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Introduction

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Book cover Financing Services of General Economic Interest

Part of the book series: Legal Issues of Services of General Interest ((LEGAL))

Abstract

This chapter provides an introduction to the background to recent reforms for financing SGEI, known as the ‘Almunia package’. It traces the reaction to the Altmark ruling from the European Commission and the European Courts and sets the legal and political debate on how to finance SGEI in its modern economic and constitutional context. The chapter introduces and summarises the arguments made in the subsequent chapters of the book.

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Notes

  1. 1.

    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, OJ 2012 C 8/4; Communication from the Commission, European Union framework for State aid in the form of public service compensation, OJ 2012 C 8/15.

  2. 2.

    Commission Decision of 20 December 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, OJ 2012 L 7/3.

  3. 3.

    Draft Commission Regulation 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, O. J. 2012 C 8/23.

  4. 4.

    Commission Regulation 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, OJ 2012 L 114/8.

  5. 5.

    Available at: http://ec.europa.eu/governance/impact/ia_carried_out/cia_2011_en.htm#comp.

  6. 6.

    The idea of a quality framework, avoiding binding legislation, was mooted by the Commission as part of the initial ideas for modernising the single/internal market: European Commission, services of general interest, including social services of general interest: a new European commitment COM (2007) 725 final. See the chapter by Maxian Rusche.

  7. 7.

    Available at: http://ec.europa.eu/competition/State_aid/legislation/sgei.html. Articles were also published in the Competition Policy Newsletter 2012:1: http://ec.europa.eu/competition/publications/cpn/cpn_2012_1_en.html.

  8. 8.

    For commentary see: Sinnaeve 2012, Buendía Sierra 2012. This Introduction is based (in part) upon Szyszczak 2012a.

  9. 9.

    State aid: Commission adopts new rules on services of general economic interest (SGEI) IP/11/1571, 20/12/2011. For an early application of the new package see: State aid SA.33054 (2012/N)—United Kingdom Post Office Limited (POL): Compensation for net costs incurred to keep a non-commercially viable network for the period 2012–2015 and the continuation of a working capital facility, C(2012) 1905 fin. 28 March 2012.

  10. 10.

    Joaquín Almunia Vice President of the European Commission responsible for Competition Policy, ‘The State Aid Modernisation Initiative’, speech at The State Aid Modernisation Initiative EStALI—European State Aid Law Institute 10th Experts' Forum on New Developments in European State Aid Law Brussels, 7 June 2012. Available at: http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/12/424&format=HTML&aged=0&language=EN&guiLanguage=en (last accessed on 1 August 2012).

  11. 11.

    CJEU, Case 280/00 Altmark Trans GmbH and Regierungspräsidium Magdeburg v. Nahverkehrsgesellschaft Altmark GmbH, and Oberbundesanwalt beim Bundesverwaltungsgericht [2003]ECR I-7747.

  12. 12.

    Mario Monti, A New Strategy for the Single Market, At the Service of Europe’s Economy and Society, Report to the President of the European Commission Jose Manuel Barroso, May 9 2010.

  13. 13.

    Bauby 2011. On special measures for transport see the chapter by Maxian Rusche and Schmidt.

  14. 14.

    For a deeper discussion of the earlier phases of litigation see Buendia Sierra 1999 and Szyszczak 2007.

  15. 15.

    See Szyszczak 2007, Chap. 1.

  16. 16.

    Davies and Szyszczak 2011.

  17. 17.

    Szyszczak 2012b.

  18. 18.

    Szyszczak 2004.

  19. 19.

    Baquero Cruz 2002.

  20. 20.

    The availability of Article 106(2) TFEU as a derogation or justification from the free movement rules is contentious, see Bekkedal 2011. See the strict interpretation of when Article 106(2) TFEU can apply in relation to a free movement of capital (golden shares) infringement: CJEU, Case C-543/08 Commission v. Portugal [2010] ECR I-0000.

  21. 21.

    European Commission, Green Paper on Services of General Interest, COM (2003) 270 final (21 May 2003); European Commission, White Paper on Services of General Interest, COM (2004) 374 final (12 May 2004).

