This article focuses upon the concepts of ‘services of general economic interest (SGEI)’ or ‘services of general interest (SGI)’, which correspond to public services in the EU, then, investigates the policy-making process of so-called ‘Services directive’. In that process, political actors debated about pros and cons of application of ‘country of origin’ principle to SGEI or SGI.
Through this investigation, I observe that once the key committee (Internal market and consumer protection) in the European Parliament (=EP) approved application of ‘country of origin’ principle to SGEI, however, about 3 months later, at the crucial voting stage of EP plenary session, the application was substantially watered down by compromise between the center-right (EPP-ED) and the center-left (PSE) EP parties. This compromise was largely produced by the formation of new national coalition government in Germany. Because of this conversion, the attempted radical introduction of market mechanism into SGEI or SGI through ‘Services directive’ was definitely avoided.
As for the constellation of political conflict about public services in the EU, I find three points. Firstly, conventional confrontation between left and right is significantly formed at EU economic policy dimension as the cleavage between the center-right and the center-left EP parties. Mainly, as confirmed by consistency of Evelyne Gebhardt's protectionist approach to SGEI or SGI, the positive differentiation by PSE against EPP-ED brings about this cleavage. However, EPP-ED also intensified the cleavage when it aligned with Liberal party at the voting stage of the key committee in the EP.
Second, some national political parties' positions expected by their affiliated EP parties are distorted by their domestic condition. On the one hand, national center-left parties from United Kingdom, Spain, Hungary, and the other center and eastern new member states, hoped application of ‘country of origin’ principle to SGEI or SGI. On the contrary, UMP, French center right party supported Gebhardt's protectionist approach very positively, and sudden conversion of German CDU caused by the formation of national coalition government with SPD can be included in this kind of distortion.
Thirdly, there is ‘east-west’ cleavage between new and old member states. Especially, regardless of their affiliated national parties between center-left and center-right, most deputies from center and eastern new member states were at heart eager for the application of ‘country of origin’ principle to SGEI or SGI, which were opposed, for example, by French political parties, irrespective of center-left or center-right.
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