Palgrave Studies in European Political Sociology

Palgrave Studies in European Political Sociology

Aim of the Series Palgrave Studies in European Political Sociology addresses contemporary themes in the field of Political Sociology. Over recent years, attention has turned increasingly to processes of Europeanization and globailzation and the social and political spaces that are opened by them. These processes comprise both institutinoal-constitutional change and new dynamics of social transnationalism. Europeanization and globalization are also about changing power relations as they affect people's lives, social networks and forms of mobility. The Palgrave Studies in European Political Sociology series addresses linkages between regulation, institution building and the full range of societal repercussions at local, regional, national, European and global level, and will sharpen understanding of changing patterns of attitudes and behaviours of individuals and groups, the political use of new rights and opportunities by citizens, new conflict lines and coalitions, societal interactions and networking, and shifting loyalties and solidarity within and across the European space. We welcome proposals from across the spectrum of Political Sociology including on dimensions of citizenship; political attitudes and values; political communication and public spheres; states, communities, governance structure and political institutions; forms of political participation; populism and the radical right; and democracy and democratization. Editorial Board Carlo Ruzza (Series Editor) Hans-Jörg Trenz (Series Editor) Mauro Barisione, Neil Fligstein, Virginie Guiraudon, Dietmar Loch, Chris Rumford, Maarten P. Vink, Niilo Kauppi, David Schwarz More information about this series at http://www.springer.com/series/14630

Amandine Crespy Welfare Markets in Europe The Democratic Challenge of European Integration

Amandine Crespy Ulb CEVIPOL, Dept of Political Science Université libre de Bruxelles, Belgium Brussels, Belgium Palgrave Studies in European Political Sociology ISBN 978-1-137-57103-8 ISBN 978-1-137-57104-5 (ebook) DOI 10.1057/978-1-137-57104-5 Library of Congress Control Number: 2016944034 The Editor(s) (if applicable) and The Author(s) 2016 Th e author(s) has/have asserted their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988. This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Th e use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Th e publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accutrate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper Th is Palgrave Macmillan imprint is published by Springer Nature Th e registered company is Macmillan Publishers Ltd. London

Pref ace Th e effects of EU integration on the provision of welfare services is a topic which can sound specific and, in some respects, quite dull. In my view, it is a fascinating issue to investigate one of the biggest puzzles contemporary political science has to offer, namely the intertwined dynamics of capitalism, democracy and European integration. My interest for what is often called public services also comes from the deep belief that their more or less solidaristic nature is an indicator of social cohesion and a feature which has distinguished Europe from other parts of the world: But for how long will this last? Unfortunately, the topic is not in fashion, neither in the public nor in the academic debate, where the study of welfare marketization is too scattered between law, public administration and political economy with few exchanges among scholars from these separate realms of academia. I hope that this book can make a useful contribution to the knowledge of the genuinely political dynamics shaping the fate of welfare services in Europe. Over the years, I have benefited from the support of many persons and institutions who/which have made this achievement possible. The Université libre de Bruxelles, especially the Centre d étude de la vie politique and the Institut d Etudes Européennes have provided a very stimulating and friendly atmosphere to research, teach, work and live. Much of the research conducted for this book was supported by funding from the Belgian Fondation nationale de la recherche scientifique. The first seeds of v

vi Preface this project were sown at Harvard University during my visiting fellowship at the Center for European Studies, where I had useful exchanges with Peter Hall and Andrew Martin. I would like to thank particularly Vivien Schmidt, whose work has been a great inspiration and who has actively supported me in all my endeavours since the early days. I am very happy that our collaboration and friendship are ongoing. Th e last steps towards turning my work into an actual book have benefited tremendously from a stay in the UK and two fellowships at the European Institute of the London School of Economics and Political Science, and the School for Politics and International Relations at Queen Mary University of London, where substantial parts of the manuscript were drafted. It has been extremely useful to present early versions of the project at seminars at Cambridge University (thanks to Chris Bickerton), the London School of Economics and Political Science (thanks to Sarah Hobolt) and Royal Holloway (thanks to Kaat Smets). I am grateful to Louisa Parks, Paul Copeland and Matthew Watson for their very encouraging feedback, their friendship and great collaboration on other projects. I would like to thank Benjamin Braun for his help with some pages, Michael Strange for generously sharing some of his interview data with me and Leonard Seabrooke for suggesting the present title of the book. Finally, I would like to express my gratitude to all the colleagues, friends, relatives and others, who have heard much about this book and have given me the energy to pursue this endeavour.

