DIRECTORATE-GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES REGIONAL DEVELOPMENT RESEARCH FOR REGI COMMITTEE - SERVICES OF GENERAL INTEREST IN THE FUNDING PERIOD 2014-2020 STUDY This document was requested by the European Parliament's Committee on Regional Development. AUTHORS Spatial Foresight: Erik Gløersen, Marius Drăgulin, Silke Haarich, Sabine Zillmer, Frank Holstein, Christian Lüer, Sebastian Hans. RESPONSIBLE ADMINISTRATOR Jacques Lecarte Policy Department B: Structural and Cohesion Policies European Parliament B-1047 Brussels E-mail: [email protected] EDITORIAL ASSISTANCE Lyna Pärt LINGUISTIC VERSIONS Original: EN ABOUT THE PUBLISHER To contact the Policy Department or to subscribe to its monthly newsletter please write to: [email protected] Manuscript completed in January 2016. © European Union, 2016. Print ISBN 978-92-823-8603-3 doi:10.2861/335732 QA-01-16-072-EN-1 PDF ISBN 978-92-823-8602-6 doi:10.2861/144693 QA-01-16-072-EN-2 This document is available on the Internet at: http://www.europarl.europa.eu/supporting-analyses DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorized, provided the source is acknowledged and the publisher is given prior notice and sent a copy. DIRECTORATE-GENERAL FOR INTERNAL POLICIES POLICY DEPARTMENT B: STRUCTURAL AND COHESION POLICIES REGIONAL DEVELOPMENT RESEARCH FOR REGI COMMITTEE - SERVICES OF GENERAL INTEREST IN THE FUNDING PERIOD 2014-2020 STUDY Abstract The study analyses the role that SGI can play in the 2014-2020 programming period, and how the European Structural and Investment Funds (ESIF) framework can impact them. It shows that the ESIF contributions to improved SGI provision can be strengthened through a focus on capacity building efforts and more integrated territorial approaches. SGI- related cohesion policy measures can, as a complement to European competition policy, help to build a social market economy in the European Union. IP/B/REGI/IC/2015_71 January 2016 PE 573.411 EN Services of General Interest in the Funding Period 2014-2020 ____________________________________________________________________________________________ TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 11 2. INTRODUCTION 15 3. THE GOVERNANCE AND COORDINATION OF SGI IN EUROPE 17 3.1. General notions and legal framework 17 3.2. Definition of public interest 20 3.2.1. Challenges linked to free patient choice in the health sector 23 3.2.2. The difficulty of reconciling different types of public interest in the energy sector 25 3.2.3. Changing perceptions of public service obligations with regards to access to telecommunication networks 27 3.2.4. Different understandings of which social housing policies qualify as SGI across Europe 29 3.2.5. Synthesis of findings 30 3.3. Governance arrangements in the provision of SGI 31 3.3.1. Public outsourcing of SGI 33 3.3.2. PPP 35 3.3.3. Social Economy and SGI provision 39 3.4. Contribution of ESIF to an improved governance of SGI 46 3.4.1. Impact of ESIF on regional and national governance of SGI 46 3.4.2. ESIF measures targeting SGI-relevant capacity building 49 3.5. Conclusion: The need to focus on learning and capacity building 52 4. EVOLUTIONS OF THE EUROPEAN ECONOMIC MODEL AND COMMUNITY-LEVEL POLICY RESPONSES 55 4.1. A European economic model in the making 55 4.2. Opportunities and challenges from Single market integration 58 4.3. Current SGI provision and access in Europe 61 4.3.1. Disparities at national level 62 4.3.2. Comparisons of SGI provision at regional level 63 4.3.3. Disparities concerning geographically specific areas 72 4.3.4. Disparities and challenges for cross-border SGI provision 76 4.4. Effects of the economic crisis on SGI and policy measures 81 4.4.1. The reduction in national and regional budgets 82 4.4.2. New organisational forms adopted by SGI 85 4.4.3. New and emerging needs resulting from the crisis 88 4.5. Conclusion: Diversity of models and situations 92 3 Policy Department B: Structural and Cohesion Policies ___________________________________________________________________________________________ 5. SGI AS LEVERS OF TERRITORIAL COHESION AND REGIONAL DEVELOPMENT 93 5.1. Introduction 94 5.2. SGI and regional development 95 5.2.1. Approaches of SGI contributions to regional development 95 5.2.2. Understandings of SGI contributions to regional development in EU policy documents 111 5.3. Contribution of ESIF to the provision of SGI 113 5.3.1. General elements 114 5.3.2. Ex-ante conditionalities 117 5.3.3. Innovative SGI under consideration 119 5.3.4. Geographically specific areas and lagging regions 121 5.4. Design for implementation 121 5.4.1. Partnership agreements 121 5.4.2. National