4. Perspectives on the Evolution of European Social Policy

perspectives on the evolutionof european social policy 19It is recognised that the services sector makes a significant contribution to theEuropean economy, accounting for 56% of GDP and 70% of employment; theremoval of barriers to the free movement of services would, thus, provide a majorboost to the European economy. 16 Service providers experience obstacles to tradearising from national regulation for service firms or products, as well as informationbarriers relating to setting up in or providing services in another member state. It isonly since the 1990’s that the EU legislature and judiciary have begun seriously tofocus on the internal market for services. Attention had previously been focusedon establishing an internal market for goods and dismantling associated barriers.Similar progress in establishing a similarly free market for services had notbeen achieved.This is the purpose of the above-mentioned 2006 Services Directive whichpurports to remove legal and administrative barriers to trade in the services sector.It attempted to distinguish between those services that are provided out of aneconomic interest and those services which are elicited to answer a more generalinterest. With regard to the latter concept, the directive makes a distinction betweenServices of General Interest and Services of General Economic Interest (SEGI).The former refer to services, both market and non-market, which public authorities classas being necessary for the satisfaction of certain fundamental needs and therefore hascertain requirements conducive to the common good imposed on it; the latter refersto services of an economic nature which member-states subject to specific publicservice obligations by virtue of their general interest criterion. The concept of servicesof general economic interest thus covers in particular certain services provided by thebig network industries such as transport, postal services, energy and communications(Commission White Paper on Services of General Interest 2004).The Services Directive provided thats The Directive does not apply to non-economic services of generalinterest (SGI).s Certain Services of General Economic Interest were excluded from the directive. 17This includes healthcare 18 and other social services.s Those SGEI that do come under the scope of the Directive are exempted from freedomto provide services provisions (but have their own regulatory regimes). These includepostal services, electricity sector, gas sector, water supply and waste treatment.However, public services are potentially affected if it is decided that they serve a generaleconomic interest. In essence, where a public service activity or undertaking is ‘economic’,16 http://www.etuc.org.17 Article 2, Service Directive.18 “The original Commission proposal for a Services Directive contained provisions clarifying the conditions under which patients are entitledto reimbursement for medical care obtained in another Member State aimed at ensuring that patients could benefit from a better choice ofhigh quality treatment. The European Parliament voted to remove all health services from the scope of the Directive. The Commission hasaccepted this. However, the exclusion of health services from the scope of the Directive does not take away from the necessity of addressingthe increasing case law of the European Court of Justice in regard to patient mobility. A separate proposal from the Commission addressingthis issue may therefore be necessary. In parallel with the Services Directive, the Commission will draw up a Communication setting out theproposed action that needs to be taken in this area” (http://europa.eu). This has led to the proposed patient mobility directive.