State Aids, Social Services and Healthcare in EU Law

Gallo, Daniele

doi:10.1007/978-3-319-99226-6_11

Daniele Gallo²⁶

Part of the book series: Studies in European Economic Law and Regulation ((SEELR,volume 14))

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Abstract

This article focuses, first of all, on the concepts of social services and healthcare in light of EU secondary law (binding and non-binding) as well as of the jurisprudence of the CJEU. It then deals with the ‘Almunia Package’ of 2011/2012 and finally investigates the recent practice of the Commission and the CJEU in the field.

The analysis shows that, generally, by providing and extending special treatment for welfare services, the EU institutions seem to have successfully consolidated the social market economy principles which define the EU model of society.

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Notes

1.
See Commission (EC), ‘Services of general interest’ (Communication) COM (96) 281/03, 26 September 1996; Commission (EC), ‘Services of general interest in Europe’ (Communication) COM (01) 17/04, 19 January 2001; Commission (EC), ‘Green Paper on services of general interest’ (Green Paper) COM (03) 270 final, 21 May 2003; Commission (EC), ‘White Paper on services of general interest’ (White Paper) COM (04) 374 final, 12 May 2004; Commission (EC), ‘Implementing the Community Lisbon programme: Social services of general interest in the European Union’ (Communication) COM (06) 177 final, 26 April 2006; Commission (EC), ‘Accompanying the Communication on “A single market for 21st century Europe” Services of general interest, including social services of general interest: a new European commitment’ (Communication) COM(07) 725 final, 20 November 2007; Commission (EU), ‘A Quality Framework for Services of General Interest in Europe’ (Communication) COM(11) 900 final, 20 December 2011. See Neergaard et al. (2013), p. 4.
2.
On the notion of SSGI, see van de Gronden (2011), p. 123.
3.
Baquero Cruz (2013), p. 294.
4.
On SGEIs, see the chapter by Szyszczak, this volume, and Gallo (2010).
5.
With the exception of principles, such as non-discrimination, that apply also vis-à-vis non-economic services.
6.
In the Commission Staff Working Paper, of 23 March 2011, ‘The Application of EU State Aid rules on Services of General Economic Interest since 2005 and the Outcome of the Public Consultation’, SEC(2011) 397, p. 34, it is stated that “[t]he most relevant criterion used in this context is whether there is a market for the services concerned”.
7.
See, among others, Louri (2002), p. 143; Odudu (2006), pp. 23–56; Sauter and Schepel (2009), pp. 75–83.
8.
Odudu (2006), p. 25.
9.
On the divergences in the interpretation of this concept in the SSGI sector, between competition law, free movement and State aid, see Gallo (2011).
10.
See, in particular, Case C-41/90, Höfner, ECLI:EU:C:1991:161, paras. 21–22.
11.
In the 2007 Communication, above fn. 1, for instance, it is established that “an increasing number of activities performed daily by social services are now falling under the scope of EC law to the extent they are considered as economic in nature”, para. 2.3, p. 8.
12.
See Gallo (2014), pp. 1807–1810.
13.
See inter alia, Case C-350/07, Kattner, ECLI:EU:C:2009:127, para. 37.
14.
See ex multis, Case C-67/96, Albany, ECLI:EU:C:1999:430, para. 86.
15.
For some general observations on the principle of solidarity under EU competition law, see Boeger (2007).
16.
See Case C-159-161/91, Poucet et Pistre, ECLI:EU:C:1993:63, para. 13.
17.
See Case C-218/00, Cisal, ECLI:EU:C:2002:36, para. 45.
18.
See Case C-159-161/91, Poucet et Pistre, ECLI:EU:C:1993:63, paras. 15–18.
19.
See Joined Cases C-264/01, C-306/01, C-354/01 and C-355/01, AOK, ECLI:EU:C:2004:150, paras. 47–55.
20.
See Case C-218/00, Cisal, ECLI:EU:C:2002:36, para. 40.
21.
See Case C-350/07, Kattner, ECLI:EU:C:2009:127, para. 43.
22.
