Directive puts social services at risk

THE EU Directive on the Internal Market in Services could be one of the most important EU decisions for some time.

This directive, proposed by Ireland’s member of the European Commission, Charlie McCreevy, is based on the ‘country of origin’ principle, which means services can be provided under the rules and standards of the country where a company is established, rather than the country where the service is provided.

This is a recipe for a race to the bottom, forcing countries to lower conditions to attract investment. It is even easier for a service company to move its head office to another country, and therefore follow the rules of the new country than it is for a manufacturing company to move its factories.

The threat to wages and conditions from this has been well highlighted by the trade unions, particularly since the Irish Ferries dispute. Social NGOs are also concerned about the impact on social services such as childcare, support services for disabled people, adult education, social housing, homes for elderly people and ambulance services, particularly for those on low incomes.

The directive would impose the same ‘free market’ rules on social services as on commercial services like banking or consultancy.

Member states now have legislation and regulations on social services. Far from aiming to place barriers in the way of cross-border provision of services, they are necessary to protect the users of these social services, who are often vulnerable, and to ensure social services contribute to social cohesion. They define standards and obligations with regard to quality and content of services.

This directive will undermine and overrule these regulations. While the European Commission has made a number of welcome amendments in the face of public protest, they are not enough.

Liberalisation of the market in social services before setting enforceable minimum social standards across Europe is dangerous, and preempts the Commission’s own plans to develop policy on social services.

We call on MEPs and Government to insist on the exemption of social services from the scope of the directive.

Joe Gallagher Chairperson

Kay LynchVice chair

Robin Hanan Coordinator

European Anti Poverty Network (EAPN)

5 Gardiner Row

Dublin 1 www.eapn.ie