  22. 22.

    European Commission, Green Paper on Services of General Interest, COM (2003) 270 final (21 May 2003); European Commission, White Paper on Services of General Interest, COM (2004) 374 final (12 May 2004).

  23. 23.

    CJEU, Case C-280/00 Altmark [2003] ECR I-7747.

  24. 24.

    Also termed ‘conditions’ by some commentators.

  25. 25.

    CJEU, Case C-280/00 Altmark [2003] ECR I-7747, adopting a compensation approach following the earlier ruling in CJEU, Case C-53/00 Ferring v ACOSS [2001] ECR I-9067. For background on the vacillation between a State aid and compensation approach in the earlier case law and Commission policy see Szyszczak 2004.

  26. 26.

    An application of this condition is seen Commission Decision Energy Supply Slovenia, OJ 2007 L 219/9, paras 111ff where the Commission was satisfied that Slovenia had chosen an option that did not strictly fulfil the fourth criterion but was the option which incurred the least cost for the State.

  27. 27.

    See, for example, GC, Case T-289/03 BUPA v Commission [2008] ECR II-81. Cf Klasse 2009, who argues that Article 106(2) TFEU is restricted to assessing a possible over-compensation where psc is evaluated, whereas the Altmark criteria apply a stricter regime, requiring also a judgment of efficiency.

  28. 28.

    Hancher and Larouche 2011.

  29. 29.

    Szyszczak 2011.

  30. 30.

    Commission, Commission Decision of 28 November 2005, C(2005) 2673 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, OJ 2005 L 312/67.

  31. 31.

    Community Framework for State Aid in the Form of Public Service Compensation, OJ 2005 C 297/4.

  32. 32.

    Commission Directive 2006/111/EC of 16 November 2006 on the transparency of financial relations between Member States and public undertakings as well as on financial transparency within certain undertakings OJ 2006 L 318/17.

  33. 33.

    State aid: Commission provides greater legal certainty for financing services of general economic interest, Press Release IP/05/937, Reference: MEMO/05/258 Date: 15/07/2005. Available at: http://europa.eu/rapid/pressReleasesAction.do?reference=IP/05/937&format=HTML&aged=0%3Cuage=EN&guiLanguage=en. Of particular significance are the reasons set out as to why social services are excluded from the State aid rules.

  34. 34.

    See Szyszczak 2012b.

  35. 35.

    GC, T-289/03 BUPA v. Commission [2008] ECR II-81.

  36. 36.

    CJEU, Case C-53/00 [2001] ECR I-9067.

  37. 37.

    Cf. Szyszczak 2011.

  38. 38.

    GC, T-289/03 [2008] ECR II-81.

  39. 39.

    Hancher and Larouche 2011, p. 765.

  40. 40.

    Hancher and Larouche 2011, p. 764. See also Sauter and van de Gronden 2011, p. 618. Who state that the GC substantially amended the Altmark criteria and that it, by moderating the fourth criterion, called into question the strict efficiency approach that the Commission adopted in four healthcare decisions.

  41. 41.

    Ross 2009, p. 138.

  42. 42.

    CJEU, Joined Cases C-341/06 P and C-342/06 P Chronopost II [2008] ECR I-4777.

  43. 43.

    For more detailed discussion of the constitutional significance of these changes to the basic Union Treaties and their use in soft law see Szyszczak 2012c.

  44. 44.

    The Treaty of Lisbon 2009 recognised for the first time the role of subnational governments in the Union, see: Article 4(2) TEU; Protocol No. 2, Articles 2, 5; Article 5(3) TEU.

  45. 45.

    COM (2007) 724 final; COM (2007) 725 final, COM (2007) 726 final.

  46. 46.

    Mario Monti, A New Strategy for the Single Market. At the Service of Europe’s Economy and Society. Report to the President of the European Commission Jose Manuel Barroso, 9 May 2010, 73. (The Monti Report).

  47. 47.

    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.

  48. 48.

    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.

  49. 49.

    See Szyszczak 2012b.

  50. 50.

    Reform of the EU State Aid Rules on Services of General Economic Interest, COM (2011) 146 final.