Contents 1 Introduction: Welfare Markets, Democracy and European Integration 1 2 European Integration as Marketization 33 3 Resistance to Liberalization 71 4 The Elusive Pursuit of Social Europe 113 5 The Contentious Global Agenda for Services 151 6 Welfare Services in Times of Austerity 189 7 Conclusion: The Marketization and Politicization of Welfare Services: Old and New Dynamics 229 Index 255 vii

Acronyms ACTA ATTAC BEUC CEEP CELSIG CETA CFDT CGT CSC DG DG ECFIN DG EMPL DG MARKT DGB ECB ECI ECJ ECT EDF EMU Anti-Counterfeiting Agreement Association pour la taxation des transactions financières Bureau européen des unions de consommateurs Centre européen des entreprises à participation publique [European Centre for Enterprises with Public Participation] Comité européen de liaison sur les services d intérêt général [European Laison Committee for Services of General Interest] Comprehensive Economic and Trade Agreement Confédération Générale du Travail Confédération française démocratique du travail Confédération des syndicats chrétiens Directorate General Directorate General for Economic and Financial Affairs Directorate General for Employment and Social Affairs Directorate General for Internal Market Deutscher Gewerkschaftsbund European Central Bank European Citizen Initiative European Court of Justice European Constitutional Treaty Electricité de France Economic and Monetary Union ix

x Acronyms EP EPP EPSU ESF ETF ETUC EU FGTB GATS GATT GDP IG BAU ITF MAI MEP MP NESGI NGO NHS PCF PES PIIGS PS PSI SGEI SGI SP.A SPD SSGI TFEU TISA TTIP UN UNESCO UNICE WTO European Parliament European People s Party European Public Services Union European Social Forum European Transport Federation European Trade Union Confederation European Union Fédération générale des travailleurs de Belgique General Agreement on Trade in Services General Agreement on Tariffs and Trade Gross Domestic Product Industriegewerkschaft Bau-Agrar-Umwelt International Transport Federation Multilateral Agreement on Investment Member of the European Parliament Member of Parliament Non-Economic Services of General Interest Non-gveronmental organization National Health Service Parti communiste français Party of European Socialists Portugal, Italy, Ireland, Greece, Spain Parti socialiste Public Services International Services of General Economic Interest Services of General Interest Sociaaldemocratische Partij. Anders Sozialdemokratische Partei Deutschlands Social Services of General Interest Treaty on the Functioning of the European Union Trade in Services Agreement Transatlantic Trade and Investment Partnership United Nations United Nations Educational, Scientific and Cultural Organization Union of Industrial and Employers Confederations of Europe World Trade Organization

List of Figures Fig. 2.1 The marketization of public services 38 Fig. 2.2 Types of service activities in EU law 53 Fig. 3.1 Number of articles referring to the services directive in the Belgian daily press 93 Fig. 3.2 Number of articles referring to the services directive in the French daily press 94 Fig. 3.3 Number of articles referring to the services directive in the German daily press 94 Fig. 6.1 Spending on public services (in % of GDP) in the EU 194 Fig. 6.2 Reduction of deficit and spending in public services (in % of GDP) between 2009 and 2013 196 xi

List of Tables Table 2.1 Sectoral liberalization directives in the realm of services of general interest 42 Table 5.1 Commitments to liberalization from EU countries under the GATS 163 Table 5.2 GATS-free zones and motions signed by local authorities in the EU 170 Table 6.1 Deficit reduction (in % of GDP) between 2009 and 2013 192 Table 6.2 Recommendations related to welfare services by the Commission and the Council in 2011 and 2015 204 Table 6.3 Union mobilization from 2010 to 2013 212 xiii

List of Boxes Box 4.1 Proposal for a Framework Directive on services of general economic interest, groups of the socialists and social democrats in the European Parliament (contents) 130 Box 4.2 Contents of the common quality framework for social services (contents) 138 Box 5.1 EU US Joint statement on public services 179 xv