See Case C-244/94, FFSA, ECLI:EU:C:1995:392, paras. 17–20; Joined Cases C-115/97 to C-117/97, Brentjens, ECLI:EU:C:1999:434, paras. 81–85; Case C-219/97, Drijvende Bokken, ECLI:EU:C:1999:437, paras. 71–75.
23.
See Case C-67/96, Albany, ECLI:EU:C:1999:430, paras. 80–87.
24.
See Joined Cases C-115/97 to C-117/97, Brentjens, ECLI:EU:C:1999:434, para. 74.
25.
See Joined Cases C-180/98 to C-184/98, Pavlov, ECLI:EU:C:2000:428, paras. 78–81.
26.
See Case C-67/96, Albany, ECLI:EU:C:1999:430, paras. 88–123.
27.
Decision on the measures SA.23008—2013/C (ex 2013/NN), C (2014) 7277 final. For a discussion of this case from the perspective of State aid law, see Sect. 4 of this chapter.
28.
See the analysis by Hervey and McHale (2015), pp. 211–226.
29.
Commission Decision (EU) on State aid SA.20829 (C 26/2010, ex NN 43/2010 (ex CP 71/2006)) (2012) 9461 final. See also above, para. 5, for further considerations from a purely State aid perspective.
30.
Commission Decision (EU) on State aid C 26/2010 (ex NN 43/2010 (ex CP 71/2006)), (2010) 8960 final—Italy. See also above, Sect. 3 of this chapter, for further considerations from a purely State aid perspective.
31.
Para. 163.
32.
Para. 166.
33.
Paras. 169–177.
34.
Paras. 25–29.
35.
Case C-205/03P, FENIN, ECLI:EU:C:2006:453.
36.
Case C-475/99, Ambulanz Glöckner, ECLI:EU:C:2001:577.
37.
Paras. 18–22.
38.
Case T-137/10, Coordination bruxelloise d’institutions sociales et de santé (CBI), ECLI:EU:T:2012:584. On the State aid implications see above, Sect. 5 of this chapter.
39.
Commission Decision (EU) on the public financing of Brussels public IRIS hospitals SA.19864 (2014/C) (ex NN 54/2009)—Belgium, C(2014) 6833 final. See above, Sect. 3 of this chapter.
40.
See Case T-289/03, BUPA, ECLI:EU:T:2008:29.
41.
See para. 4.4, p. 17.
42.
See para. 2.1, pp. 6–7.
43.
See para. 1.1, pp. 4–5.
44.
See para. 1.1, p. 5.
45.
See para. 1.2, p. 5.
46.
On this topic, see Baquero Cruz (2013), p. 294; Schiek (2013), pp. 73–94.
47.
See the 2006 Communication on SGIs, above fn. 1, para. 2.1, p. 7.
48.
Bauby (2013), p. 50.
49.
See the chapter by Szyszczak, this volume; see also Gallo (2015), pp. 183–200.
50.
Mario Monti held office between 1999 and 2004, Neelie Kroes between 2004 and 2010.
51.
Besides Article 106(2) TFEU, there are other State aid derogations applicable to SSGIs. They are: Article 107(2)(a) on social aids granted to individuals; Article 107(3)(c) TFEU on aids facilitating the development of certain economic activities and areas; and the Commission Regulation (EU) 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Arts. 107 and 108 TFEU [2014] OJ L187/1, the so-called General Block Exemption Regulation (GBER). On this topic see Gallo (2016).
52.
Commission Decision (EC) 2005/842 of 28 November 2005 on the application of Article 86(2) of the EC Treaty to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest, [2005] OJ L312/67; Commission Directive (EC) 2005/81 of 28 November 2005 amending Commission Directive (EEC) 80/723 on the transparency of financial relations between Member States and public undertakings as well as on financial transparency within certain undertakings, [1980] OJ L312/47.
53.
On this point, see Szyszczak (2013), pp. 32–33.
54.
COM/2011/0146.
55.
COM/2011/0900.
56.
On the different stages of this consultative process, see Kamaris (2012), pp. 55–58.
57.
See the chapter by Szyszczak, this volume.
58.
For an overview of the Package, with an emphasis also on the ESSGIs’ peculiarities, see Buendia Sierra and Muñoz de Juan (2012), Geradin (2012), Maxian Rusche (2013), Righini (2012), Rodrigues (2013), Sauter (2012) and Szyszczak (2012).
59.
See also Member States’ reports available at http://ec.europa.eu/competition/state_aid/overview/public_services_en.html#reports.
60.
