  covered by the services directive ? BUT
• Preliminary disposition n 33 of the directive
  is explicit social care and housings are
  concerned by freedom of competition

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33) The services covered by this Directive
concern a wide variety of ever-changing
activities, including business services such as
management consultancy, certification and
testing facilities management, including office
maintenance advertising recruitment services
and the services of commercial agents. The
services covered are also services provided both
to businesses and to consumers, such as legal or
fiscal advice real estate services such as
estate agencies construction, including the
services of architects distributive trades the
organisation of trade fairs car rental and
travel agencies. Consumer services are also
covered, such as those in the field of tourism,
including tour guides leisure services, sports
centres and amusement parks and, to the extent
that they are not excluded from the scope of
application of the Directive, household support
services, such as help for the elderly. Those
activities may involve services requiring the
proximity of provider and recipient, services
requiring travel by the recipient or the provider
and services which may be provided at a distance,
including via the Internet.
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SOCIAL SERVICE OF GENERAL INTEREST versus SERVICE
DIRECTIVEThe consequences on the french
organisation of social care and housing
1. The former organisation
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THE FORMER FRENCH ORGANISATION OF SOCIAL CARE

• Choice between direct agreement and services
  financed by social security and local
  administrations
• If direct agreement occasional reimbursement
  by local administrations only if the housekeeper
  or the nurse is declared (pays her/his own
  contributions to social security, is paid at a
  minimum level of income, and correspond to a book
  of specifications (diplomas, formation etc.))
• If services financed by social security or local
  administrations
• Separation between evaluation of the needs and
  service of housing and social care
• local monopolies of services of general
  interests, driven by non profit organisations
  chosen by public authorities by triennial
  agreements (automatically re-conducted)

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EXAMPLE OF THE OLD ORGANISATION OF SOCIAL CARE
PARIS
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THE FORMER FRENCH ORGANISATION OF SOCIAL
CAREThe main federations of dedicated NPO
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SOCIAL SERVICE OF GENERAL INTEREST versus SERVICE
DIRECTIVEThe consequences on the French
organisation of social care and housing
2. The new organisation three main ways
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THE NEW FRENCH ORGANISATION OF SOCIAL CARETHREE
MAIN WAYS
a) Direct individual agreement with any worker
Possible As far as it respects Service Directive
(residence principle, or short-term mission),
necessity to contribute to a social security
system
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THE NEW FRENCH ORGANISATION OF SOCIAL CARETHREE
MAIN WAYS
b) Services partially financed by social security
or local administrations on specific areas
The new organisation must respects competition
principles, using the tool of public bids the
winner is conventionalized for three years
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THE NEW FRENCH ORGANISATION OF SOCIAL CARETHREE
MAIN WAYS
C) Services partially financed by social security
or local administrations
The new organisation must respects competition
principles, using the tool of the book of
specifications All services providers that will
accept the book of specification and controls of
its respect will be authorized to compete and
develop its activity
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THE NEW FRENCH ORGANISATION OF SOCIAL CARETHREE
MAIN WAYS
Questions that remain to be solved

• Have we got to finance needs expressed by French
  retirees living in foreign countries ?
• Are our contracts (of evaluation of the needs
  and of services) giving an excessive advantage to
  co-contracting services ?
• Are these new organisations that respect
  competition principles accurate on the
  countryside ?

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THANK YOU FOR YOUR KIND ATTENTION
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