I THE INSTITUTIONNAL GAME Looking for a consensus

2. What are the consequences of the Services Directive on the organisation of Social Services of General Interest such as Housings and Social Care ?

3. ITHE INSTITUTIONNAL GAMELooking for a consensus 1. The actors of the european consensus

4. THE INSTITUTIONNAL PROCEDURE COUNCIL COMMISSION PARLIAMENT Court of Justice Court of Counts The Actors Social and Economic Comittee Regions Committee Investments European Bank European Central Bank Institutions of décision Institutions of Control Institutionnal organs

5. THE INSTITUTIONAL PROCESS 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 The Council

6. THE INSTITUTIONAL PROCESS 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) The Commission

7. THE INSTITUTIONAL PROCESS 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 The Parliament

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

9. THE INSTITUTIONNAL GAME 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.) SUM-UP PARLIAMENT Legislative Organ Located in Strasbourg. 732 MP elected for five years Proposes regulation and directive to legislative organs Directives and Regulations

10. THE INSTITUTIONNAL GAME SUM-UP Elected president for two years and a half Decides upon Conflicts among The Council EUROPEAN COUNCIL Meeting of states chiefs 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

11. 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

12. 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 does’nt adopt the common project EP or Council adopt the common project Act non adopted Act adopted

13. The «Comitology » REGULATION COMITTEE (article 5) -exécutive measure Budget-linked- Blocking advice for 3 months, permetting the council to decide on Qualified majority GESTION COMITTEE (article 4) -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

14. THE INSTITUTIONNAL PROCEDURE COUNCIL COMMISSION PARLIAMENT Court of Justice Court of Counts The Actors Social and Economic Comittee Regions Committee Investments European Bank European Central Bank Institutions of décision Institutions of Control Institutionnal organs

15. SOCIAL SERVICE OF GENERAL INTEREST versus SERVICE DIRECTIVENotion and context 1. The notion of social service of general interest

16. 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)

17. THE HISTORY OF THE NOTION OF « SERVICE OF GENERAL INTEREST » • the beginning of the debate : “web” ESGI (transportation facilities, energy industries, telecommunication industries etc…

18. 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

19. 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 couldn’t be developed • the judge could say if the existence of SSGI allows those exceptions or not

20. SOCIAL SERVICE OF GENERAL INTEREST versus SERVICE DIRECTIVENotion and context 2. The service directive

21. 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

22. 1° lecture FEBRUARY 2006 Commission Proposal Commission Proposal JULY 2006 SEPTEMBER 2006 EP position EP position Council refuses the EP position and proposes its position Council refuses the EP position and proposes its position Council approves PE 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 does’nt adopt the common project EP or Council adopt the common project Act adopted Act non adopted Act adopted

23. 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

24. 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

25. 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

26. 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

27. 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 thatthey are not excluded from the scope of application of the Directive, household support services, such ashelp 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.

28. SOCIAL SERVICE OF GENERAL INTEREST versus SERVICE DIRECTIVEThe consequences on the french organisation of social care and housing 1. The former organisation

29. 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) THE FORMER FRENCH ORGANISATION OF SOCIAL CARE

30. EXAMPLE OF THE OLD ORGANISATION OF SOCIAL CARE : PARIS

31. THE FORMER FRENCH ORGANISATION OF SOCIAL CAREThe main federations of dedicated NPO

32. 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

33. 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

34. 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

35. 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

36. 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 ?

37. THANK YOU FOR YOUR KIND ATTENTION