  51. 51.

    Resolution A7 0371/2011 of 24 October 2011.

  52. 52.

    Opinion COR/2011/150, OJ 2011 C 259/40.

  53. 53.

    Opinion EESC/2011/1008, OJ 2011 C 248/149.

  54. 54.

    Recital 4.11 of Opinion EESC/2011/1008; Recitals 12 to 14 of Opinion COR/2011/150.

  55. 55.

    Opinion COR/2011/27, OJ C 9 of 11 January 2012, p. 45. See Lambertz and Hornung 2012.

  56. 56.

    See Regner 2011; Jääskinen 2011.

  57. 57.

    The conference proceedings edited by Messola 2011. They were available on the College of Europe web pages at the time of writing (1 August 2012):

    http://www.coleurope.eu/content/gclc/documents/GCLC%20-%20SGEI%20Conference%20Booklet.pdf.

  58. 58.

    SEC (2011) 1581.

  59. 59.

    Commission Regulation 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, OJ 2012 L/8.

  60. 60.

    European Commission Press Release IP/12/402, State aid: Commission adopts de minimis Regulation for SGEI, 25 April 2012.

  61. 61.

    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, OJ 2012 C 8/4.

  62. 62.

    See the earlier: European Commission, Guide to the application of the European Union rules on State aid, public procurement and the internal market to services of general economic interest, and in particular to social services of general interest, SEC (2010) 1545, Brussels, 7 December 2010 (a document of 84 pages).

  63. 63.

    http://ec.europa.eu/competition/state_aid/legislation/sgei.html

  64. 64.

    See paras 12 and 14.

  65. 65.

    See, for eg, paras 13 (on in-house provision of services) and 37 (exclusive rights and hybrid markets). On stating that in-house provision has no particular relevance for the economic nature of an activity the Commission bases its interpretation not on CJEU case law but on its Decision 2011/501/EU Verkersverbund Rhein Ruhr, OJ 2011 L210/1.

  66. 66.

    See CJEU, Case C-280/00 Altmark [2003] ECR I-7747.

  67. 67.

    Regulation (EC) No 1998/2006, OJ 1998 L 379/5.

  68. 68.

    See for example, CJEU, Case C-179/90 Merci convenzionali porto di Genova [1991] ECR I-5889, para 27.

  69. 69.

    Communication from the Commission Community Guidelines for the application of State Aid rules in relation to rapid deployment of broadband networks, OJ 2009 23/7.

  70. 70.

    Hancher and Larouche 2011, p. 24.

  71. 71.

    See GC, Case T-17/02 Fred Olsen [2005] ECR II- 2031, para 188.

  72. 72.

    OJ 2004 L 134/114.

  73. 73.

    OJ 2004 L 134/1.

  74. 74.

    Commission Decision of 20 December 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, OJ 2012 L 7/3.

  75. 75.

    Commission, Commission Decision of 28 November 2005, C(2005) 2673 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, OJ 2005 L 312/67.

  76. 76.

    Communication from the Commission, European Union framework for State aid in the form of public service compensation, OJ 2012 C 8/15.

  77. 77.

    For discussion of the modernisation programme see Ølykke et al. 2012.

  78. 78.

    See Neergaard et al. 2012.

  79. 79.

    Supra n 2.

  80. 80.

    On the application of competition law to healthcare see Hancher and Sauter 2012. In relation to SGEI see van de Gronden et al. 2011.

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  1. School of Law, University of Leicester, Leicester, LE1 7RH, United Kingdom

    Erika Szyszczak

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  1. , School of Law, University of Leicester, University Road, Leicester, LE1 7RH, United Kingdom

    Erika Szyszczak

  2. , Faculty of Law, Radboud University, Comeniuslaan 4, Nijmegen, 6525 HP, Netherlands

    Johan Willem van de Gronden

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Szyszczak, E. (2013). Introduction. In: Szyszczak, E., van de Gronden, J. (eds) Financing Services of General Economic Interest. Legal Issues of Services of General Interest. T.M.C. Asser Press, The Hague, The Netherlands. https://doi.org/10.1007/978-90-6704-906-1_1

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