Water UK

Water in a larger European Union

28/06/05

After a decade of negotiations, what seemed impossible was reality. On 1 May 2004, ten new countries joined the European Union. Poland, Hungary, Slovenia, Czech Republic, Slovakia, Lithuania, Latvia, Estonia, Cyprus and Malta are now Member States.

The enlargement presents huge challenges to both European Union and new Member States. Geographical area has grown by 34%, population by 105m. Politically and socially scepticism has slowly been giving way to optimism, at least it was before the French and Dutch referendums.

It is a year late, perhaps, but the Union is now looking seriously at the policies it will need for the new era. Enlargement gives the opportunity to re-think the current legislative approach to water and the environment. Making the connection between today’s and tomorrow’s challenges and the need for better governance can bring innovative solutions that go beyond making directives. The industry is keen to play a full part.

New models

Better governance is about dialogue and partnerships with and between stakeholders. This different approach demands far-reaching cultural changes for governments, public and private sectors, as well as different institutional procedures. The new models must shift from applying uniform rules to finding the best way to apply guiding principles. This is already emerging in European water policy.

Enlargement does not only mean bringing together political entities, but also societies with community, economic and environmental needs. The questions it poses go deeper than governance or mechanisms for decision-making. For Europeans to take joint decisions on common policies implies a shared understanding of European and individual interests, and a will to co-operate. This applies across the board, including to the water industry.

The industry has begun this wider dialogue. Early discussions have shown the main challenge is ensuring that all European citizens have access to safe drinking water and effective wastewater services. This is naturally a universal and long-standing objective, but there are other technical, social and economic challenges that will have a major effect the industry’s capacity in the short and long-term.

Shared concern

For instance, sludge has become a shared concern. Will the future directive provide a framework that secures the agricultural route for disposal while ensuring public confidence? There is growing reluctance on some parts to accept biosolids as fertiliser yet the industry must deal with it. This issue is recorded as the ‘number one’ priority in Hungary and elsewhere.

Quality and health

Although access to drinking water has improved in the EU-25, there are still challenges, linked mainly to implementation of the existing Council Directive 98/83/EC on quality of water intended for human consumption. For instance, substances such as arsenic or manganese cause problems, along with the monitoring and reporting tasks. Another challenge is the profile of drinking water as a safe and reliable resource for public health. The social and health aspects of drinking water have been at the heart of the initial discussions. Water operators feel they have a strong role to play in building confidence in a precious resource.

Whilst sharing a common basis on some drinking water issues, the new Member States face special difficulties. Over-sized infrastructure and decreasing water demand, in particular in the industrial sector, are good illustrations.

Funding wastewater treatment

Another common issue is connection to sewage and wastewater treatment. The European Commission estimates that complying with the Urban Waste Water Treatment Directive requires investment of EUR15 billion (almost £10 billion). Funding has been made available for 2004–2006, but will have to continue after 2006 to support the implementation of directives for which transition periods have been granted. Nonetheless, the European financial programmes cover only part of the cost and will have to be supplemented, for example by private sector funding, if obligations are to be met. Poland is particularly interested in public/private partnership and has passed a Bill through Parliament to allow this. Then there is also a shortage of skills in wastewater management, for example in Lithuania, where delays in constructing treatment plants have occurred because the number of applications has been low.

The islands of Malta and Cyprus are facing acute water resources deficits. Malta is expected to face a groundwater shortage by 2008. Water authorities and companies are exploring alternatives. Desalination, water reuse and rainwater harvesting are possibilities. Operators are pressing for water conservation and demand management measures.

Future regulation

Regulation will be instrumental in securing the industry’s ability to deliver. It should be designed to deal with new relationships such as between human activity and ecosystems. At the same time, future regulation should consider the territorial units at which it can best be delivered. Water is a local. Yet each level of governance has an obligation to provide specific answers to common questions. The European institutions must ensure there are EU-wide principles guiding and supporting operators in their local responsibilities. New ideas and alternative approaches and policies have generally emerged at EU level.

The new configuration has also forced the water industry to re-think its operations. We know the objectives and challenges and change will be a constant. It is too early to predict how the new future will be shaped. But the present upheavals and volatile political climate show that flexibility will be crucial. gsuzenet@water.org.uk

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