Commission urged to stop pushing water privatisation

Press release from Corporate Europe Observatory and Food & Water Europe

Brussels, 15 May 2012 – The European Commission has been warned that imposing water privatisation as part of the bail-out packages for struggling EU economies threatens access to water for the poorest and could be in breach of EU legislation, in an open letter to Commissioner Olli Rehn, signed by more than 20 civil society organisations and trade union movements from across the world [1].

Water campaigners say that a requirement to privatise water and sanitation services threatens basic human rights and breaches the right of member states to govern the system of property ownership (Article 345 of the EU Treaties).

Under the conditions imposed by the ‘Troika’, the Greek government must sell off the water companies in Athens and Thessaloniki, while Portugal has been ordered to privatise the state-owned Aguas do Portugal.

The letter refers to a new report that analyses the social impacts of the recent austerity and privatisation policies that have been introduced in a range of different EU countries [2].

It argues that privatisation of water services will lead to reduced levels of service and increased costs, which will undermine the ability of the poorest to access services. The letter calls on the Commission to withdraw this demand.

Martin Pigeon, water campaigner at Corporate Europe Observatory said:

“Evidence from around the world shows that when urban water services are privatised, services get worse and costs increase. Private companies rarely make the necessary investments needed to maintain a water system, but instead seek a profit by increasing costs. To impose privatisation and increase water costs in countries already facing tough austerity measures threatens basic human rights.

Gabriella Zanzanaini from Food & Water Europe added:

“Imposing top-down water privatisation in the context of a deep economic crisis is not only flawed socially and economically but reveals undemocratic policy-making     concerning the most vital public service of all. Member states are entitled to determine whether water services are owned by the state or the private sector – it is     a breach of the Treaty for the Commission to insist otherwise.”

The letter also highlights how a number of cities, including Paris, have chosen to take their water services successfully back into municipal management, following disappointing experiments with privatisation [3].

ENDS

Contact:
Martin Pigeon, Corporate Europe Observatory, tel: +32 484 671 909
Gabriella Zanzanaini, Food & Water Europe, tel: +32 488 409 662

Notes:
[1] More than 20 organisations, including Corporate Europe Observatory, Food and Water Europe, the Council of Canadians, and the European Federation of Public Services Unions have signed the open letter to Commission Olli Rehn. See: http://www.corporateeurope.org/open-letter-eu-commission-water-privatisa...
[2] “Right to Water for All: Case Studies on Austerity and Privatization in Europe” www.blueplanetproject.net/documents/RTW/RTW-Europe-1.pdf
[3] See www.remunicipalisation.org