Strong public services for a prosperous Europe

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This July, former Italian prime minister Enrico Letta published a report arguing for prioritising public services, referred to as services of general interest (SGIs). This briefing outlines Letta’s case for strengthening the European Union (EU) single market and presents policy recommendations to make this vision a reality. Letta emphasises that SGIs — covering areas such as healthcare, education, transport, energy, access to essential banking and digital communications — are critical for building a resilient and competitive European economy. He argues that investing in these essential services not only fosters social and territorial cohesion across the EU but also boosts economic productivity and strengthens the overall resilience of European societies.

By ensuring access to essential services, SGIs play a key role in reducing economic disparities and supporting balanced regional development. This allows businesses to thrive and workers to contribute meaningfully, creating a more dynamic and competitive workforce across the EU. Furthermore, SGIs help to alleviate financial burdens on households, particularly during periods of inflation and rising living costs, by providing affordable access to necessary services.

Letta further argues that SGIs empower citizens by providing them with the freedom to either stay in their local communities or move across borders, without sacrificing their quality of life. The report highlights growing regional inequalities within the EU and calls for a stronger focus on ensuring equal access to SGIs as a means of addressing these disparities. By investing in these services, the EU can promote inclusive growth and safeguard the social fabric that underpins political stability.

Letta’s report also draws attention to the role of SGIs in supporting the EU’s climate goals. SGIs have the potential to reduce carbon emissions by promoting sustainable practices and encouraging greener lifestyles. For example, accessible public transport can reduce reliance on private vehicles, while affordable housing and energy services can ensure that environmental policies do not disproportionately burden low-income households. Integrating climate mitigation and adaptation strategies into SGI planning will be essential for ensuring that the European Green Deal leaves no one behind.

This briefing concludes by advocating for an EU-wide Action Plan on SGIs, emphasising the implementation of existing laws and rights, the need for public investments and the integration of climate objectives into the delivery of essential services.

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