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Water Services are the Bridgehead for a Return to Publicly Owned Utilities in Europe. A Comparative Analysis

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Abstract

Although for decades all across Europe numerous privatization phenomena have involved utilities, today the European Union appears on the edge of a profound change and water services are undoubtedly the bridgehead of a new model. Firstly, in a comparative perspective the present analysis aims to find some clues of the new trend at the national level. In particular, it moves from a case-based approach in order to carry out a wider exam of the relevant regulatory schemes. It thus focuses on the referenda concerning water supply services that took place in Italy and Germany. Plus, it studies local government decisions on the matter in the context of a debate regarding public companies, as in France. Secondly, the present paper gives an overview of the current water regulatory framework at European level. Directive 2000/60/EC gives a peculiar definition of water as a heritage rather than a commercial product as any other. Directive 2014/23/EU excludes water sector from the scope of the new concession regulatory scheme, given that water is a public good of fundamental value to all Union citizens. Besides, Directive 2014/25/EU clearly states that no by no means Member States are obliged to externalize the provision of water services, if they prefer to organize them in ways alternative to procurement. Eventually, the present article stresses out the new favourable background for re-publicisation processes set forth by the current European Union law.

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Notes

  1. Respectively General code of local authorities (Code general des collectivités territoriales) at articles L2224-7-1 and L2224-11.

  2. Tribunal Administratif de Paris case 7 may 21 2010, no. 0901127/6-1, 2009.

  3. Other well-known cases are Potsdam in 2000, Stuttgart in 2012 and Rostorck in 2015.

  4. Berlin Constitutional Court decided on the admissibility of the referendum on October 6th 2009.

  5. The economic value of the operation was €654million for the shares owned by RWE Aqua GmbH and €590 million for the shares owned by Veolia Wasser GmbH. The city of Berlin took a loan to be repaid through water bills over a period of 30 years.

  6. More precisely, under article 23 bis of law no. 122 of 2008.

  7. Corte Costituzionale, no. 62 of 2012.

  8. Corte Costituzionale, no. 24 of 2011.

  9. Law no. 133 of 2014 added article 149 bis to the Environmental Code regarding the entrustment of water services.

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Index of Cases

  • Berlin Constitutional Court October 6th, 2009.

  • Conseil d’Etat, 6 mai 1991, no. 65846

  • Conseil d’Etat, ss. III, 3 april 2009 no. 271737 and 271782

  • Corte Costituzionale no. 24 of 2011

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  • Tribunal Administratif de Paris case 7 may 21 2010, no. 0901127/6-1, 2009

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Authors and Affiliations

  1. Researcher in Administrative Law at SP.I.S.A., University of Bologna, Bologna, Italy

    Piergiorgio Novaro

  2. University of Verona, Verona, Italy

    Jacopo Bercelli

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  1. Piergiorgio Novaro
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  2. Jacopo Bercelli
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Correspondence to Piergiorgio Novaro.

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Novaro, P., Bercelli, J. Water Services are the Bridgehead for a Return to Publicly Owned Utilities in Europe. A Comparative Analysis. Water Resour Manage 31, 2375–2387 (2017). https://doi.org/10.1007/s11269-016-1535-z

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