8^th December 2011

Research presented at a conference in Brussels provided clear evidence that investment in social services can be an economic stimulus and should be considered as a solution to the current economic and financial crisis.

Organised by AK Europa (the Brussels Office of the Austrian Federal Chamber of Labour) the conference showcased the Austrian social model, which has a strong emphasis on welfare benefits.  Integration of social services into regional and local plans is central to the model and goes some way to explaining why Austria is able to safeguard social wellbeing while also achieving economic growth.  With a 2% increase in GDP during 2010 Austria’s economy outpaced most other Eurozone economies.  At the same time Austria spends close to 30% of its GDP on social protection which is well above the majority of EU members.  The research suggests that cost savings in the provision of social services are possible while at the same time the quality can be improved, as long as social services are integrated into larger regional socio-economic development strategies.

Presentations were also delivered by Proinsias de Rossa MEP and Fritz von Nordheim from the European Commission.  Mr. de Rossa also argued strongly that expenditure in social services should be seen as an investment tool for future growth.  His view, shared by many at the event, is that the provision of high quality social services is a prerequisite to economic growth.  Mr. von Nordheim warned that there is no ‘one size fits all’ social model.  He explained that health and social sectors have high employment potential and should be used to provide a stimulus to achieving the Europe 2020 targets of smart, sustainable and inclusive growth.

You can view the full report on 'Integrating social services to safeguard social wellbeing' by the Danube-University Krems in Austria.

The European Parliament recently adopted their position on the revision of the EU public procurement directives, calling for the "most advantageous tender in terms of economic, social and environmental benefits, taking into account the entire life-cycle costs of the good, service or work" to take precedence over the criterion of lowest price.

The report also notes stakeholders see the public procurement procedures as burdensome, complex and costly. It sees that this then results “far too often in contracting authorities opting for the cheapest price rather than the best value” and that “the fear of challenge leads to a risk-averse approach, which stifles innovation and sustainable development”. Therefore the Commission is called to simplify the rules.

The Parliament asks the Commission to keep the two categories of services, “in so far as ‘lighter’ provisions for B services have their justification in the characteristics of that category as mainly locally or regionally provided services”. “B” services include social services.

The position states that “the application of procurement law to the provision of personal social services is often not the best way of ensuring optimum results for the users of the services in question”. It goes on to call for legal recognition of other methods of financing/contracting, as long as the general principles of equal treatment, transparency and non-discrimination of providers are applied.

The text calls on the Commission to reassess the appropriate level of thresholds for supply and services contracts below which the directive does not apply, and if necessary raise them, “so as facilitate access to public procurement by…not-for-profit and social-economy operators”.

The report can be found here. The Commission is expected to publish its proposals before the end of the year and Eurodiaconia will work with partners for an increased emphasis on quality in the final directives.