The aim is to examine the organisation and functions of entities involved in the provision of social services. Public and private bodies such as local authorities, cooperative societies, voluntary service organisations, foundations and charities are involved in planning and collaborating on the provision of the welfare system. In the particular field of social services of general interest, the constant evolution of European law is perceived as a source of uncertainty, given that the focus is on the concept of “economic activity”. Although case law and European legislation have endeavoured to reduce this uncertainty or clarify its impact, they cannot dispel it entirely. The European Court of Justice has stated that for a given service to qualify as an economic activity under internal market rules (free movement of services and freedom of establishment), the essential characteristic is that it must be provided for remuneration. The service does not, however, necessarily have to be paid for by those benefiting from it. The economic nature of a service depends not on the legal status of the service provider – such as a non-profit making body – nor on the nature of the service, but rather on the way a given activity is actually provided, organised and financed. Under European law, this means that social services can be considered as ‘economic activities’ to which internal market rules apply, with no regard for the legal status of the provider, which can be a local authority or a ‘for-profit’ or ‘not-for-profit’ organisation, whereas only a truly charitable or ‘non-profit’ organisation would avoid being bound by European law so long as the activity it provides is not ‘economic’.
The Organisation of Social Services in Europe: from Philanthropy to Social Solidarity
CONSITO, MANUELA
2011-01-01
Abstract
The aim is to examine the organisation and functions of entities involved in the provision of social services. Public and private bodies such as local authorities, cooperative societies, voluntary service organisations, foundations and charities are involved in planning and collaborating on the provision of the welfare system. In the particular field of social services of general interest, the constant evolution of European law is perceived as a source of uncertainty, given that the focus is on the concept of “economic activity”. Although case law and European legislation have endeavoured to reduce this uncertainty or clarify its impact, they cannot dispel it entirely. The European Court of Justice has stated that for a given service to qualify as an economic activity under internal market rules (free movement of services and freedom of establishment), the essential characteristic is that it must be provided for remuneration. The service does not, however, necessarily have to be paid for by those benefiting from it. The economic nature of a service depends not on the legal status of the service provider – such as a non-profit making body – nor on the nature of the service, but rather on the way a given activity is actually provided, organised and financed. Under European law, this means that social services can be considered as ‘economic activities’ to which internal market rules apply, with no regard for the legal status of the provider, which can be a local authority or a ‘for-profit’ or ‘not-for-profit’ organisation, whereas only a truly charitable or ‘non-profit’ organisation would avoid being bound by European law so long as the activity it provides is not ‘economic’.
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