2. The Impact of EU Law on Local Public Service Provision: Competition and Public Service

EU law has no direct impact on local government structure, but on law surrounding local government functions, deemed to enforce open competition in all utilities sector, as a consequence of generalised market. It has introduced new sets of principles, sometimes conflicting with domestic law. The duty to remove all exclusive rights is applicable to local governments. Nevertheless, recent treaties and EU legislation have consolidated the legal regime of services of general economic interest, the possibility for domestic authorities to meet differences of conditions and preferences according to countries or regions and the exclusive competence of member states as regards non-economic services of general interest. The scope of in-house contracting was enlarged. Local government discretion for choosing the way of delivering services has been preserved.