The Organisation of Social Services in the European Welfare Market

Abstract

The aim of this paper is to give a brief overview of the organisation and functions of entities involved in the provision of social services in the welfare market. Public and private not for profit bodies 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”. The European Court of Justice has stated that for a given service to qualify as an economic activity under internal market rules the essential characteristic is that it must be provided for remuneration. 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 EU 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 organisation would avoid being bound by European law.