and regional operational programmes 124 5.4.3. Cross-border operational programmes 129 5.5. Conclusions 134 6. CONCLUSIONS 137 REFERENCES 143 ANNEXES 173 ANNEX A: References to SGI in the treaties 173 ANNEX B: European stakeholder organisations in the field of SGEI 174 ANNEX C: Thematic perspectives of ESIF in relation to SGI 176 4 Services of General Interest in the Funding Period 2014-2020 ____________________________________________________________________________________________ LIST OF ABBREVIATIONS BMI German Federal Ministry of the Interior BOO Build, Operate, Own BOT Build, Operate and Transfer CBC Cross-Border Cooperation CEEP The European Centre of Employers and Enterprises providing Public Services CF Cohesion Fund CLLD Community-Led Local Development CPR Common Provisions Regulation (Regulation (EU) No 1303/2013 DBFO Design, Building, Financing and Operation DBO Design, Build, Operate DG Directorate General EAFRD European Agricultural Fund for Rural Development EaSI Employment and Social Innovation programme ECEC Early Childhood Education and Care EEA European Economic Area EGTC European Groupings of Territorial Cooperation EIB European Investment Bank EIF European Investment Fund EMFF European Maritime and Fisheries Fund ENRD European Network for Rural Development EPEC European Public Private Partnership Expertise Centre EPHA European Public Health Alliance 5 Policy Department B: Structural and Cohesion Policies ___________________________________________________________________________________________ ERDF European Regional Development Fund ESF European Social Fund ESIF European Structural and Investment Funds ETC European Territorial Cooperation EU European Union EU12 Abbreviation referring to the 12 EU Member States which joined in 2004 and 2007 EU13 Abbreviation referring to the 13 EU Member States which joined after 2004 EU15 Abbreviation referring to the 15 EU Member States prior to the eastern enlargements in 2004 EU27 Abbreviation referring to the 27 EU Member States existant prior to Croatia’s accession in 2013 EUPHA European Public Health Association EUROFOUND European Foundation for the Improvement of Living and Working Conditions EUSBSR EU Strategy for the Baltic Sea Region EXPH Expert Panel on effective ways of investing in Health GDP Gross Domestic Product GHG Greenhouse gas ICAEW Institute of Chartered Accountants in England and Wales ICT Information and Communication Technology ID Identity Document INTERREG Former acronym for European Territorial Cooperation (ETC) IP Investment Priority 6 Services of General Interest in the Funding Period 2014-2020 ____________________________________________________________________________________________ ISO International Organisation for Standardisation ITI Integrated Territorial Investment JASPERS Joint Assistance to Support Projects in European Regions JEREMIE Joint European Resources for Micro to medium Enterprises JESSICA Joint European Support for Sustainable Investment in City Areas LAG Local Action Groups LEADER Links between actions for the development of the rural economy LNG Liquefied Natural Gas LSB Local Service Board LTC Long-Term Care MAA Migration Advice for Adult immigrants NGO Non-Governmental Organisation NUTS Nomenclature of Territorial Units for Statistics, a geocode standard for referencing regional subdivision for statistical purposes OECD Organisation for Economic Co-operation and Development OP Operational Programme PA Partnership Agreement PFI Private Finance Initiative PPP Public-Private Partnership PSO Public Service Obligations PSP Private Sector Participation R&D Research and Development SBI Social Business Initiative SCP Single Contact Point 7 Policy Department B: Structural and Cohesion Policies ___________________________________________________________________________________________ SEK Swedish Kronor SGEI Services of General Economic Interest SGI Services of General Interest SME Small and Medium-sized Enterprises SROI Social Return on Investment SSGI Social Services of General Interest TEN-T Trans-European Transport Network TFEU Treaty on the Functioning of the European Union TO Thematic Objective USD Universal Service Directive USO Universal Service Obligations VCSE Voluntary, Community and Social Enterprises 8 Services of General Interest in the Funding Period 2014-2020 ____________________________________________________________________________________________ LIST OF TABLES TABLE 1 Importance of SGI in each Member State’s economy in 2010 63 TABLE 2 Potential contributions of selected SGI to regional development 104 TABLE 3 Thematic ex-ante conditionalities of the CPR and EAFRD in relation to SGI