Lisbon Treaty: Services
Article 2 E [6] [new article] is presented and discussed below
The Union shall have competence to carry out actions to support, coordinate or supplement the actions of the Member States. The areas of such action shall, at European level, be:
(a) protection and improvement of human health;
(b) industry;
(c) culture;
(d) tourism;
(e) education, vocational training, youth and sport;
(f) civil protection;
(g) administrative cooperation.
Article 16 [14]
[ex Art. 16 EC, amended]
Without prejudice to Article 3a [4] of the Treaty on European Union or to Articles 73 [93], 86 [106] and 87 [107], and given the place occupied by services of general economic interest in the shared values of the Union as well as their role in promoting social and territorial cohesion, the Community Union and the Member States, each within their respective powers and within the scope of application of this Treaty the Treaties, shall take care that such services operate on the basis of principles and conditions, particularly economic and financial conditions, which enable them to fulfil their missions. The European Parliament and the Council, acting by means of regulations in accordance with the ordinary legislative procedure, shall establish these principles and set these conditions without prejudice to the competence of Member States, in compliance with the Treaties, to provide, to commission and to fund such services.
Article 57 [64]
[ex Art. 57 EC, amended]
1. The provisions of Article 56 [63] shall be without prejudice to the application to third countries of any restrictions which exist on 31 December 1993 under national or Community Union law adopted in respect of the movement of capital to or from third countries involving direct investment – including in real estate – establishment, the provision of financial services or the admission of securities to capital markets. In respect of restrictions existing under national law in Bulgaria, Estonia and Hungary, the relevant date shall be 31 December 1999.
2. Whilst endeavouring to achieve the objective of free movement of capital between Member States and third countries to the greatest extent possible and without prejudice to the other Chapters of this Treaty the Treaties, the European Parliament and the Council may, acting by a qualified majority on a proposal from the Commission in accordance with the ordinary legislative procedure, shall adopt the measures on the movement of capital to or from third countries involving direct investment – including investment in real estate – establishment, the provision of financial services or the admission of securities to capital markets.
7. Unanimity shall be required for measures under this paragraph which constitute a step back in Community law as regards the liberalisation of the movement of capital to or from third countries. Notwithstanding paragraph 2, only the Council, acting in accordance with a special legislative procedure, may unanimously, and after consulting the European Parliament, adopt measures which constitute a step backwards in Union law as regards the liberalisation of the movement of capital to or from third countries.
YES : Article 2E of the Treaty reserves to the individual Member States the exclusive right to organise services such as health care and education. There is a new Protocol attached to the Treaty that strengthens the right of States to establish vital services and protect them from market competition. (Irish Alliance For Europe)
This Article specifies that unanimity shall apply in relation to the negotiation and conclusion of agreements in the field of trade in social, education and health services, where these agreements seriously risk disturbing the national organisation of such services and prejudicing the responsibility of Member States to deliver them.
Additionally, public services are given special status in a new Protocol under the Lisbon Reform Treaty, which affirms that the provisions of the Treaties do not in any way affect the competence of the Member States to provide, commission and organise services of general interest. It is inconceivable that countries with highly developed social services would allow those services to shift from their national control. (Fianna Fail)
NO: This Article states that a ‘step backwards in Union law as regards the liberalisation of the movement of capital to or from third countries' requires a unanimous vote in the EU Council. Just one country can hold up a vital measure that is needed to overcome the current global financial crisis. De-regulated financial arrangements have turned the world into a giant casino and could bring the biggest economic crisis since the 1930s. Yes this treaty effectively prevents States ever controlling finance capital ever again. (Socialist Workers Party)
This provides the European Commission with new powers that can be used to pressurise Member States to open up their markets in vital public services such as health and education to EU competition and state aid rules. The Commission has been trying to introduce greater levels of liberalisation into public services for some time, as evidenced by the Services Directive. Article 16 will empower them to bring forward concrete proposals aimed at increasing the level of competition in such areas. Experience tells us that with competition comes greater levels of privatisation and inequality, as access such services is determined by ability to pay rather than level of need. (Sinn Fein)
Commentary : The whole economic thrust of the European project is towards liberalised markets, without any of the correcting mechanisms for wealth and income distribution that States enjoy. Health and education services already are open to free market forces and the thrust of the EU is to hasten this tragectory.