News

The judgement of the Court of Justice of February 27, 2014 marks an important step in the “Dutch case” on social housing (cases E 2/2005 and N 642/2009).

In 2002 the Dutch government notified the European Commission about its state aid rules applicable to social housing: social housing in the Netherlands is open to everybody and represents an important stock of rental housing. On that occasion, the European Commission challenged the scope of intervention of social landlords and defined social housing as a service of general interest for the most vulnerable.

The practical consequence of the application of this decision is that in the Netherlands the economic model of social housing has been completely destabilised. This decision has also led commercial housing operators to systematically contest the regimes of social housing in other countries, such as in Luxembourg, Belgium, Sweden and lately in France.   

Therefore, the judgement of the Court of Justice last week is good news: it has declared void the previous judgement of the Court of First Instance and it has recognised to social housing organisations their interest to act against the decision of the European Commission concerning the definition of the Services of General Economic Interest in the social housing sector. You can read the opinion of the Advocate General.

In the future, the Court of Justice will also pronounce itself on the question of the competence of the European Commission to define what a service of general interest is.

Social Platform has always advocated for a wide definition of Social Services of General Interest (SSGI), based on their universal character and linked with the access to fundamental rights for all, including access to services for the most vulnerable groups. In our view, SSGI are addressed to all citizens that without them could not fully participate in society, and not just to citizens who are most in need; however, access of the later to them should be guaranteed.

It is important to confirm the universal concept at European level and the role of the principle of subsidiarity, so that every member state can define the services and the beneficiaries concerned and the ways in which the mission of those services is implemented, depending on users’ needs. You can read for example our position on the draft Almunia package.

We hope that the next judgement of the Court of Justice will clarify the definition of SSGI in this direction.

To know more, you can read the article from Union Social pour l’Habitat (French member of Cecodhas).