central and eastern europe: water
privatization
The accession of Central and Eastern
European countries to the European Union
has many parallels with developing
countries’ experience of the WTO’s General
Agreement on Trade in Services (GATS). Both
push countries into privatizing their
public services, including water. The Czech
Republic is the only country to have
yielded thus far, with virtually all water
services already privatized.
The EU demands higher standards for
water quality, water treatment and the
provision of water. It also provides
financial assistance for privatization
schemes. While regulations state that these
funds should not go to private companies,
in practice, loopholes in the regulations
mean that companies do get access to these
funds. The European Commission also
actively promotes publicprivate
partnerships which facilitate the
privatization of water services. As a
result, established water companies from
France, Germany and Britain will be able to
access the water services markets of
Eastern and Central Europe with European
funding.
Slovakia, for example, has until 2015 to
meet EU requirements for sewage treatment
plants, calculated to cost the country some
three billion euros. Some funds are already
available, but it is quite clear that these
are insufficient. Privatization schemes are
also evident in nearly all non-accession
countries, including many of those that
were part of the former Soviet Bloc. In
Ukraine, for example, water privatization
is currently the focus of a major public
debate.
more information
Friends of the Earth
Ukraine
Friends of the Earth Slovakia