Commission (EU), ‘Communication from the Commission on the application of the European Union State aid rules to compensation granted for the provision of services of general economic interest’ (Communication) COM [2012] OJ C8/4; Commission (EU) ‘Communication from the Commission, European Union framework for State aid in the form of public service compensation’ (Communication) COM [2012] OJ C8/15.
61.
Commission Decision (EU) 2012/21 of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest [2012] OJ L7/10.
62.
Commission Regulation (EU) 2012/360 of 25 April 2012 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest [2012] OJ L114/8.
63.
Commission SWD (2013) 53 final/2.
64.
Szyszczak (2013), p. 27.
65.
On this point see, amongst others, Merola and Ubaldi (2012), p. 19.
66.
Righini (2012), p. 3.
67.
See Case C-280/00, Altmark, ECLI:EU:C:2003:415, paras. 78–95, in which the Court stated that public service compensation does not constitute State aid when four cumulative conditions are met: the recipient undertaking must have public service obligations and the obligations must be clearly defined; the parameters for calculating the compensation must be objective, transparent and established in advance; the compensation cannot exceed what is necessary to cover all or part of the costs incurred in the discharge of the public service obligations, taking into account the relevant receipts and a reasonable profit; where the undertaking which is to discharge public service obligations is not chosen pursuant to a public procurement procedure (that would allow for the selection of the tenderer capable of providing those services at the least cost to the community), the level of compensation needed must be determined on the basis of an analysis of the costs of a typical well-run company.
68.
On the interplay between procurement rules, ESSGIs and State aids, and the relevant legal framework, see Manunza and Berends (2013), p. 348; Gallo (2016).
69.
See para. 2.1.2, pt. 16.
70.
See para. 2.1.3, pts. 17–20.
71.
See para. 2.1.4, pts. 21–25.
72.
See para. 2.1.6, pts. 26–29.
73.
See para. 3.2.1, pts. 29–30.
74.
See para. 1.
75.
See para. 2.3, pt. 37.
76.
See para. 2.3, pt. 38.
77.
See para. 3.2.1, pt. 36 of the 2013 SGEI Guide.
78.
See para. 2.3, pt. 39.
79.
See para. 2.3, pt. 40.
80.
Article 2.
81.
Commission Regulation (EC) 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 of the Treaty to de minimis aid, [2006] OJ L 379/5.
82.
See generally van de Gronden and Rusu (2013) and Hancher and Sauter (2013).
83.
Article 2(1)(d) and (e).
84.
Article 2(1)(b).
85.
Article 2(1)(c).
86.
Article 2(1)(a).
87.
Article 2(1)(b)–(e).
88.
See para. 3.4.2.1, pt. 110, 2013 SGEI Guide.
89.
See para. 3.4.1.2, pt. 92, 2013 SGEI Guide.
90.
See para. 3.4.1.2, pt. 97.
91.
See para. 3.4.1.2, pt. 96.
92.
For those who are already employed the 2013 SGEI Guide states, however, that State aid for professional training can be granted under the conditions set out in Arts. 38 and 39 of Commission Regulation (EC) 800/2008 of 6 August 2008 (General block exemption Regulation), at that time in force, declaring certain categories of aid compatible with the common market in application of Arts. 87 and 88 of the Treaty (General block exemption Regulation), L 241/3 (para. 3.4.1.2, pt. 99).
93.
See para. 3.4.1.2, pt. 94.
94.
See recital 12 of the Decision.
95.
See para. 3.4.1.3, pt. 101, SGEI (2013) Guide.
96.
See Case T-289/03, BUPA, ECLI:EU:T:2008:29; on the ruling see, ex multis, Bartosch (2008), p. 211; de Vries (2011), p. 295.
97.
See BUPA, paras. 177–184.
98.
In these terms Buendia Sierra and Muñoz de Juan (2012), p. 69.
99.
On social security and social housing see above, Sects. 4 and 5 of this chapter respectively.
100.
For an early important decision of the Commission in this field (concerning Ireland) see Case N 543/01—Ireland—Capital allowances for hospitals, OJ C 154/4.
101.
Decision on State aid NN 54/09, C 74/1.
102.
‘Loi sur les hôpitaux coordonnée, Moniteur Belge’ (7 October 1987) Belgian Official Journal, in force from 17 October 1987.
103.
See Hancher and Sauter (2013), p. 258.
