14 April 2006
Despite moves from the European Commission to water down its controversial services directive, concerns remain that it will still lead to the market liberalisation of some public services – including education.
The directive aims to establish a free market in services between European Union member states. But socialist MEPs and trade unions opposed the original draft, as health and social care services were included within its scope and it enabled companies to provide a service in one member state while abiding by the standards and regulations of another.
Unions say some of those concerns were allayed by the second draft, which was published on April 4. But leisure and cultural services will still be subject to the directive, while new ambiguities have arisen around education.
Whereas Article 2 of the directive makes it clear that health and social care are excluded from its scope, it implies that education will be decided by European Court of Justice case law.
Brian Synnott, health and social services officer at the European Federation of Public Service Unions, told Public Finance that this left a 'dangerous' opportunity for a future test case to rule that education is a commercial concern, and thus subject to liberalisation.
He said: 'When these windows of opportunity exist, test cases go to the ECJ, and it's a simple fact that the court invariably rules in favour of market opening. The risk is that national regulations and standards will be perceived as a “barrier to trade” and therefore the ECJ will seek to remove them.'
That could have immediate implications for further and higher education services, as well as vocational training.
But Dominic Rawles, EU policy and public affairs officer at the Local Government Association, said that the commission had made important adjustments to the original 'country of origin principle'. Member states would now be able to regulate foreign providers, provided they could justify their reasons.
Article 9.1 states that such regulation must have 'an overriding reason relating to the public interest'. The new draft will be examined by the council of ministers on April 21. It is expected to be formally adopted in mid-June.
PFapr2006
