Services of general economic interest and foreign investment: Risks, opportunities and protection of human right

Abstract

The concept of services of general economic interest (SGEI) was enshrined in the Treaty of Rome in Article 90 (2) of its original version. It remained unchanged until the current version introduced by the Treaty of Lisbon. The services that public authorities of the EU member countries classify as being of general interest are, therefore, subject to specific public service obligations. They can be provided either by the state or by the private sector. The article 106 (2) TUE shows the importance of SGEI's by preserving the possibility of subtracting them from the principle of free competition which underlies the entire economic law of the EU. These are very profitable, monopolistic or oligopolistic economic activities, with all the resulting risks. We are talking about electricity, gas, water, telecommunications, transport, postal services, among others. Their importance led to the concept of universal service, it means that the goods and services they produce are essential to citizens life and social welfare (general interest), and, therefore, they are very important to the accomplishment of human rights and safeguard the dignified survival of citizens. These are activities that attract a great deal of interest from foreign investors, both in the EU economies and outside the EU. This study intends to reflect on the comparative principles in the analysis of the best model of market organization in the perspective of better serving the general interest of citizens and companies that operate in these markets. The research question, in summary, is: What are the risks of the global liberalization of the markets that supply goods and services of general interest?