104.
Paras. 99–102.
105.
But see above, Sect. 1 of this chapter, on FENIN and on the notion of economic activity in the field of healthcare.
106.
See Case C-280/00, Altmark, ECLI:EU:C:2003:415, paras. 78–95.
107.
Paras. 159–163.
108.
Paras. 164–218.
109.
Case T-137/10, CBI, ECLI:EU:T:2012:584.
110.
Paras. 168, 187, 219, 244, 265, 278 and 308.
111.
Para. 309.
112.
Para. 311.
113.
See Commission SA.19864 (2014/C) (ex NN 54/2009)—Belgium. Public financing of Brussels public IRIS hospitals, C(2014) 6833 final.
114.
Paras. 40–44.
115.
Para. 57.
116.
Paras. 73–76.
117.
Paras. 76–79.
118.
Para. 82.
119.
Para. 102.
120.
Para. 103.
121.
Commission Decision (EU) on State Aid 19864—2014/C (ex 2009/NN54) implemented by Belgium, Public financing of Brussels public IRIS hospitals, C(2016) 4051 final.
122.
Para. 164.
123.
Para. 175.
124.
Paras. 185, 187, 190.
125.
Paras. 193–204.
126.
Paras. 205–214.
127.
Para. 215.
128.
Para. 166.
129.
Para. 215.
130.
Paras. 225–245.
131.
Paras. 246–256.
132.
Case T-167/04, Asklepios, ECLI:EU:T:2007:215.
133.
On the case see Hancher and Sauter (2013), p. 255.
134.
Para. 77.
135.
Paras. 62 and 81.
136.
Para. 83.
137.
Para. 89.
138.
Para. 90.
139.
Para. 91.
140.
Commission Decision (EU) concerning SA.36798 (2016/NN)—Germany—Alleged unlawful State aid for Klinikum Osnabrück GmbH, C(2016) 6689 final. On the case see also Nicolaides (2017).
141.
Para. 34.
142.
Para. 35.
143.
Paras. 35 and 37.
144.
Para. 37.
145.
Para. 38.
146.
Paras. 39–49.
147.
Para. 40.
148.
Paras. 51–52.
149.
Paras. 53–56.
150.
Paras. 57–58.
151.
Commission Decision on State Aid SA.34655 (2017/NN)—Germany Investment aid for Nursing Home and connected facilities in the City of Dahn, C(2017) 3659 final.
152.
See the information on the case reported by Aalto-Setälä and Piekkala (2015), p. 453.
153.
Commission Decision (EU) on State Aid 37432 (2015/NN), Funding to public hospitals in the Hradec Králové Region, C(2015) 2796 final.
154.
Para. 14.
155.
Paras. 17, 21–22.
156.
Para. 26.
157.
Para. 30.
158.
See above, para. 1.
159.
Para. 169.
160.
Paras. 169–171.
161.
Case T-219/13, Ferracci v. Commission, ECLI:EU:T:2016:485 and T-220/13, Scuola Elementare Maria Montessori v. Commission, ECLI:EU:T:2016:484.
162.
For a comprehensive analysis of the judgments, see Szyszczak (2016), pp. 637–641.
163.
Ferracci, para. 140; Montessori, para. 137.
164.
Montessori, paras. 139–143.
165.
“Services provided free of charge do not generally constitute an economic activity. In particular, this is the case if the services are not offered in competition with other market operators, as laid down in Article 1 of the Regulation. The same holds true for services that are provided for a symbolic fee. In this respect, it is important to note that the Regulation stipulates that, for the fee to be considered symbolic, it must bear no relationship to the cost of the service”, para. 171.
166.
Szyszczak (2016), p. 640.
167.
Ibid., p. 641.
168.
Commission Decision on State Aid SA.38825—Italy, Alleged State aid for private providers of socio-sanitary services, C(2017) 1939 final.
169.
On health insurance in Ireland outside the area of State aid see Case C-82/10, Commission v. Ireland, ECLI:EU:C:2011:621.
170.
See above, para. 1.
171.
Commission Decision (EU) on State aid 46/2003—Ireland, C (2003) 1322 final.
172.
On such approach see above, para. 1.
173.
See Sauter and van de Gronden (2011), p. 616.
174.
See also de Vries (2011), pp. 302–305; and Szyszczak (2009), p. 205.
175.
Bartosch (2008), p. 211.
176.
Baquero Cruz (2013), p. 308.
177.
Commission Decision (EC) on State aid 582/2008 (IP/09/961)—Ireland—health insurance intergenerational solidarity relief, C (2009) 3572 final.
178.
See Sauter and van de Gronden (2011), p. 617.
179.
Ibid.
180.
See para. 68.
181.
See para. 70.
182.
See paras. 80–81.
183.
See para. 81.
184.
See para. 82.
185.
