The role of services of general interest (SGI) for competitiveness, social cohesion and democracy in the European Union

Practical information

• Composition of the study group
• Administrator: Aleksandra SARMAN GRILC, Assistant: Maria Grazia RUOCCO
• Foreseen for the TEN section meeting:  24 June 2025
• Foreseen for the EESC plenary session: 16-17 July 2025
• The EU Youth Test at the EESC is being applied to this opinion.  Human Development Research Initiative  was chosen by a group of interested youth organisations to represent all of them during the opinion-making process.

Background

The own-initiative opinion highlights the crucial role of services of general interest (SGI) in the European single market and a socially, green, and economically sustainable EU.

SGIs significantly contribute to value creation, employment, and investment, strengthening the EU’s resilience in crises like Covid-19 and the energy crisis. In 2021, SGIs and services of general economic interest (SGEIs) generated €3,721 billion in value creation representing 28.4% of the EU total.

SGEIs hold untapped potential, particularly in investment and EU strategic autonomy. Key sectors such as energy, health, and security are vital for green and digital transitions and social cohesion.

Access to quality SGI is essential for citizens and democracy. Many experience inadequate services, especially vulnerable users facing financial or mobility barriers. Rising costs and two-tier systems (fast paid services vs. slow free services) deepen inequality, eroding trust in democracy and fuelling populism. Only 54% of EU citizens rate public services positively, with large disparities across member states.

The own-initiative opinion stresses that well-financed, high-quality SGIs are fundamental for social cohesion, economic competitiveness, and a more sustainable EU. It outlines their role in strengthening the economy and discusses necessary framework conditions and measures.