Governments wanting to achieve sustainable, safe water supplies should focus on implementing the Water Framework Directive and question the current pressures for water liberalisation, according to Stefan Scheuer of the European Environmental Bureau.
Europe’s water management is undergoing significant changes. Since December 2000, EU Member States have been obliged to implement one of Europe’s most complex and demanding laws - the EU Water Framework Directive (WFD). This requires integrated river basin planning with public involvement, the achievement of ecological objectives and sustainable water use. The Directive is the result of a recognition of the ongoing threat to Europe’s water resources, and tries to tackle the great unsolved challenges of today’s water management: diffuse chemical pollution, over-use and physical deterioration of the aquatic ecosystem. One significant sector of water management, and highly relevant for the successful implementation of the Water Framework Directive, is the public water supply.
While water is generally recognised as being a public good, the last two decades have put water services, which are dominantly in public hands, under huge privatisation and market liberalisation pressure. In some countries, massive changes in the municipal water supply systems have taken place, for example the sale of the entire water sector to private companies, take-overs by foreign companies, fusion of small public companies, and the establishment of public-private partnerships.
Is liberalisation a solution?
There are three main arguments for liberalisation:
Liberal market ideology states that no other form of market organisation is better placed to guarantee the cheapest and most efficient consumer supply. But the privatised water supply in the England and Wales and the private concession system in France have not proven to be more efficient. Fixed costs dominate with little potential left for efficiency.
In an era of smaller states and empty public budgets, sufficient financial capital for appropriate infrastructure investments is not available and can only come form private undertakings. This is partially true, but selling the profitable water supply of a city does not improve public budgets in the long-term either.
French and German water companies are global leaders demanding better starting conditions and access to other markets - in the EU and globally. This is a business-interest argument, which should not override public rights and concerns.
There are many players involved in promoting water liberalisation. They include the World Bank and its "Global Water Partnership" platform, the French and German multi-utility companies, and the respective trade and economics ministers and EU commissioners who push the liberalisation agenda at the WTO, EU and national levels.
Instead, municipal and state governments would be well advised to fully implement the Water Framework Directive, utilising its great potential to move towards sustainable water management - ensuring long-term and safe water supply.
An environmental stance
The European Union recognises water as being non-commercial. The preamble of the Water Framework Directive (WDF) states: "Water is not a commercial product like any other but, rather, a heritage which must be protected, defended and treated as such."
The EU has also set strong conditions for sustainability. It puts water at the centre of sustainable development and its citizens have the right to sustainable water management, which guarantees safe, sufficient and equitable water supplies for today’s and future generations. The EU Water Framework Directive and other EU environmental legislation sets the social and ecological conditions of sustainable water use.
The main objective of the WFD is to achieve a "good status" of all waters (rivers, lakes, groundwater and coastal waters) by 2015. Put simply, water must be managed in such a way as to guarantee the safe supply of good and sufficient water for human, ecological and economical uses in twelve years’ time.
Citizens’ participation
The Water Framework Directive (WFD) is now two years’ old. It embraces a patchwork of 25 years of EU water legislation plus policies related to nature conservation, agriculture and land use. If its objectives are to be achieved, a holistic approach to water management is needed - from end-of-pipe to integrated planning and citizen’s participation. Indeed, the success of WFD hinges on a wide range of procedures and integrated planning, which include public participation, economic incentives through water pricing, and long-term quantitative water management. Water supply and sanitation services will have to be fully integrated into WFD implementation so that its conditions are respected.
Guiding principles for water services
The EEB has responded to liberalisation pressures by developing four "Guiding Environmental Principles for Water Services" based on the Water Framework Directive. Public services are in general much better placed to fulfil these principles than private services, but even they would have to make considerable efforts.
Transparency, accountability and democratic control
Under the WFD, water management in general must be much more open to citizens’ scrutiny, public influence and stakeholder participation than it is currently. Access to all relevant data, including quality and quantity data, leakage rates, short and long-term budgets, water resource protection activities, service quality information, network investments information must take precedence over commercial confidentiality.
A good environmental record
To meet environmental objectives, water services must ensure: prevention of over-extraction; protection of water resources against pollution; highest treatment standards; maintenance of local supply and sanitation solutions as the environmentally preferable option, especially avoiding inter-basin water transfers; and promotion of water-saving methods.
Highest quality standards
The quality of water supply has a direct impact on human health. The principles of minimising the potential negative impacts and of precautionary action need to be implemented. The water supply should be the best possible rather than simply keeping within the legal pollutant limits of the EU Drinking Water Directive, which cover some known pollutants and may allow many unknown hazards. Precautionary measures must also include securing unpolluted water resources, water quality monitoring and constant investment in infrastructure maintenance.
Sound prices for water services
Sound water pricing should aim at full cost recovery, including environmental and resource costs, while taking social concerns into account. Water fees should be earmarked for maintenance and environmental purposes. Perverse cross-sector subsidies must be removed. However, subsidies between high and low-income household consumers are unavoidable and necessary to make water affordable for all. Costs should be lowered by increased efficiency but not by compromising safety or (environment/quality) standards or exceeding acceptable levels of risk.
Europe regulates on clean water
EU water policy is been seen as a major advantage of European membership. Michaela Vasilescu of Medium & Sanitas, an NGO in Romania, says it’s one of the reasons why she is in favour of her country joining the EU. (1)
The following are the different pieces of water legislation in the European Community that contribute to promoting clean water in sufficient quantity in Europe. (2)
The new European Water Policy: River basin management, Water Framework Directive (200/60/EC). This Directive aims to ensure that all waters in Europe are managed in a way to ensure the safe supply of good and sufficient water by 2015.Transposition of the Directive into national legislation is due in 2003. The establishment of the monitoring network is due in 2006.
Urban Waste Water Treatment Directive (91/271/EEC) deals with water pollution coming from urban waste water and certain industrial sectors.
Discharges of Dangerous Substances Directive (76/464/EEC) and the Priority Substances under the Water Framework Directive deal with dangerous substances and pollution control from industry.
Nitrates Directive (91/6676/EEC) deals with water pollution caused by nitrates from agricultural sources.
Bathing Water Quality Directive (Council Directive 76/160/EEC concerning the quality of bathing water) and its proposed revision deal with bathing water quality of rivers, lakes and coastal waters.
Drinking Water Quality Directive (98/83/EC).
References
(1) Personal communication, European Women’s Conference for a Sustainable Future in Europe for a Common Future conference, Prague 2002.
(2) DG Environment - Water quality in the EU, Introduction, http://europa.eu.int/comm/environment/water
Info
Stefan Scheuer
EU Water & Chemicals Policy Co-ordinator
European Environmental Bureau
Tel: +32 2 2891304, Fax: +32 2 2891099
E-mail: stefan.scheuer@eeb.org
Website: http://www.eeb.org
