Investing in Public Services for a Stronger European Union: The Case for Services of General Interest
This July, former Italian prime minister Enrico Letta published a report arguing for prioritising public services, referred to as services of general interest (SGIs). This briefing outlines Letta’s case for strengthening the European Union (EU) single market and presents policy recommendations to make this vision a reality. Letta emphasises that SGIs — covering areas such as healthcare, education, transport, energy, access to essential banking and digital communications — are critical for building a resilient and competitive European economy. He argues that investing in these essential services not only fosters social and territorial cohesion across the EU but also boosts economic productivity and strengthens the overall resilience of European societies.
By ensuring access to essential services, SGIs play a key role in reducing economic disparities and supporting balanced regional development. This allows businesses to thrive and workers to contribute meaningfully, creating a more dynamic and competitive workforce across the EU. Furthermore, SGIs help to alleviate financial burdens on households, particularly during periods of inflation and rising living costs, by providing affordable access to necessary services.
Letta further argues that SGIs empower citizens by providing them with the freedom to either stay in their local communities or move across borders, without sacrificing their quality of life. The report highlights growing regional inequalities within the EU and calls for a stronger focus on ensuring equal access to SGIs as a means of addressing these disparities. By investing in these services, the EU can promote inclusive growth and safeguard the social fabric that underpins political stability.
Letta’s report also draws attention to the role of SGIs in supporting the EU’s climate goals. SGIs have the potential to reduce carbon emissions by promoting sustainable practices and encouraging greener lifestyles. For example, accessible public transport can reduce reliance on private vehicles, while affordable housing and energy services can ensure that environmental policies do not disproportionately burden low-income households. Integrating climate mitigation and adaptation strategies into SGI planning will be essential for ensuring that the European Green Deal leaves no one behind.
This briefing concludes by advocating for an EU-wide Action Plan on SGIs, emphasising the implementation of existing laws and rights, the need for public investments and the integration of climate objectives into the delivery of essential services.
FAQs
What are Services of General Interest (SGIs)?
SGIs are public services that are considered essential for the well-being of individuals and communities. These services include healthcare, education, transport, energy, access to essential banking and digital communications.
What role do SGIs play in reducing economic disparities?
By ensuring access to essential services, SGIs help to reduce economic disparities and support balanced regional development. This creates a more dynamic and competitive workforce across the EU.
Conclusion
Investing in public services, specifically Services of General Interest, is vital for building a strong and resilient European Union. Enrico Letta’s report highlights the importance of these services in fostering social cohesion, reducing economic disparities, empowering citizens, and supporting climate goals. By prioritising SGIs, the EU can promote inclusive growth and ensure that all members of society have access to necessary services. It is imperative for policymakers to implement Letta’s recommendations and create an EU-wide Action Plan to prioritize and invest in these essential services.
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