Commission Decision on State aid SA.34515 (2013/NN)—Ireland. Risk equalisation scheme for 2013, C(2013) 793 final corr.; Commission Decision on State Aid SA.41702 (2016/NN)—Ireland. Risk Equalisation Scheme, C(2016) 380 final.
186.
Commission Decision (EC) on State aid SA.18879—E 6/2006—Ireland. Unlimited guarantee in favour of the Voluntary Health Insurance Board (VHI), C(2012) 5073 final.
187.
Commission Decision (EC) 541/2004 e 542/2004—JOCE C/324/2005 (text of the letter only in Dutch).
188.
Van de Gronden and Rusu (2013), p. 197.
189.
Sauter and van de Gronden (2011), p. 617.
190.
Ibid.
191.
Case T-84/06, Azivo Algemeen Ziekenfonds De Volharding v. Commission, ECLI:EU:T:2008:431.
192.
Commission on State aid 214/2010—Netherlands. Risk equalization system in the Dutch Health Insurance, C (2010)/4893.
193.
[2011] OJ L 143/16. See also above, para. 5, from the standpoint of State aid and Article 106(2) TFEU.
194.
Paras. 141–145.
195.
Paras. 183–193.
196.
Para. 189.
197.
Commission Decision (EU) on State aid SA 23008 (C/2013) (ex 2013/NN) Alleged State aid to Spoločná zdravotná poisťovňa, a.s (SZP) and Všeobecná zdravotná poisťovňa, a.s (VZP).
198.
See above, para. 1, where the Decision has been examined with regard to its implications from the point of view of the notion of economic activity.
199.
See application Dôvera zdravotná poistʼovňa v. Commission in Case T-216/15.
200.
Commission Decision (EC) on State aid 158/2009—United Kingdom. Establishment of the National Employment Savings Trust—NEST, C (2010) 4507 final.
201.
Paras. 117–128.
202.
Commission Decision (EU) on State aid 36410 (2014/N)—United Kingdom. Modifications to the National Employment Savings Trust—NEST, C(2014) 4071 final.
203.
Paras. 14–15 and 29.
204.
Paras. 30–36.
205.
For a general discussion see Sol and van der Vos (2015).
206.
Commission Decision (EC) on State aid 2/2005 and 642/2009—The Netherlands. Existing and special project aid to housing corporations, C (2009) 9963 final.
207.
Para. 14.
208.
Baquero Cruz (2013), p. 306.
209.
Para. 73.
210.
See Gruis and Elsinga (2014), pp. 465–466.
211.
Case T-203/10, Stichting, ECLI:EU:T:2011:766.
212.
Paras. 34–64.
213.
Paras. 74–75.
214.
Case T-203/10 RENV, Stichting, ECLI:EU:T:2015:286.
215.
Case C-415/15 P, Stichting, ECLI:EU:C:2017:216.
216.
Paras. 29–54.
217.
Paras. 59–68.
218.
Commission Decision (EC) on State Aid 395/2005 of 7 December 2005. Ireland, Loan Guarantee for Social Infrastructure Schemes Funded by the Housing Agency, (2005) 4668 final.
219.
Para. 391.
220.
Paras. 39–44.
221.
Joined Cases C-197/11 and C-203/11, Libert, ECLI:EU:C:2013:288. For an overview see Nicolaides (2014).
222.
Paras. 67–69.
223.
Opinion of 4 October 2012, ECLI:EU:C:2012:621, para. 43.
224.
Para. 76.
225.
Paras. 94–102.
226.
See Eichler (2014), pp. 93–94.
227.
Ibid.
228.
On this issue see Elsinga and Lind (2012).
229.
See Gruis and Elsinga (2014), pp. 466–467.
230.
On this complaint see the press release available online at http://www.unpi.org/Donnees_Client/Doc/Produit/664314.pdf.

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LUISS Law Department, Rome, Italy
Daniele Gallo

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Daniele Gallo
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University of Milan, Milan, Italy
Bruno Nascimbene
Faculty of Law, University of Milan, Milan, Italy
Alessia Di Pascale

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Gallo, D. (2018). State Aids, Social Services and Healthcare in EU Law. In: Nascimbene, B., Di Pascale, A. (eds) The Modernisation of State Aid for Economic and Social Development. Studies in European Economic Law and Regulation, vol 14. Springer, Cham. https://doi.org/10.1007/978-3-319-99226-6_11

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DOI: https://doi.org/10.1007/978-3-319-99226-6_11
Published: 29 November 2018
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-99225-9
Online ISBN: 978-3-319-99226-6
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